Uncategorized

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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Internet Retail Portends Weakness in US Consumer DIscretionary November 11, 2014

Posted by Knowledge Leaders Team in Uncategorized

Consumer discretionary stocks have been by far the best forming cyclical sector of the US stock market for five years now.  In the charts below, we show the relative performance of North American consumer discretionary compared to the MSCI World index and the MSCI North America index.

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USD The Dominate Factor Over The Past Year November 10, 2014

Posted by Knowledge Leaders Team in Uncategorized

According to our Gavekal Factor Scoring Model, the US dollar has been the most highly correlated factor (out of 30) with the MSCI World Index over the past year (which is why we have been focusing so much of our attention on it over the past few months).

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Euro Falls to Lowest Level Since August 2012 November 06, 2014

Posted by Knowledge Leaders Team in Uncategorized

Circling back to a topic we have addressed previously (here and here), today’s plunge in the EUR/USD exchange rate puts it back on track towards syncing up with the interest rate differential between corresponding spreads: Having narrowed the gap that developed late last year, how much further might the euro fall?

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