Chart of the Week

By John Del Vecchio In Brad’s most recent podcast, which you can listen to here, he talks about how investors need to pay attention to the financial sector as a clue to what might occur in the broader markets. For example, in 2008, as we were headed to one of the biggest crisis of all-time,…

The following chart from Shadow Statistics by John Williams compares the official government Consumer Price Index (CPI) with the significantly higher CPI that Williams calculates if the index was measured by pre-1990 methodology when interest rates generally were higher than inflation.  Williams believes that there’s been a sharp deterioration in the last couple of decades…

Debt as a percent of nominal GDP has approached a 30-year high (yellow line), while defaults are hovering at all-time lows (green line). Why does that matter to you? Over the last three decades debt accumulation tended to occur several quarters before the default rates began to accelerate.  This setup, illustrated in the chart,  indicates…

Liz Ann Sonders, Chief Strategist for Charles Schwab, has created her own formula to determine just how much stress the consumer is feeling. Clearly, since 2014 stress has increased sharply. But, this comes at a time when consumer confidence is at highs. In addition, recessions appear to occur at levels above zero on the chart….

By John Del Vecchio The New York Stock Exchange (NYSE) Bullish Percent index is creating a potential bearish divergence with the S&P 500. This could be suggesting a lot of weakness under the hood of the market. The bullish percent is the percentage of stocks in bullish patterns using point and figure charting. Point and…