Dow Ignores Majority, IPO Appetite Wanes
This is an abridged version of our Daily Report.
Dow ignores the majority
The Dow Industrials have rallied to new highs, but most stocks are in bear markets.
More than half of NYSE stocks are below their 200-day averages, a rare disparity on days when the Dow has been at its highest level in a year or more.
IPO appetite is waning
Most IPOs this year are losing money, so a rising stock price is important to retain the interest of investors. An index of new IPOs is starting to struggle and is near its lowest levels in months, similar to what happened in 2015.
An overbought record
The S&P 500’s Relative Strength Index is at a record high relative to the Russell 2000. That has led to small-caps gaining some ground over the next month, but it wasn’t very consistent.
Old news
This is getting to be a daily occurrence, but the number of securities hitting 52-week lows on the NYSE continues to rise. It reached nearly 9% of total issues on Wednesday.