Weekly Macro Review

February 7th, 2022

Chart Highlights

Daily Triple play chart shows the ups and downs of the week as we try to work off the lows. Still in bear ranges, but Friday gave the bulls a chance to retrace a larger portion of the drop if they take the opening. $SPY did the best job holding the early week gains. Burden of proof is still on the buyers.

Next we look at the Intermarket view by ranking all of the asset classes with each other. Commodities dominated this week with JJC joining USO at the top performer. We discussed last week the UUP direction could provide clues to commodities and the drop in the dollar lit up JJC and USO alike It is worth noting, GLD and SLV didn’t participate as much.  Equities are still in the bottom half so caution persists.

Size and style remains ranked from Large to small and Value to growth across all levels, but chart below is sorted by the weekly performance which flipped the list and put many growth areas on top.

  •  Breadth is making slow progress. Needs to continue and expand from short measures to longer term ones.
  • MA Breadth all in the 30% zones and need work, but 5>20sma just came out of the lower quadrant for a signal
  • Summation tried to flatten and turn, but got pushed back end of the week
  • Oscillator needs to clear flatline to get any more progress
  • NHNL still on a full sell signal. that needs to change

Energy is the leader still by a solid clip, but Financials made a bit RSI move this week up at the same time Consumer Staples stumbled on most levels. Behind energy, Communication Services and Information Technology put in solid, albeit rocky, weeks.  If the bounce continues we are likely to see more stretched areas continue to retrace.

Just a quick glance at the subsector performers for the week shows it littered with Oil & Gas subsectors, but also showing some low RS spaces putting in the strongest bounces and held most of it into the end of the week.  Interactive Media & Entertainment, Semiconductors, Industrial Metals, Brokerage & Capital Markets all worth a closer look.

We cover all of this and more in the video at the top of the page.  Also look for our Power Sector Review for a closer look under the hood.  you can find these and other charts on our Stocktwits and Twitter feed @Power1nvesting and throughout this site.

As always, I hope this helps!