Following the substantial price correction of stock markets in 2018, there is a fair chance to experience a good January rally. Here is a list of stocks, Large and Mega Cap that recorded some the most extended bear trends over the past 12 months. These stocks can be good candidates for a sharp and sustained rally in Q1 2019. Our reccomendation is to monitor this lists using Trendrating while waiting for a B, or an A upgrade to be issued.
Here you find tables aggregating the number of upgrades and downgrades over the last 20 days in individual stocks for different markets and sectors. While the majority of alerts are downgrades in tune with the prevailing bearish phase, there are still a selected number of securities that point to a positive price trend – the upgrades. In case you are interested in the upgrades as potential investments ideas, you can see the list of the stocks using the screening functionality in Trendrating.
MOMENTUM ENVIRONMENT Stable. Overall weighted DM Europe momentum is C+. UK is the country recording the highest number of downgrades. Countries with the largest percentage A and B stocks: Sweden, Israel and Norway. Increasing Downgrades in: Financials and Industrials.
As of today the SPI Index is slightly below the level of January 1, 2018. However, the dispersion of performance across stocks proved to be substantial. This has been a very selective year for stock picking. Below we display charts of some of the top winners and top losers. The average return for the top 15 performers has been around +17%. On the other hand, the bottom 15 performers posted an average loss of -26%. Trendrating is designed to help portfolio managers to rate the winners and the losers in time in order to more effectively capture trends.
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.
