Always consider hidden risks
Stocks to Bonds Ratio : Highest Ever ?
​June 29  ( From Stockcharts  )
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The Situation

​Since the beginning of the financial crisis, the Federal Reserve has been obliged
​to inject tons of liquidity into the system. Financial assets like the SP500 had a
​very good performance indeed; the correction lately has not been enough in
​terms of valuation compare to interest rates.

​​Even the main technical indicators like the Ratio of the Mighty SP500 ETF IVV 
​( iShares Core SP500 ETF ) compare to the TLT  ETF ​( iShares 20+ Year
​Treasury Bond Fund ETF ) are pushing valuation ​to the limit on a ratio basis
​as history suggest.

The Bearish price impulse in the ​​TLT since April 22 2015 are telling me that ​stocks
​still appear even more on the expensive side as you may see in the chart below...

​​Observe the break down on May 5 of the rising channel that
​started back on December 2013 on the TLT.
​ ( See second chart below - Amber Trendline Ellipse.)

​​We broke the 20, 50 and 200 DMA ( Day Moving Average ) since April 22, a bad omen for bonds.

But the most interesting factor is that ​​the Ratio of the Mighty SP500 ETF IVV compare to the TLT ETF reached the highest level since 2007 as shown by the chart below.
( See first chart below - Red Trendline Ellipse.)

In fact, the previous 2 times that this happened ( July 13 2007 and December 31 2013 )​, SP500 started a major correction in the following weeks. ( See first chart below - Bottom Panel - Grey Vertical Trendline - Ellipses)

Stocks to Bonds Ratio :Highest Ever ?    $SPY, $IVV, $TLT  #Trading #ivv  #tlt #SP500
SP500 ( iShares IVV ETF ) over TLT (​ iShares Treasury Bond )
20 DMA ( Yellow Line )
​50 DMA ( Red Line )
​2000 DMA ( Green Line )
SP500 Index - SPX ( Bottom Panel - Candles )​​
TLT ( iShares 20+ Year Treasury Bond Fund ETF )
Daily Chart ( Candles )​