Its been a rough 7-years for Agriculture ETF (DBA) as it has created a series of lower highs and lower lows while declining 50% inside of falling channel (1).
Few if any sectors have been stronger than Semiconductorsover the past 9-years. The table below highlights that SMH almost doubled the performance of the S&P 500 since the 2009 lows. Softness this year has SMH testing rising support and this year’s lows at (1) above.
At what point does the rise in treasury yields (and interest rates) matter to the economy and stock market? Today’s chart looks at the past 4 decades of the 2-year treasury note yield versus the stock market (the Dow Jones Industrial Average).
This chart compares the relative strength of Stocks to bonds by creating the S&P 500/10-Year yield ratio (SPX/TNX) on a monthly basis, since the mid-1970’s.
Looking at the chart below, we can see the relationship between housing and the stock market. Major divergences have formed at the last three big turns for the S&P 500.
Coffee is in a long-term downtrend but it’s short-term “trading” picture may be brightening. In the chart below, you can see that coffee prices trying to reverse course at 10-year lateral support
Sugar has spent the majority of the past 30-Years inside of rising channel. The 50% decline over the past 24-months has it testing the bottom of the long-term rising channel and 2015 support in the chart below.
