Nasdaq Dorsey Wright

Domestic equity markets have certainly shown a significant amount of movement thus far through 2020, with the S&P 500 Index SPX undergoing its swiftest decline from all-time highs in March, only to rally over the next few months to print new all-time highs at the beginning of September.

The S&P 500 SPX and Nasdaq NASD have recently hit a series of fresh all-time highs and the Dow DJIA now sits less than 2% off of its all-time high which has many people wondering if the market is overbought and due for a correction.

With recently elevated volatility levels some investors are afraid to hold overnight as it’s much harder or not possible to make trades. While it seems intuitive to take risk off the table when there’s not much you can do if things head south, it takes you out of the market when most of the returns are harnessed.

Speaking to our advisor clients every day provides our analyst team at Nasdaq Dorsey Wright (NDW) with a good sense of what advisors are challenged with and what kinds of questions they are hearing from clients. 

The S&P 500 SPX and Nasdaq NASD have recently hit a series of fresh all-time highs and the Dow DJIA now sits less than 2% off of its all-time high which has many people wondering if the market is overbought and due for a correction.

Domestic equity markets have certainly shown a significant amount of movement thus far through 2020, with the S&P 500 Index SPX undergoing its swiftest decline from all-time highs in March, only to rally over the next few months to print new all-time highs at the beginning of September

Throughout the second half of 2020, a deterioration within the U.S. Dollar has been among the primary themes in focus, and understanding the Dollar’s impact on the positions in our portfolios is important.

September has historically been one of the weakest months for the S&P 500. The momentum factor, on the other hand, has historically been very strong in September.

Join the Nasdaq Dorsey Wright (NDW) analyst team to discuss market developments through a technical lens and highlight areas to monitor in the coming weeks. Topics Include: Updated support levels for the S&P 500 as it hits new all-time highs, timely commentary on the commodities space as it continues to demonstrate strength, and material sector pivots as we near the month of September.

The market continued to get narrower during the month of August. Looking at the Nasdaq US Mid/Large Cap Index, less than 30% of the constituents are outperforming the S&P 500 on a trailing 12 month basis. This is the lowest number we have ever seen since the beginning of the data set in 1989.

As an advisor, effectively communicating with your clients is an integral part of maintaining and growing your business. In the current era of working from home and social distancing this task has been even more difficult as many face-to-face interactions have been replaced by phone calls and Zoom meetings.

Today, we take a look at several of the best performing thematic ETFs of 2020.

With Monday's (7/20) intraday price action, the default Point and Figure chart of the S&P 500 Index (SPX) broke a spread quadruple top with a move to 3240 before moving higher to 3270 on Tuesday. This latest buy signal marks the third consecutive on the chart, confirming that demand is in control.

As we get to the end of July, we are entering the "heart" of the Q2 2020 earnings season, one of four such seasons we encounter on an annual basis. We typically find that earnings season produces some added volatility and potholes for investors to avoid.

In March, at the height of panic selling, investors pulled $326 billion from mutual funds and ETFs. Although it ended more than decade ago, the global financial crisis was the last real bear market.

Join the Nasdaq Dorsey Wright (NDW) analyst team to discuss market developments through a technical lens and highlight areas to monitor in the coming weeks. Topics Include: Key points of resistance and support for the S&P 500, increased strength from the small cap growth camp, and sustained leadership from the generals.

The Nasdaq Dorsey Wright Technical Leaders Index suite is constructed using the Nasdaq Dorsey Wright’s Technical Leaders methodology, designed to identify companies that demonstrate powerful relative strength characteristics from within a given broad market universe or sector.

In a prospecting article from May, we looked at the relative performance of active and passively-managed funds during the volatile months of March and April, a period that theoretically should have favored active managers. With two quarters of 2020 officially behind us, we thought this would be an opportune time to take a look at the longer-term relative performance of these strategies.

Join the Nasdaq Dorsey Wright (NDW) analyst team to discuss market developments through a technical lens and highlight areas to monitor in the coming weeks. Topics this week include identifying recent breakouts for the S&P 500, assessing strength across asset classes, and highlighting emerging trends in the investible landscape.

Join the Nasdaq Dorsey Wright (NDW) analyst team to discuss market developments through a technical lens and highlight areas to monitor in the coming weeks.

Over the years, we have illustrated the value of relative strength-based sector rotation in a variety of ways. Most of these studies have treated the sectors generically, i.e., they looked at the performance of the best performing sector without regard to which sector that happened to be at any given time.

If you’re following our Nasdaq Dorsey Wright commentaries here, you’ll notice that we have been discussing the factors driving the wide performance dispersion between some top-performing broad market funds, namely, the Invesco QQQ Trust (QQQ) and the Invesco S&P 500 Top 50 ETF (XLG)...

As everyone in the financial services industry knows, the US equity market is open from 9:30 am – 4:00 pm EST. However, the US market now also has pre- and post-market trading from 7:00 am until open and from close until 8:00 pm.

In many ways large cap, and especially large cap growth, has dominated the story in 2020.

Join the Nasdaq Dorsey Wright (NDW) analyst team to discuss market developments through a technical lens and highlight areas to monitor in the coming weeks. Topics this week include reviewing recent market movement through near-term overbought/oversold levels, equity-based participation indicators, and support levels on major indices.

While a cap-weighted index derives its performance from the movement of the underlying holdings multiplied by their respective allocations as determined by market cap, the Dow Jones Industrial Average is a price-weighted index, which simply means that stocks with the highest share price receive the greatest weighting in the index.

The stock market has been on an absolute tear since the end of March, evidenced by the S&P 500 Index (SPX) rallying almost 43% through Friday’s close (3/23 – 6/5). While the rebound has been a relief for many, conversations concerning the overbought status of the equity market are beginning to circulate, and perhaps justifiably so.

Join the Nasdaq Dorsey Wright (NDW) analyst team to discuss market developments through a technical lens and highlight areas to monitor in the coming weeks. Topics this week include the increasingly overbought posture of domestic equity indexes and the laggard rally in size & style classifications.

The CBOE S&P 500 Volatility Index (VIX), which is often referred to as the ‘fear index’ is a measure of uncertainty or volatility in the US equity market.

Since broad domestic equity indices posted a bottom on March 23rd, they have not looked back. In fact, the S&P 500 Index (SPX), Nasdaq Composite Index (NASD), and Dow Jones Industrial Average (DJIA) have each rebounded with price returns in excess of 30% (data beginning 3/23/20 through 5/27/20).

Join the Nasdaq Dorsey Wright (NDW) analyst team to discuss market developments through a technical lens and highlight areas to monitor in the coming weeks. Topics include sector rotation, model updates, and refined areas of leadership within the domestic equity space.

The S&P 500 and the Dow Jones Industrial Average have each finished in negative territory in 15 of the past 39 summers (or about 38.5% of the time).

Join the Nasdaq Dorsey Wright (NDW) analyst team to discuss market developments through a technical lens and highlight areas to monitor in the coming weeks. Topics include fresh buy signals for the major domestic equity indexes and further outperformance from growth oriented areas.

Thus far in 2020 and throughout the COVID-19-induced sell-off and partial recovery, there has been a pronounced size and style bias within the US equity market in favor of growth over value and large-cap over small-cap.

Although the major indices are well off of the lows they reached in March, there remains a high level of uncertainty about what the future holds for the market and the economy.

April was a strong month for the market with the S&P500 returning more than 12%. This came on the heels of an extremely volatile month that was March 2020 where the S&P500 corrected 12.50% when all was said and done. However, there was a ton of volatility to get there.

Leverage is probably one of the most controversial subjects in investing. Used properly (and given a bit of good fortune), the benefits of leverage can be amazing. Leverage is the reason why home ownership is often viewed as one of the best ways of building wealth.

May officially marks the beginning of the “seasonally weak” half of the year, which lasts through October. We are all familiar with the saying "sell in May and go away," which conjectures that we would do just as well to sell all of our holdings as we would be invested in the market during the months of May through October.