The $SPX is the most concentrated since 1964.
Restated, it has been 60 years since four stocks have accounted for this big a share of the $SPX. Source: Jim Bianco
Exit polls show a clear victory for Prime Minister Modi’s party BJP + allies (called NDA = National Democratic Alliance).
The market is likely to view this very favorably, expecting another 5 years of policy stability, reforms and visibility on growth. Source: Bloomberg, David Ingles
The cost to hedge a 10% drop in the S&P 500 reached its highest level since October
Source: Win Smart, Bloomberg
The equal-weighted SP500 relative to the S&P 500 index has dropped to its lowest level since March 2009.
This year, the S&P 500 has gained ~10% while the equal-weighted index rallied just 3%. At the same time, Magnificent 7 stocks have rallied over 50%. Since the ratio peaked in February 2023, the S&P 500 is up ~29% compared to a 7% gain of the equal-weighted index. Meanwhile, the top 10% of US stocks now account for ~75% of the S&P 500, the most since the 1930s’. The market has never been driven by so few names. Source: The Kobeissi Letter
Penny stock trading is booming.
Seven of the top 10 most traded US equities in May are penny stocks worth less than $1. None are profitable Source: FT, Gunjan Banerji
Abercrombie & Fitch $ANF making Nvidia $NVDA shareholders look poor...
Abercrombie & Fitch reported its financial results for the first quarter today. Here's what its CEO Fran Horowitz said in a press release on Wednesday. Abercrombie & Fitch stock is now up close to 70% versus the start of 2024. Source: Conor Mac, InvestmentTalkk
Momentum is the winner YTD 🏆
Source: The Long view
Software stocks got hammered yesterday.
iShares Tech Software Sector ETF finished -5.8% (biggest daily drop since the pandemic w/Salesforce DOWN 20% (worst session in ~20 years), UiPath -35%, Okta -6%, Mongo DB -24%. Source: Bloomberg, HolgerZ
