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High Beta Hammered Amid August Angst, "More Volatility Lies Ahead"
August is the 2nd most volatile month in US equities with more daily swings of 1% or more than any other month (except October).
As S&P Capital IQ's Sam Stovall notes, the current market's lack of direction may be deceiving as high beta stocks (which tracks the 100 companies in the S&P 500 that fluctuated the most relative to the index during the past 12 months) are plunging (in correction).
“The market itself may also be telling us that more volatility -- along with a disappointing overall price performance -- lies ahead,” Stovall wrote.
The ratio of the S&P 500 high beta and low volatility indexes is sending this signal, the New York-based strategist wrote.
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“The market itself may also be telling us that more volatility -- along with a disappointing overall price performance -- lies ahead,” Stovall wrote.
utter crap
As soon as the FED delays "liftoff", again, stocks will party. Unless they don't. The only thing holding them up now is anticipation.
They're piling back into TSLA, aided by CNBS and a crazy analyst call, so all must be "well" in Bubbleland.
GOP's Kasich: ‘I don’t read a Bible to figure out what I think’
http://tinyurl.com/pt2dh7k
because nothing says BUY TSLA like dilution. were gonna be bigger than GM and F.
running XBI up again too.
I believe the "lies ahead" part. Lies in perpetuity.
Ugly world.
Woow, that high beta chart is kinda dangerous for shorts.
So,... we pay attention to resistances but not to supports??? What if demand returns on high beta stocks? You gotta be more careful with these analysis. That chart is not a reason or argument to go short, i guess.