The S&P500 trend conditions have reversed into “NoGo” and strengthened to purple bars. Alex Cole and Tyler Wood, CMT identify intermarket forces including rising rates ($TNX) and a strong US Dollar (UUP) that can provide headwinds to risk assets. A strong “Go” trend in the volatility index ($VIX), though still hovering around 20 also correlates to the new risk off characteristics on this environment. This week we again take a closer look at GoNoGo Trend® conditions across a diverse array of the commodities markets including precious and industrial metals ($GOLD, $COPPER), softs ($COCOA, $COFFEE) and energy ($OIL) all trending in “Go” conditions and outperforming US equities ($SPY) on a relative basis. To express this thesis, Alex and Tyler look at a few equities that stand to benefit from these trends including: Freeport McMoran (FCX), Harmony Mining Inc (HMY) and Marathon Oil (MRO). The rotation of market leadership into cyclical sectors…
