Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

The Lead-Lag Report: Market Confusion


After unrelenting selling, market internals indicate uncertainty over which way to go as a potential turning point in the cyclical trade takes hold.


Utilities (NYSEARCA:XLU) – Yuck

Comments: Utilities severely underperformed in the last couple of weeks following Obama's win as bets increased on dividend tax rate hikes to come in 2013. The breakdown has been fairly substantial, diverging from strength in bonds.

Small-Caps (NYSEARCA:SLY) – Sideways

Comments: Small-caps have bounced around ratio support and are showing no real conviction as to the ultimate relative trend. More time is needed to see if risk sentiment in terms of high beta leadership takes place.

Technology (NYSEARCA:XLK) – Bottoming?

Comments: Following technology's roundtrip collapse, a bottom may be near, which could result in a strong snap-back for the sector. More time is needed to confirm, but from a trading perspective, it seems plausible to play a return to leadership.


Various important relative levels are getting reached within the markets, and may be a sign of an important turning point. Further downside may be limited, but a rolling-over of the cyclical trade would be an ominous sign for a continued rally into year-end. More time and confirmation is needed for a high conviction trade in either direction.

Twitter: @pensionpartners
No positions in stocks mentioned.

This writing is for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction, or as an offer to provide advisory or other services by Pension Partners, LLC in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. The information contained in this writing should not be construed as financial or investment advice on any subject matter. Pension Partners, LLC expressly disclaims all liability in respect to actions taken based on any or all of the information on this writing.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos