I am bullish on the emerging markets over domestic markets. I think money will flow here. Keep an eye on this ratio to watch the flows. Any break of the below noted levels will suggest otherwise.
Epic volume in this ratio: gdxj:gld....Clearly some serious changing of the guard happening. Must monitor this ratio closely to determine the future of this sector.
Why would money managers want to be in investment grade over junk bonds if they didn't see problems ahead? This ratio has flashed the yellow warning flag since 12/31/2014 just as gold did on the same day. Now look at the ratio. Exploding higher with no stopping in sight. Watch this closely for signs of stopping.
One of my favorite ratios to monitor; $VIX:$SPX....Got the buy signal well ahead of this pull back in equities. I have personally been swinging UVXY since this signal. I will be looking for exhaustion in the vix and this ratio before to signal a stoppage in the equity slaughter. However; it could get ugly. so lets stay day to day.
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