Friday, July 15, 2016

Watch the Bellwethers:

A year ago many market bellwethers had broken down below long term moving averages. The term Bellwether – was derived from the Middle English Bellwether which refers to the practice of placing a bell around the neck of a castrated ram – (a wether) in order that this animal might lead its flock of sheep.

Some improved market bellwethers are Goldman Sacs (financial), Disney & AutoNation (Consumer), Gilead (Health Care), FedEx (transports), Boeing & Caterpillar (industrial) and Apple (technology)

The Goldman Sachs Group Inc (GS) is a component of the Financial Select Sector SPDR ETF (XLF). Goldman leads most bull and bear market cycles having peaked in October 2007 and bottoming in November 2008. Goldman has completed a short 2015 bear phase and should lead the XLF higher through 2016 + thanks to for the point & figure


Shawn Severin said...

Thanks for your articles Bill. They're very informative.

There is much talk of an EM and international catch up trade. Do you think VWO & VEU will outperform SPY or best to focus on the US?


Shawn said...


See today's post


Bill Carrigan

Shawn Severin said...

So you're more bullish on US equities than international equities?


Shawn Severin said...

Do you think emerging market equities (i.e. EEM or VWO) are in a new secular bull market? said...

Sorry Shawn for the delay

I like Emerging Markets

Bill C