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.

• Copper miners (COPX)no setup

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

  z -2.18 · 20d residual +4.92% · beta 2 · mid-range on the relative chart

• 7-10y Treasuries (IEF)no setup

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

  z -1.98 · 20d residual -1.63% · beta 0.16 · 20-day relative low

• IG credit (LQD)no setup

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

  z -1.91 · 20d residual -1.27% · beta 0.21 · 20-day relative low

• Silver (SLV)no setup

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

  z -1.82 · 20d residual +0.90% · beta 1.54 · mid-range on the relative chart

• 20y Treasuries (TLT)no setup

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

  z -1.47 · 20d residual -1.14% · beta 0.24 · 20-day relative low

• High yield (HYG)no setup

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

  z -1.41 · 20d residual -0.91% · beta 0.18 · 20-day relative low

• Energy (XLE)no setup

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

  z -1.37 · 20d residual +5.15% · beta -0.61 · mid-range on the relative chart

Quiet

utilities (XLU), communication (XLC), real estate (XLRE), gold miners (GDX), bitcoin (BTC), materials (XLB), gold (GLD), biotech (XBI), russell 2000 (IWM), oil and gas explorers (XOP), consumer discretionary (XLY), semiconductors (SMH), healthcare (XLV), us dollar (UUP), technology (XLK), nasdaq 100 (QQQ), industrials (XLI), consumer staples (XLP), financials (XLF). Residual is not extreme. No view.