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Recent weeks have seen sharp drops in the percentage of stocks above their 50-day moving averages
MarketWatch
Ryan Vlastelica
8/7/2017
Excerpt:
Major U.S. stock-market indexes are trading near record levels, but does that statistic simply mask an ominous picture that’s being painted behind the scenes?
Market breadth, a measure of how many stocks are rising versus the number that are dropping, has turned “exceedingly negative,” according to Brad Lamensdorf, a portfolio manager at Ranger Alternative Management. Lamensdorf writes the Lamensdorf Market Timing Report newsletter and runs the AdvisorShares Ranger Equity Bear ETF HDGE, an exchange-traded fund that “shorts” stocks, or bets that they will fall.
“As the indexes continue to produce a series of higher highs, subsurface conditions are painting an entirely different picture,” Lamensdorf wrote in the latest edition of the newsletter. He noted that the year-to-date advance in equities — the S&P 500 SPX, is up 10.6% in 2017 — has been driven by outsize gains in some of the market’s biggest names.
Most notably, the so-called FAANG stocks, which refers to a quintet of technology and internet names, have by themselves contributed more than 28% of the benchmark index’s gain. Separately, megacap names like Boeing Co. BA, and Johnson & Johnson JNJ, have also outperformed the broader market.
“The good performance of these large companies is masking the fact that many stocks, including REITs and those in the retail sector, have already entered bear-market territory,” Lamensdorf wrote, referring to real estate investment trusts.
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View the complete article including links at:
http://www.marketwatch.com/story/ben...ing-2017-08-04
MarketWatch
Ryan Vlastelica
8/7/2017
Excerpt:
Major U.S. stock-market indexes are trading near record levels, but does that statistic simply mask an ominous picture that’s being painted behind the scenes?
Market breadth, a measure of how many stocks are rising versus the number that are dropping, has turned “exceedingly negative,” according to Brad Lamensdorf, a portfolio manager at Ranger Alternative Management. Lamensdorf writes the Lamensdorf Market Timing Report newsletter and runs the AdvisorShares Ranger Equity Bear ETF HDGE, an exchange-traded fund that “shorts” stocks, or bets that they will fall.
“As the indexes continue to produce a series of higher highs, subsurface conditions are painting an entirely different picture,” Lamensdorf wrote in the latest edition of the newsletter. He noted that the year-to-date advance in equities — the S&P 500 SPX, is up 10.6% in 2017 — has been driven by outsize gains in some of the market’s biggest names.
Most notably, the so-called FAANG stocks, which refers to a quintet of technology and internet names, have by themselves contributed more than 28% of the benchmark index’s gain. Separately, megacap names like Boeing Co. BA, and Johnson & Johnson JNJ, have also outperformed the broader market.
“The good performance of these large companies is masking the fact that many stocks, including REITs and those in the retail sector, have already entered bear-market territory,” Lamensdorf wrote, referring to real estate investment trusts.
.................................................. ................
View the complete article including links at:
http://www.marketwatch.com/story/ben...ing-2017-08-04