Small Growth Leads to Big Gains
Beginners Series Webinar - Join us on Friday, July 17th, at 2 PM (ET) for our NDW Beginners Series Webinar. This week's topic is Understanding the Asset Class Group Scores Page. Register here.
Mid -Year Market Review - Join the Nasdaq Dorsey Wright team as we discuss the volatile market movement through the first six months of the year and what to monitor in the second half of 2020. Click here to register.
Speakers include:
- Jay Gragnani, Head of Research and Client Engagement
- John Lewis, CMT, Senior Portfolio Manager
- Jamie West, CFA, Senior Analyst
- Chuck Fuller, Senior Vice President, Applied Research
Models Workshop - The Investment Models Workshop is designed specifically for financial professionals looking to incorporate Nasdaq Dorsey Wright's (NDW) turnkey model solutions into their investment practice, as well as those who would just like to learn more. This three-hour virtual course will not only give you the chance to engage with experts from NDW, but will also expose you to new strategies, investment frameworks, and best practices for utilizing the NDW Research Platform to help you manage your business with more confidence, efficiency, and greater scale. Investments & Wealth Institute® has accepted the Nasdaq Dorsey Wright Investment Models Workshop for 3 hours of CE credit towards the CIMA®, CPWA®, CIMC®, and RMA certifications. Click here for more information.
Market Update Webinar Replay - Missed Monday's webcast? Click the link(s) below for a recap:
As highlighted in yesterday’s Were You Aware and Weekly DALI and US Equity Overview, a number of bullish percent indicators have experienced changes, indicating new levels of participation from individual equities across the various universes. Despite lowering levels witnessed across the tech-heavy Nasdaq 100 NDX, we find generally increased levels of participation from other major equity universes like the S&P 500 SPX, S&P 400 MID, as well as the S&P 600 SML.
Building off yesterday’s Weekly DALI and US Equity Overview explicitly, although lagging in absolute terms on the year, small caps have picked up steam in recent months, especially the small cap growth camp. The Asset Class Group Scores (ACGS) page further quantifies this finding as the small cap growth group displays the highest score direction of all US Styles at 2.09, its strongest reading in over five years. Interestingly enough, when looking under the hood of the SPDR S&P 600 Small Cap ETF SLY, we notice a majority presence of value oriented names, likely contributing to the abysmal fund score of SLY at 0.90 given the persistent aggregate weakness in small value. Moreover, the average SLY stock has a technical attribute just above 2, below the sought after 3 threshold, further speaking to the refined/narrow leadership in the space. Point being, when it comes to small cap exposure, it is critical to know what you own!
Those looking to monitor the small growth/value story going forward may consider setting group score alerts on the ACGS page, column change notifications on BPSML, or on individual trend charts via Activity Alerts.
