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.

• Bitcoin (BTC)no setup

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

  z 2.07 · 20d residual +9.69% · beta 1.03 · 20-day relative high

• Communication (XLC)no setup

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

  z 1.94 · 20d residual +2.37% · beta 0.72 · mid-range on the relative chart

• Gold miners (GDX)no setup

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

  z -1.42 · 20d residual -9.43% · beta 1.42 · mid-range on the relative chart

• US dollar (UUP)no setup

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

  z 1.42 · 20d residual +2.20% · beta -0.12 · mid-range on the relative chart

• Energy (XLE)no setup

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

  z -1.31 · 20d residual -0.94% · beta -0.71 · 20-day relative low

• Industrials (XLI)no setup

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

  z -1.21 · 20d residual -6.68% · beta 0.84 · 20-day relative low

• Oil and gas explorers (XOP)no setup

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

  z -1.11 · 20d residual -1.48% · beta -0.75 · 20-day relative low

• Materials (XLB)no setup

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

  z -1.1 · 20d residual -7.77% · beta 0.4 · mid-range on the relative chart

• Silver (SLV)no setup

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

  z -1.05 · 20d residual -5.82% · beta 1.24 · mid-range on the relative chart

• Russell 2000 (IWM)no setup

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

  z -1.04 · 20d residual -5.74% · beta 0.84 · mid-range on the relative chart

Quiet

gold (GLD), copper miners (COPX), healthcare (XLV), utilities (XLU), financials (XLF), real estate (XLRE), 7-10y treasuries (IEF), consumer staples (XLP), technology (XLK), consumer discretionary (XLY), 20y treasuries (TLT), nasdaq 100 (QQQ), ig credit (LQD), semiconductors (SMH), high yield (HYG), biotech (XBI). Residual is not extreme. No view.