There have been a lot of really amazing moves this week in the market. But one interesting development that I don’t hear much chatter about is the monster move in Value stocks vs Growth stocks. Value stocks like Berkshire Hathaway and JP Morgan have exploded higher the past week at the same time that Wells Fargo stopped crashing. Meanwhile, in Growth land Amazon and Facebook have had a tough time. You can see this beautifully in the charts. [Read more…]
This has been a pretty simple one coming into 2016. Not all charts are as clean as this, so it’s hard for me to argue against selling Growth and buying Value. The longer-term trend has been to buy Growth stocks and sell Value stocks since 2006. This strategy has worked well, except maybe during 2012, but even that correction came within the context of a much larger bull market in Growth vs Value stocks.
Today we are looking at a ratio of the Russell 1000 Growth Index Fund vs the Russell 1000 Value Index Fund (IWF / IWD). This is a weekly line chart going back to the low in 2006 showing prices trending higher between 2 converging uptrend lines: [Read more…]
Intermarket Day is one of my favorite days. Yes I’m a huge nerd. Deal with it!
This is when I go through many markets relative to each other. These markets include individual U.S. Sectors compared with the overall U.S. Stock market. We also look at other assets against each other like Bonds, Commodities and Currencies. We price Gold in other currencies, and change around denominators for both trade idea generation and also for informational purposes.
Here are some of the things that stood out from this week’s homework: