Ratio Analysis …powerful tool

if you want, search the site for ratio analysis .. it works and the key is it really gives you a feeling for how the big boys are moving the money around … this move isn’t about “Mom and Pops” folks, it’s about institutional money flow …

we’ve done this before but here it is again:

  • if volatility rises XLP (staples) outperforms the overall market
  • when volatility goes away rotation out of XLP occurs.

today’s move to be expected … a monster SELL of the XLP/SPX ratio occurred.

now, the key will be this level and what happens in around it in the next few days.

B

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