Wednesday, April 3, 2013

Money Is Shifting Into Big Caps

The Russell2000-index was the big loser among the major indices. Small caps are starting to roll over, while the S&P500 and tech are only touching their lower trendlines (see daily charts). The Dow is actually looking very good compared with the other charts. That only leads to one conclusion: the money is being transferred to the 'safe' assets. Big caps are preferred above anything else in this stage of the market rally, a move that started late November '12 and is ripe for a correction.

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Euro, oil, metals
Ouch!! Oil had a very bad day, losing almost 3%. It took 5-6 sessions to go from 92 to 98. Half of those gains were lost in only one session.

Metals also went down, but were only reasonably lower, comparable with the major indices. Gold and silver lost 0.95%-1.1%. Copper was down 1.45%.

Despite all the red on the screens today, the euro actually did pretty well. It's still sitting above 1.28.

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