Trump delays tariff hikes by two weeks in 'good will' gesture to China https://www.cnbc.com/2019/09/11/tru...-two-weeks-in-good-will-gesture-to-china.html Futures jumped
QE is back in Europe Could be risk on for equities if we don’t get bad headlines on trade and the economic data remain solid
Throw It All Out the Window Thu, Sep 12, 2019 It's time to throw all those financial "mumbo jumbo" ratios out the window. That's right. You can take your P/E, P/B, P/S ratios and send them out packing with EV/EBITDA and the PEG ratio. While you're at it, why don't you free up some space and toss out all those finance textbooks you bought in college and grad school. None of it matters. At least not this week where making money in the market has been as simple as "buy low and sell high." Through yesterday's close, the S&P 1500, which is comprised of large-caps (S&P 500), mid-caps (S&P 400), and small-caps (S&P 600), was up just under 1% on the week. The average week to date performance of individual stocks in the index, however, was a much more impressive gain of 5%. By far the biggest gains have come from the stocks with the lowest share prices. Coming into the week, there were 55 stocks in the S&P 1500 that had share prices of less than $5, and through Wednesday's close, they were up an average of 21% with 54 of 55 in the black. 21%!!!! Coming into today, there were also seven stocks in the S&P 1500 that were already up over 40% this week, and guess what? They all came into the week with share prices below $5. Looking at the performance of individual stocks this week shows that share prices appear to have been a key driver of performance. In the chart below, we grouped stocks in the S&P 1500 based on their share prices as of last Friday and then calculated the average performance of the stocks in each group so far this week (through Wednesday's close). While stocks with share prices of less than $5 per share were up an average of 20.8%, the performance of stocks priced between $5 and $10 per share were up a still impressive 10.9%. What's even crazier about this chart is the fact that as you move out to the right (higher share prices), average performance consistently weakens to the point where stocks with high share prices ($100+) have only gained an average of 0.1% so far this week. Who needs Alphabet (GOOGL), Amazon (AMAZN) and Chipotle (CMG) when you could have had JC Penney (JCP), Dean Foods (DF), or Mallinckrodt (MNK). If these high priced stocks know what's good for them, they better start announcing 10-1 splits pronto! (That was a joke.) In all seriousness, the performance numbers listed below further illustrate this week's massive rotation out of momentum strategies, where stocks and sectors that had been leading have been sold off while those that had lagged or been written off for dead have seen some buying interest or at least an easing of selling pressure. All the textbooks and financial ratios in the world may provide comfort to analysts and investors, but they don't help at all when the momentum tide turns. best and WORST S&P 1500 Stocks Since 9/6 Thu, Sep 12, 2019 This week has been all about little is big and big is little in terms of stock performance. Take the lists of best and worst performing S&P 1500 stocks since last Friday's close. The first table below shows the 20 best performing S&P 1500 stocks since the close last Friday. The fact that there are more than 20 stocks in the S&P 1500 that are up over 20% already this week is notable in itself. Even crazier, though, is that when you look at the share prices of these stocks, all but seven have current share prices of less than $5 per share even after their gains this week, and the average share price of the 20 stocks listed is just $7.42. Also, as we noted in an earlier post, it's not as if there are tons of stocks in the S&P 1500 trading below $5 per share. Heading into today, there were only 55 and 54 of them were up on the week. Turning to the list of losers so far this week, while there are more than 20 stocks that are up over 20%, not a single stock in the index is down 20% and only eight are down more than 10%. Besides the fact that the stocks listed below are down so far this week and the ones above are up, the other major and pretty consistent difference between the two lists is their share prices. As of today, the average price of the 20 biggest losers so far this week is $135.74 which is more than 18 times the average share price of the biggest week to date winners.
Looks like the DOW and the SPX will fall short of hitting the new intraday ATHs, not sure what was the record closing for those indexes though
Trump says he would consider an interim trade deal with China https://www.cnbc.com/2019/09/12/trump-says-he-would-consider-an-interim-trade-deal-with-china.html Not much reaction for the futures, I think similar news hit the market earlier in the regular session although a White House official denied the report.
market map heading into sandwich hour on the east worth noting that the dj30 is working on an 8 in a row daily winning streak today. could be the longest since 2017 i believe.
Bonds and gold continue to selloff The recession fears probably are a little bit overblown and those safe havens got overbought
Seems like the rotation into value and beaten up stocks continue. They continue to outperform growth like earlier this week
