Saturday, October 31, 2009

Saturday morning trendline -- XME:XLP ratio

of the components of the Equity ETF Index, XME was down the most this week, while XLP was down the least (all 40 symbols ended down on the week). so I figured I'd check out the ratio between the two extreme performers.

this ratio has been the epitome of the sell Defensive / buy Cheap Pieces of Shit trade that has been developing for about 11 months now. a violation of the trendline will signal that the revaluation turned reflation turned bubblet turned fortune cookies are the new world reserve currency turned 'waterloo' and the alamo too super duper bull market slash debutante ball has, ah, taken a different turn, I guess.