On this week’s edition of the GoNoGo Charts show, Alex and Tyler review the markets that have been struggling through the tough macro environment. Looking closely at charts of treasury yields, the U.S. Dollar and oil, on both a near-term and long-term basis, investors can see the headwinds and the correlation of these intermarket forces.
As seen throughout 2022, rates tend to move inversely to stocks, and the recent relief rally has partnered with some consolidation of the “Go” trend in treasury yields. Importantly, as we complete Q2 of the year, the U.S. Dollar has a confirmed breakout of a multi-decade range that puts the next resistance area back to the 2002 highs. From an asset allocation standpoint, the GoNoGo RelMap highlights a period of rotation and change – particularly for the energy sector ($XLE), which has fallen out of its daily trend on both a relative and absolute basis. Relative strength in the Healthcare ($XLV) and Consumer Staples ($XLP) sectors persist, as defense is on the field for this bear market. Agiliti (AGTI) and CryoPort (CYRX) are highlighted as trade opportunities in fresh “Go” trends, while ETSY presents the case for further downside moves.
This video was originally recorded on June 23, 2022. Click this link to watch on YouTube. You can also view new episodes – and be notified as soon as they’re published – using the StockCharts on demand website, StockChartsTV.com, or its corresponding apps on Roku, Fire TV, Chromecast, iOS, Android and more!