Chart of the Week

By John Del Vecchio and Brad Lamensdorf Gold may be poised for a big move. Precious metals and precious metal stocks have been mired in a massive trading range for a decade. That may change if gold reaches new highs, which could carry gold stocks to massive gains. Why? There’s been significant under investment in…

By John Del Vecchio and Brad Lamensdorf The dividend yield on the S&P 500 relative to the 10-Year yield has imploded to levels that often coincide with mediocre stock returns. That’s bad news for the stock market. We believe the market is vulnerable for a major move downward until the yield on the S&P starts…

By John Del Vecchio and Brad Lamensdorf The market is extremely overbought and greed is running high. It’s time for hedges. The CNN Fear & Greed Index is now at yearly highs after surging the past two months. The percentage of stocks over their 50-day moving average is also stretched to the upside. Sector breadth…

By John Del Vecchio and Brad Lamensdorf The market is incredibly overbought. However, recent action is indicative of a classic bear market rally. If history is a guide from here, the rally will likely be short-lived. The chart on the next page helps put bear market rallies in perspective. The DotCom bust let to a…

By John Del Vecchio and Brad Lamensdorf While 2022 has been a brutal year for the markets, Warren Buffet’s favorite indicator is still only back to levels seen in 2000. Now, we have had a massive rally off of deeply oversold levels. While we warned that shorts could get punched in the nose from an…