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.