U.S. Equity Strategy: Value Overtaking Growth; Treasury Yields and Commodities Bottoming

Chart based progressive global trading strategies, Chart Partners

Thomas Schroeder

Chart based progressive global trading strategies

Chart Partners

Chart Partners objective is to discover medium-term cycle turns and profit opportunities before they unfold, within structural trends while preserving capital with clear degrees of risk. We have real return ideas. 

Markets are dynamic and trading systems must reflect this. It is crucial to determine underlying correlations and lead-lag relationships within global markets and the impact on linked instruments. Our weekly Chartonics product gives you short-term trading strategies that can be applied within the medium and longer term macro trends that are mapped out in our strategy updates. 

Our methodology fuses global market variables and isolates drivers in trends. We specialize in FX, index trade in NY and Asia with a focus on Asian stocks. 

Technical Analysis

<p><a href="https://www.smartkarma.com/entities/s-p-500" target="_blank" data-smartkarma-citation="entities:22886:1" rel="noopener">S&amp;P 500 (SPX INDEX)</a> broke trendline inflection support at 3,165 that triggered a bear break and signal to put on short protection.</p><div><strong>S&amp;P 2,950 will define support and the risk on/off pivot this week.</strong></div><div> </div><div>
<strong>Cycle</strong> - June 22/27 primary cycle turn timeline. If we are rallying into this cycle we expect a top (base case). If weak into this cycle, we set up a bottom. June is expected to form a topping cycle ahead of a more bearish late June/July corrective cycle that will set the stage for a recover into September.</div><div></div><div>Negative inputs stem from virus second waves, frothy valuations, demand risk, economic reality re set that sees the economic/market disconnect re coupling into July.</div><div></div><div>We are using a bounce to start selling/shorting rallies for a decline into July that sets the stage for an intermediate low and rise back to test the high zone in Q3. Resistance peaks in Asian indices and oversold USD levels also align with this cycle as does gold's bullish flat formation.</div>

S&amp;P 500 (SPX INDEX) broke trendline inflection support at 3,165 that triggered a bear break and signal to put on short protection.S&amp;P 2,950 will define support and the risk on/off pivot this week. 
Cycle - June 22/27 primary cycle turn timeline. If we are rallying into this cycle we expect a top (base case). If weak into this cycle, we set up a bottom. June is expected to form a topping cycle ahead of a more bearish late June/July corrective cycle that will set the stage for a recover into September.Negative inputs stem from virus second waves, frothy valuations, demand risk, economic reality re set that sees the economic/market disconnect re coupling into July.We are using a bounce to start selling/shorting rallies for a decline into July that sets the stage for an intermediate low and rise back to test the high zone in Q3. Resistance peaks in Asian indices and oversold USD levels also align with this cycle as does gold's bullish flat formation.

SPX Trendline Breach and 2,950 Risk Pivot This Week

S&P 500 INDEX

SPX Trendline Breach and 2,950 Risk Pivot This Week