Market Breadth means a lot of things to a lot of people. The way I see it, we're analyzing a market of stocks. There are a variety of tools to help us do that including the Advance-Decline Line, List of new highs & lows and the percentage of stocks getting overbought or oversold, which can be calculated in many ways. Today I'm joined by Andrew Thrasher in a video we shot earlier this month in New York. It's an important topic and I'm glad we had the chance to discuss it.
One of my good college buddies always busts my chops because he thinks it's ridiculous that look at charts all day. Today he calls me about some other stuff, but randomly asked what was my favorite chart. I'm like, "...of all time or right now?". He said right now, what's my favorite chart?
It got me thinking. But my first reaction was the SPX/CRB chart. This is one of the most fascinating situations in the world today.
How come we never hear that in the financial media? Because they don't want you to say that.
How come we never hear that from the sell side analysts? Because the institutional customer will just call another desk at another firm with an analyst that has an opinion, and they will get the trade and earn the commission.
As humans, we're just not built for this. It's hard to admit you're wrong and move on. But the truth is that none of us know what is going to happen next, especially in the market. So to admit that you don't know is not only okay, but is actually fact.
In this video I sit down with David Keller to discuss this very topic:
A big theme for me this year has been the US Dollar and how it will impact stocks as an asset class. The thought process coming into 2019 was simple. The Dollar had rallied throughout 2018 to reach some pretty critical levels. The idea was that if the Dollar was going to rip right through there, it was more than likely happening in an environment where investors would be fleeing to safety. That's the type of market where stocks are selling off. The opposite of that argument was that if the Dollar was not breaking out, that stocks would likely be doing well, both in the U.S. and more importantly globally.
Most of the Equally-Weighted Sector Indexes we track have been underperforming their Cap-Weighted counterparts for the last 16 months, however, we are starting to see some signs that a counter-trend rally in three sectors may be brewing.
Have you ever heard that the stock market cannot go higher on an absolute basis if the Equally-Weighted S&P 500 is underperforming its Cap-Weighted counterpart. Does this measure of market breadth have any predictive value with respect to market direction? What about the sectors themselves? Well, we've run the numbers and the answer is no!
Long-term, we're bullish Equities in India and around the world, but are remaining patient in the near-term due to momentum and breadth divergences we've been seeing across major indexes, sectors, and individual names. It's happening in the US too.
We've been writing about this for a few weeks, so I wanted to follow up today and show the progression of that thesis.
Are you guys using Koyfin yet? If not, I suggest you start.
Koyfin is my favorite new financial data and analytics platform. It seems like every day I learn about a new feature that helps me throughout my process. It's so easy to use and everyone I speak to loves the product.
Full disclosure, we're investors in the company. But we're investors for a reason. The product is amazing and I believe founder Rob Koyfman is creating a ton of value to our community, and not just technical analysts but everyone.
Last week I was at the CMT Symposium in New York and had a chance to chat with Rob so he could explain exactly what Koyfin is and some of the new features that they will be rolling out this quarter.
"Indian bank stocks? Why are you looking at those?"
Stocks in America don't go up and down because of what is happening in America. Stocks in America go up and down because of what is happening all over the world. This relationship also applies to bonds, commodities and currency markets.
Today I want to focus on what we're seeing globally so we can make much more informed decisions about the current trend. Do we want to be buying stocks or do we want to be selling them?
In today's video I sit down with Phil Pearlman to discuss Phone Addiction. Many of us are unaware and even more people don't even care to be aware. Is it the power that we have in our phones? Or do the phones have the power over us? Phil offers some advice on this front and shares what he's been doing.
I'm in New York this week for the annual CMT Association Symposium. I always learn so much at this event, not just from the presentations, but from the attendees themselves. A lot of smart folks in one room is a win for all of us.
Tuesday I was up at the Nasdaq to chat with Catherine Murray about the S&P500, my favorite Semiconductor names and where we are in Canadian Equities and Crude Oil.
