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.

• Communication (XLC)no setup

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

  z 2.25 · 20d residual +3.11% · beta 0.58 · 20-day relative high

• 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 -1.63 · 20d residual +5.74% · beta -0.67 · 20-day relative high

• Semiconductors (SMH)no setup

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

  z -1.61 · 20d residual -2.04% · beta 2.87 · mid-range on the relative chart

• Energy (XLE)no setup

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

  z -1.52 · 20d residual +2.89% · beta -0.68 · 20-day relative high

• Utilities (XLU)no setup

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

  z -1.24 · 20d residual -5.97% · beta -0.13 · 20-day relative low

• Consumer staples (XLP)no setup

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

  z 1.22 · 20d residual -2.50% · beta -0.32 · mid-range on the relative chart

• Copper miners (COPX)no setup

  Residual is not extreme. No setup.

  z -1 · 20d residual +4.62% · beta 1.98 · 20-day relative low

Quiet

industrials (XLI), healthcare (XLV), us dollar (UUP), gold miners (GDX), technology (XLK), gold (GLD), real estate (XLRE), silver (SLV), materials (XLB), consumer discretionary (XLY), biotech (XBI), russell 2000 (IWM), ig credit (LQD), 20y treasuries (TLT), 7-10y treasuries (IEF), high yield (HYG), financials (XLF), bitcoin (BTC), nasdaq 100 (QQQ). Residual is not extreme. No view.