Managing Portfolios In A Mixed Message Market

Global participation is less than stellar, but the ball is in the bulls court

Portfolio Applications Subscribers: Click here to review the latest update to the Dynamic ETF Portfolios and see where we are adding to our US equity exposure.

More broadly, the mixed messages that we highlighted in our Monday update (A New High, But Not More New Highs) have not dissipated.

Domestically, we aren’t just seeing new price highs, we are seeing the earnings revision trend heat up again. Stocks usually enjoy a tailwind when analysts are trying to play catch up.

But strong & sustainable rallies tend to enjoy broad global participation. The US is hitting new highs, but fewer than half of world markets are even above their 50-day averages.

That being said it’s difficult to fade US strength when more and more stocks are in up-trends. The percentage of stocks with 50-day averages above their 200-day averages is expanding and has made higher highs across all three capitalization levels.

Bottom Line: The ball is in the bulls court and they are scoring points.