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Highs & Lows Weekly #7
Commentary on Current Trends
  • There are almost no stocks showing up on the strong short term list. The market is indiscriminately selling almost everything, even the industries that had been holding up well in recent weeks.

  • The weak short term list is more than 10 times larger than the strong short term list. Again, long duration equities (biotech, software, internet, etc) dominate the list. Note also that industries that had been strong in recent weeks are turning negative - Gold, resources, oil and gas, etc.

  • Defensives - Utilities, REITs, Consumer Packaged Goods - remain in strong long term uptrends despite recent near term selloffs. The market has fled into these names as a defensive reaction to a risk off environment.

  • The selloff in debt markets has weighed substantially on financial stocks. The yield curve has flattened significantly, which has led investors to begin selling bank stocks. Also, the recent increase in mortgage interest rates bodes poorly for mortgage origination and refinance at major lenders.

  • Some of the largest and most well thought of companies in the market now sit atop the weak long term trend list. This includes: $FB, $TSM, $JPM, $HD, $BAC, $DIS, $CSCO, $ADBE, and $CRM. The market has finally “come for the Generals” of the market after selling small and midcap stocks for nearly a year.

For more insight into what stocks are trending up/down be sure to check out our latest edition of Highs & Lows Weekly!

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Highs & Lows Weekly #7 - Monday April 25, 2022
Weekly Industry Performance, Light Market Commentary and Plenty of Charts

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