ETF Trends: International – 3/24/17
Treasuries, precious metals, and EM have been the best performers over the last few weeks with natural gas prices also rising. Worst performers are found in banking, biotech, solar, Energy, and retail. We also note a number of small and micro cap equities under-performing sharply.
Bespoke provides Bespoke Premium and Bespoke Institutional members with a daily ETF Trends report that highlights proprietary trend and timing scores for more than 200 widely followed ETFs across all asset classes. If you’re an ETF investor, this daily report is perfect. Sign up below to access today’s ETF Trends report.
See Bespoke’s full daily ETF Trends report by starting a no-obligation free trial to our premium research. Click here to sign up with just your name and email address.
Bespokecast Episode 8 — PJ Gorynski — Now Available on iTunes, GooglePlay, Stitcher and More
We’re happy to announce that the newest episode of Bespokecast is now available to the general public both here and via the various podcast platforms. Be sure to subscribe to Bespokecast on your preferred podcast app to gain access to our full collection of episodes. We’d also love for you to provide a review as well!
In our newest conversation on Bespokecast, we speak with Bespoke Market Intelligence co-founder PJ Gorynski. PJ runs Bespoke’s primary research business, conducting consumer and business surveys for institutional clients that offer insight into the trends and drivers of businesses. In our wide-ranging conversation, we discuss how clients use Bespoke’s survey data to see deeper into business models, also discussing the state of the hedge fund industry and specific names covered in PJ’s research including Chipotle (CMG), GameStop (GME), Snapchat (SNAP), and Volkswagen (VLKAY). The Queens native also gives us some insight into the best pizza in New York and the agony of New York Mets fandom. We hope you enjoy the conversation!
Each new episode of our podcast features a special guest to talk markets with, and Bespoke subscribers receive special access before it’s made available to the general public. If you’d like to try out a Bespoke subscription in order to gain access to these podcasts in advance, you can start a two-week free trial to check out our product. To listen to episode 8 or subscribe to the podcast via iTunes, GooglePlay, OvercastFM, or Stitcher, please click below.
FOMC Hikes Halt Financial Sector Rally
Below we provide relative strength charts for ten S&P 500 sectors. Each chart shows the sector’s performance over the last year relative to the S&P 500. When the line is rising, it means the sector is outperforming the S&P 500. When the line is falling, it means the sector is underperforming the S&P 500. The dots on each chart represent FOMC rate decision days. Blue dots are FOMC days where the Fed held rates the same. Red dots are FOMC days where the Fed hiked rates.
A few things worth noting:
Two defensive sectors — Consumer Staples and Utilities — have begun to outperform again after underperforming for most of the past twelve months. Health Care also appears to have put in a bottom and has really done well versus the broad market lately. Energy looks the opposite of Health Care. It outperformed for most of 2016 up until the Fed hiked rates in December, and since then it has been straight down.
The relative strength chart for Technology is telling as well. In the initial weeks after the election, Tech underperformed some of the more “Trump-friendly” sectors. But since early December, Tech has been on a tear. It’s really the only cyclical sector that hasn’t skipped a beat over the last four months.
Finally, Financials and Industrials both experienced significant outperformance in the first six weeks after Trump was elected last November. But the Industrials sector has given up nearly all of its post-Election outperformance at this point, while Financials has performed only inline with the market since the Fed hiked rates last December. The most recent rate hike in early March sparked another round of selling in the Financials. Ironically, it was the prospect of higher interest rates that sparked Financial stocks higher, but the days that the FOMC actually hiked rates in both December and March resulted in near-term tops for the sector. The Fed commentary that came along with the most recent FOMC hike was interpreted as more dovish than expected, and since then Financials have traded lower.
If you like Bespoke’s relative strength charts, become a Bespoke Premium or Bespoke Institutional member today and check out our “Sector Snapshot” section.
The Closer — New Homes Soar, Peso Wants More — 3/23/17
Log-in here if you’re a member with access to the Closer.
Looking for deeper insight on global markets and economics? In tonight’s Closer sent to Bespoke Institutional clients, we review existing home sales and the performance of the Mexican peso.
The Closer is one of our most popular reports, and you can sign up for a free trial below to see it!
The Closer is one of our most popular reports, and you can see it and everything else Bespoke publishes by starting a no-obligation 14-day free trial to our research!
Chart of the Day: Advance Disposal Services (ADSW)
Checking Up on Internals
With equities surging to start the month of March and drifting lower ever since, questions over whether the March 1st rally marked some sort of last gasp peak have grown increasingly common. Whenever we get questions like this, our first inclination is to look at the market’s internals to see whether a new high in the index was confirmed by the performance of individual stocks in the index. In a B.I.G. Tips report sent out to subscribers earlier, we provided a detailed look at two key breadth measures we’ve found to be extremely useful over the years in terms of measuring the health of the market. To see the results of this must-see analysis, sign up for a monthly Bespoke Premium membership now!
Bespokecast — Episode 8 — PJ Gorynski
In our newest conversation on Bespokecast, we speak with Bespoke Market Intelligence co-founder PJ Gorynski. PJ runs Bespoke’s primary research business, conducting consumer and business surveys for institutional clients that offer insight into the trends and drivers of businesses. In our wide-ranging conversation, we discuss how clients use Bespoke’s survey data to see deeper into business models, also discussing the state of the hedge fund industry and specific names covered in PJ’s research including Chipotle (CMG), GameStop (GME), Snapchat (SNAP), and Volkswagen (VLKAY). The Queens native also gives us some insight into the best pizza in New York and the agony of New York Mets fandom. We hope you enjoy the conversation!
To access episode 8 immediately, please start a 14-day free trial to Bespoke’s research product. If you’ve already signed up for a Bespoke free trial in the past, you can gain access by choosing a membership option at our products page. Here’s a look at past guests if you’re interested.
Bespoke’s Sector Snapshot — 3/23/17
We’ve just released our weekly Sector Snapshot report (see a sample here) for Bespoke Premium and Bespoke Institutional members. Please log-in here to view the report if you’re already a member. If you’re not yet a subscriber and would like to see the report, please start a 14-day trial to Bespoke Premium now.
Below is one of the many charts included in this week’s Sector Snapshot, which highlights our trading range screen for the S&P 500 and ten sectors. The black vertical “N” line represents each sector’s 50-day moving average, and as shown, three sectors — Energy, Financials, and Telecom — are now below their 50-days. Only three sectors — Consumer Staples, Technology, and Utilities — remain overbought. (The red zone is considered overbought territory, while the green zone is considered oversold territory.)
To see our full Sector Snapshot with additional commentary plus six pages of charts that include analysis of valuations, breadth, technicals, and relative strength, start a 14-day free trial to our Bespoke Premium package now. Here’s a breakdown of the products you’ll receive.
ETF Trends: US Sectors & Groups – 3/23/17
Treasuries continued to gain, with Mexico, gold, and Japanese yen also rallying. Stronger yen means weaker equity prices in Japan most of the time, helping to push DXJ down. Banks and brokers are all over the top of the list of worst performers, with solar, steel, and oil stocks also in pain.
Bespoke provides Bespoke Premium and Bespoke Institutional members with a daily ETF Trends report that highlights proprietary trend and timing scores for more than 200 widely followed ETFs across all asset classes. If you’re an ETF investor, this daily report is perfect. Sign up below to access today’s ETF Trends report.
See Bespoke’s full daily ETF Trends report by starting a no-obligation free trial to our premium research. Click here to sign up with just your name and email address.
the Bespoke 50 — 3/23/17
Every Thursday, Bespoke publishes its “Bespoke 50” list of top growth stocks in the Russell 3,000. Our “Bespoke 50” portfolio is made up of the 50 stocks that fit a proprietary growth screen that we created a number of years ago. Since inception in early 2012, the “Bespoke 50” has beaten the S&P 500 by 35 percentage points. Through today, the “Bespoke 50” is up 107.5% since inception versus the S&P 500’s gain of 72.1%. Always remember, though, that past performance is no guarantee of future returns.
To view our “Bespoke 50” list of top growth stocks, sign up for Bespoke Premium ($99/month) at this checkout page and get your first month free. This is a great deal!
