A Silent Scream from Sotheby's

While far from a premier leading stock, high-end auction house Sotheby's (trading under ticker: BID) has some interesting correlations with the S&P 500 Index when you track the performance going back several decades. 

Long-time readers will recall we used to track this correlation previously, full well knowing that all correlations are bound to break at some point in time. 

And when we consider the swoon BID experienced into early-2016, seen below on the multi-decade view, it is worth noting that equities as a whole were able to sidestep a full-blown bear market, something which seemed to have broken with the prior correlations. However, equities still did correct with BID at that moment, which jives with the notion that the BID:SPY correlation is worth checking in on once in a while. 

Hence, to update that analysis, after earnings this morning BID is gapping up sharply and threatening leave a multi-quarter base, since last August, higher for a new leg up. This would seem to add credence to the overall bull case for equities, if you believe in the Sotheby's correlation, which is likely rooted in the high-end or aspirational high-end disposable income theory. 

Elsewhere, TSLA is facing a key backtest off a Goldman downgrade this morning, as price slides back under its prior $250 breakout area. Bulls in Tesla are likely going to need to recapture that area sooner than later in order to keep the momentum of the rally since December going into the spring months.