Before the open 12/06/22

We got our pullback!

SPY 0.00%↑ is below the 8 MA. Time to pay attention!

I.

Earnings season is over! (Market is usually stronger in earnings season, esp. if the sentiment is bad).

II.

The big question is now, how did higher beta industries behave?

All in all, not as well as I have wished.

There are a ton of higher beta industries that lost their relative strength pattern, which was very strong during 11/3 - 11/9.

Aluminum is a good example: During 11/3 - 11/9 > SPY, now rolling over.

A lot of Cyc’s and higher beta industries look like this (above). Oil is a good example too.

Steel, Copper, Semis and Solar are hanging in there. The rest of the industries are more typical for a risk off environment.

Let the dust settle, e.g., we need new higher beta leadership (super bullish would be if Internet Content or Software would emerge) to press.

I am very light here, around 15% invested.