Five interesting things that Hodges Capital research analysts discovered this week...
#1 BAD BREADTH: The S&P 500 ended last week with only 47.8% of its components above their 200-day moving averages. At the same time, the index closed very close to a new high. According to BTIG, there have been only 25 other days when fewer than 50% of S&P 500 stocks were above their 200-DMA while the index itself was near a 52-week high. All of those occurred between 1998 and 2000, in the middle of the dot-com bubble.
#2 MUSTARD SEED: Canada is the world's largest producer of mustard seed and accounts for 45% of the global export market.
#3 GASOLINE STOCKPILES: U.S. gasoline supplies are near 200 million barrels, their lowest level since November 2014, according to the U.S. Department of Energy.
#4 DIFFERENT ERA: With Justin Verlander's retirement from Major League Baseball, the current active shutout leaders (multiple players are tied with five) have fewer shutouts than Nolan Ryan had no-hitters (seven).
#5 CARRYING ON WITH HIGHER INTEREST RATES: In the U.S. alone, private equity firms are sitting on ~13,500 unsold companies that PwC and PitchBook estimate could take nine years to clear at the current pace.
HCM is an Investment Advisory Firm registered with the Securities and Exchange Commission (“SEC”), is a wholly owned subsidiary of Hodges Capital Holdings and serves as investment advisor to the Hodges Funds. HCM is affiliated with First Dallas Securities, Inc, a broker-dealer, and investment advisor registered with the SEC.
This discussion is not intended to be a forecast of future events and should not be considered a recommendation to buy or sell any security. Past performance is not indicative of future results. Investing involves risk. Principal loss is possible. Investing in smaller companies involves additional risks such as limited liquidity and greater volatility. No current or prospective client should assume that information referenced in this communication is a recommendation to buy or sell any security or is a substitute for personalized investment advice from your individual advisor. HCM does not provide tax or legal advice. Consult your tax or legal advisor for any related questions.
All information referenced herein is from sources believed to be reliable and is provided as general market commentary and does not constitute investment advice. This material was created for informational purposes only and the opinions expressed are solely those of HCM. HCM shall not in any way be liable for claims and makes no expressed or implied representations or warranties as to the accuracy or completeness of the data and other information. The data and information are provided as of the date referenced and are subject to change without notice.