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“No one ever accomplishes your dreams for you” – Nadia Comaneci
Below is a snippet of commentary from today’s Morning Lineup. Start a two-week trial to Bespoke Premium to view the full report.
To view yesterday’s CNBC segment, click on the image below.
Is this the hangover from the post-election rager? There’s a downside bias to equities around the world this morning, including the US which has been surging to kick off November. In Asia overnight, equities were lower across the board with the Nikkei down 0.5% while China and India were down over 1%. In Europe, it’s the same story as the STOXX 600 is down 1% after Economic Sentiment from ZEW fell slightly more than expected while German CPI ticked up 0.4% on a m/m basis which was right in line with forecasts. The only economic indicator on the calendar this morning was NFIB Small Business Sentiment for October which came in higher than expected. Given the political leanings of this report, you can expect a much larger increase next month.
With futures pointing to a modestly lower open this morning, it would be the first day this month that the S&P 500 tracking ETF (SPY) gapped lower at the open with the last five trading days being especially strong. The snapshot from our Trend Analyzer below shows the performance of major international ETFs and where they stand relative to their short-term trading ranges. While US stocks have surged, foreign ETFs have performed much less impressively. Just over the last five trading days, SPY has rallied over 5%, while the next closest performer of the group shown has been the FTSE Pacific ETF (VPL) which is only up a bit more than 1%. SPY’s rally also makes it the only one of the six ETFs trading above its 50-day moving average (DMA). Additionally, while SPY closed more than two standard deviations above its 50-DMA yesterday putting at ‘extreme’ overbought levels, three of the five other ETFs shown closed in oversold territory yesterday, including the FTSE Europe ETF (VGK) which settled in ‘extreme’ oversold territory (2+ standard deviations below its 50-DMA).
Below we show one-year price charts of each of the six international regional ETFs summarized above. While most of the charts look similar, SPY stands out from the rest.
