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US Stocks: All in and All Skewed?
 July 16 2017 ( From TradingView )
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We have been in one of the most Bullish Stock Market ​in history
​since 2009.​ The Mighty SP500 Index (SPY ETF) went from a ​low in
​March
​2009 ​​of ​67.10 to the high ever on June 9 2017 ​at 245.97, so it rose
​by a ​​factor ​​of 3.6 (excluding dividends) spurred by low interest ​rates and
​strong ​buybacks ​from ​US corporations and lately by the Trumpification
​of Financial Markets. (
See First Chart Below)

The market behavior have been to say the least very atypical in 2017. As
​we ​reached the highest ever level in July 2017, most of our attention have
​been on Technology stocks.

1) ​​But the surprising part is that high beta stocks (SPHB ETF) have outperformed the SP500 Index stocks lately (Since June 5 2017 week as shown by the second chart below-left side) and now testing Resistance Trendline. As of July 14, 35.3% in Financials, 19.6% in Industrials and 15.5% in Energy.
​2) US stocks momentum (MTUM ETF) reached last week a new high ever vs SP500 Index (as shown by the third chart below-right side). Top 10 holdings are 41.2% of total investments as of July 14.
3) ​​Internet stocks (FDN ETF) reached a new high ever last week vs SP500 Index (as shown by the fourth chart below-left side). Top 10 holdings are 51.2% of total investments as of July 14.
​​4) Social Media stocks (SOCL ETF) reached last week a Major Weekly Resistance on a relative basis vs SP500 (as shown by the fifth chart below-right side). Top 10 holdings as of July 14 is 67.7% of total investments.
5) US ​Initial Public Offering stocks (IPO ETF) is near testing a Major Resistance Trendline (as shown by the sixth chart below-left side). Top 10 holdings are 55.3% of total invesments as of July 14.
​​6) ​​Taking the SP500 Equal Weight Index​​ (RSP ETF) as a proxy, the top 10 holdings of that ETF is 2.25% instead of 18.91% for the SPY ETF. We can see on the seventh chart below that the Equal weight have been under performing since peaking on December 8 2016. It is now below the level reached before the US Election.


​​​​In Summary, we have now Generals (top 10 big momentum stocks) that do lead the market tremendously. That tells me that it is becoming more and more a classic chasing the rally instead of a investing for long term purposes. As the Investors are chasing aggressively those stocks, the market becomes more risky (more concentration among indices) and is behaving like an end cycle bull market behavior. 


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US Stocks: All in and All Skewed? $SPY #investing #spy #SP500 

Weekly RATIO
SP500 High Beta Portfolio ETF SPHB
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​SP500 Index ETF SPY (Candles)

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Monthly Chart
​SP500 Index ETF SPY ( Candles)

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Weekly RATIO
USA Momentum Factor ​ETF MTUM
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​SP500 Index ETF SPY (Candles)

Weekly RATIO
US Initial Public Offering ETF IPO
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​SP500 Index ETF SPY (Candles)

Weekly RATIO
Internet Index Fund ETF FDN
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​SP500 Index ETF SPY (Candles)

Weekly RATIO
USA Momentum Factor ​ETF MTUM
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​SP500 Index ETF SPY (Candles)

Weekly RATIO
USA Momentum Factor ​ETF MTUM
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​SP500 Index ETF SPY (Candles)

Weekly RATIO
Social Media ​​ETF SOCL
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​SP500 Index ETF SPY (Candles)

Weekly RATIO
SP500 Equal Weight ​​ETF RSP
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​SP500 Index ETF SPY (Candles)