• 3 hours The EU Begins Backtracking On China Trade
  • 1 day Americans Are Sick Of Unfair Taxation
  • 3 days No Jab, No Job: The New Hardline Policy of U.S. Employers
  • 5 days What’s Included In Biden’s $6 Trillion Economic Plan?
  • 6 days The “Great Car Comeback” Brightens Oil Demand Outlook
  • 7 days The 3 Most Profitable Covid-19 Vaccine Stocks
  • 9 days Beijing Launches Digital Currency To Break AliPay-WeChat Duopoly
  • 10 days The New Economic World Order After Covid-19
  • 14 days 3 Signals To Watch For A Stock Market Correction
  • 16 days Netflix Earnings Red Alert: Subscriptions Could Underwhelm
  • 17 days Wall Street Banks Are Back
  • 17 days Elon Musk’s SpaceX Scores Big Win Over Jeff Bezos’ Blue Origin
  • 18 days Which Country Is The World’s Largest Investor In Batteries?
  • 20 days Are Bitcoin’s Environmental Risks Overblown?
  • 20 days Why The Gold Rush Ran Out Of Steam
  • 23 days Coinbase IPO Explodes, But Fails To Keep Its Momentum
  • 23 days China Slaps Alibaba With Record $2.75B Antitrust Fine
  • 24 days The Pandemic Has Culled The Middle Class
  • 25 days Legacy Automakers See Massive Spike In Sales
  • 26 days Tesla's Biggest Competitor Is Going Cobalt-Free
Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

Billionaires Are Pushing Art To New Limits

Billionaires Are Pushing Art To New Limits

Welcome to Art Basel: The…

  1. Home
  2. Markets
  3. Other

Counter-Trend Trading

Silver continues to closely follow the 92' Nikkei unwind, finding support today where the comparative had expected it would. It seems reasonable to us that the precious metals sector could find further countertrend strength next week - while the equity markets play catch-up on the downside.

1992 Nikkei 2013 Silver (SLV)
Larger Image

1992 Nikkei 2013 Silver
Larger Image

This would be reflected in the silver:gold/SPX performance spread coming in over the short-term - as it has in the past after the equity markets have pivoted down.

Silver:Gold SPX Performance Spread
Larger Image

We do not expect the euro to continue the countertrend strength it enjoys today; rather, anticipate it to perform poorly in a broader risk-off environment. This would be a character change as well for the US dollar - running against the grain of the equity markets.

2011 Euro 2013 Euro - A Mirrored Pivot
Larger Image

Euro:US Dollar Index
Larger Image

Larger Image

Larger Image

Like the miners, Apple may find a countertrend bid in the face of broader equity market weakness as it flirts with its 150 week SMA. In the past, the 150 week SMA has proved to be initial support with the backside unwind of the parabolic mega-caps (see Here). While we had anticipated a deeper weekly RSI imprint for a tradable low, we are open to the possibility that similar to the miners - the positive divergence extends as the asset stair-steps lower over time.

2013 Apple
Larger Image

RUT:SPX 1992-1997 2008-2013
Larger Image

As always - Stay Frosty.


Recent Market Anthropology Reference Notes:

* All stock chart data originally sourced and courtesy of www.stockcharts.com

* Subsequent overlays and renderings completed by Market Anthropology


Back to homepage

Leave a comment

Leave a comment