Milan Cacic
October 08, 2021
Money Economy Commentary Trending Weekly updateA FEW TECHNICALS FOR THOSE INCLINED…
- September is historically the weakest month of the year with an average return of -1.1% for the S&P 500 and -1.2% for the S&P TSX 300.
- The S&P 500 continues to make all-time highs. It has not dropped below its 50-day moving average since June.
- Under the surface however, 40% of the S&P 500 constituents are trading below their 50-day average.
- 66% of the Russell 2000 constituents are trading below their 50-day moving average.
- Most of the returns over the past three months have been generated by only 10 stocks. These 10 stocks carry an 18% weight in the S&P 500 and 30% weight for the S&P TSX 300.
- Historically speaking, narrow breadth of the market, where not all the stocks are participating, is a bad sign.
- To most people’s surprise, technology/growth stocks may be the best place to be during times like these.
I've also included a piece from our CIBC Economics Team entitled “Horseshoes and Canadian elections”.
As always please feel free to contact us if you have any questions.
Have a great weekend.
Milan