(Click on image to enlarge)
I ended last week on Maggie Lake’s. During the discussion, we covered a lot of topics, and I encourage you to go have a listen as we offer actionable information. One of the topics we covered is the notion of risk parameters, and how we use ratios to ascertain risk on or off. Above is a chart from our BigView product. The four ratio indicators I look at most are
With all risk factors in gear, it is hard to get too bearish unless those ratios change. Another big point of our conversation was on Bitcoin. Essentially, we discussed money management based on current levels in Bitcoin and many of the other currencies. Viewers often ask me about gold and silver. (Click on image to enlarge)
Maggie and I discussed the bounce (which began today) and more importantly, how silver behaves relative to gold. This is yet another key ratio to assess risk and inflation factors. While both metals are beneath their 50 daily moving averages, momentum turned up today. However, looking at gold, it underperforms SPY. Looking at silver, it remains an underperformer to gold at this point (also risk on for equities). The goal of the podcast with Maggie given the time she generously allows for, is to leave you with actionable indicators that assess the risk dispassionately. This is especially crucial during this highly emotional time for investors.
ETF Summary (Pivotal means short-term bullish above that level and bearish below) S&P 500 (SPY) 575 support 600 resistance Russell 2000 () 227 support 244 the area to clear Dow () 430 support Nasdaq () 500 now pivotal Regional banks () 65 pivotal Semiconductors () 235 the 200-DMA to hold 250 resistance Transportation () Looks good if it holds over 71 Biotechnology () 132 support 138 now resistance Retail () 78.50 key pivotal support iShares iBoxx Hi Yd Cor Bond ETF (HYG) 79.50 pivotal More By This Author:Reality Sets Into The Major Sector ETFsTurnaroud Tuesday: Did Canna Finally Bottom?What Do Major Sector ETFs Say Now?
