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Chart of the Day: Here’s What’s Driving S&P 500’s Market Cap Concentration
“Wow... SPX Top 10 now almost equal in market cap & earnings share GS.” - Mike Zaccardi, CFA, CMT, MBA.
Record Margin Balances Point To Increasing Market Risk
“Something to consider. FINRA customer margin debt reached a record $1.42 trillion in May, up 53.7% from a year earlier. Over the same May-to-May window, the S&P 500 rose 28.2%.
Leverage, in other words, has been growing at nearly twice the pace of the market it finances.
Also, notice the previous peaks in the ratio in 2000 and 2008. Those were important years in market cycles, and should not be ignored.
Couple all of this against a background of a more hawkish central bank and the risk/reward ratios are leaning toward the risk end.” - Joseph Piretti, CMT.
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CMT Designation Proves Mastery of Technical Analysis Concepts
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S&P 500 Sits At Key Support Level
“Bulls holding the line so far as we head into the weekend. $SPY continues to defend the 730-strike put support zone and the May 6th gap.
Lose this area, though, and the 700-strike put could come into play rather quickly. Key spot to monitor next week.” - Matthew Timpane, CMT.
Insurance Stocks Break Out From 2-Year Consolidation
“Insurance names look great...and you probably don’t own them... $PGR, $CB, $ALL, $AFL, $IAK.” - Larry Thompson, CMT, CPA on X.
Sectors To Bet On If You Believe In Lower Rates
“Things that tend to do well when rates $TNX are falling:
Small caps that need to borrow money. $IWM $IJR
Homebuilders where buyers need to borrow. $ITB $XHB
Growth stocks as future earnings are more attractive. $SMH $SOXX
Real estate as dividend yields are more compelling. $IJR $XLRE” - David Keller, CMT.
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CMT News You Can Use
- Ryan Detrick, CMT and Sonu Varghese join The Compound & Friends podcast to discuss why it’s too early to get off the wave.
- Jeff deGraaf, CMT, CFA and the Renaissance Macro team break down a hawkish shift from the Fed and what it means for markets.
- Katie Stockton, CMT discusses Bitcoin’s trajectory on CNBC’s “Squawk Box.”
- Brian Shannon, CMT breaks down the short-term trends across the major indices.
- David Settle, CMT talks the AI cost shock and healthcare rotation.
- Rick Ducat, CMT joins Schwab Network to talk a breakout in airlines and momentum in healthcare.
Shared content and posted charts are intended to be used for informational and educational purposes only. CMT Association does not offer, and this information shall not be understood or construed as, financial advice or investment recommendations. The information provided is not a substitute for advice from an investment professional. CMT Association does not accept liability for any financial loss or damage our audience may incur.
