Hello Antagonist members,
Just a quick note in case you didn’t see my post in the Substack chat.
The S&P 500 and NASDAQ are down as of this writing. The latter has almost given back all its gains from Thursday and Friday’s rally.
One sector to watch is utilities (XLU). It’s up over 2% today and over 4% for the month. A 2% move in one day is rare for XLU.
Utilities are like the stock version of bonds. They move slowly and tend to be a safe haven for investors when the market is volatile and/or there’s a lot of fear.
If XLU continues to rise and if its ratio to the S&P (XLU:SPY) forms an uptrend, it could spell bad news for stocks…at least in the near term.
A few trading days does not equal a trend, however. Stocks could easily rally again tomorrow or in the near future. This is just an update of what I’m monitoring.
Also, our portfolios are well positioned for this kind of pullback as our crisis hedges are paying off.
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