I have been saying that it would make sense to me if we see SM having a blow off before PM, in fact, I have even said that I almost see it as necessary in order for PM to be able to have its blow off down the road. I have also said that I see almost everything going up together at some point for a while.
I just thought I´d post the SM charts below as I think they show that SM might be on its way to a blow off before its bull ends.
And we have the same parabola-like pattern looking at my favourite sector during a very possible blow off, $SOX/$NWX, below.
And looking at individual companies among $SOX/$NWX, the two below are among the best setups I have found. Both are BT a gigantic inverse h&s.
Moving to bonds and TLT, I would say we go up from here, below.
And if we look at $SPX vs TLT below, posted before, we see that it looks like $SPX is going to outperform TLT. This chart I think also confirms my take that heavy deflation is not in the cards at this stage, asset inflation is still in play.
So, I think that SM might be starting its blow off stage around here. And I think this might be the point where many things start to go up together and that might be the case until SM has some kind of blow off.