Small Caps Lead As Staples Lose Relevance And Energy Can't Lose
-
Jason Goepfert
Published: 2018-05-18 at 11:31:18 CDT
This is an abridged version of our Daily Report.
The leading index
Small cap stocks, via the Russell 2000 index, are leading the other major indexes in the race to new highs. It’s the only index that has reached a 52-week high in the past 30 days.
Other times it led to new highs, it was an inconsistent sign for stocks, especially the Russell itself.
An 18-year low in Staples’ weight
Consumer Staples have been bettered while other sectors have taken up the slack. The sector now accounts for less than 7% of the S&P 500, its 2nd-lowest weight since 1990. As a ratio to the Consumer Discretionary sector, it also hasn’t been this neglected since 2000.
Energy can’t lose
The Energy sector has had only one loss in the last two weeks, and that one was tiny. It has also notched a fresh 52-week high, capping the best run in two years.
Breadth is getting overbought
We’ve already seen that the Advance/Decline Line is at a new high, mostly a good sign for stocks. The last two weeks have seen a minor thrust, with the 10-day average of the Up Volume Ratio exceeding 60%, moving into overbought territory.
For access to the full report, indicators, charts, screens, and Backtest Engine, log in or sign up for a free 30-day trial today. |
Related Posts:
- Weekly Wrap for Apr 16 - More of the same
- NYSE Percentage of New Lows and 200-Day Average Risk-Off Model
- Chinese stocks haven't done this for 5 years
- In a broad global recovery, China stands out
- NYSE Advance-Decline Line Divergence Risk-Off Model
Tagged As:
The post titled Small Caps Lead As Staples Lose Relevance And Energy Can't Lose was originally published as on SentimenTrader.com on 2018-05-18.
At SentimenTrader.com, our service is not focused on market timing per se, but rather risk management. That may be a distinction without a difference, but it's how we approach the markets. We study signs that suggest it is time to raise or lower market exposure as a function of risk relative to probable reward. It is all about risk-adjusted expectations given existing evidence. Learn more about our service , research, models and indicators.
Follow us on Twitter for up to the minute analysis of market action.
Follow @sentimentraderNot ready to signup up for a free trial yet?
Signup for our Daily Lite email to receive highlights of our daily report, research and studies.
Follow us on Twitter:
Follow @sentimentraderSubscribe to our Youtube Channel:
RSS Feed
Subscribe to the Blog RSS feedTags
Recent Blog Posts
Brought to you by:
>