MOMENTUM ENVIRONMENT Stable. Overall weighted US market momentum is B-. Momentum Deterioration across most of the Sectors. Utilities shows the largest percentage of A and B Rating.
MOMENTUM ENVIRONMENT Negative outlook over the week! Downgrades continue at a fast pace in Equity ETFs.
They say that a picture is worth a thousand words. So with the desire to document how Trendrating was effective in capturing 2018 negative trends across different markets we preferred to let the charts show the facts. As our customers know, the rating C signals the beginning of a bear trend and the rating D is a confirmation. By tracking the negative downgrades our active users had the opportunity to consider in time risk management actions to protect past profits.
The price of Crude Oil is up 43% since rated A from Trendrating. The trend of many Oil related stocks continues to be strong.
The functionality “MARKETS” available in Trendrating is designed to track the evolution of trends more effectively than just by observing indices. Most indices are Market Cap weighted and therefore the price action of a few Mega and Large Cap stocks may distort an objective reading of the broad market trend. In the “MARKETS” functionality we measure and track the percentage of stocks trending up (A and B rated) vs. the percentage of stocks trending down (C and D rated). This metric is equal weighted for all the stocks in the database and provides a more neutral analysis of the overall market trend evolution. Bull markets are characterized by a percentage of As and Bs well above 60%. When this metric goes below 60% it usually marks the confirmation of a Bearish phase. Our customers can monitor the development of these aggregated data to spot in advance relevant changes in market trends.
The downtrend in the bond market continuous. Active users of Trendrating benefitted from being warned in advance, having the opportunity to implement an effective risk control mechanism using the C rating to exit or reduce the exposure.
The price correction across European stock markets is accelerating. Active users of Trendrating benefitted from being warned in advance, having the opportunity to implement an effective risk control mechanism. As long as the negative ratings (C and D) persists it is reasonable to expect that the correction will continue.
Trendrating ha dimostrato ancora una volta di essere un efficace strumento di controllo dei rischi. Il modello ha segnalato l’ inizio di una fase di ribasso sull’indice FTSE MIB con un downgrade (rating C) dato il 23 marzo a un livello di 22.400. Nel mese di maggio l’indice ha registrato un’impennata che poi si è rilevata una trappola (Bull-Trap), e il modello Trendrating ha comunque mantenuto il rating negativo. In seguito l’indice di borsa ha ripreso la sua discesa, confermata poi da un rating D e attualmente si trova al livello di 19.950, registrando quindi una caduta di quasi l’ 11% dal momento del downgrade a C.
Smart Momentum analysis on global equities