AI Destroys the Advertising Industry
Issue 18;
The world index makes an all-time high, maintaining a ByteTrend score of 5 on the daily chart. This is bullish.
World Index – Developed Markets - Daily
With all-time highs, it is worth keeping an eye on the deviation from the trend shown over the past 30 years. The world index weekly chart also has a ByteTrend score of 5. The price is currently 25% above the 200-week trend, which is headed for overbought territory. There is no cause for concern this week, but it is something to keep an eye on.
World Index – Developed Markets - Weekly
Market breadth (number of stocks in strong vs weak trends) continues to improve.
ByteTrend: Weekly Breadth Signal
Leaders and Laggards
In the best-performing large companies, there were several tech stocks, but the winner was Bayer, one of the early high-quality stocks to show signs of a long-term turnaround. The losers were dominated by high-quality stocks (consumer defensives) and autos.
Developed Markets Leaders and Laggards
The regional CAPR chart shows Japan (green) as sluggish last week, with other major markets neutral. This week’s special guest is Korea. It’s an interesting situation with several leaders and emerging trends in finance and industry, but nothing on the bear side. Following Trump’s election victory, the Korean market sold off sharply last year but is staging a comeback.
CAPR: Europe, USA, Emerging Markets, Japan, and Korea - Past Year
The world matrix continues to favour financials, utilities and industrials, especially in Europe. It is also notable that European consumer defensives have improved by a notch. Healthcare and consumer stocks remain weak, but US REITs are the standout weak spot across the world index.
Average ByteTrend Score by Region and Sector Heatmap - CAPR
For regular readers of GTI, it is striking how many companies show up week after week, which demonstrates the power of trend following. We note in the bear section that the advertising industry shows up. It’s a disaster, and today’s FT reports that WPP’s CEO has quit.
Bloomberg World Advertising CAPR
Leading Trends with New Highs
These stocks are trading at the 30-week CAPR highs with a ByteTrend Score of 5. All charts
