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In financial markets, there are two essential asset groups the big money moves between: Bonds and Equities. Whichever offers less risk attracts inflow.
One of the intermediate term indicators I follow is 19 day RSI of NDX/TLT ratio. When this ratio exceeds 70, equities usually top out for at least short term, mostly intermediate term as money moves from equities to bonds. We have this situation at this juncture. The opposite happens when this ratio is oversold.
Posted by Atilla Demiray |
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