Become a better market participant

Posted on THU 31MAY18

Small is beautiful. Russell 2000 is the only main index that reached a new all-time high. This confirms that US small caps are currently outperforming large caps. Political reforms with less regulations for some businesses, lower tax rates, new tariffs for several goods shipped from overseas, and a stronger dollar benefit more to small and local American businesses than to multinational companies. In this climate, small caps should continue outperforming large caps in the coming months.

Posted on MON 14MAY18

As expected, current market conditions are in favour of price momentum stock picking strategies. American and European indices are still fluctuating between January’s high and February’s low. Though, most of the stocks held in reports have reached a new 52-week high during last week (65% of US stocks and 51% of European stocks).

Earnings published so far do not indicate signs of an economic slowdown. Geopolitical fears are now more focused in the Middle-East, which leads oil price higher. However, gold remains in the low part of its trading range bounded by 1300 and 1370 USD/oz.

 

Posted on THU 12APR18

Some indices have now retested their lows of February (Dow Jones 30 in the US, Stoxx 600 in Europe) without major consequences. Other indices remain above their lows of February (Nasdaq 100). In recent weeks markets have experienced an increase in volatility. This agitation is mainly related to geopolitical uncertainties such as denuclearization of North Korea, tariff war with China, risk of expansion of the conflict in Syria. Despite all this, gold price is unable to move above its January high and remains under 1370 USD/oz.

Earning season will start in coming days and should benefit to companies with a solid and growing underlying business. They should continue to perform well and reward good stock pickers.

 

Posted on SUN 11MAR18

While some market participants are still waiting for a retest of Feb 9th low for the Dow Jones Index or the S&P 500, the Nasdaq Composite has reached a new all-time high. These market conditions are very favourable for stock pickers that outperform passive investors.

21 stocks out of 35 open transactions in US report have now broken their January highs. Only 5 stocks were sold as they took their early-February low. Many new candidates are now waiting for an imminent purchase.

 

Posted on TUE 06MAR18

While S&P 500 is halfway between the high of 26JAN18 and the low of 09FEB18, 17 out of 36 open transactions in the US report have already broken their January highs.

This illustrates the strength of stock picking based on price momentum.

Several new candidates are now waiting for an imminent purchase, these stocks have also broken their January highs.

 

Posted on WED 28FEB18

Most stock markets fluctuate now between 26JAN18's high and 09FEB18's low.

Tech-heavy Nasdaq is recovering faster than other indices and is nearing a new all-time high.

That market phase is very interesting as some stocks are breaking above their previous January’s high whereas other stocks are unable to remain above early February’s low.

If you are a momentum player, this is a great opportunity to rebalance your portfolio as stocks breaking under previous low should be removed and replaced by stocks making new highs.