The selling over recent weeks has been fast and intense, providing investors almost no relief. This type of short-term selling pressure has reached fever pitch levels that is usually indicative of some sort of relief rally, even if the ultimate lows are still ahead of...
On a day like yesterday when more than half of the US tech sector was down more than 2%, we are reminded of the benefits of diversification. Yet, diversification would not have helped one participate in the market's rise to the highest level since February....
In observing the equity markets over the last several weeks, we cannot help but be reminded of the Jimmy Cliff song, "Sitting Here in Limbo", which was famously covered by Jerry Garcia. The first two lines go like this: "Sitting here in limbo, like a bird...
As we navigate a period of market turmoil, its important to remember that non-bear corrective phases typically last six weeks to two months and almost always include several substantial large rallies followed by selloffs back to the range of the initial low. Indeed, this classic...
There are many different ways in which we can measure the severity of a market correction. The absolute peak-to-trough decline is one way. Duration of the drawdown is another. But we can also measure corrections by taking note of the performance of individual stocks, in...
With a hint of volatility returning to the stock market this week, we though it good timing to review some of the market-based indicators we follow that help us judge the sturdiness of the market. This is by no means an exhaustive list, but rather...
With the MSCI Emerging Markets Index down about 17% from its high at the end of April we thought we'd provide a visual depiction of the selloff so readers can glean a better understanding of the action underneath the surface of the markets. Oftentimes due to...
The stealth correction that has taken place over the last few months has not affected stocks equally. Indeed, the whole point of the stealth correction is that the majority of stocks get hit hard while a few more resilient stocks just seem to deflect that negative...
In our view one of the most blunt and useful indicators of momentum is measuring the percent of stocks in an index whose 50-day moving average is higher than the 200-day moving average. It sounds simple and it is, but the movement of indicator does...
On an equal-weighted basis, the energy sector has still been the best performing sector in February. It is nearly 7% higher this month, however, it has been the worst performing sector so far this week (-1.5%)....
While the intraday performance trend of the stock market isn’t everything, it often gives clues to possible directional changes in the overall trend of the market. One of the ways we measure the intraday trend of the market is to count the number of weak...
While we are well aware of the relationship between the level of the JPY/USD and the Nikkei in yen terms (1st chart below), there is another less publicized relationship between Japanese stocks and the yen that suggests yen weakness isn’t all it’s cut out to...
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...
Despite the rally we’ve seen over the past few weeks there are still a significant number of stocks in bear market territory, defined as down more than 20% off of their 200-day high....
Somewhat surprisingly, the percentage of stocks that outperform the MSCI World Index over a short-term horizon, say 200 days, stays in a fairly tight range of approximately 40-60% in general. Currently, only 45% of stocks in the MSCI World Index have managed to outperformed the...
