The Rubberband Man

The Rubberband Man

  This week’s indicator is what we call an overbought and oversold indicator. The simplest way to think of it is like a rubber band. Pull it gently and nothing happens. Stretch it far enough and you start to feel the tension build. Keep pulling, and eventually...
Going Global

Going Global

  For this week’s indicator, we’re going global. U.S. stocks have been strong this year, but what about the rest of the world? What does the data say about the broader global market? To answer that, we can turn to a measure called Earnings Growth Breadth. This...
R-O-E and the Borrowing Fee

R-O-E and the Borrowing Fee

  There are a lot of different variables out there that affect the stock market—more than you’d probably like to think about. But there are a handful that really drive stock performance, the ones investors make sure to pay close attention to. Corporate...
Yielding Strength

Yielding Strength

  Few relationships have been as important to financial markets as the one between stock prices and interest rates. This week, our featured indicator tracks that relationship by comparing the S&P 500 Index (top panel) to the 10-year Treasury yield and how far...
Don’t Fight the Tape or the Fed

Don’t Fight the Tape or the Fed

This week I’d like to highlight a fun little indicator called “Don’t Fight the Tape or the Fed.” Technically, it’s a model, because it combines two separate indicators. And while we don’t use it directly in our broader modeling process, it still captures an...
Conviction Speaks Volumes

Conviction Speaks Volumes

  This week’s featured indicator blends two important ideas: volume and conviction. The volume part is fairly straightforward. We measure how much trading activity happens in stocks that are going up—what we call Volume Demand—and compare it to the activity in...