Market Breadth

Hindenburg Omen Reappears As Main Market Supports Get Kicked Away

In the last week, the controversial Hindenburg Omen has started to cluster ominously once again. Combined with divergent market internals and rates off the zero-bound (and global central bank balance sheets actually shrinking), John Hussman warns of the rising likelihood of an interim market loss on the order of 50-60% over the completion of the current cycle.

JPMorgan Lists Five "Red Flags" That Point To A 10% Downside Correction

"US growth momentum has turned mixed, with a rollover in manufacturing indicators, credit, housing and car sales. US CESI is in negative territory, which was typically associated with more defensive market leadership. CESI has a good correlation with the S&P500  and points to 10%+ downside for stocks."

Hedge Funds Pile Into Just Six Tech Stocks

With an average gain of 26% , it’s hard to overstate the influence of just six stocks on the U.S. stock market in the first quarter: Facebook Inc., Apple Inc., Amazon.com Inc., Microsoft Corp., Alphabet Inc. and Netflix Inc.

Presenting Goldman's "Worst-Case Survival Guide To Uncertainty, Taxes And Trade"

The juxtaposition of rising policy uncertainty vis a vis declining fear in risk assets raises "cause for pause" according to Goldman, which in its latest Portfolio Manager's Toolkit lays out the following "worst-case survival guide to uncertainty, taxes and trade" to help investors navigate once volatility comes back with a bang.

Risk Parity Funds Suffer Worst Month Since 2015 As Breadthless, Fearless Stock Market Soars

The market moves since the US elections have been both big and surprising, and as JPMorgan notes, fund managers have been either too slow or too reluctant to jump into the Trump trade. However, algo-based Risk-Parity funds suffered the most with their biggest loss since Dec 2015 as market 'fear' tumbles to 9 month lows (and stocks are the most overbought in 13 years).