Despite an increase in intraday volatility the last few weeks, the recent pullback is actually quite tame, especially for the Russell 2000 ETF and S&P 500 SPDR. QQQ bore the brunt of selling pressure and the Nasdaq 100 Breadth Thrust Model turned bearish. I am not concerned with this signal because the S&P 1500 Thrust Model remains bullish. Today’s video will show backtest results for both. We will then turn to the ranking table to highlight the leading and lagging ETFs over the last three weeks. XLI, XLC, XLB, ITB, KRE, KIE and IHF held up quite well, where as IGV, PBW, HACK and IBB corrected pretty hard. The video ends with a rant on the poppycock narrative blaming the decline in tech stocks on the sharp rise in the 10-year yield. We will also review the Fed balance sheet and yield spreads, which seem less and less important right now.
Weekend Video and Chartbook – Split Market, S&P 1500 Breadth Signals, Short-term ETF Leaders, Treasury Yield Distractions (Premium)
Thanks for tuning in and have a great weekend!
-Arthur Hill, CMT
Choose a Strategy, Develop a Plan and Follow a Process