Daily brief

Daily brief

Same read as the desk call. Sector versus the S&P, or no setup.

The call

Residual and relative chart agree. Only these get a view.

No setup.

Looked tempting. Not calling.

Residual is stretched. Chart does not agree, so no trade versus the S&P.

• Semiconductors (SMH)no setup

  Residual is stretched, but it is not stretched against its own residual trend. No call.

  z -2.66 · 20d residual -17.79% · beta 2.18 · 20-day relative low

• Industrials (XLI)no setup

  Residual says buy the washout. Relative chart is not at the 20-day low. No agreement, no call.

  z -2.61 · 20d residual +1.84% · beta 0.62 · mid-range on the relative chart

• Technology (XLK)no setup

  Residual is stretched, but it is not stretched against its own residual trend. No call.

  z -2.22 · 20d residual -10.46% · beta 1.8 · 20-day relative low

• Consumer staples (XLP)no setup

  Residual is stretched, but it is not stretched against its own residual trend. No call.

  z 2.06 · 20d residual +11.83% · beta -0.19 · 20-day relative high

• Oil and gas explorers (XOP)no setup

  Residual is stretched, but it is not stretched against its own residual trend. No call.

  z -2.06 · 20d residual -5.43% · beta -0.9 · mid-range on the relative chart

• Nasdaq 100 (QQQ)no setup

  Residual is stretched, but it is not stretched against its own residual trend. No call.

  z -2.05 · 20d residual -6.89% · beta 1.53 · 20-day relative low

• Financials (XLF)no setup

  Residual is stretched, but it is not stretched against its own residual trend. No call.

  z 1.91 · 20d residual +10.57% · beta 0.6 · 20-day relative high

• Gold miners (GDX)no setup

  Residual is stretched, but it is not stretched against its own residual trend. No call.

  z 1.89 · 20d residual +3.49% · beta 2.62 · 20-day relative high

• Energy (XLE)no setup

  Residual is stretched, but it is not stretched against its own residual trend. No call.

  z -1.81 · 20d residual -0.53% · beta -0.92 · mid-range on the relative chart

• Consumer discretionary (XLY)no setup

  Residual is stretched, but it is not stretched against its own residual trend. No call.

  z 1.79 · 20d residual +11.03% · beta 1.12 · 20-day relative high

• Real estate (XLRE)no setup

  Residual is stretched, but it is not stretched against its own residual trend. No call.

  z 1.76 · 20d residual +11.36% · beta 0.45 · 20-day relative high

• Communication (XLC)no setup

  Residual says fade short. Relative chart is not at the 20-day high. No agreement, no call.

  z 1.75 · 20d residual -4.38% · beta 0.97 · mid-range on the relative chart

• Healthcare (XLV)no setup

  Residual is stretched, but it is not stretched against its own residual trend. No call.

  z 1.54 · 20d residual +12.19% · beta 0.27 · 20-day relative high

• Materials (XLB)no setup

  Residual is stretched, but it is not stretched against its own residual trend. No call.

  z 1.42 · 20d residual +10.17% · beta 0.38 · 20-day relative high

• Gold (GLD)no setup

  Residual is stretched, but it is not stretched against its own residual trend. No call.

  z 1.38 · 20d residual +1.04% · beta 1.32 · 20-day relative high

Quiet

high yield (HYG), silver (SLV), bitcoin (BTC), us dollar (UUP), ig credit (LQD), 7-10y treasuries (IEF), copper miners (COPX), russell 2000 (IWM), 20y treasuries (TLT), biotech (XBI), utilities (XLU). Residual is not extreme. No view.