This is a good article which discusses bearish trends in the stock market. David Tepper has reduced his long positions from 100% several months ago to 60% now. I agree with David. I have increased my bond positions and I plan to buy the super staples ETF stock FXG on Monday.
The author also presented charts of XLY (discretionary) versus XLP (staples) and XLF (financials) versus XLU (utilities). Staples and utilities have both gained in 2014. So, we have a sector rotation scenario where you can still make money in stocks if you invest in the right places.
Next, the writer presented a yield curve chart which shows rate spreads are getting compressed, and people are favoring TLT, the long bond ETF, over IEF, the 10-year bond ETF. The 50-day line of IEF:TLT did a death cross around the 1st of March, and May shows a high volume capitulation. Click on the chart below to expand it.
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