As a result of the mounting evidence that a shift towards risk is underway and likely to continue for at least a few more weeks, our short-term views on oil and the industrial metals have changed from "neutral" to "bullish". As a result of the same evidence and the T-Bond's break below its 20-day moving average on Friday (see chart below), our short-term T-Bond view has changed from "neutral" to "bearish".
http://www.speculative-investor.com/...ond_290612.gif
The Stock Market
Friday's rally in response to the EU news took the S&P500 Index (SPX) back to its 19th June short-term high.
http://www.speculative-investor.com/new/SPX_290612.gif
Of significance, the rally was confirmed by "market internals". We note, in particular, that on Friday there was a big increase in the number of individual stocks making new 52-week highs while the number of stocks making new 52-week lows shrunk to almost zero. Also of significance is the recent strength in small-cap stocks relative to large-cap stocks evidenced by the upturn in the RUT/SPX ratio (see chart below). The upturn in this ratio over the past two weeks suggests that the early-June breakdown was false.
http://www.speculative-investor.com/...49k020712.html
http://www.speculative-investor.com/...ond_290612.gif
The Stock Market
Friday's rally in response to the EU news took the S&P500 Index (SPX) back to its 19th June short-term high.
http://www.speculative-investor.com/new/SPX_290612.gif
Of significance, the rally was confirmed by "market internals". We note, in particular, that on Friday there was a big increase in the number of individual stocks making new 52-week highs while the number of stocks making new 52-week lows shrunk to almost zero. Also of significance is the recent strength in small-cap stocks relative to large-cap stocks evidenced by the upturn in the RUT/SPX ratio (see chart below). The upturn in this ratio over the past two weeks suggests that the early-June breakdown was false.
http://www.speculative-investor.com/...49k020712.html