Google site search Follow readtheticker on LindedIn YouTube StockTwits FaceBook Follow readtheticker on Twitter
jump to mobile friendly blog
Blog ReLoad |Titles List |Media Only |Media Titles List |RSS RSS |ATOM Atom |FEEDBURNER FeedBurner|Email Delivery |Mobile
Created on: 5/24/2011 8:58:46 PM   Last Update: 5/24/2011 9:08:58 PM Posted by: RTT
WARNING: This entry is 1952 days old. It may contain broken links, out-dated or misleading content. Please read on with caution.

1 POST Those that must be long the stock market are bearish (323)


those-that-must-be-long-the-stock-market-are-bearishSome of the largest players in the stock market game are the mutual funds, and most of these funds can only be long (that is they cant short stocks). When these type of funds get bearish and need protection they will either buy cash, bonds or defensive stocks. How aggressively they do this can be very telling.

Within our website service we have a custom symbol called @RTDEF or SPDR Defensive sectors. This is made up of the equal weighting of defensive SPDR sectors namely Health care, Utilities and Consumer Staples.

To determine if more monies are flowing into defensive sectors we find the relative strength of @RTDEF versus the SPDR SP500 symbol SPY, this is simply dividing @RTDEF by SPY or our symbol methodology is @RTDEF::SPY. See the chart below.

@RTDEF::SPY = Relative Strength of Defensive stocks versus the SP500.

Currently the relative strength of @RTDEF is very strong, showing the fund managers are very worried. The SP500's meager rally since the Japanese quake is not trusted by the professionals (I wont say smart money, as mutual funds under perform). Maybe the big elephant in the room is the ending of QE2 (quantitative easing by the US Federal Reserve), or is that earnings have peaked, or maybe the European debt crisis or maybe the Central Bank of China raising interest rates and bank reserves.

The action by the fund managers is fitting well with our latest SP500 cycle view.

Keep an eye on your portforlio over US summer, it could get wild. Get time to buy VIX calls.

Click for popup. Clear your browser cache if image is not showing.
SPDR Sectors
 



NOTE: readtheticker.com does allow users to load objects and text on charts, however some annotations are by a free third party image tool named Paint.net

Investing Quote...

...“I believe that anyone who is intelligent, conscientious, and willing to put in the necessary time can be successful on Wall Street.  As long as they realize the market is a business like any other business, they have a good chance to prosper.”...

Jesse Livermore


.."Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected"..

George Soros


..“How many millionaires do you know who have become wealthy by investing in savings accounts?”..

Robert G Allen


.."Wall Street is the only place that people ride to in a Rolls Royce to get advice from those who take the subway"..

Warren Buffett


.."If you have trouble imagining a 20% loss in the stock market, you shouldn't be in stocks"..

John (Jack) Bogle




         >> Print or PopOut or Pdf
         >> Go Back

We at readtheticker.com hold the view that a mix of stock chart technical analysis, Richard Wyckoff, William Gann and Jim Hurst methods plus market fundamentals allows the investor to formulate a very sound market opinion. These attributes are mutually inclusive and must be weighted equally before investing or trading in any Stock, ETF, Currency, Bond, Commodity, CFD or Mutual Fund



Search Blog for Text:
Search Blog for Ticker Symbol:

Or 'Click Me' to search this site with Google
Debt limit 101 !
QE addiction
Do you believe me!!

Pages
1. Tips, Tricks, How Toos
2. Blog Performance Review
3. List of the best blog posts

MostRecent
RTT browsing latest..
Selecting gold stocks by relative strength
Price and volume health check
Apple Inc With Gann Angles
Gold Gann Angle Update

Economic(79)
Jokes(22)
Market Review(78)
Ticker Review(26)
Wall Street(21)
Gann Wyckoff Hurst(95)
Alpha Search(10)
Metals and Forex(102)
Bonds(17)
Newsletter Review(1)
News(4)
Investors(102)
Cycle Masters(3)
Market Calls(19)
Testimonials(8)
Swing Trade Idea(43)
Cycle Review(35)
Winners and Losers(9)
Specials(2)
Market Strategy(51)
Day Trade Idea(1)
Mystery Trader(5)
Wyckoff 2.0(33)

201609(5)
201608(9)
201607(7)
201606(7)
201605(6)
201604(7)
201603(7)
201602(6)
201601(9)
201512(10)
201511(6)
201510(9)
201509(10)
201508(9)
201507(9)
201506(6)
201505(8)
201504(8)
201503(11)
201502(11)
201501(11)
201412(7)
201411(6)
201410(7)
201409(6)
201408(7)
201407(8)
201406(9)
201405(7)
201404(8)
201403(11)
201402(7)
201401(12)
201312(9)
201311(9)


 

RSS RSS

ATOM Atom

FEEDBURNER FeedBurner|Email Delivery

  Blog Links
Marker TalkMarkets
Marker PhilStockWorld
Marker SureMoneyInvestor.com
Marker FinancialSurvivalNetwork
Marker KimbleChartingSolutions.com
Marker iTulip
Marker Tip TV UK
Marker SlopeOfHope
Marker dshort.com
Marker IndexIndicators.com
Marker Safehaven.com
Marker Marketoracle.co.uk
Marker KingWorldNews.com
Marker ZeroHedge.com
Marker MaxKeiser.com
Marker Bespokeinvest.com
Marker Jugglingdynamite.com
Marker Bloomberg.com
Marker MarcFaberchannel
Marker SeasonalCharts.com
Marker McverryReport.com
Marker SmartMoneyTracker
Marker Calafia Beach Pundit
Marker BusinessInsider.com
Marker YahooTechTicker
Marker JoeFahmy
Marker ForexLive
Marker Katusa Research
Marker Tim Duy Fed Watch
Marker StreetTalkLive
Marker readtheticker tumblr
Marker readtheticker blogger
  Symbols used in blog
AAPL ABX AG AMGN AMZN AORD APPL BA BAC BANK CRB CRM CRUDE DB DBO DIA DLTR DXY EEM EURUSD F FB FXA FXY GDX GILD GLD GLEN GOOG HL HSI HYG IBB INDU IWM JJC JNK MCD MCYC MMI MSFT NEM NYSE PCLN RUL RUT SBUX SLV SLW SML SOX SPY SSEC SSRI TLT TNX TRAN TYX USD USO UUP VLO WMT XAU XLF XLP XLU XLV XLY XOM YHOO


Follow readtheticker on LindedIn

Seeking Alpha Certified



Add to SocialTrade

StockTwits

Follow readtheticker on FaceBook









Home | Charts & Tutorials | Market Timing | Blog | RTT Tv | Services | Information & FAQ | Contact Us | Sign Up | Logon
Indicator Library | FAQ | Site Search | Symbols Available | Education | Advisors | General Policy | Privacy Policy | Terms Of Use | About Us
Tutorials | Charts Demo | Charts Members | Charts Secured | Calendar | World Time .
Public Disclaimer