Learnings and conclusions from this week’s charts:
1. The equal-weighted S&P500 continues to make new highs.
2. The cap-weighted S&P500 remains stuck (thanks to “lag-7”).
3. The S&P500 Value index also chalked up new highs last week.
4. Micro caps and financials are putting in promising price action.
5. The USA, Korea, and China have one bubbly thing in common.
Overall, the bull-market-broadening and bullish rotation theme continues to play through, with the old leaders lagging, and everything else starting pick up. This is a constructive development, but there are a few things to keep an eye on…
$SPY$VOO$IVV$XLK$XLF$RSP$IWC
(click through to charts 👇)
Weekly S&P500 ChartStorm chartstorm.info/p/weekly-s-a…
This week: bull market broadening, lag 7, equal-weighted vs cap-weighted, value vs growth, financials, micro caps, bubble watch (AI stocks), REITs
Weekly Report Highlights Chart in Focus
This week: global equities, small caps, TAA review, and a stunning chart on global equity "fundamentals" --read it here: topdowncharts.pro/p/weekly-r…
For those wishing for Rate Cuts...
If the Fed cuts unnecessarily then stocks go up, but if they cut because things are unravelling in the economy then it won't help stocks at all.
(also notice how the market tends to trade into the first cut)
This chart tells you all you need to know about investing in Stocks vs Bonds.
Observations:
Bonds & stocks go up together most of the time.
Stocks beat bonds most of the time.
(but bonds beat stocks most of the time when stocks go down)
from The Weekly #ChartStorm
The AI boom (/bubble?) has triggered a surge in earnings expectations unlike anything we've ever seen before.
This has helped EM equities outperform vs US and developed, but it's also starting to look a little too good to be true.
And it's not the only interesting thing going on in earnings...
Is this a test of financial literacy?
...or is it a matter of volatility?
(or is it simply that most people hold real estate for the long-term by default, and hence get to actually see the benefits without getting spooked out by news headlines and daily market volatility)
Adjusted for market movements, margin debt is still expanding at a rapid pace.
Yes this is a warning sign.
As detailed here: chartstorm.info/p/chart-of-t…