Categories of Trend
Issue 2;
This week’s edition of GTI Premium highlights is dominated by the post-tariff bounce, which has been strong.
I highlight this chart in the insights section of GTI Premium. The table on the left shows how many stocks there are in each trend category, of which few qualify. Most are in “other”, the grey bar. This is shown historically on the chart on the right. There are generally more bear trends than bull, but overall, fewer clear signals than normal. The world index has rallied quickly, and many stocks in the universe have been left behind, showing up as bear trends. To be ahead of this rally requires significant strength, hence the small number of leading and emerging trends.
Global Trend Categories
The MSCI World Index (black line) saw more bullish trends (blue and green) during the falls, highlighting defensive stocks at the time, which either held up or fell by less. Now the market is rallying, the defensives have lagged, and the market is in search of new trends. Most of them are in utilities, financials and communications. Indian defence is also soaring.
