Growth > Value suggests still appetite for risk assetsThe Growth/Value ratio chart suggests that growth stocks may continue to outperform value stocks - which is normally in line with risk assets in general doing well.Longby WVS_Stockscreen0
Market Sentiment Index: Long Term Long Term: Still in the upper boundary of the range - Copper - High Beta vs Low Beta - Growth vs Value - EM Currencies - AUD/USD - Consumer Staples vs Consumer Discretionary - Semiconductors vs S&P 500 - Russell 2000 ETF - U.S. Dollar Index (Inverse)by techpers0
Market Sentiment Index: Medium Term Medium Term: Turning Up - Copper - High Beta vs Low Beta - Growth vs Value - EM Currencies - AUD/USD - Consumer Staples vs Consumer Discretionary - Semiconductors vs S&P 500 - Russell 2000 ETF - U.S. Dollar Index (Inverse)by techpers0
Market Sentiment Index: Short Term At the upper end of the range. - Copper - High Beta vs Low Beta - Growth vs Value - EM Currencies - AUD/USD - Consumer Staples vs Consumer Discretionary - Semiconductors vs S&P 500 - Russell 2000 ETF - U.S. Dollar Index (Inverse)by techpers0
Sentiment WeakOver the medium term, sentiment has weakened. The components are as follows: - Copper - High Beta vs Low Beta - Growth vs Value - EM Currencies - AUD/USD - Consumer Staples vs Consumer Discretionary - Semiconductors vs S&P 500 - Russell 2000 ETF - U.S. Dollar Index (Inverse)by techpers1
Market Sentiment Index: Long Term Market Sentiment - last night's US sector weakness is confirmation of the signal the Market Sentiment Index has provided in the last few weeks i.e sentiment too strong and due a retracement, which is what we have seen. For more research insights, including trade ideas, get in touch today.by techpers0
Market Sentiment Index: Medium Term Components - Copper - High Beta vs Low Beta - Growth vs Value - EM Currencies - AUD/USD - Consumer Staples vs Consumer Discretionary - Semiconductors vs S&P 500 - Russell 2000 ETF - U.S. Dollar Index (Inverse)by techpers0
Market Sentiment Index: Long Term Components: - Copper - High Beta vs Low Beta - Growth vs Value - EM Currencies - AUD/USD - Consumer Staples vs Consumer Discretionary - Semiconductors vs S&P 500 - Russell 2000 ETF - U.S. Dollar Index (Inverse)by techpers0
Market Sentiment Index: Short Term Currently at the top of the short term range. Components as follows: - Copper - High Beta vs Low Beta - Growth vs Value - EM Currencies - AUD/USD - Consumer Staples vs Consumer Discretionary - Semiconductors vs S&P 500 - Russell 2000 ETF - U.S. Dollar Index (Inverse)by techpers0
Market Sentiment Index: Long Term Remains in a downward trend. The components are as follows: - Copper - High Beta vs Low Beta - Growth vs Value - EM Currencies - AUD/USD - Consumer Staples vs Consumer Discretionary - Semiconductors vs S&P 500 - Russell 2000 ETF - U.S. Dollar Index (Inverse) by techpers1
Market Sentiment Index: Medium Term Market Sentiment Index: Medium Term (50 Days) = Neutral - Copper - High Beta vs Low Beta - Growth vs Value - EM Currencies - AUD/USD - Consumer Staples vs Consumer Discretionary - Semiconductors vs S&P 500 - Russell 2000 ETF - U.S. Dollar Index (Inverse)by techpers1
Market Sentiment Index: Short Term Market Sentiment Index: Short Term (20 Days) = Neutral - Copper - High Beta vs Low Beta - Growth vs Value - EM Currencies - AUD/USD - Consumer Staples vs Consumer Discretionary - Semiconductors vs S&P 500 - Russell 2000 ETF - U.S. Dollar Index (Inverse)by techpers0
Market Sentiment IndexMarket Sentiment Index: Short Term (20 Days) = Negative But Ultra Short Term It’s ‘Near Oversold’ The 20-Day Trend (2 Std Deviation Linear Regression Channel) = Down, But Nearing The Lower Boundary of the Channel. - Copper - High Beta vs Low Beta - Growth vs Value - EM Currencies - AUD/USD - Consumer Staples vs Consumer Discretionary - Semiconductors vs S&P 500 - Russell 2000 ETF - U.S. Dollar Index (Inverse)by techpers110
Market Sentiment Index - Short TermApplied with 2standard deviation, 20-day linear regression channel Components - Copper - High Beta vs Low Beta - Growth vs Value - EM Currencies - AUD/USD - Consumer Staples vs Consumer Discretionary - Semiconductors vs S&P 500 - Russell 2000 ETF - U.S. Dollar Index (Inverse)by techpers0
Market Sentiment - Short TermComponents: - Copper - High Beta vs Low Beta - Growth vs Value - EM Currencies - AUD/USD - Consumer Staples vs Consumer Discretionary - Semiconductors vs S&P 500 - Russell 2000 ETF - U.S. Dollar Index (Inverse)by techpers0
Market SentimentMarket Sentiment - Continues to decline from short term overbought levels. Ultra Short Term = Weak, But ‘Near Oversold’ . by techpers1
Market SentimentMarket Sentiment - Continues to decline from short term overbought levels. by techpers1
Global Safe-Haven IndexGlobal Safe-Haven Index - Upward trend suggest risk on - Downward trend suggests risk off - The index now trading at the upper boundary of it's 200-day linear regression channel (2.5x mean) thus possibly looking stretched. by techpers0
Growth (IVW) / Value (IVE) - Rotation?IVW / IVE _ A Growth vs. Value Analysis Top Holdings: IVW - iShares S&P 500 Growth ETF : Apple (11%), Microsoft (10%), Amazon (8%), Google (6%), Facebook (3%), Tesla (3%), Nvidia (3%), PayPal (2%), Netflix (2%), Adobe (1%), IVE - iShares S&P 500 Value ETF : BERKSHIRE HATHAWAY INC CLASS B (3%), JPMORGAN CHASE & CO (3%), WALT DISNEY (2%), JOHNSON & JOHNSON (2%), BANK OF AMERICA CORP (2%), VERIZON COMMUNICATIONS INC (2%), EXXON MOBIL CORP (1%), AT&T INC (1%), PFIZER (1%), WALMART (1%) *Value stocks are defined by trading below what they are really worth. These are what are considered the best "value" stocks right now. Growth vs Value: Since September 2020 highs, there has been a shift from Growth Stocks to Value Stocks. Growth stocks have been outperforming Value from September 2007 to September 2020. From the September highs to now, we have seen Value stocks (+14%) out perform Growth Stocks (+8%). Since September 2007 highs to now Value stocks (+60%) have lagged Growth stocks (260%) by a lot. Broad Indices have attributed most of there success to the "growth" companies in IVW. These growth stocks have been holding up markets. Is it finally time for Value names to start outperforming Growth stocks Why do markets shift to prefer value over growth: 1. Growth names start to be "fundamentally" overvalued. 2. Investors prefer lower risk, lower potential drawdown. Before and after recessions/corrections people gravitate toward discounted value and avoid low earnings, expensive value or expensive growth. Cheap stocks should have less room to correct. 3. Value stocks are "undervalued" and offer a higher rate of return. IJS is the S&P 500 Small-Cap Value ETF, it holds names like Macys, Pacific Premier Bank Corp, BBBY, and a bunch of other small cap "value" names nobody knows. IJS (40%) has been massively outperforming since September. There are a lot of speculators that believe small businesses are in an environment to flourish. Real GDP growth remains below expectations. Earnings have not returned to pre-pandemic levels. Biden plans to increase the min wage to $15 adding pressure to smaller businesses. A lot of small cap names in the IWM and IJS have problems with profitability.IWM's Trailing Price to Earnings is negative because most companies have negative earnings and Price to Sales is at all time highs. There is a lot of speculation going in IJS and LWM making it prime for an event like a blow off top. The US 10 Year Treasury Yield has been on the rise in recent months. Could the yield be rising too fast? Borrowing can't become too expensive when the economy is still struggling. Violent moves upward in yield are never good. A move higher in long-term Treasury yields undercuts the present value of future earnings. As Interest rates started going up faster we saw a shift away from growth names to small cap value stocks. Investors may be chasing higher returns on "underperforming/undervalued" stocks. In general when interest rates rise companies cutback on spending because the cost for borrowing as increased. This causes earnings and share prices to drop. As a result, higher interest rates are putting downward pressure on both value and growth but more so on growth because low rates move investors up in their risk tolerance in search of higher return, benefiting growth over value. What market bulls would like to see is for growth stocks to start chugging higher and value will eventually follow. Any "healthy" bull market is characterized by strength in growth stocks. At least since 2008, Growth has propelled markets. One can argue that a cyclic change is occurring and now is the time for Value to outperform Growth and propel markets upward (Not as easy as it seems). Berkshire Hathaway sold Apple and bought into Pharma and Energy stocks. Apple is trading at over 30 times net profits and over 8 price/sales (investors are paying 8 dollars for every 1 dollar in sales) which is an incredibly high valuation for even a giant like Apple. Growth stocks are so overvalued investors are starting to realize that they need another place to store their money. As the economy has plans of reopening many of these value names have garnered speculative attention. This caused the rotation from growth to value to occur. The questions is " Is the rotation into Value real and will it be sustained?" It is important to keep in mind that a large part of "value stocks" are debt laden, zombie companies like airlines, cruises, casinos, brick n mortar stores and banks. The "pent-up" demand, enthusiastic reopening targets and high inflation expectations seemed to of convinced speculators to front-run the supposed rotation and pile into value names with subpar fundamentals. I am not claiming to make any conclusions based on this chart but, it is definitely worth examining. Will Growth start to out perform again? Will Value sustain its outperformance? Or will both Growth and Value begin to underperform? Charting ratios is an amazing ways to examine relationships in the market. Some interesting ratios I keep track of are TLT/XLF, IVW/IVE, SPY/TLT, XLY/XLP, SPY/GDX, XSD/XLP, JNK/LQD, ZN1!/ZB1! by arama-nuggetrouble2221
Beware of the Reversal in the Growth/Value Stock Ratio!Here is a very important chart: the ratio between growth stocks and value stocks. Wave 3 could be ending soon as we just touched the ML of the PF and hit the 200% extension of W3 vs W1. We are seeing an extended 5th within W3 which could top at 1.90 with a daily bearish divergence on the RSI. If this count proves to be correct, we will see NDX under-perform the SPX whatever the direction of indices. As you can see, each time this ratio corrected, we witnessed some turmoil on the markets to say the least... Follow us on Twitter and join our free Discord group to get daily updates in plenty of assets and access all our charts! by TradingSurfers668