Friday, November 13, 2009
Midday Briefing: Continued Patterns of Relative Weakness
Stocks (ES futures, above) have pulled back from morning highs, thus far creating an inside day after holding above Thursday's lows. The Aussie dollar (vs USD) also held above its lows yesterday and, like stocks, has moved into a multi-day range. Meanwhile recent patterns of relative weakness continue, with underperformance by crude oil, secondary stocks, and financial issues. We continue to see more stocks registering 20-day lows than highs, and only 48% of stocks overall are trading above their 20-day moving averages.