In an effort to see where money is flowing on a weekly basis we like to look at simple weekly performance metrics of certain sectors, industries, countries, and market caps. A simple bar chart from Finviz presents an easy comparison. We can gather a few facts from the two charts below. Money continues to chase anything health care related while the utilities have stabilized after a few rough down weeks. Basic materials were hit the hardest by a wide margin. If we switch to weekly performance sorted by market cap, large caps have been sold more aggressively than their small cap peers. What's learned from this quick exercise? The strength of the dollar is continuing to dominate the macro landscape as bigger cap names that have multinational exposure are showing more weakness. In the meantime money is hiding in smaller domestic ideas. Dr. Steenbarger touched on this topic in an earlier blog post.
We are still slightly oversold at current levels. And considering how weak the markets reacted yesterday after Thursdays rally, some areas may need to be breached to the downside in order for a sustainable bounce to happen.
Our favorite reads from the week:
Today's fun fact is from Ryan Detrick, CMT
-Raymond James with comments on Thursday's strong bounce
-Some commentary on the US Dollar's rise and the impact on the stock market
-There's been some interesting debate recently on whether or not cash should be considered an asset class
-Fidelity's Jurrien Timmer on what could push stocks higher