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February 11, 2017 – Weekend Market Comment

February  11, 2017 – Welcome to my weekend market comment, an analysis tool I use in my own portfolio decisions, published free to the web every weekend before the New York opening bell. You can read the latest version each week by bookmarking For full details read my disclaimer (link at the bottom of this page).

Economically-sensitive industrial metals are rising again, along with stocks tied to them. The price of copper is up 3.5% Friday to the highest level in nearly two years. So are copper shares. The Global X Copper Miners ETF (COPX) resuming its uptrend. The COPX is now trading at the highest level since the second half of 2014. The price of iron ore (which is used in the making of steel) is also surging in China to the highest level in two years. So are stocks tied to both commodities. Of course this is causing a rally in Canadain stocks. 

Here is what our charts say:

101 Bull Bear
Bull market (dark green over red)  the dark green 50 day average is in a firm uptrend.  NOTICE THE SLOPE (second window), we might be starting another long ride up.  Bull market -- expect bullish outcomes.
103 NYSE High Low Market Forces
Wow breadth is still very strong. Nothing but strength. 

105 Non Farm Payroll
Lots of jobs! But beware this is lagging indicator. The smart money is gone before this turns down.

107 Industrial Production
Hey an uptick in industrial production.  That is good news.

115 Renko
The big march forward, 11 bricks up !

203 OBV
OBV (red line) is back with the market. Bullish!
207 VIX
Fear is way down, in fact to all time new levels.... For now Bullish but overdone.

209 VIX Evaluator
Very much bullish.

211 S&P500 over 50 day
Now about 70% of stocks are above their 50 day MA,  up from last week when it was 65%.

213 Green Arrow
Only put new money to work when I draw a green arrow. TRIX says green light, could be a green arrow soon.

301 NASDAQ Summation
Looks like it might get more stable. for now consolidation. 

303 Aggressive Defensive
Aggressive is back in style. 

305 Consumer Bonds vs Equities
Bonds down. Consumer bouncing? Bullish 

307 Bond Direction
Bonds hit moving average and die. Goldfinger say: NO Mr. Bond I expect you to Die. 

309 Sectors
Consumer and Nasdaq try to run, banks stall.

311 Nations
Emerging markets perk up. 

313 Major sectors
Emerging Markets strong.

! = Pay attention this chart is important this week.

What I Find Interesting
For years, their existence has been debated: elusive electrical discharges in the upper atmosphere that sport names such as red sprites, blue jets, pixies and elves. Reported by pilots, they are difficult to study as they occur above thunderstorms. ESA astronaut Andreas Mogensen during his mission on the International Space Station in 2015 was asked to take pictures over thunderstorms with the most sensitive camera on the orbiting outpost to look for these brief features. Denmark’s National Space Institute has now published the results, confirming many kilometre-wide blue flashes around 18 km altitude, including a pulsating blue jet reaching 40 km. This image is a still from a video recorded by Andreas as he flew over the Bay of Bengal at 28 800 km/h on the Station shows the electrical phenomena clearly – a first of its kind.

What Works Now

Red Lobster and Olive Garden (Ticker: DRI)

Growth ETF

What I Think

I think we are in bull market and we are just starting an agressive leg up that I expect to run in spurts until May. I would buy growth etfs (such as IJK shown above) tech and consumer stocks. Also look at Canadain markets including pipelines and banks.

You can learn more about my indicators by visiting the CME4PIF school by clicking here.

Don't squint, All graphics can be enlarged by click on them.

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