Weekly Market Review 201204
Small cap stocks added strong gains for the fourth consecutive week while the S&P500 closed almost flat. Equity market captured momentum from industrial and material stocks as their earnings showed sign of life on economic recovery. Bond market rallied led by the Fed's Wednesday announcement that it will not raise interest rates until at least late 2014; the intermediate term bonds' yields went down over ten percents in contrast to last week's close. Market focus will shift back to the economic data as major companies finished their fourth quarter reporting, employment became the key market driver as we would like to know whether companies were still hiring after the holiday season.
Technical Highlights:
• Small cap outperformed large cap stocks once again; bonds rallies along with Fed's announcement.
• The 50days finished above the 200days moving average on the S&P500, which signals a new bull market trend.
• Healthcare's RSMC sensitivity oscillated dramatically that indicates a short-term pull back for the stock market.
• Stocks performance strongly correlated with earnings results, industrial and material stocks gain the most.
• Most offensive sectors have a tendency to continue to perform well according to historical returns.
• Treasury yields curve took a hit on the intermediate term with Fed's statement; both ends of the curve remain almost unchanged.
• Earnings data turnaround as industrial and material firms beat analysts' estimates.
read more at...
http://www.alpbeta.com/p/plus.html
or
http://plus.alpbeta.com/report/201204.pdf
Small cap stocks added strong gains for the fourth consecutive week while the S&P500 closed almost flat. Equity market captured momentum from industrial and material stocks as their earnings showed sign of life on economic recovery. Bond market rallied led by the Fed's Wednesday announcement that it will not raise interest rates until at least late 2014; the intermediate term bonds' yields went down over ten percents in contrast to last week's close. Market focus will shift back to the economic data as major companies finished their fourth quarter reporting, employment became the key market driver as we would like to know whether companies were still hiring after the holiday season.
Technical Highlights:
• Small cap outperformed large cap stocks once again; bonds rallies along with Fed's announcement.
• The 50days finished above the 200days moving average on the S&P500, which signals a new bull market trend.
• Healthcare's RSMC sensitivity oscillated dramatically that indicates a short-term pull back for the stock market.
• Stocks performance strongly correlated with earnings results, industrial and material stocks gain the most.
• Most offensive sectors have a tendency to continue to perform well according to historical returns.
• Treasury yields curve took a hit on the intermediate term with Fed's statement; both ends of the curve remain almost unchanged.
• Earnings data turnaround as industrial and material firms beat analysts' estimates.
read more at...
http://www.alpbeta.com/p/plus.html
or
http://plus.alpbeta.com/report/201204.pdf
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