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ratio’s are really powerful

been blogging a BUNCH about the importance of the XLP / SPY ratio.  Why?  Well, EVERY turn since 2000 has been nearly exact to the ratio turning up or turning down.  here’s the chart: folks, it doesn’t get much better than that … the CANDLES is the ratio of XLP / SPY.  The BLUE LINE […]

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Using ratio’s for relative strength comparison

If the Numerator is bigger than the Denominator then the ratio goes UP.  If vice versa, the ratio goes down.  If we put one security over another then we can plot the relative strength and note when a shift in this relative strength takes place.  This shift can show rotation. What you’ll find is the […]

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monitoring this ratio closely …

CLIFF NOTES: sector rotation is a fact of life …we’ve shown how the institutions follow a well defined script and how, usually, energy is the last shoe to drop before the inevitable correction (it’s different this time) occurs.  ratio’s are important because they show relative strength of something versus something.  In this case, we have the XLP (consumer […]

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important ratios – revisited

For those who have been following me since I started this summer, you’ll find I spend considerable amount of time analyzing the RELATIVE STRENGTH of the STAPLES vs the S&P.  Why?  The theory is that, in times of volatility and/or bearishness the “big guys” (read: institutions) will rotate into a defensive posture such as staples. […]

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relative strength of staples vs the S&P importance

in order to get up to speed, if you have not been following, please see the following post: http://bartscharts.com/2013/10/07/staples-strength-vs-the-sp/ we completed a perfect price/time pattern BUY on the ratio and it did, in fact, respect the pattern level.  HOWEVER, since then we have taken out the lows of that pattern and if we go back […]

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Part V and “I Can’t Quit You Baby”

this was Part IV a couple months ago: http://bartscharts.com/2013/09/16/part-v-sp-and-sector-rotation/ http://www.youtube.com/watch?v=5g5Ypz74jQw I think this ratio is one of the most important out there as it shows the rotation into the staples of life, so to speak.  additionally, at EVERY major inflection point since 2000 when this ratio bottoms or tops the market does the opposite.  this […]

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Staples Strength vs the S&P

if you wan to catch up I recommend reading the following two posts: http://bartscharts.com/2013/09/22/the-upcoming-week-of-922-for-the-sp/ http://bartscharts.com/2013/09/25/the-ratio-of-staples-to-the-sp-xlp-spx-trust-me-its-important/ this AM, our pattern that we have been following has completed.  what does that mean?  the pattern either works or it doesn’t … if it works then our thesis is that the staples (as a sector of the overall market) […]

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