Trump Pumps, Dow Jumps, Small Caps Slump, Healthcare Dumps

Zero Hedge | 4/18/2019 | Staff
itsdonaldk (Posted by) Level 3
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Fun-durr-mentals...

Just seemed timely...

Day - Row - Markets

For the second day in a row, Chinese markets flatlined...

Volatile day in European stocks to end the short-week as PMIs hit. Italy was weaker on the day and Germany best on the week...

Caps - Week - Trannies - Dow - Gains

Small Caps suffered on the week as Trannies and The Dow managed gains ahead of the long weekend...

This was the 2nd worst week for Small Caps relative to Mega Caps in 5 months...

Technology - Role - Equity - Sector - Year

Technology's role as the best-performing equity sector during this year's ferocious rally has it trading at more than 19.2 times forward 12-month earnings, a level it hasn't reached since 2007.

As Bloomberg notes, valuations are a notoriously poor tool for market timing, and forward earnings estimates could prove to be too low, so this alone shouldn't necessarily serve as a sell signal. However, notice the divergence in fortunes between tech and health care that's left the former trading at almost 1.4 times the forward valuation of the latter. That's a rather extreme divergence that seems like a good...
(Excerpt) Read more at: Zero Hedge
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