Stocks rallied to new short-term highs against bonds

Clint Sorenson, CFA, CMT WealthShield

Confirming Evidence of a continued rally:

The ECRI Weekly Leading Index (WLI) picked up again last week and continues to rebound. It is now positive year over year.
Stocks rallied to new short-term highs against bonds.
US stocks are in a positive trend relative to Gold (intermediate).
The Yen and the Dollar weakened last week.
The VIX made a short-term low.
Transports broke above resistance.

Non-Confirming evidence of a continued rally:

The ECRI four week average is still negative year over year.
The Total World Stock Market remains in a negative trend relative to bonds(intermediate).
Lumber has been weak and is continuing to drop significantly.
Small Caps are below their December low relative to Large Caps.
Copper failed to break to new short-term highs.
Treasury yields remain in a strong negative trend.
The Dollar remains in a positive trend.
Quality remains a strong factor.

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Author

Clint Sorenson, CFA, CMT

WealthShield

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