Don't Ignore This Chart!

Gold, Dollar and Bonds Lead in 2016


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. 

Thanks for tuning in and have a good day!
--Arthur Hill CMT

Plan your Trade and Trade your Plan

Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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