"Buy in April, Sell in May" isn't effective so far this year, stocks continued to stay under water, where the S&P500 is returning -2.63% since April started. On the other hand, the bond buyers are enjoying a cheerful time with the weak economic releases recently, the Treasury yields curve fell sharply where the 2yr and the 10yr went down 14bps and 37bps respectively. Aside from the technical, first quarter corporate earnings are reporting strong numbers as Alcoa, Google, JP Morgan and Wells Fargo were all outpacing analysts' estimates on both EPS and revenues; stocks price reactions were mainly positive, which should be a good sign for stock going forward. Investors will continue to focus on more companies' earning announces, also retail sales and the leading indicators are also important on the economic front.
Technical Highlights:
• Stocks remained its downtrend; Positive corporate earnings surprise may help the market to end this short-term correction.
• Market suffered from short-term bear cycle as both the S&P500 and the NYSE Composite turned below their 50day moving average; Internal showed sign of market bottom as the percentage of stocks above 50day moving average are turning to its extreme.
• RSMC continued to rally along with market correction, however the extreme have not appear yet to signal the change in trend.
• Financials led market selloff as the market neutral group (energy and materials) made its biggest daily return this Thursday.
• Bonds are now back to the bullish trend as rates are now trading below their 50day moving average across the entire yields curve.
read more at...
http://plus.alpbeta.com/report/201215.pdf
Technical Highlights:
• Stocks remained its downtrend; Positive corporate earnings surprise may help the market to end this short-term correction.
• Market suffered from short-term bear cycle as both the S&P500 and the NYSE Composite turned below their 50day moving average; Internal showed sign of market bottom as the percentage of stocks above 50day moving average are turning to its extreme.
• RSMC continued to rally along with market correction, however the extreme have not appear yet to signal the change in trend.
• Financials led market selloff as the market neutral group (energy and materials) made its biggest daily return this Thursday.
• Bonds are now back to the bullish trend as rates are now trading below their 50day moving average across the entire yields curve.
read more at...
http://plus.alpbeta.com/report/201215.pdf