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Easy to Make Money When Everything is Up! November 21, 2014

Posted by Knowledge Leaders Team in Uncategorized

Today’s price action across all the major asset classes stands out as rather odd. Indeed, stocks are up pretty much everywhere around the world (US, Europe, Japan, China), bond prices are up (yields lower), commodities are higher (gold, energy, lumber, copper, CRB, some softs), and the USD is higher.

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Trends Developing In The Forex Market November 21, 2014

Posted by Knowledge Leaders Team in Uncategorized

As most investors are aware, there have been some major currency moves recently (looking at you Yen/USD cross). This has established some interesting trends in the forex market. For example, volatility continues to rise off a very low base (unlike in the equity market).

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Intraday Volatility has Disappeared (Again) November 20, 2014

Posted by Knowledge Leaders Team in Uncategorized

Regular readers know that we have been harping on the lack of volatility all year (few posts here and here) so it should come as no surprise that we are, once again, calling out the absolute evaporation of intraday volatility in US stocks.

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Junk Bonds Not Confirming S&P 500 Record Highs November 20, 2014

Posted by Knowledge Leaders Team in Uncategorized

Since the ”666” intraday low, high yield spreads and equity prices have basically moved in lockstep together. As equity prices moved higher, the spread between junk bonds and 10-year treasuries narrowed. As the chart below illustrates, this relationship started to diverge during the summer.

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Only 28% of Energy Stocks Have Positive Performance YTD November 19, 2014

Posted by Knowledge Leaders Team in Uncategorized

In June, 86% of the energy stocks in the MSCI World Index had positive price performance year-to-date. Since that time, however, energy stocks have been clobbered.  In mid-October, only 11% of energy stocks were higher YTD. This has marginally improved to 28% as of yesterday.

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Stocks are Advancing on Counter Cyclicals, Knowledge Leaders Leadership November 18, 2014

Posted by Knowledge Leaders Team in Uncategorized

As US stocks continue their march higher we’d like to remind readers of the market leadership in general and especially off of the October low. Stocks have staged a powerful rally, but the leadership has been and remains counter cyclical stocks and Knowledge Leaders, companies that successfully employ knowledge capital to achieve outsized returns.

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Beyond the Headline in Germany’s ZEW Survey November 18, 2014

Posted by Knowledge Leaders Team in Uncategorized

Today’s release of the ZEW financial market survey for Germany revealed a surprising increase in economic expectations, compared to the consensus for a marginal improvement: chart note:  dark blue = balance red = improve light blue = no change black = worsen Meanwhile, the question on current economic conditions revealed no change from low levels

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Momentum Continues To Diverge From Price Action November 17, 2014

Posted by Knowledge Leaders Team in Uncategorized

As we have noted many times before, a simple way of measuring momentum is by looking at the percentage of companies that have a 50-day moving average above its 200-day moving average. Robust bull moves tend to have a rising percentage of stocks where the 50-day moving average is higher than the 200-day moving average.

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The Best And The Rest November 14, 2014

Posted by Knowledge Leaders Team in Uncategorized

There are only a few stock markets in the developed world that are extending to new one year highs, while there are many that are well below one year highs.  Looked at in USD, the US, Sweden, Switzerland and Japan are at one year highs.

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Despite New Highs, More Stocks Are Gapping Down on the Open of Trading November 12, 2014

Posted by Knowledge Leaders Team in Uncategorized

While (some) equity markets have gone a long way to erase the October decline or even eclipse the old highs, the number of stocks that are gapping lower on the open of trading is increasing. Why is measuring the number of gapping stocks important? It is a simple way of gauging investor emotional selling behavior.

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