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.

• Financials (XLF)long vs S&P

  Washed out versus a positive residual trend, and the relative chart is at the 20-day low. Buy versus the S&P, not a naked long.

  z -1.02 · 20d residual +1.06% · beta 0.37 · 20-day relative low

Looked tempting. Not calling.

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

• Semiconductors (SMH)no setup

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

  z 1.95 · 20d residual -1.29% · beta 2.86 · 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 1.82 · 20d residual +0.15% · beta 1.76 · mid-range on the relative chart

• Industrials (XLI)no setup

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

  z 1.48 · 20d residual -5.09% · beta 0.92 · 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 1.42 · 20d residual +0.58% · beta 2.09 · 20-day relative high

• Energy (XLE)no setup

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

  z -1.34 · 20d residual +10.71% · beta -0.78 · mid-range on the relative chart

• Russell 2000 (IWM)no setup

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

  z 1.27 · 20d residual -1.47% · beta 0.88 · mid-range on the relative chart

• Oil and gas explorers (XOP)no setup

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

  z -1.2 · 20d residual +13.60% · beta -0.83 · 20-day relative high

• Healthcare (XLV)no setup

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

  z -1.07 · 20d residual +3.47% · beta -0.25 · mid-range on the relative chart

• Communication (XLC)no setup

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

  z -1.05 · 20d residual +1.05% · beta 0.64 · mid-range on the relative chart

Quiet

bitcoin (BTC), consumer staples (XLP), consumer discretionary (XLY), real estate (XLRE), gold miners (GDX), us dollar (UUP), 20y treasuries (TLT), gold (GLD), silver (SLV), ig credit (LQD), 7-10y treasuries (IEF), biotech (XBI), utilities (XLU), high yield (HYG), materials (XLB), copper miners (COPX). Residual is not extreme. No view.