5-Year High In Bull Markets Amid Deteriorating Fundamentals
-
Jason Goepfert
Published: 2020-01-16 at 11:00:00 CDT
5-year high in bull markets
More than 85% of stocks in the S&P 500 have managed to close above their 200-day moving averages, the most in five years. This ends the longest such streak in 30 years.
When stocks are coming out of a prolonged downtrend, this is an excellent buy signal. When it triggers with stocks at or near new highs, it’s more of an exhaustion signal in the medium-term, but still a good sign long-term.
Deteriorating fundamentals
We saw last week that there is a 15-year high in stocks with negative earnings, both established companies and new issues. And many of those are also seeing deteriorating fundamentals, with operating earnings lower than four quarters ago.
This is true among all stocks traded on the NYSE, as well as individual indexes, like the big-cap tech-dominated Nasdaq 100.
There isn’t anything about this to suggest it’s an imminent warning. It’s another one of those “hmmm” developments that makes the overall environment seem riskier than buyers are acknowledging.
This is an abridged version of our recent reports and notes. For immediate access with no obligation, sign up for a 30-day free trial now.
We also looked at:
- A lot of Nasdaq 100 stocks have hit 52-week highs, and also overbought conditions
- Almost all Fidelity select portfolio managers are beating the return on cash
Related Posts:
- Time to Keep a Close Eye on the Health Care Sector
- Weekly Wrap for Oct 15 - Souring Sentiment on Stocks and Bonds; Tech Pessimism; Commodity Rally
- Time to Keep a Close Eye on the Tech Sector
- S&P 500 Streaks Are Dropping Like Flies
- The S&P 500's Summation Index is in the Worst Possible Position
Tagged As:
The post titled 5-Year High In Bull Markets Amid Deteriorating Fundamentals was originally published as on SentimenTrader.com on 2020-01-16.
At SentimenTrader.com, our service is not focused on market timing per se, but rather risk management. That may be a distinction without a difference, but it's how we approach the markets. We study signs that suggest it is time to raise or lower market exposure as a function of risk relative to probable reward. It is all about risk-adjusted expectations given existing evidence. Learn more about our service , research, models and indicators.
Follow us on Twitter for up to the minute analysis of market action.
Follow @sentimentraderNot ready to signup up for a free trial yet?
Signup for our Daily Lite email to receive highlights of our daily report, research and studies.
Follow us on Twitter:
Follow @sentimentraderSubscribe to our Youtube Channel:
RSS Feed
Subscribe to the Blog RSS feedTags
Recent Blog Posts
Brought to you by:
>