Saturday, November 12, 2016

Market theme after the election

If rates go up soon the dollar will get stronger compared to other currencies. This is begin borne out by gold and silver sectors showing trouble in their monthly chart pattern along with VWO (FTSE emerging markets). The REITS are showing signs of trouble, they should go down if rates go up. VHF (Financials) are showing strength. If rates go up banks should perform well. So one of the themes after the election has been that rates may go up according to the price behavior of rate dependent sectors. Look at the "Sector ETF Analysis Weekly" tab.


Another theme is that VOE (MidCap Value), VTV (LargeCap Value) and SDOG (value stocks in S&P500) are all showing good price pattern. As David Ryan mentioned in his post that value stocks have shown two strong days in a row. This is borne out by Growth vs Value chart as well. The blue line has started to point down showing value stocks outperformed growth stocks last week.

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