This page has been archived and commenting is disabled.
Excluding All That Is Bad, Things Are Good
Who said only corporate earnings are non-GAAP, i.e., excluding - and adding back - all the bad stuff and only focusing on the good? According to the following BMO "analysis" while market breadth has been tumbling in recent months, this indicator which many have focused on to show lack of participation in the most recent rangebound market is actually really great... if only one excludes all the stocks that are destroying the bullish narrative.
To wit, from BMO equity strategist Luigi Di Pede:
U.S. Equity Market Still in Good Shape
Despite a reduction in market breadth, in part due to weakness in energy and interest rate sensitive sectors, the U.S. equity markets remain very healthy (compared to prior peaks) as evidenced by strong sector trends and fund manager positioning.
Equity breadth, which can be characterized as the percent of stocks going up remains strong at 66%. Although the trend has weakened since 2013, equity breadth is still higher than in October 2007 or March 2013. Moreover, unlike prior peaks, the market is showing much broader leadership.
The kicker:
Looking under the hood, excluding Energy and rate sensitive sectors such as Telecom and Utilities, which have been bringing down the average, most sectors continue to show very strong breadth. In particular, Healthcare, Consumer Discretionary and Financial stocks continue to show very strong uptrends.
Coming soon: the double seasonally-adjusted S&P500, which is up every time the plain-vanilla unadjusted (if Fed-rigged) S&P has a down day.
»
- 7086 reads
- Printer-friendly version
- Send to friend
- advertisements -
Sacre Bleu!
Beyond funny...saddish actually.
Sht that is doing well is Healthcare (quelle surprise!!!) , connedsumer Discretionary, whatever the f*&* that means (advertsising addled spending is what I imagine) and last but not least.....Financial Stux.....
Fools on FIRE!
Me on fire...;-)
https://www.youtube.com/watch?v=AqO8IxnHLUs
Back by popular demand: https://www.youtube.com/watch?v=anGXld-4hCA
Haahaa...good stuff CHX...
So, is good bad? Or, is bad good? Dammit ZH, I get confused!
I never knew that rose colored welder lenses were so popular and they must be a really dark shade......
But bad news is good news. So all things are good.
Market cap of Chinese stocks went from $4 trillion to over $10 trillion in a year.
American exceptionalism can surely top that when backed by exceptional lies and frauds.
Yes, Virginia, US unemployment rate is 5.5% and inflation in 2014 was 0.8%. Keeping buying US stocks, bonds and real estate. Yellen has everything under control.
Healthcare and financial, how can that be? Backstopped and subsidized by someone that can print money? Excuse me while I feign surprise.
Excluding the fact I don't actually have possession of it, I'm a multi-billionaire!! Damn I feel good. Oh, shit ... my break is over ... back to work.
Luigi Di Pede.
Dat somma meatball!
"Consumer Discretionary", which will be a fucking blood bath by EOY, but buy today so you can sell it lower after holiday sales shit the bed.
The "Telecom and Utility" folks really can't fudge their numbers. They issue too many bonds. And the bond boys are usually the smartest in the room. Everyone else uses mark-to-myth accounting. You have no idea what things are really worth these days.
I feel better already.
"Looking under the hood, excluding Energy and rate sensitive sectors such as Telecom and Utilities, which have been bringing down the average, most sectors continue to show very strong breadth. In particular, Healthcare, Consumer Discretionary and Financial stocks continue to show very strong uptrends"
I'd wager this chap is barely 40 years old - perhaps younger.
https://farm3.staticflickr.com/2301/1806664188_6c12600a3e.jpg
This buffoon's title should read:
The Fed's still supporting stawks so it's all good.