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...
All In, Less to Win

All In, Less to Win

  There’s a well-known saying in science the correlation does not equal causation. We know this to be true. Just google “spurious correlations” and you’ll find endless examples of two completely unrelated data points that appear to move together. For example,...
The Easing Effect

The Easing Effect

  This week’s indicator is all about central banks. What are central banks? They’re like the “money boss” of a country. They decide how much money should be in circulation and set interest rates to help maintain price stability. It’s the setting of interest rates...
Strength in Numbers

Strength in Numbers

  Markets love confirmation. Sure, it’s one thing to see stock prices climb higher, but it’s another to see a broad swath of companies participating in the move. That’s what’s this week’s featured indicator is all about. It measures the percentage of global...