2020

The world most of us were born into included headlines in the morning papers (which were from the night before), headlines in the evening papers, an hour block of local and national news, and then late night local news to round it all out before the cycle began again.  There were some news radio stations during the day, but mostly on AM radio, and mostly ignored.  That’s almost all the headline time and space that needed to be filled.  Sure there were some deeper dives being taken on a regular basis, like Sunday morning political shows or “60 Minutes”, and…

In this month’s Cadence Clips newsletter, we discussed the fact that not all is well within the belly of this bull market. Although indexes are near all-time highs, that’s not the case for all stocks within those indexes. We refer to this phenomenon as internal divergence or the market having “weak internals”. In assessing the state of the market internals, we made reference to the S&P 500 Equal-Weighted Index as well as the Dow Transportation Index and observed a market that appears very sick from within. Below are two follow-up charts to our Clips discussion that provide both a longer-term…