Until recently, miners used to bring Canaries in the deep mines to warn them of the possibility of oxygen depletion
and carbon monoxide intrusion. Canaries, like all birds, are good early detectors of carbon monoxide because they are vulnerable to airborne poisons. They need immense amounts of oxygen to enable them to fly to heights that would make most of us altitude sick. They were small and compact and kept in small cages carried by the miners. Any sign of distress would be a warning to leave the mine.
The stock market, I believe has such a warning system. The Bond-Stock ratio.
Whenever the bond market appears to doing better than stocks, be prepared to take some preparatory action.
Such is the case, almost, right now.
Below is the daily and the 30 minute charts chart of the ETF’s: BND, and SPY.
Everything looks OK. Spy is still doing better. The red vertical line shows that SPY(red) is stronger.
But, the 30 minute chart shows another possible story. An early warning? Since June 14, 2018, BND seems to doing a little better on a 30 Minute basis.
