Issue 6;
The US correction doesn’t look like much on the weekly chart, but it has hit the 20-week low.
World Index – Developed Markets
The reason is the divergence. The Trump rally sucked money away from the rest of the world, but that has subsequently been reversed. It’s interesting how the regions are now aligned again after six months apart.
Europe, USA, and Emerging Markets CAPR
Financial services remain strong as bond yields rise, which I’ll show. The number of countries beating the world is surging as the US market has given up ground (below image, blue line top right). That is reiterated by the average stock score (blue bottom left), which shows a preference away from ultra-large-cap companies. The strongest countries are Czech, Greece and Peru. It’s been a while since the markets have witnessed that. Lower down, there’s the UAE and Kuwait. There are also several major EU countries.
In this report, you’ll see that banks in China and Japan are doing well in response to higher bond yields. UK gilts are flirting with 20-year highs, closely followed by US treasuries. European, Chinese and Japanese bond yields were all falling, but no longer.
Major Bond Markets – 30-Year Yield
Gold is once again the star, but there are no gold miners large enough to feature in the top 200 global stocks. That will likely change in the coming months.
Gold Makes an All-Time High
In this issue of The Global Trend Investor, we cover the top global 200 stocks from a universe of over 2,000 stocks from both developed and emerging markets. We have analysed the trends and reported the results, and below, we discuss the highlights.
Glossary of Terms
| LC | Local Currency |
| CAPR | Currency Adjusted Price Relative |
| ATH | All-time High |
| BEST | Premium (discount) to Analysts' Price Forecasts |
| LTG | Long-term Estimated Growth Rate |
| Vol 360 | 360-day Volatility |
| Trend Score 0-5 | ByteTrend Score |
ByteTrend scores a point if:
- The price is above the long-term moving average
- The price is above the short-term moving average
- The long-term moving average is rising
- The short-term moving average is rising
- The price last touched max on the max/min lines
New Trends
Criteria
- % Dev from 30W High CAPR = 0%
- ByteTrend Local currency = 5
- ByteTrend CAPR = 5
- Cumulative Highs in 12W sort low to high
These stocks are trading at four-year highs in both price and CAPR. They do not need to be trading at all-time highs. Unlike the next list, strong trends with new highs, new trends are in their first week with the same criteria. All charts shown are CAPR rebased to 100.
