Tug Of War

Macro vs Micro, Bull Market vs Bear Market, and AI. Detail analysis below...

In past reports, I have discussed how in Bear Markets, certain stocks tend to bottom before the broader market indices. This pattern has been witnessed throughout history, including during the Dot Com Bust.

However, the current cycle seems to be bucking this trend. Currently, the indices and Mega Cap stocks (the largest in the world) are showing signs of bottoming out before most other stocks. Various indicators, such as the lack of stocks outperforming the S&P 500 and breadth indicators support this observation.