Sherry came on set. Scarlet 15 minutes before we got another leg higher. Lets check in with our reporters. Im thinking about all the themes that you and the panels are talking about. Overbought, overextended. This chart suggests perhaps at some point relatively soon consolidation could be due because of how overextended the s p 500 is. Wer the last year, in white have the s p 500 and in yellow we have the 200 day moving average. Above that moving average. In august 9 above. Above the moving average but what i would like to the point here is we have that is comingas the rsi down from its most overbought levels. Technicians like it overbought arket so long as its in series of rising highs. Here we have lower highs suggesting it is cooling off. It will be very interesting to see what the trigger will be. This chart does again suggested is probably coming. Sarah thanks. I want to rewind a bit. Pick backup on that value versus growth rotation conversation, k. Ing had on the des at the end o
Lisa the small and midcap names outperforming over the major indexes. That is not what we have seen as of late. Romaine lets dive deeper with our reporters. Abigail i am thinking about the isn manufacturing report. The lowest level since june of 2009. The fifth month of contraction. The eight down report out of the last nine months. If you look under the hood, you can see some bright spots where talking about boeing and gm harriet its pretty bad. Manufacturing report go from growth to contraction. At that time, if you can recall there was a bear market for the s p 500 in white been 2016 through 2018, the Manufacturing Sector healthy going above 60. Here is the contraction going from 60 to 47. 2 remarkable. Take a look at the divergence between the s p 500 and the isn manufacturing index. Kind ofve that divergence, at some point you think its going to have to catch up in some way whether manufacturing recovers of the record highs, that divergence is something to keep in mind. You would
Palatine losing 9 today. Dominos is down 3. 3 . Is that the one where the guy ate like 40 pieces in 30 days . Joe that is the other one. Romaine lets dive deeper into the action. Mike the vix has clearly shot up a little bit below 12 before thanksgiving. Today, up to about 16. Any time it has risen this year, it has been sort of corresponding trade tensions ratcheting up. What is interesting is that moves in the fed have often echoed by risk reversals in the korean won. Volatility between puts and calls on that currency. This week is different in that the risk reversals have not really errored the move higher. You can see, the white is the vix. They risk reversals are the ones not really moving in lockstep. This was pointed out by a volatility specialist his interpretation is basically that this suggests that the pivot is increasingly moving to the u. S. Side of the trade war. Abigail we are just two days into the month of december on a trading basis and we are already looking at two d
Lets dive in with reporters. Abigail, what are you watching . Term love your technical for trading today, meh for the s p 500. One that had been neutral for a long time. The rsi momentum indicator also stuck in a range. Surelybut slowly but started to turn bullish. A set of higher lows. On each dip im of the buyers had more conviction, stepped up. This congestion is broken to the upside. Anis expected we will see equal and opposite move toward the upside. Take a look at the rsi right below 70. Everyone gets cautious when it is around 70 but technicians do not mind that. It is when you have a series of lower highs that it gets bearish. Havesuggests we could record closing highs ahead. Mike obviously, the rotation from growth and value stocks into volume stocks, but there is one opportunity for value for volume hunters that hasnt gotten attention. The version of the s p 500. At 20. 5 times earnings. Trading at about 18. 3 times earnings. Since 2008. Fors a similar story forward earnings.
This fund in times of turbulence. We saw them withdrawing as markets calmed. Traders tell me this is usually a cash parking vehicle. Sarah i have been keeping an rates, or theven spread between nomination yields and those on similar maturity. Really all month long, we have seen them moving lower. 10year and 30 year, we have seen them fall the most this month than any other month this year. I spoke with the head of u. S. Ate strategy over a ups ubs. He said they are following along with the story and equities and oil, also saying it is setting a similar message as to the inverted yield curve. Lisa thank you so much. Andl with us, dances of the dan suzuki and luke kawa. I want to pick up on a notable theme. I wonder what your take is, that even though the Federal Reserve is expected to cut rates by 23 more times this year, it seems to be ineffective in getting the yield curve to steepen. What is the message . Dan i think the messages that things are slowing down. Theres a lot being made