Above is a chart of net sector performance, when it's really low, you have a good buying opportunity and when it's really high, it's a bullish sign, but also a potential top.
What we're seeing here is a divergence, which can be very bearish, as the market is setting a new high and the sectors
involved in the market are not. It's similar to the number of new highs, when it has a lower peak, it sets the stage for a breaking down market - and a potential collapse.
Markets haven't corrected significantly in some time - we're already seeing bearish sentiment build, but not to an extreme. We remain cautious and bearish for this month and would be sellers of strength and looking for opportunities elsewhere.
That's one
reason we've been recommending paying some attention to BitCoin and Cryptocurrencies. Please check out the video below. Usually by the time they bring them back up in the news, the move has already started. And in the innovation curve, there's an argument to be made that we're still early with this technology.
Thanks and enjoy your weekend!
