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.

• Gold (GLD)no setup

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

  z 2.42 · 20d residual +2.94% · beta 0.67 · mid-range on the relative chart

• Silver (SLV)no setup

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

  z 2.31 · 20d residual -4.72% · beta 1.4 · 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 2.22 · 20d residual +7.26% · beta 1.37 · 20-day relative high

• Energy (XLE)no setup

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

  z -1.82 · 20d residual -6.52% · beta -0.23 · mid-range on the relative chart

• Communication (XLC)no setup

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

  z 1.78 · 20d residual -3.68% · beta 0.62 · mid-range on the relative chart

• High yield (HYG)no setup

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

  z 1.64 · 20d residual +1.15% · beta 0.18 · 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 -1.39 · 20d residual -11.21% · beta -0.24 · mid-range on the relative chart

• IG credit (LQD)no setup

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

  z 1.24 · 20d residual +2.74% · beta 0.12 · 20-day relative high

• Copper miners (COPX)no setup

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

  z 1.16 · 20d residual -5.57% · beta 1.76 · mid-range on the relative chart

• Materials (XLB)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 +8.91% · beta 0.52 · mid-range on the relative chart

Quiet

bitcoin (BTC), industrials (XLI), healthcare (XLV), consumer staples (XLP), 7-10y treasuries (IEF), nasdaq 100 (QQQ), russell 2000 (IWM), utilities (XLU), us dollar (UUP), biotech (XBI), financials (XLF), 20y treasuries (TLT), technology (XLK), real estate (XLRE), consumer discretionary (XLY), semiconductors (SMH). Residual is not extreme. No view.