Bull Market Behaviors
Our checklist is firing on all cylinders and our rankings suggest small-caps are getting in gear.
Key Takeaway: Strong price trends and improving breadth have pushed our tactical models to new highs. Large-caps look ready to cede leadership to small-caps.
Our Bull Market Behavior checklist has done an about-face over the past six weeks. This rally is producing readings that indicate robust participation and suggest sustainability.
For a closer look at the indicators that make up this checklist, download the entire report (available this week for all readers).
Better breadth helped turn our Fear or Strength model positive at the end of November. Stock market gains since then have helped carry the model to new all time highs. Reach out if you would like to see how this model has performed going back to 1990. This is how it has done over the past 2+ years:
We recently shifted tactical exposure from mega-caps (OEF) to small-caps (IJR). Index-level ratios and industry group trends show that this rotation from small-caps to large-caps is ongoing:
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