🎯 Unprecedented length by S&P500 since 1960s (13 analytical point) 👇
💡 Exclusive Macro & Business Insights
Hi, and welcome back to The Macro & Business Insights!
Unprecedented length by S&P500 since 1960s
(13 analytical point) 👇
✔ “Sticking with the possibility that the bear market isn't yet over puts it in the company of bears that started in 2007 and 1968 (and beyond that, 1973, 1980, and 2000).”
✔ “The worst-case scenario would be something akin to the bear that started in 2000, which was clearly the most frustrating drawdown (in terms of timing, not magnitude).”
📌 As my subscriber you get totally FREE my weekly summary and exclusive research that I do and share only with you.
You won't find these materials shared by me on any other platform.
THE MARKET VS. THE MARKET 👇
✔ “One of the discomforting (and widely advertised) aspects of the market's advance this year has been the concentration of gains up the cap spectrum.”
✔ “There is quite a wide performance gap between the 50 largest names in the S&P 500, the overall S&P 500, and the Russell 2000.”
✔ “Looking at the two extremes, over the past 60 trading days, the 50 largest names are up by 11.7%, while the Russell 2000 is down by 6.7%.”
✔ “With the economy now fully reopened, the absence of any strong performance from key cyclical segments of the market (i.e., small caps) would be worrisome.”
✔ “The five largest names in the S&P 500 have decisively outperformed their peers (the other 495) this year (most notably in March and May).”
✔ “We're not of the thought that the mega-cap outperformance in and of itself is a precursor to imminent market doom, but at some point, the lack of participation from the rest of the market should be noted as a likely sign of coming deterioration.”
SMALL CAPS 👇
✔ “Small caps have always tended to do well when the market was this far beyond a major market low (decline of 20% or more), given they're closely tied to the economy.”
✔ “The current gain since October clearly stands out in a not-so-good way.”
THE IMPORTANCE OF MOVING AVERAGES 🚨
✔ “Only 36% of the S&P 500 stocks are trading above their 50-day moving averages, and only 44% are trading above their 200-day moving averages.”
✔ “The share of S&P 500 members trading above their 50- and 200-day moving averages was 36% and 44%, respectively.”
✔ “That compares to respective averages of 64% and 81% for the 156 days after the conclusions of the prior four bear markets.”
If you appreciate this content I'd ask you to share this newsletter with your friends/colleagues passionate like you about financial markets. You will pay off my hard work, thank you very much.
WATCH MY LAST YOUTUBE VIDEO 👇
Be my friend
💌 Sign up to my weekly email newsletter
🎙 PODCAST
Best regards,
Ale
Disclosure
This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. This material has been prepared for informational purposes only. Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation.