1.QQQ and Nasdaq 100 Close Below 50 days for the First Time in 2017.
QQQ closes below 50day on high volume.
NDX closes below 50day
2.Statistic of Day…FANG Stocks have only been Below 50 Day on 4% of Trading Days Since 2012.
The QQQs yesterday suffered one of their worst hits in 2017 – BeSpokes note that All five FAANG stocks $FB $AMZN $AAPL $NFLX $GOOGL now below 50-DMAs for the first time since 2/16/16 – “The FAANG stocks have only all been below their 50-DMAs on 4% of trading days since $FB IPOd in May 2012.”
Thanks to Dave Lutz at Jones for this info.
3.Markets Respond Well to Pullback in Tech.
Jun 29, 2017
Remember all those stories earlier this year that the market was being powered by the performance of the large-cap technology sector and more specifically, the FAANG (originally FANG, but Apple was added after it started to rally) stocks? The “theory” was that if these stocks ever ran into trouble, look out below. Throughout this period, we took the opposite end of the argument and repeatedly highlighted that although the FAANG stocks were doing extremely well, overall breadth in the market was strong, indicating broad-based participation.
Well, this month we got the first test of the FAANG theory and how much or little it was holding up the market. Since the close on June 8th, the S&P 500 Technology sector has dropped 2.6% and the five FAANG stocks have declined over 4%.
So how much did the overall market decline in reaction to the fall in the tech sector. Heading into Thursday’s trading, the S&P 500 is down less than half a percent.
The key to the market’s resilience in the face of Tech’s weakness has been strength in sectors like Health Care (+4.2%), Financials (+3.2%), and Real Estate (+2.0%). In fact, while the S&P 500 is down half a percent from its bull market high, it is actually up 0.3% since the Technology sector peaked.
4.One Month…Regional Banks +6% vs. Tech -2.65%
KRE Regional Banks vs. QQQ Tech 1 Month.
Banks Still Sideways after Trump Bump….Watch to see if they break-out
As mentioned previously on Top 10, I am watching IPO’s of names with high valuations in private market, not a good first day for Blue Apron.
While the first day of trade is no death sentence, Blue Apron (NYSE:APRN) had a dismal debut session on the New York Stock Exchange. Shares spiked in the morning, but the gains were soon pared back, closing the day unchanged at $10. The IPO raised about $300M that the U.S. meal kit provider plans to use for expansion. www.seekingalpha.com
6.Crude Bounce Right as Hedge Funds Shorts Hit Record.
7.The Chase for Yield in ETF Products.
8.Long-Term Chart of P/E Ratios…1900-2017. If you break out 1990-2017 the range sits in a much higher level
Chart of the Day
With first-quarter earnings largely in the books, today’s chart provides some perspective on how the current earnings environment relates to the stock market, today’s chart illustrates the price to earnings ratio (PE ratio) from 1900 to present. Generally speaking, when the PE ratio is high, stocks are considered to be expensive. When the PE ratio is low, stocks are considered to be inexpensive. From 1900 into the mid-1990s, the PE ratio tended to peak in the low to mid-20s (red line) and trough somewhere around seven (green line). Notice how most PE ratio peaks that occurred well above the upper threshold (red line) were a result of a massive bear market / recession. The only real exception to this was the dot-com boom which resulted in a PE ratio peak well above 30 in 1999 (even then, the PE ratio did not stay above 25 for long). Viewed in this way, the current PE ratio (24.1) is noteworthy and suggests that the stock market as a whole is by no means cheap.
Where should you invest? The answer may surprise you. Find out right now with the exclusive & Barron’s recommended charts of Chart of the Day Plus.
9.Interesting Return on Equity at All-Time Lows….One of Warren Buffets Favorite Indicators and Mine.
The all-time highs we are seeing in equity valuations is having a significant impact on corporates. One distinct feature of this rally is the steady decline in the return on equity, as seen in the flow of funds data. Return on equity in corporate America is currently at the lowest level since World War II, see chart below.
10.If You’re Too Busy For These 5 Things: Your Life Is More Off-Course Than You Think
These 5 tricks can help get your life on track and get you moving in the direction of your dreams.
Despite turbulence and other conditions keeping airplanes off-course 90 percent of flight time, most flights arrive in the correct destination at the intended time.
The reason for this phenomenon is quite simple — through air traffic control and the inertialguidance system, pilots are constantly course-correcting.When immediately addressed, these course corrections are not hard to manage. When these course corrections don’t regularly happen, catastrophe can result.
For example, in 1979, a passenger jet with 257 people onboard left New Zealand for a sightseeing flight to Antarctica and back. However, the pilots were unaware that someone had altered the flight coordinates by a measly two degrees, putting them 28 miles east of where they assumed to be.
Approaching Antarctica, the pilots descended to give the passengers a view of the brilliant landscapes. Sadly, the incorrect coordinates had placed them directly in the path of the active volcano, Mount Erebus.
The snow on the volcano blended with the clouds above, deceiving the pilots into thinking they were flying above flat ground. When the instruments sounded a warning of the quickly rising ground, it was too late. The plane crashed into the volcano and everyone onboard died.
An error of only a few degrees brought about an enormous tragedy. Small things — if not corrected — become big things, always.
This flight is an analogy of our lives. Even seemingly inconsequential aspects of our lives can create ripples and waves of consequence — for better or worse.
How are you piloting your life?
- What feedback are you receiving to correct your course?
- How often do you check your guidance system? Do you even have a guidance system?
- Where is your destination?
- When are you going to get there?
- Are you currently off-course? How long have you been off-course?
- How would you know if you are on the right course?
- How can you minimize the turbulence and other conditions distracting your path?
1. Organizing Your Life
I don’t think I’m alone in being slightly scattered and sloppy about certain areas of my life. Life is busy.
It’s hard to keep everything organized and tidy. And maybe you don’t want to have an organized life. But moving forward will require far less energy if you move excess baggage and tension. If you’re carrying too much — whether that’s physical or emotional — your progress will be hampered.
In his book, The 7 Habits of Highly Effective People, Stephen Covey explains that some things are important, and some things are urgent. Most people spend their life prioritizing urgent and “shallow” activity (e.g., answering emails, putting out proverbial fires, and just day-to-day stuff).
Very few people have organized their lives to prioritize, almost exclusively, important and “deep” activity (e.g., learning, health, relationships, travel, and goals).
No one cares about your success more than you do. If you’re not a meticulous accountant about the important details of your life then you aren’t responsible enough to have what you say you want.
So how do you organize your life?
- Is your living space cluttered and messy or simple and neat?
- Do you keep stuff (like clothes) you no longer use?
- If you have a car, is it clean or just another place to keep your clutter and garbage?
- Does your environment facilitate the emotions you consistently want to experience?
- Does your environment drain or improve your energy?
- Do you have unnecessary debt?
- Do you know how many dollars you spend each month?
- Do you know how many dollars you make each month?
- Are you making as much money as you’d like to be?
- What’s holding you back from creating more value in other people’s lives?
Most people don’t track their expenses. But if they did, they’d be shocked how much money they waste on stuff like eating out.
I’ll be honest, as a creative and right-brained person, administrative and logistical details bog me down. I procrastinate and avoid them. But this lackluster behavior is holding me back from the very goals I’m trying to accomplish.
Until I can hone in on my finances, I won’t have a healthy financial life, regardless of my income.Until I take complete responsibility for my finances, I’ll always be a slave to money.
And so will you.
- Are your relationships the most meaningful and enjoyable part of your life?
- Do you spend enough time nurturing the relationships that really matter?
- Do you maintain toxic relationships that no longer serve you?
- Are you authentic and honest in your relationships?
Like money, most people’s relationships are not organized in a conscious manner. But with something so critical, we should take better stock of our relationships.
- Do you eat with the end in mind?
- Are you conscious of and in control of the foods you put in your body?
- Does the food you eat improve or worsen the other areas of your life?
- Does your body reflect your highest ideals?
- Is your body as strong and fit as you want it to be?
- Are you healthier now than you were three months ago?
Health is wealth. If you’re bed-ridden, who cares how organized the other areas of your life are?It’s so easy to put our health on the side — like foregoing sleep, over-consuming stimulants, and making poor eating habits. But little things become big things and eventually, everything catches up.
- Do you have a sense of purpose in life?
- Have you come to terms with life and death in a way you resonate with?
- How much power do you have in designing your future?
When you organize your spiritual life, you become clear on what your life is about. You become clear on what you stand for, and how you want to spend each day. You develop a conviction for what really matters to you, and what is a “distraction.”
No matter how well-defined, everyone has a moral system governing their behavior. Most people believe in being honest and good people. But until you organize your spiritual life, you’ll experience internal conflict when acting contradictory to your values and vision.
- How much of your time do you feel in complete control of?
- Is your time being wasted on things you don’t intrinsically enjoy?
- Are the activities you spend your time doing moving you toward your ideal future?
- Are you spending most of your time furthering your own agenda or someone else’s?
- What activities should you remove from your life?
- How much time do you waste each day?
- What would your ideal day look like?
- What activities could you outsource or automate that take up your time?
Until you organize your time, it will disappear and move quickly. Before you know it, you’ll wonder where all the time went. Once you organize your time, it will slow down. You’ll be able to live more presently. You’ll be able to experience time as you want to. You’ll control your time rather than the other way around.
Stop What You’re Doing and Get Organized
Getting organized and conscious of your present circumstances (e.g., your environment, finances, relationships, purpose, and time) puts you in a position to build toward the future you want.
The fastest way to move forward in life is not doing more. It starts with stopping the behaviors holding you back.
If you want to get in shape, you’ll make more progress by stopping your negative behaviors than starting good ones. So, before you start exercising, purge the junk food from your diet. Until you stop the damage, you’ll always be taking one step forward and one step backward.
Before you focus on making more money, reduce your spending. Detach yourself from needing more and become content with what you have. Until you do this, it doesn’t matter how much money you make. You’ll always spend what you have (or more).
This is a matter of stewardship. Rather than wanting more, more, more — take proper care of what you currently have. Organize yourself. Dial it in. Your life is a garden. What good is planting if you don’t prepare the soil and remove the weeds?
Why do most people stay stuck? They never organize. They try adding more, or being more productive, or taking a different approach. So before you “hustle,” get organized.
2. Plan And Invest In Your Future
“The best time to plant a tree was 20 years ago. The second best time is now.” — Chinese Proverb
Taking these foundational areas of life and organizing them is essential to creating your ideal future. Very few people consciously plan and design their life. It’s actually startling how fewAmericans are investing in their future.
But you have complete power over the details of your life the moment you decide you’re worthy of that power. That decision is manifest in tangible behaviors, like fixing or removing troubled relationships and saying “no” to activities that are nothing more than a waste of your time.
You get to decide right now.
Your vision should be based on your why, not so much your what.
Your why is your reason, your what is how that is manifest. And your “what” can happen in a ton of different ways. For example, my why is to help people get clarity on the life they want to live, and to help them achieve their goals as quickly as possible. My what could be blogging, parenting, being a student, going out to dinner, and several other things.
Too many people think creating a vision is about nailing down exactly what they want in the next 20 years. The problem with this mega long-term approach to goal setting is that it actually slows your potential.
Instead of having a pre-set plan of what he wants to do, Tim Ferriss executes on 3–6-month experiments that he’s currently excited about. He told Darren Hardy in an interview, that he has no clue what the outcome of his experiments might be. So there’s no point in making long-term plans. He has no clue what doors will open up, and he wants to be open to the best possibilities.
But his why never changes.
Invest in Your Future
When you choose to forego momentary gratification in order to have an enhanced future, you are investing in your future. Most people fail to do this successfully.
Most people don’t purposefully invest in their finances, relationships, health, and time. But when you invest in yourself — and in your future — you ensure your future present moments will continue to get richer and more enjoyable. Thus, your life will continue getting better and more in-line with your ideal vision.
3. Tracking Important Metrics
Getting organized and investing in your future are futile if you’re not tracking. In regards to the most important areas of your life, you need to be on top of what’s going on.
Tracking is difficult. If you’ve tried it before, chances are, you quit within a few days. Researchhas repeatedly found that when behavior is tracked and evaluated, it improves drastically.
If you’re not tracking the key areas of your life then you’re probably more off-course than you think. If you were to be honest with yourself, you’d be stunned how out-of-control things have become. As J.M. Barrie, author of Peter Pan, has said, “The life of every man is a diary in which he means to write one story and writes another, and his humblest hour is when he compares the volume as it is with what he vowed to make it.”
The cool part is, once you get organized, make a plan, and start tracking, desired change happens quickly.
The areas I’m personally tracking are:
- My income/expenses
- A number of new email subscribers I get each month
- Every minute of my life (through a simple planner)
- My key relationships
- Daily progress toward my few goals
- My weight, muscle mass, and body fat percentage each month
You can track whatever priorities you have. But I can absolutely promise you that once you do, your conscious awareness of these things will increase. You’re ability to control these things will enhance. Your confidence will wax strong and you’ll be living a simple, yet organized and refined life. You’ll be responsible, which put another way is freedom.
4. Prayer and Meditation To Reduce Noise
“I have so much to do today that I’m going to need to spend three hours in prayer in order to be able to get it all done.” — Martin Luther
There’s a lot of emphasis on hustle these days. Hustle, hustle, hustle.
But all the hustle in the wrong direction isn’t going to help you. Yes, by hustling you can fail often, fail fast, and fail forward. However, as Thomas Merton has said, “People may spend their whole lives climbing the ladder of success only to find, once they reach the top, that the ladder is leaning against the wrong wall.”
This happens way too often. We get caught in the thick of thin things. Far too late do we realize that in our mad rush, we were pursuing someone else’s goals instead of our own.
But spending a large chunk of time in prayer and/or meditation does more than providing clarity to what you’re doing, these things open your mind up to possibilities you can’t get while you’re busy.
For example, a few days ago I spent the entire morning praying, thinking deeply, listening to inspirational music, and writing in my journal. A few hours into this process, an idea came to me that is absolute gold.
I also got insights regarding important relationships during that time, which when those insights came in, I immediately sent out emails or texts to those people. Amazing collaborations and mentorships were the resulting outcomes.
But there’s more.
Your thoughts are incredibly powerful. They actually govern not only you but those around you. Think about it, if you think positively about the people you’re around, their lives are better. This is why people “send positive energy” or pray for other people. It actually makes a difference.
Your thoughts create endless ripples — even waves — of consequence all around you. While praying and/or meditating for a large portion of time, the level of your thoughts will elevate. And interesting things will begin happening. If you’re uncomfortable with the idea of miracles, you can think of it as luck.
Whatever you call it when you spend large portions of time every day in deep reflection mode, luck strikes. Stuff happens that is completely outside of your control for your benefit.
For instance, during my deep dive into my mind and soul, one of my favorite authors came across my blog. He retweeted one of my articles and reached out to me.
If you’re skeptical of these ideas. Give it a try. Why do you think the majority of the world’s most successful people have rituals such as these? There is a higher realm you can tap into that unlocks limitless possibilities. The only thing holding you back from those things is your mind.
5. Move Toward Your Goals Every Single Day
How many days go by where you did nothing to move toward your big goals? Probably too many.
If you don’t purposefully carve time out every day to progress and improve your time will get lost in the vacuum of our increasingly crowded lives. Before you know it, you’ll be old and withered, wondering where all that time went.
As Harold Hill has said: “You pile up enough tomorrows, and you’ll find you are left with nothing but a lot of empty yesterdays.”
After you’ve gotten yourself organized, made plans, started tracking, and gotten into the habit of prayer/meditation, taking action and hustling will be automatic. It’s good practice to do these kinds of things at the beginning of your day before your willpower depletes.
If you don’t, it simply will not get done. By the end of your day, you’ll be exhausted. There will be a million reasons to just start tomorrow. So your mantra becomes: The worst comes first. Do that thing you’ve been needing to do. Then do it again tomorrow.
If you take just one step toward your big goals every day, you’ll realize those goals weren’t really far away.
Benjamin Hardy was the #1 writer on Medium.com. He writes about self-improvement, motivation, and entrepreneurship. His writing is fueled by personal experiences, self-directed education, and formal education.