SEE LINKED CHART FOR CONTEXT.
MCD IS ESSENTIALLY AT THE OPPOSITE END OF THE POSITIVE DPO RANGE VS. SPX.
DPO MAY IMPLY THAT BEING LONG MCD (A DIVIDEND ARISTOCRAT), FOR EXAMPLE, AT THIS LEVEL WOULD BE LESS RISKY THAN BEING LONG SPX (ESPECIALLY IF MCD HOLDS UP AS WELL DURING THE NEXT RECESSION AS IT DID IN THE PREVIOUS ONE). IN OTHER WORDS, MCD MAY BE TROUGHING WHILE SPX MAY BE PEAKING (LONG TERM).
MCD IS ESSENTIALLY AT THE OPPOSITE END OF THE POSITIVE DPO RANGE VS. SPX.
DPO MAY IMPLY THAT BEING LONG MCD (A DIVIDEND ARISTOCRAT), FOR EXAMPLE, AT THIS LEVEL WOULD BE LESS RISKY THAN BEING LONG SPX (ESPECIALLY IF MCD HOLDS UP AS WELL DURING THE NEXT RECESSION AS IT DID IN THE PREVIOUS ONE). IN OTHER WORDS, MCD MAY BE TROUGHING WHILE SPX MAY BE PEAKING (LONG TERM).
