Market breadth

Below Find the percent of Stocks trading above 200 D MA ,From Morgan Stanley “A back test of forward returns after the % of S&P 500 stocks above 200-day moving averages reached current levels or higher shows that forward returns on a 5-day, 1-month, and 3-month basis all tend to be lower than in other periods and in each case with high statistical significance (p = 0.00). To be clear, absolute returns do not have to be negative, and in about half of cases across the different return periods they are not, but returns do tend to be lower than normal when this indicator gets as extended as it currently is. “

one of the culprits for todays unwind of the reflation trade is fact that real rates are moving higher in fact over last 5 days they are UP 15.9%. short term bottom in place? Daily chart 10 year real rates

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.