The market finally showed a vulnerable side this week with a sharp pullback on Monday and Tuesday. A corrective period at this stage would be perfectly normal because stocks were up sharply in October and November. We also saw several flag breakouts fail. These failures are not enough to affect the long-term trends
The bull market continues to broaden with 23 of 53 equity-related ETFs hitting new highs (56%) this week. Thus, more than half of the equity ETFs hit new highs and this shows broad strength in the stock market. Note that there are 60 ETFs in the “core” list and just 7 are non-equity
There is broad strength in the equity-related ETFs with leadership coming from large-caps (SPY, QQQ), tech-related ETFs (IGV, SKYY) and even some more defensive names (XLP, USMV). Other defensive names extended their oversold bounces this week with XLU and XLRE moving higher. Stock alternatives
The bull market continues to broaden as more money moves into offensive ETFs than defensive ETFs. Momentum is outperforming Minimum Volatility ETF over the last six weeks. The S&P 500 SPDR and Nasdaq 100 ETF hit new highs while the Gold SPDR and 20+ Yr Treasury Bond ETF fell further.
We have seen a pronounced shift over the last few weeks. ETFs that were lagging and in downtrends are breaking out and starting to lead, while ETFs that were leading a few months ago are correcting and lagging. Add ETFs that where already strong and leading to the mix, and we have the recipe for a broadening bull market in stocks.
Even though stock-related ETFs are dominating here in October with big moves and new highs in several key groups, the precious metals and bond ETFs
Strength is broadening among the industry group and sector ETFs. In particular, several ETFs that were classified as trending lower and lagging have been upgraded to emerging leaders. I do not mean “Emerging” markets
The stock market took on a more offensive tone over the past week with some of the beaten down groups outperforming. In addition, some of the defensive leaders underperformed and even corrected. The Utilities SPDR, Consumer Staples SPDR and
The goal of this commentary is to cut through the day-to-day noise and focus on price action that actually matters. Noise can be in the form of news or random price fluctuations. Either way, we are often better off when we filter the noise and focus on what really matters. So what really matters? Trends …
The Semiconductor ETF held up much better than the broader market in September and a bullish pattern is taking shape.