9 Charts in the Spotlight with Emerging Opportunities

After climbing above the 2016 multi-highs in April, TLT plus SPY has kept the trend and not letting up. New highs in the passive investment strategy and nearing an extension target. It seems that whenever US fixed income appears vulnerable, this trend line has helped to stabilize and lift treasuries (holding in July, August, September, and October.

Rotation has not been a negative for the overall market as stock/sector picking has become the dominating theme this year. Bank sector ETF, KBE is up over 15% since its September low as it has ignored the flattening yield curve. But, how long can this last? And, does it matter for the overall market? Probably not. Energy and Technology are the new leaders, and each has had their scares this year.

XOP is up over 22% from its August lows and after weighing all year it is not hindering crude oil strength going into the end of the year. XOP relative to XLF is breaking out above its year long descending trend line and may be getting the baton... And, with XOP back above its 200dma for the first time since breaking below it in early March (chart two below) more upside potential seems likely.

Crude Oil #futures are outperforming the SP 500 futures and gaining some momentum now that it is clearing above the .382 Fibonacci retracement of the year.

Being long XLK and XOP gain real momentum since mid-September

The US Dollar Index held long term .382 #Fibonacci retracement in September, and holding a positive tone above its 100 day moving average. Go to www.keystonecharts.net to sign up for a free two week trial