‘S&P 500’ Archive

Home Builders diverging again, similar to 2006-2007

  CLICK ON CHART TO ENLARGE Almost four years ago the Power of the Pattern shared that a falling resistance line breakout would be good for home builders ETF XHB (see post here). Since the posting XHB is up almost 100%. Despite the S&P 500 doing well since 2010, XHB has out performed the S&P by 40%. […]

Buffett valuation indicator, hitting second highest level in 60-years!

  CLICK ON CHART TO ENLARGE The above chart was created by Doug Short and some of his comments follow.  Market Cap to GDP is a long-term valuation indicator that has become popular in recent years, thanks to Warren Buffett. Back in 2001 he remarked in a Fortune Magazine interview that “it is probably the […]

Semiconductors often lead the broad market…Current message is?

  CLICK ON CHART TO ENLARGE Semiconductors bottomed and turned up before the broad markets in 2002 and 2008. They did the opposite in 2000 and 2007, as they started reflecting weakness before the broad market turned down. Are Semiconductors the holy grain of investing? Don’t think so! They have been a decent leading indicator […]