Over the past week market health rose, but every measure of perceptions of risk rose too. It speaks to the current theme in the market where core indicators are rising and ancillary indicators are falling. While the underlying health of the market wasn’t affected by this week’s volatility it did do some damage to market participant confidence in the market. Our core measure of risk along with our Market Risk Indicator have slowly been moving closer to warning. At the moment they have plenty of room above the positive line so they aren’t overly concerning, but something to keep an eye on in the next few weeks.
Below is a chart with our core health categories.
Twitter Top 10 Gives Back Recent Gains
So far this month the Twitter Top 10 portfolio has given back gains from May and June. Momentum stocks are having trouble holding up after large runs. Twitter (TWTR) is the largest drag on the portfolio down 12%. Its chart is symbolic of many momentum stocks that suffered large corrections early in the year and then rallied. Now many of them are giving back a portion of recent gains. The action of these stocks should be a good tell for the market going forward.
Below is a performance chart and details of the current holdings.
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