"No warning can save people determined to grow suddently rich" - Lord Overstone

  • 8 hours Twitter CEO: The World Will Have A Single Currency
  • 9 hours Asian Currency Correction Could Signal Looming Crisis
  • 10 hours Best Buy Drops Telecom Giant Over National Security Threat
  • 11 hours The Pros And Cons Of The Federal Interest Rate Hike
  • 12 hours Good News For Gold Bulls Despite Interest Rate Hike
  • 14 hours Trump Hits China With $50 Billion In Tariffs
  • 15 hours Russian Gold Reserves Hit Record High Amid Rising Tensions With West
  • 16 hours Stocks Pull Back Following Interest Rate Hike
  • 1 day Will Regulatory Rollbacks Make Banks 'Too Big To Fail?'
  • 1 day Elon Musk’s $2.6 Billion Tesla Challenge
  • 1 day Tech Giants Could Be First Victims Of U.S. Trade War
  • 1 day Dow Gains Despite Fed’s Rate Hike
  • 1 day The Biggest Threat To Chinese Oil Futures
  • 2 days Spending Bill Could Cause U.S. Debt To Soar To 99% Of GDP
  • 2 days Precious Metals Slide Ahead Of Fed’s Interest Rate Decision
  • 2 days China’s Soft Power Grab May Be Bad News For Emerging Economies
  • 2 days The Secretive Wall Street Firm Betting On Bitcoin
  • 2 days ‘Data Is King’: The Oil Industry’s Next Most Valuable Resource
  • 2 days Google Invests $300 Million To Combat Fake News
  • 2 days Zuckerberg Dodges A Bullet As Facebook Loses Billions


We are financial market enthusiasts using methods expressed by the Gann, Hurst and Wyckoff with a few of our own proprietary tools. Readtheticker.com provides online…

More Info

Sector Trends Reveal Market Strength

Sector relative strength easily shows up the wave strength behind the market. If you can judge what folks are buying you can determine the risk on or off mode of the market.

This sector rotation chart shows the stock market cycle and the economic cycle.

Economic Cycle

1) Stock market bull cycle favors SPDR sectors: Basic Materials(XLB), Industrials(XLI), Technology(XLK)

2) 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 basic technical analysis. Look out for higher highs, lower lows, divergences, etc.

For example, the SPY (SP500 Etf) sideways pattern during May 2011 was not likely to break out higher as folks brought more defense stocks versus risk stocks, and the SPY low of March 9 2009 was always going to reverse as folks starting to nibble at risk stocks (no new low with the @RTPRD/@RTDEF line).

Knowing if the true risk on or off market is active allows the investor to increase or decrease exposure to the market.



Back to homepage

Leave a comment

Leave a comment

Sign Up For The Safehaven Newsletter