• A Special HedgeyeTV Webcast Event

    1st Annual Hedgeye Investing Summit

    The sharpest minds in investing discuss the latest market and economic developments and explain their investing implications.

The guest commentary below was written by Jesse Felder of  The Felder Report

A Historic Divergence In Stock Market Breadth - zall

A month ago I noted here that the Nasdaq had triggered another cluster of Hindenburg Omens. Over the past couple of weeks it has triggered another cluster but what is even more notable is the streak at the NYSE. Over the past ten days, this exchange has triggered an omen every day.

Such a streak has not happened over at least the past 40 years. This brings the total number of omens triggered on both exchanges over the past month to 15, the most since December of 1999, just before the peak of the Dotcom Mania.

A Historic Divergence In Stock Market Breadth - zjess1

Even more notable, it brings the total omens triggered over the past year to 44, by far the most in at least 40 years and roughly double the total seen almost 20 years ago. The only thing to conclude from this is that we are currently seeing a historic divergence in equity market breadth, the sort of dispersion that has typically preceded broader market turbulence.

A Historic Divergence In Stock Market Breadth - zjess2

EDITOR'S NOTE

This is a Hedgeye Guest Contributor piece written by Jesse Felder and reposted from The Felder Report blog. Felder has been managing money for over 20 years. He began his professional career at Bear, Stearns & Co. and later co-founded a multi-billion-dollar hedge fund firm headquartered in Santa Monica, California. Today he lives in Bend, Oregon and publishes The Felder Report. This piece does not necessarily reflect the opinion of Hedgeye.

A Historic Divergence In Stock Market Breadth - hedgeye pro