1.Global Stock Market Cap as a % of GDP
The daily shot blog https://blogs.wsj.com/dailyshot/2017/12/04/the-daily-shot-sector-rotation-accelerates-as-investors-play-the-tax-game/
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Category Archives: Daily Top Ten
Topley’s Top Ten – December 4, 2017
1.Nearing a Record Streak without a 10% Correction in the 60/40 Portfolio.
Topley’s Top Ten – December 1, 2017
1.Bank Stocks Break Out of 1 Year Sideways Channel.
Bank stocks spike after election then went sideways for one year.
Are we seeing the beginning of sector rotation???? Tech +29% vs. Banks +4.75% YTD.
Topley’s Top Ten – November 28, 2017
1.Broad Based 1700 Stock Chart Breaks Out.
I am not familiar with this chart but interesting.
Here’s Ari’s chart and comment:
Advance Is Broader than Many Realize
The message coming from our research is that the S&P 500 is in the midst of a healthy middle innings advance and investors should participate by buying cyclical sectors, like Technology, Financials, and Industrials. One key point we continue to stress is the broad-based nature of the rally. For instance, the Value Line Geometric index, an equal-weighted aggregate of approximately 1,700 companies, has broken above secular resistance dating back to the year 2000, and is accordingly positioned for additional gains, in our view. Rallies that include the participation of many stocks are typically the rallies that continue (or conversely, internal breadth typically narrows into a market top), and with the S&P 400 and S&P 600 indexes also making new highs with the S&P 500, we expect strength to continue.
Josh here – last week witnessed a new all-time high for the Nasdaq 100, Dow Jones Industrial Average, Russell 2000, NYSE Advance-Decline Index and a new 52-week high for the All Country World Index-ex US. You’re welcome to interpret that as a negative indicator if you feel the need to, but you’d be on the wrong side of one hundred years of market history.
These things end with a narrowing, not a broadening. Which could certainly happen – it’s just not happening right now.
Source:
Technical Analysis: Inflection Points
Oppenheimer & Co – November 25th 2017
From Josh Brown Blog.
http://thereformedbroker.com/2017/11/26/secular-bull-takes-flight/
Topley’s Top Ten – November 27, 207
1.Tech and Financials are Half the Weighting of Emerging Markets.
Sector Weightings: S&P 500 vs Emerging Markets
Nov 22, 2017
If we had a bitcoin for every time we heard someone say that the S&P 500 has been too reliant on the performance of tech stocks for its gains this year, we would be very rich. But if you think the S&P 500 is dangerously overweighted towards the Technology sector, beware of emerging markets. While the Technology sector’s 23% weighting in the S&P 500 makes it by far the largest sector in the index, the ETF tracking Emerging Markets (EEM) is even more heavily weighted towards technology. The chart below compares sector weightings in the ETFs that track the S&P 500 (SPY) and Emerging Markets (EEM). As you can see, Technology has a 26.5% weighting in EEM. So if you think the S&P 500 is too top heavy with tech, EEM is even more exposed.
In addition to the large weighting in tech, EEM also has a lot of exposure to Financials. That sector’s weighting is nearly 60% larger in EEM (23.1%) than it is in SPY (14.6%). With such large weightings in both sectors, just under half of EEM’s weighting is in Technology and Financials. So where is EEM underweighted relative to SPY? That would be in the Health Care sector. As shown below, Health Care accounts for 14.5% of SPY, but the sector’s weighting in EEM is a puny 1.95%.
https://www.bespokepremium.com/think-big-blog/
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