Rambus has a LOT of tricks in his bag. I can hardly believe how many charts and Ratios he is watching ALL the time.

His Weekend report contains a LOT of interesting charts with one particular obscure pattern as the theme

which is interesting enough but this one below really surprises the hell out of me

How do we explain this ?

……………………..

“Normally when the XLY ( Consumer Discretionary Stocks) is stronger than the XLP ( Consumer Staple Stocks) that is generally bullish for the US stock markets. Below is a 5 year ratio chart which shows the price action breaking out above the top rail of the bullish expanding falling wedge a couple of weeks ago.”

Rambus

………………….

This is Shocking to say the least !

How ..when we have are living through the most so economically destructive period in living memory.
When Whole Industries like RESTAURANTS HOTELS AIRLINES CRUISE SHIPS PROFESSIONAL SPORTS MALLS TOURISM OF ALL KINDS have been devastated and presumed to have been terminally damaged, can “discretionary” spending be greater than “necessary” spending going forward ?

Contrarian Market Wisdom has it that the Herd is always dead wrong at turning points…well the herd is expecting economic destruction the likes of which have never been seen

What IF everything really is going to be ALL RIGHT ?

sheesh