This quarter, the reactions to the S&P 500 earnings have been less positive than usual.
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Active funds are overweight Momentum factors by ~30% vs. the S&P 500
Source: BofA, Mike Z.
The Mag7 peaked on July 10. Since then it has dropped close to 12%, while smallcaps are up more than 10%.
Quite amazing how the market has been behaving despite the pullback of the "generals" Source: Carson, Ryan Detrick
Junk bonds closed at an ATH (total return) last week $HYG
Source: Mike Z.
Remember when China had a huge rally in April and May?
Nice chart from @HumbleStudent showing relative strength rolling over again. Source: Ryan Detrick on X
Should Lamborghini be spun out of Volkswagen $VOW?
In 2023, they sold 10,600 cars, which is actually less than $RACE's 13,700. The two car manufacturers also have similar EBIT margins of about 27%. Lamborghini has grown its revenue with a 17% CAGR over the past 6 years, while EBIT had a CAGR of 53% during the same period. This visual by Quartr shows the number of Lamborghini cars sold per year between 1999 and 2023:
The big names were the biggest losers this week
Even if other segments of the market are moving higher, it is tough for the main index to make progress of the big names continue to lose ground. Since July 10th, the market cap of the Magnificent 7 stocks has dropped a mind-numbering $2 trillion... Source: Trend Spider
Russell 2000 Outperformance vs S&P 500 continues.
RTY vs SPX break out is at its widest levels since Feb 2000, > +9% MTD Source: Bloomberg, HolgerZ
