The year is young, but we are already seeing money move from relative risk (stocks) to relative safety (bonds). The PerfChart below shows the performance for ten intermarket ETFs year-to-date (12 January close). The histogram format makes it easy to spot the winners and the losers. The USO Oil Fund (USO) and Copper ETN (JJC) are leading the way with the biggest declines. Notice that the oversold are just becoming more oversold. Oil and copper are proof that that is really no such thing as support in a downtrend. Stocks are next with SPY, QQQ and IWM down over 5%. These declines extended further today and I provided an updated SharpChart after the jump. Bonds are attracting money as a safe haven and alternative to stocks. Also notice that the Gold SPDR (GLD) is up, as is the US Dollar ETF (UUP). It is not often that you see gold and the Dollar up together. This is testament to the chaos present in the financial markets.
The SharpChart below has ten symbols and they are automatically displayed in performance mode. Simply enter up to ten symbols separated by a comma in the symbol entry box to create such a chart. I changed the date range to "year-to-date" at the bottom and added the annotations to identify the different assets. Stocks, copper and oil are leading with big declines. The Euro and Dollar have small gains, while gold and Treasuries show modest gains.
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Thanks for tuning in and have a good day!
--Arthur Hill CMT
Plan your Trade and Trade your Plan
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