Dear Retail Investor, Time See Whos Blowing Hot Air
A cycle we watch to judge risk on and off, suggest to us that all is not well with the current market rally. Retail investors need to heed those that are blowing hot air.
Previous post: Sector trends reveal market strength
- Stock market bull cycle favors SPDR sectors: Basic Materials(XLB), Industrials(XLI), Technology(XLK)
- Stock market bear cycle favors SPDR sectors: Utilities(XLU), Consumer Staples(XLI), Health Care(XLV)
At readtheticker.com we have combined the above into two custom indexes: (1) RTT Product Index (@RTPRD) and (2) RTT Defensive Index (@RTDEF).
To determine the pure risk on or off market we divide @RTPRD by @RTDEF, or risk stocks with defensive stocks, and then review with our Hurst Cycles.
Sure the current up swing in the SP500 may extend for a little while yet, but the greater gains are to be made from the cycle roll over.