Which Way Wednesday? Risk On or Risk Off?

Each week we review a lot of ratios and relative strength indicators for various markets.  We look at a number of different time frames. With these we work to discover if markets are trending in a "risk on" or "risk off" direction.  Then we will decide if we are allocated correctly.

Each Wednesday I take a look at this chart with two intermediate term moving averages.  It is a ratio chart of the SP500 index  ETF SPY compared to long term treasury ETF TLT.   I ask, "Which Way Wednesday?".  In general, sloping up favors stocks.  Sloping down favors treasuries.

In this case, the slopes are still up and faster above the slower moving average.  So the market is still favoring risk on vs risk off.  

So Rally!

Chris Vig is president of The Vig Company and is an investor, artist, writer, business consultant and former CEO living in Monona, WI. This article is for entertainment purposes only.  Do you own diligence when investing your hard earned cash.