Phased Not Confused – What Happens Next?

Nearly ripe for the picking, I am busy putting the final touches on my manuscript.

The book’s working title, “Phased Not Confused: A Multisensory Teaching Approach to Understanding Your Money, Investments and the Economy” combines how to define, identify and trade within weekly phases.

I also include the Modern Family and ten Megatrends as a roadmap to the macro picture.

Monday started the week out slowly.

The slew of earnings this week should easily help us determine both the new and continuing phases in overall equities and the Modern Family.

Currently, all except Retail (XRT) are in Bullish Phases.

Questions now are:

Last Friday, on Mish’s Market Minute Daily Facebook page, I introduced the second Modern Family cartoon character, Grandma Retail.

XRT or the ETF of brick and mortar weakened out of the gate today.

Granny’s 1.5% decline in the face of the Russell’s consolidation near all-time highs indicates something big is coming.

Add to that, the limp reaction of Alphabet Inc.’s earnings report.

GOOGL declined over 2% after hours.

Amazingly, the overall market has ignored poor Granny thus far.

Yet should the biggies, besides GOOGL, fall this week after earnings, Granny Retail could have some unexpected company.

That chain reaction could cure the market of its opioid addiction.

Presently, volatility and fear do not exist in the market’s happy place.

Speaking of mind-numbing happy places, Biotechnology leads today’s winners.

IBB gained .77% with Regeneron up 1%, and Amgen sitting near all-time highs.

Speculators are fat and happy.

That certainly becomes a signal for caution should weakness in Retail, Transportation and now possibly FANG stocks prevail.

Retail’s in a bearish phase.

Charles Dow (over 100 years ago) said Transportation typically leads the Dow Jones Industrial Average.