Thats been going on for a long time that was going on in fact in january and february, then the plunge and the ricochet. Lets look at a few slides to try to prove it, so to speak the precondition of excess you see these bullet points here basically, s p 500 before this selloff this week at an alltime high we know the price to sales, a fundamental on measuring the valuation, at an alltime high the s p 500 is up 42 and the nasdaq up some 57 the precondition of excess, and then the next slide, divergence. As the market is making alltime highs, only 16 of the s p constituents were making alltime highs index doing it the average stock in the s p is 28 below its alltime high. Thats not now thats on monday before we sold off. And then, finally, 46 of all stocks in the s p 500 have no gains for two years. This is the precondition of die divergence and the precondition of excess. So the next slide, what we know is we have a very rare circumstance where the nasdaq 100 drops 10 in a twoday period
People doubt them more and more there is every possibility this is a time to take the road less traveled thats the point of this particular segment right now lets look at a few tables and charts so, what do we know . This was the hardest hit area of the market the peak to trough decline in the s p, 35 restaurants down 45 airlines down 70 and then hotels, which also includes cruise ships, down 73 its the epicenter of the pandemic the issue is that despite all that, we really havent gotten worse since march. And thats an important circumstance look at slide two. Heres the etf in question rather than taking the idiosyncratic risk to pick American Airlines or delta or swefrkts theres an etf, its jets its the Global Airline industry in fact, its 39 stocks. Its not just u. S. Carriers. A total of 1. 5 trillion in market cap take a look at the first of two charts here is the plunge, of course. After bottoming in march with all equities, you get a nice ricochet and unlike the market, the Airli
Forward is likely at an end. A few charts the first of several. The first, here is the xlp youll see they have a small head and shoulders top formed in this particular chart. If you look at the next chart, ive kept the head and shoulders top and also included the trend line in effect since the march low. We have two circumstances. We have a reversal formation, a head and shoulders top and we have a break of the trend thats been in effect since the march low. Third chart, another way to consider the facts, this is now a line across the top connecting the january and february peak prepandemic what we know is the xlp did break out, but now its fallen back below the level from which it broke out take a look at one more chart. This is the head and shoulders top in relation to the line drawn along the pandemic peak before the selloff anyway you slice it and dice it, we have distribution and it looks like theres more to go. Two more things. Take a look at this table. One thing we know about t
That sounds like the Perfect Question for professor khouw welcome youre not alone as individual investor interest grows, so too is the Options Marketplace. Professor mike khouw explains how that could benefit everyone with more diverse product, well, options. Its time to risk less and make more options action starts right now. And lets get right to it. A slew of retailers on deck to report Quarterly Results next week including walmart, target and kohls despite todays big pop in Monthly Sales data, our chart master says the recent retail wreckage isnt quite over yet. So, carter, what are you seeing in the charts . We did get data, as you mentioned. Retail sales today reported that the total value are now higher than covid thats in a way bullish. But the stocks reflect it in aggregate. Lets look a few charts the first is a comparative chart. Youre looking at xrt, thats the equal weight retail etf. Its 88 stocks, its 3 trillion versus the s p one compare. What we know is this index is dou
Well, youre not alone the chart master is drilling down on the one sector running low on energy. How you can play it for a jolt its time to risk less and make more options action starts right now. Hopefully the dog days havent gotten you down too much it is friday, why not, 2 30 on the west coast lets get right now to it. It was a record week on wall street that should give you energy. Right . And a remarkable week for the Federal Reserve as well. The nasdaq and s p 500 hitting fresh all time highs and the dow turning positive for the year. Look at that all this after the fed made a major policy shift saying theyre going to allow inflation to run hotter than normal to help the american economy. Jobs over inflation headline that was big in the bond market. The tenyear yield hitting its highest level since june, and the yield curve sharply. Tony zang says theres only one stock that can be a big winner, at least one stock that could, tony, who is it . Take it away. I wanted to take a look