CRB, The Breakout

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A base breakout with the CRB a show of optimism for economic cycle – as long as it sticks.

This index of commodities says buyers are paying more, which either means there’s increased demand or a smaller supply. Higher prices often comes with increased business activity at this stage of the economic cycle –  especially with leading index copper as well as aluminum. Copper, CU, happens to be forming a right side of a lower base.

Here’s the whole package:

Aluminum, Cocoa, Coffee, Copper, Corn, Cotton, Crude Oil, Gold, Heating Oil, Lean Hogs, Live Cattle, Natural Gas, Nickel, Orange Juice, Silver, Soybeans, Sugar, Unleaded Gas and Wheat.

 

Spark It Up

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New highs for the S&P 500, Naz and Russell 2K keep the fire alive on the heels of the Fed’s meeting.

The story here is the Russell, which just a couple of weeks ago was struggling below highs while the rest of the market partied. This a pure sign of new strength to be taken into consideration. The Dow remains just a shot below new highs.

Market is strong here. I’m sure everyone feels good about buying, which is precisely why we don’t want to add to any long positions.

Our longer-term bias remains bearish – for the time being. Though more new highs are likely in the cards for the short run.

Fast Fn

Here’s the straight shot of U.S. Financial companies with estimated 30% sales growth for the next five years. All have market caps of at least 300M, average daily volume over 200K and a stock price of at least 15 (because we want to weed out the less sturdy.)

Ticker Company Sector Industry
EQY Equity One Inc. Financial REIT – Retail
ETFC E*TRADE Financial Corporation Financial Investment Brokerage – National
FNGN Financial Engines, Inc. Financial Asset Management
GLPI Gaming and Leisure Properties, Inc Financial REIT – Diversified
ITG Investment Technology Group Inc. Financial Investment Brokerage – Regional
L Loews Corporation Financial Property & Casualty Insurance
OCN Ocwen Financial Corp. Financial Mortgage Investment
Z Zillow, Inc. Financial Property Management

VIX Dive

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S&P 100 options traders are complacent, according to the VIX chart above. This Point & Figure interpretation of the indicator, with all the X’s and O’s, cancels out the noise of traditional charts by only marking significant moves. Clearly a breakdown to record lows makes a counter move up inevitable, which means selling is on the horizon for U.S. equities.

 

Tranny Top

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Market looking strong. So strong, we may have to remove our Sell Bias. Bottom line is quality is ascending, shit is sinking. It’s summertime, funds gotta reallocate.

Not often you see the Transportation Index go parabolic. I’d say she’s going to cool down from here – should we close under yesterday’s low, like we’re trading right now,