This week's Alpha Trader podcast features a return appearance by J.C. Parets of All Star Charts. Following Parets is a special report on Simon Property Group (SPG), with Seeking Alpha's Daniel Shvartsman talking with Julian Lin of the Best of Breed Marketplace service.
Parets tells hosts Aaron Task and Stephen Alpher that the recent action in stocks is looking like a classic bear market bounce. Why? To name a few reasons: The list of stocks, sectors, and global indices making 52-week lows continues to grow, breadth expansion continues to the downside, and the leading sectors of the bounce were defensive ones like utilities and consumer staples.
In a new bull market, we'd instead be seeing sectors like tech, communications, industrials, consumer discretionary, and financials leading the way. Then there's the bond market, and with it continuing to make all-time highs (yields hitting all-time lows), Parets just isn't buying the bull market argument.
One other indicator: Parets wants to be a buyer when 15% of stocks are trading above their 200-day moving average. Right now, we're at 6% and headed lower (this was recorded prior to Monday's 7% gain for the averages).
Next up, Julian Lin sits down with Daniel Shvartsman to discuss his outlook for the roughed-up mall sector.
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