We haven’t commented much on the general market and market internals lately due to the completely boring nature of this latest rally. When a rally is being fueled by everyone believing it will go up due to outside forces (central banks printing money and buying debt) nothing else matters. As a result, we haven’t been able to pinpoint anything interesting that would give you (or us) any insight into what the market is doing. Well we’re finally seeing some interesting action under the covers. The S&P 500 Index (SPX) has given back just 3% from intra-day peak to trough and barely over 1% on closing prices. Not very exciting, but everyone is suddenly asking if this is finally the top we’ve all been waiting for. For some insight we like to look at individual charts and see if everything is being affected or if the selling is localized. Broad based selling is bad. Localized selling is good…if it results in rotation…which is what we believe is causing the current sloppiness
Below are charts of the intensity scores for the most bullish stocks on Twitter over the past week and month.
Below are charts of the stocks with the highest bullish intensity on Twitter. We take the top ten from the monthly list on the first Friday of each month to make our Twitter Top 10 Portfolio. On the weekly list we’re seeing consumer staples and health care stocks starting to creep in. If the trend continues it will be just another sign of a rotation to safety. At this point the monthly list still contains a mix of high quality and high flying stocks (as has been the pattern since the first of the year).