• 856 days Will The ECB Continue To Hike Rates?
  • 856 days Forbes: Aramco Remains Largest Company In The Middle East
  • 858 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,258 days Could Crypto Overtake Traditional Investment?
  • 1,263 days Americans Still Quitting Jobs At Record Pace
  • 1,265 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,268 days Is The Dollar Too Strong?
  • 1,268 days Big Tech Disappoints Investors on Earnings Calls
  • 1,269 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,270 days China Is Quietly Trying To Distance Itself From Russia
  • 1,271 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,275 days Crypto Investors Won Big In 2021
  • 1,275 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,276 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,278 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,279 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,282 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,283 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,283 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,285 days Are NFTs About To Take Over Gaming?
How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

  1. Home
  2. Markets
  3. Other

Is the Leadership Stock Ratio on the Cusp of Going Positive?

In the stock market, it can be said that there are two subsets of stocks ... Leadership stocks and Broad Market stocks.

Their interaction behavior is much like the scenario between the battalion leader, and his troops. In a battle, if the strength and confidence of the Leader is strong, it will effect the battalion in a positive way propelling them into battle with the fervor needed. In the stock market, it is not much different.

In today's Leadership Ratio chart, we measure the strength of the Leadership stocks and compare it to the strength of the Broad Market stocks. We then divide the two numbers and create a Ratio that shows if the Leaders are moving forward or retreating relative to the troops (the Broad Market stocks.)

So what is the Leadership Ratio saying now?

  1. That the Leadership stocks have been gaining momentum.
  2. That the Leadership stocks are now close to the Neutral/Positive line that could give the market an upside thrust.
  3. But, there is a Caution warning at the same time. The current Leadership Stock Ratio is -1.48 and when the ratio got close to the neutral line in early November, it stalled and headed right back down taking the market with it.

The bottom line is that Leadership stocks are gaining momentum, but they are not "out of the woods" yet. One plus that didn't happen in early November: The NYA Index never made it above its trend line, yesterday it did.

Quick note: All paid subscribers should login for today's alert message.

 

Back to homepage

Leave a comment

Leave a comment