S&P 500SPXA50R: % of stocks above 50 day moving average (red line)The blue vertical line shows Monday’s all time high in the index versus SPXA50RThe rotation out of the momentum stocks to defensive stocks was a non-event for the Dow:% of stocks above 200 DMANasdaq 100: Large Cap Tech and Biotech:
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It Was a Bad Week To Stop […]
SummaryOne can get a sense of whether a manic phase in the uptrend is underway based on pockets of stocks which exhibit irrational outperformance.
The two areas which have been the attention for speculators have been Biotech and Social Media.
If Social Media stocks keep faltering, it would mean risk sentiment in high flying stocks is unable to stick.
“Sometimes being a friend […]
SummaryOur monthly “Continuum” chart anticipated a misstep for the “Great Rotation” crowd.
Yields are now approaching support, and we are no longer bullish on T bonds.
Beyond nominal bond considerations, […]
Gross domestic product only expanded at a 0.1 percent rate for the first quarter, a sharp pullback from the fourth quarter’s 2.6 percent pace.Read MoreThe ripple effects of housing’s fading reboundMcDonald thinks the rotation out of momentum names into “tried and true” stocks will continue for the next couple of quarters until there is “clear evidence about the […]
