Dissecting The S&P For General Market Direction: Large Cap, Mid Cap And Small Cap

Of the 1,500 component Companies in the Large Cap / Mid Cap and Small Cap, currently the ratios of Bullish and Bearish Companies are (on balance) growing ever more negative (Bearish) while the market ascends often to new highs. As you know, my past postings of this Quantitative Matrix Count of the S&P's has been descending and clearly forecasted (fore-told) the results of past weeks and this past week's performance. It is simply a matter of the "numbers" and they tell ALL!

The table below is offered for a perspective or reference, as to the a) Bullish (winners), the b) Bearish (losers) and the c) "Also Rans." This exact same procedure is used within my Analytics for Sectors (15) and Industry Groups (300+) identification of the above three ABC's of investing within the current "sweet-spots" of the market place.

Table Notes: a) The numbers for both the above and below tables increase and decrease with the overall market within a month or several week periods but there is a trend (on balance) that remains quite clear; b) You will note the erosion of Bullish Companies, the increase in Bearish Companies and the rather large number and percent of "Also Rans;" c) With very long tenure (as an asset manager and financial analyst), I strongly suggest that Wall Street and the financial media deceives the average investor – daily – if not hourly. They NEVER present the big picture and that "big picture" is "growing ever more negative." Profiting in the Stock Market is doing your "Home Work" and having and understanding the "Big Picture." That is what makes the difference of whether or not you are profitable, out perform the market, and have superior investment results. Kind of Simple isn't it?

For many years I have learned to break the Market down (dissect) internally for each Sector and Industry Group and that is very reveling. That is "having and understanding" the "Big Picture." My four asset allocation models, for asset management, range from "Income" to "Aggressive Growth." It should be clear that I can identify the component Companies that are currently bullish / bearish and those that are neutral that I call "Also Rans." By being Selective you can "Cherry Pick" the best of the best and the worst of the worst. Think about that....

For many years I have learned the value of breaking down the Market down (dissecting / dissecting / dissecting) internally for each Sector and Industry Group as well as their component companies. Simple said they are all "Rotating" into and out of favor and this analytics tells you the all-important "What's" and the "When's" to have your money at risk or in cash. That is "having and understanding" the "Big Picture." My four asset allocation models, for asset management, range from "Income" to "Aggressive Growth." It should be clear that I can identify the component Companies that are currently Bullish / Bearish and those that are neutral that I call "Also Rans." By being Selective (picky- if you will) you can "Cherry Pick" the best of the best and the worst of the worst. Think about that. . .

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