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To help contextualize this morning's market moves around the world, below are insights and analysis from our research and Hedgeye CEO Keith McCullough's Twitter feed.
All-Time Highs
The Nasdaq hit an all-time high on Friday. Stock market bears have been trying to call the top in seemingly expensive Tech stocks all year. Since CNBC declared, "The big tech rout may just be getting started," the Nasdaq is up +6%. More drastically, the Nasdaq is up +21% since Business Insider wrote, "Stocks have only been this expensive during the crash of 1929, the tech bubble, and the financial crisis."
Valuation is not a catalyst. And Tech stocks are not expensive just look at history.
Here's the score...
Breaking down the S&P 500 by sectors. Leading the index, Tech (XLK) is up +23.7% year-to-date. Biggest loser: Energy stocks (XLE) are down -8.8%.
Be Careful...
According to our proprietary Daily Trading Ranges, there's more downside than upside in the Nasdaq. (Click here to learn more.) Our Daily Trading Ranges – dynamic buy low, sell high risk ranges – are generated using price, volume and volatility. What to watch: Total equity market volume decelerated modestly on Friday versus 1-month, 3-month and 1-year averages.
U.S. Dollar Bottoming?
"Bottoms are processes not points," says Hedgeye CEO Keith McCullough. With Friday's wage growth accelerating data, the U.S. dollar index was up for the fourth straight week.
What Else?
IN CASE YOU MISSED IT...
Reserve your seat for an exclusive viewer Q&A with iconoclastic, best-selling author Jim Rickards. Rickards will be one-on-one with Hedgeye CEO Keith McCullough to discuss their divergent market and economic outlook. Don’t miss this “Real Conversation” between two of the sharpest minds in finance. (Q&A on October 18, 2017)
Want to better understand the big picture macro market developments? Sign up for more information about our soon to be released weekly newsletter Market Edges.
