Seasonality, Utilities, and Junk
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These are posts from earlier today.
Biggest arguments against a selloff here is momentum and seasonality. Rarely see much of a pullback this time of year, especially in past 20 years. 1994 was last meaningful pullback.
Just how split is this market? Among S&P 1500 stocks, more than 8% are oversold (RSI < 30) *AND* more than 8% are overbought. Most since '05. Closest was early Aug 2015.
Okay, now the outflow in junk bond funds is hitting some extremes. 5-day avg on JNK at -235 mln is notable Next few weeks were good, but failed in 2008.
Big move in utilities pushed 40% of the stocks to new highs. Nearing extreme, but XLU hasn't had consistent trouble until more than half were at new highs.