Although it's way too early to declare
the current rally in the stock market is dead, we simply can not ignore the fact that the major averages are now leading, while leading stocks are lagging (exactly opposite of what occurs in a healthy market).
Not exact matches
Before exposing how a given broker's
stock performance relates to its price competitiveness, let's see what other metrics lie behind the
current pricing of brokerage shares and what justified their
stock price
rally in the past five years.
The situation
in China has become so concerning that investors seemingly ignored the
current rally that is taking place
in the gold market, which usually supports miners during downward trends
in the
stock markets.
As
stocks make a comeback from a series of sell - offs earlier this year that dragged many of 2017's highest - flying equities into correction territory, one Wall Street vet indicates that the
current rally, set to become the largest
in history, is one to cash
in on and not buy into, reported CNBC.
But what makes this
current rally even more interesting is the fact that it is occurring while the
stock market continues to squeeze higher despite the continued deterioration
in economic data.
Generally speaking,
stocks have been
in a staircase - like uptrend for most of the more than 9 - year bull
rally, so this general theory suggests that moving averages may be particularly powerful tools
in the
current market environment — if the market is indeed trending.
The
current bull
rally has seen 76 percent of
stocks in the S&P 500 index trade above their 50 - day moving average — a key level for technical traders and analysts.
For example, if there is a
rally in Technology
stocks the previous quarter, and the
current month is a rebalancing month, then the percentage you're holding
in the tech asset class will be more than recommended
in the portfolio model allocation weighting.