Up/Down Earnings: Q1 Finishes Substantially Below Average
Small Cap Premium Jumps to 12%
First Half Of 2015 All About Growth
After rattling off nine consecutive quarters of gains, the S&P 500 quarterly winning streak is no more. We have to go way back to 1995-1998 to find a more impressive stretch (14 consecutive quarters).
The second month of Q1 earnings reports registered an Up/Down Ratio of 1.27. Following the theme from last month, this “two-month” score is well below average.
Nudged higher by Small Cap outperformance in May, our premium is little changed month-over-month and remains in its new 5-10% habitat.
Small Cap Growth stocks were the clear outperformers in May, up almost 4%. Growth stocks are still in favor when comparing YTD figures, with the performance gap especially prevalent in the Small and Large Cap spaces.
Momentum and Sentiment bounced back in May, while Value and Quality struggled.
S&P 500: Yet Another Record High Close In May
The first month of Q1 earnings for 2015 registered an Up/Down Ratio of 1.63. After three consecutive above average quarters, the ratio did a swan-dive deep into below average territory.