Commentary

3/8/21 Afternoon Signals xHL/c3>o3 Growth vs Value

The couch potatoes are really struggling here. Today’s action highlights the divergence between growth and value. Value has notably outperformed growth since the election. Growth was on top from Apr 28 though Aug 7 with a .21 median log return vs .09 for value. Value was slightly ahead in the Aug-November period.

The trend to value has been apparent by looking at the numbers. XLI has been very strong lately; that along with IWM, RSP, XLF and XLE made the recent decline hard to believe.

That being said, the current serious resistance is just above areas where SPY is now and the daily trend line has been down since Feb 16 when SPY was over 394.

The move from the 54 day to the 18 day simple moving average was fast, which is what you want, but this isn’t the most bullish place to stall.

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