Below are charts showing the bearish intensity for the most bearish stocks on Twitter over the past week and month.
Our core market health indicators all improved this week, but are mostly refusing to move above zero. Our measures of risk abated quite a bit this week and are once again our only positive indicator. Our measures of the economy, market quality, trend, and strength all rose as well. The market trend improved the most, but is still well below zero. This is concerning considering the fact that the S&P 500 Index (SPX) is at all time highs. We’re currently seeing the same pattern that our indicators painted in April and May of 2011 where the market was making new highs but our indicators refused to go positive. In May of 2011 our only positive indicator was risk just as is the case today. The market ended up resolving the disparity by first trading in a 8% range and culminating with a 20% correction. However, the worst of the decline came nearly four months after our indicators went negative. We’re 2 1/2 months into the current negative warnings so it’s
Our Twitter Top 10 portfolio had another great month in April gaining 6.12% while the S&P 500 Index (SPX) gained 3.9%. For the year the portfolio is up 22.68% (specifically from the close on January 4th since we make portfolio adjustments on the first Friday of every month). These gains came over a four month period where the stock market has been in a relentless up trend so we’re almost hoping for a correction just to see how the portfolio performs. The largest gains in the portfolio came from Yahoo (YHOO), Starwood Hotels (HOT), Nike (NKE), Visa (V), Ford (F), and Green Mountain Coffee Roasters (GMCR). All of them were up over 7.5% with Ford as the leader with gains over 11% in the month. The only loser this month was VMware (VMW) which was down 3.13%. Four stocks stayed in the portfolio from last month; Ford, United Parcel Service (UPS), Starwood Hotels, and Visa. The new additions for May are LinkedIn (LNKD), 3D Systems (DDD), Johnson & Johnson (JNJ),