A very strange week last week. Nasdaq mega-caps rotated into Small-cap value. This is due to a short squeeze in the Most-shorted index, not a cyclical rebound.
Seeing VVVIX upward movement this week alongside the SPY. This is a huge Divergence. I said keep a lookout for divergences. This week was full of 'em.
30-year Bonds got demolished. Higher yields + Steeper yield curves helped out the banks. The IWM is full of banks. GLD was overextended and a pullback was expected. UUP The Dollar appears to be forming an inverse H&S.
Lots of money moving around under the surface. TIPS LTPC Inflation Expectations are moving up I believe, which will be a problem for these more richly valued stocks that've been justified by really low rates.
Market Breadth is deteriorating as can be seen from the: - RSP Equal Weight Index - MMTW % of stocks above 50-day ma
Small caps are the only major index that's been in a primary downtrend since 2018 high. Warren Buffett last week sold all of his exposure to Goldman Sachs GS and purchased Barrick Gold GOLD.
Best of luck next week, - RH
ملاحظة
HYG High Yield a huge red flag Divergence PC Put/Call ratio is lowest it's been in 20 years for those contrarians out there.
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