In 2018 the Stoxx 600 recorded a loss of around 14%. But price trends dispersion has been huge as usual. The top 100 performing stocks of this universe posted on average a gain of 13% for the year. While the bottom 100 performers generated an average loss of 44%. Superior performance on a consistent basis starts with an accurate reading of medium –to-long term price trends. Those trends that last for a few quarters and make the difference on yearly returns. Capturing trends is the essence of successful investing. Trendrating developed a proprietary methodology for rating trends , where A and B identify bull trends and C and D signal bear markets across individual securities. C and D ratings can be used to either exit or reduce holdings , limiting damages and filling a critical gap in the standard risk management processes. A and B ratings can be used to validate investment ideas as well as spot opportunities of potential big gainers.
So far this year, one of the worst performing sector is banks and financial services. The relevant sector indices dropped more than 20%, satisfying the threshold of a bear market.
So far this year, one of the worst performing sector regards banks and financial services. The relevant sector indices dropped more than 20%, satisfying the threshold of a bear market.
MOMENTUM ENVIRONMENT: Negative outlook over the week! Downgrades continue at a fast pace in Equity ETFs.
MOMENTUM ENVIRONMENT Stable. Overall weighted DM Europe momentum is C+. UK is the country recording the highest number of downgrades. Countries with the largest percentage A and B stocks: Israel and Norway. Increasing Downgrades in: Financials and Industrials.
Here is an analysis that captures the evolution of the percentage of stocks trending up (A and B rated) across key stock markets. Markets in US and Europe yesterday recorded a new low for positively rated stocks. The same markets show more downgrades than upgrades for the last 20 days. On the other hand, markets in Asia seems to building a bottom based on the following; 1. The percentage of A + B stocks as of yesterday is a bit higher than the low recorded a few weeks ago. 2. Also over the last 20 days, the number of upgrades is higher than the number of downgrades.
Following the substantial price correction of stock markets in 2018, there is a fair chance to experience a good January rally. Here is a list of stocks, Large and Mega Cap that recorded some the most extended bear trends over the past 12 months. These stocks can be good candidates for a sharp and sustained rally in Q1 2019. Our reccomendation is to monitor this lists using Trendrating while waiting for a B, or an A upgrade to be issued.
Here you find tables aggregating the number of upgrades and downgrades over the last 20 days in individual stocks for different markets and sectors. While the majority of alerts are downgrades in tune with the prevailing bearish phase, there are still a selected number of securities that point to a positive price trend – the upgrades. In case you are interested in the upgrades as potential investments ideas, you can see the list of the stocks using the screening functionality in Trendrating.
MOMENTUM ENVIRONMENT Stable. Overall weighted DM Europe momentum is C+. UK is the country recording the highest number of downgrades. Countries with the largest percentage A and B stocks: Sweden, Israel and Norway. Increasing Downgrades in: Financials and Industrials.
As of today the SPI Index is slightly below the level of January 1, 2018. However, the dispersion of performance across stocks proved to be substantial. This has been a very selective year for stock picking. Below we display charts of some of the top winners and top losers. The average return for the top 15 performers has been around +17%. On the other hand, the bottom 15 performers posted an average loss of -26%. Trendrating is designed to help portfolio managers to rate the winners and the losers in time in order to more effectively capture trends.
