CHART OF THE DAY: Performance Chasing?

Since the ROC (rate of change) of the economic data is predictively tracked by our algorithms, daily, there’s rarely any confusion on @Hedgeye TRENDs there. Market signals can front-run the data we don’t see, however – so I’m always on watch for those. 

If the following wasn’t happening on a down week for US stocks: 

1. US 10yr Treasury Yield down 3 basis points to 2.75% and down for the 9thweek in the last 12
2. REITS (VNQ) leading US Equity Sector Style Factors at +1.3% on the week to +7.9% YTD
3. Gold and Silver +1.5% and +2.3% on the week, respectively (both remain Bullish TREND @Hedgeye) 

I’d be more sympathetic to the general “but what if… stocks only go up” line of questioning that has been populating my inbox as short-term performance pressures on Portfolio Managers mounts in month 1 of 2019.