The Q - Daily Edition
April showers bring May flowers
“Alles neu macht der Mai”
— German folk song by Hermann Adam von Kamp (1818)
Today will be a brief note only, with the main purpose of introducing a new (beta version) of our dashboard.
If you click one the PDF link below to open the Dashboard as, well, uh, PDF, you will note that the document has now expanded from one to three pages. On the additional pages you will find each day which stocks in the STOXX Europe 600 (SXXP - page 2) and the S&P 500 (SPX - page 3) are hitting a new 52-Week High or a new 52-Week Low. The design will improve over the coming days/weeks, but we think this information is for a professional investor like you very valuable. Feel free to leave your feedback in the comment section or sending a message:
Many major benchmark indices, led by the most popular US indices, themselves made not only a fresh 52-week high yesterday, but even a new all-time high.
Take the mighty S&P 500 for example:
Or the as-mighty Nasdaq 100:
Reason? As we outlined in our weekly Quotedian issue published yesterday (Stairs DOWN, Elevator UP), it seems that Greed (aka FOMO) clearly outweighs Fear.
But, you will say, the war, the inflation, the valuation, the Strait of Hormuz, the everything else that is so wrong about this … yes, you’re right, but you’re not. However, let’s leave this conversation for our next weekly Quotedian with the working title “Irrational Exuberance”. Make sure to be signed up to your weekly issue:
Anyway, in the meantime, breadth in yesterday’s advance was solid, not only with nearly double as many companies ending the day up than down, but also with many more stocks reaching new 52-week highs than new 52-week lows (see how useful this new addition is!).
European stocks, which have started to lag recently,
probably due to the larger impact of energy costs, show, spinning it positively, still a greater upside/catch-up potential (SXXP below):
The Asian equity session this morning was solid, with a regional Bloomberg index up over two percent, hitting new all-time highs too:
Strongly contributing to those gains were South Korea’s KOSPI, where the memory-chip maker craze is getting out of hand,
and mainland China stocks:
To finish of in a speedround-like manner, it is noteworthy that all other asset classes are continuing to “play game”, i.e. support the ongoing equity rally by adhering to the correlation which have been true since the outset of the Iran conflict on March 1st in this session. Examples:
Dollar (DXY) weakens:
Bond yields (US 10-year yield) drop:
Gold is up:
Oil is down:
Need something more to worry about? See, chart below, no commentary needed:
Et, voila!
Later today we see the release of the ADP Employment report in the US as a prelude to Friday’s non-farm payroll report.
Earnings season continues in full swing, but other than that, relatively quiet agenda today (exception confirming the rule: Trump’s Social Truth handle).
That’s all for today, folks!
May the Trend be With You!
Everything in this document is for educational purposes only (FEPO)
Nothing in this document should be considered investment advice
Investing real money can be costly; don’t do stupid shit
Leave politics at the door—markets don’t care.
Past performance is hopefully no indication of future performance
The views expressed in this document may differ from the views published by NPB Neue Privat Bank AG