A new and different IDEA in absolute return money management: all information is not created equal – speak the market’s language of strong vs. weak to take the right actions at the right times
Strength is Risk: market risk is higher when most stocks and sectors are strong and lower when most stocks and sectors are weak. Therefore, measure individual stock and sector strength to determine market risk, and adjust portfolio exposure accordingly. This is the basis for the KLD Capital Management IDExtreme Approach: Truly Different Analysis for True Strategy Diversification.
KLD Capital creates and deploys a consistent market edge by applying non-traditional perspective to proprietary information to create actionable risk context with the following unique, differentiating tools:
• Inside-Out Risk Analysis, which explicitly looks at risk from stock, sector, AND market levels;
• KLD Sector Risk Gauge, which catalogs 10+ years of price action for thousands of U.S. stocks; and
• KLD Market Phase Analysis, which puts current market price action into historical context.
With these, KLD Capital seeks to take the right actions at the right times to generate superior risk-adjusted returns with stand-alone strategies (e.g., Long/Short Multi-Index Strategy) that complement all other money management methods including buy-and-hold, value investing, and growth investing. For more information, please see the “Managed Assets” and “Downloads” pages.
12/30/10, environment = POSITIVE/positive/higher (unch/unch/unch): 0 to strong/0 to weak/0 net sector changes, 0 strong/0 weak wavering (0/0), low volatility (unch)
U.S. STOCK ENVIRONMENT BOTTOM LINE FOR INITIATING NEW LONG POSITIONS (please see * at bottom of post):
Favorable due to: positive primary analysis reading (unch), positive secondary analysis reading (unch)
Mildly Favorable due to: none
Neutral due to: none
Mildly Unfavorable due to: none
Unfavorable due to: higher risk level (unch)
Today’s action: indexes mixed, from -0.3% (Nasdaq 100) to 0.1% (Midcap 400).
No positive/strong sector changes from weak to strong. No negative/weak sector changes. Current streak 8 positive/strong sectors in 19 days. Prior streaks are listed below, with most recent streaks listed last. No positive/strong sectors close to changing to weak (unchanged). No negative/weak sectors close to changing to strong (unchanged). Current phase volatility is low (unchanged).
Prior Streak Summary (listed oldest to newest):
Positive
- 11 in 6 days
- 8 in 5 days
- Read the rest of this entry »
12/29/10, environment = POSITIVE/positive/higher (unch/unch/unch): 1 to strong/0 to weak/+1 net sector changes, 0 strong/0 weak wavering (0/-1), low volatility (unch)
U.S. STOCK ENVIRONMENT BOTTOM LINE FOR INITIATING NEW LONG POSITIONS (please see * at bottom of post):
Favorable due to: positive primary analysis reading (unch), positive secondary analysis reading (unch)
Mildly Favorable due to: none
Neutral due to: none
Mildly Unfavorable due to: none
Unfavorable due to: higher risk level (unch)
Today’s action: indexes up, from 0.1% (Dow 30) to 0.3% (Midcap 400).
One positive/strong sector change from weak to strong. No negative/weak sector changes. Current streak 8 positive/strong sectors in 18 days. Prior streaks are listed below, with most recent streaks listed last. No positive/strong sectors close to changing to weak (unchanged). No negative/weak sectors close to changing to strong (-1). Current phase volatility is low (unchanged).
Prior Streak Summary (listed oldest to newest):
Positive
- 11 in 6 days
- 8 in 5 days
- Read the rest of this entry »
12/28/10, environment = POSITIVE/positive/higher (unch/unch/unch): 1 to strong/0 to weak/+1 net sector changes, 0 strong/1 weak wavering (0/-1), low volatility (unch)
U.S. STOCK ENVIRONMENT BOTTOM LINE FOR INITIATING NEW LONG POSITIONS (please see * at bottom of post):
Favorable due to: positive primary analysis reading (unch), positive secondary analysis reading (unch)
Mildly Favorable due to: none
Neutral due to: none
Mildly Unfavorable due to: none
Unfavorable due to: higher risk level (unch)
Today’s action: indexes mixed, from -0.4% (Russell 2000) to 0.2% (Dow 30).
One positive/strong sector change from weak to strong. No negative/weak sector changes. Current streak 7 positive/strong sectors in 17 days. Prior streaks are listed below, with most recent streaks listed last. No positive/strong sectors close to changing to weak (unchanged). One negative/weak sector close to changing to strong (-1). Current phase volatility is low (unchanged).
Prior Streak Summary (listed oldest to newest):
Positive
- 11 in 6 days
- 8 in 5 days
- Read the rest of this entry »
12/27/10, environment = POSITIVE/positive/higher (unch/unch/unch): 1 to strong/0 to weak/+1 net sector changes, 0 strong/2 weak wavering (-1/0), low volatility (unch)
U.S. STOCK ENVIRONMENT BOTTOM LINE FOR INITIATING NEW LONG POSITIONS (please see * at bottom of post):
Favorable due to: positive primary analysis reading (unch), positive secondary analysis reading (unch)
Mildly Favorable due to: none
Neutral due to: none
Mildly Unfavorable due to: none
Unfavorable due to: higher risk level (unch)
Today’s action: indexes mixed, from -0.2% (Dow 30) to 0.4% (Russell 2000).
One positive/strong sector change from weak to strong. No negative/weak sector changes. Current streak 6 positive/strong sectors in 16 days. Prior streaks are listed below, with most recent streaks listed last. No positive/strong sectors close to changing to weak (-1). 2 negative/weak sectors close to changing to strong (unchanged). Current phase volatility is low (unchanged).
Prior Streak Summary (listed oldest to newest):
Positive
- 11 in 6 days
- 8 in 5 days
- Read the rest of this entry »
12/23/10, environment = POSITIVE/positive/higher (unch/unch/unch): 0 to strong/0 to weak/0 net sector changes, 1 strong/2 weak wavering (0/0), low volatility (unch)
U.S. STOCK ENVIRONMENT BOTTOM LINE FOR INITIATING NEW LONG POSITIONS (please see * at bottom of post):
Favorable due to: positive primary analysis reading (unch), positive secondary analysis reading (unch)
Mildly Favorable due to: none
Neutral due to: none
Mildly Unfavorable due to: none
Unfavorable due to: higher risk level (unch)
Today’s action: indexes mixed, from -0.3% (Nasdaq 100) to 0.1% (Dow 30).
No positive/strong sector changes from weak to strong. No negative/weak sector changes. Current streak 5 positive/strong sectors in 15 days. Prior streaks are listed below, with most recent streaks listed last. One positive/strong sector close to changing to weak (unchanged). 2 negative/weak sectors close to changing to strong (unchanged). Current phase volatility is low (unchanged).
Prior Streak Summary (listed oldest to newest):
Positive
- 11 in 6 days
- 8 in 5 days
- Read the rest of this entry »
12/22/10, environment = POSITIVE/positive/higher (unch/unch/unch): 0 to strong/0 to weak/0 net sector changes, 1 strong/2 weak wavering (0/0), low volatility (unch)
U.S. STOCK ENVIRONMENT BOTTOM LINE FOR INITIATING NEW LONG POSITIONS (please see * at bottom of post):
Favorable due to: positive primary analysis reading (unch), positive secondary analysis reading (unch)
Mildly Favorable due to: none
Neutral due to: none
Mildly Unfavorable due to: none
Unfavorable due to: higher risk level (unch)
Today’s action: indexes up, from 0% (Russell 2000) to 0.3% (S&P 500).
No positive/strong sector changes from weak to strong. No negative/weak sector changes. Current streak 5 positive/strong sectors in 14 days. Prior streaks are listed below, with most recent streaks listed last. One positive/strong sector close to changing to weak (unchanged). 2 negative/weak sectors close to changing to strong (unchanged). Current phase volatility is low (unchanged).
Prior Streak Summary (listed oldest to newest):
Positive
- 11 in 6 days
- 8 in 5 days
- Read the rest of this entry »
12/21/10, environment = POSITIVE/positive/higher (unch/unch/unch): 0 to strong/0 to weak/0 net sector changes, 1 strong/2 weak wavering (+1/-1), low volatility (unch)
U.S. STOCK ENVIRONMENT BOTTOM LINE FOR INITIATING NEW LONG POSITIONS (please see * at bottom of post):
Favorable due to: positive primary analysis reading (unch), positive secondary analysis reading (unch)
Mildly Favorable due to: none
Neutral due to: none
Mildly Unfavorable due to: none
Unfavorable due to: higher risk level (unch)
Today’s action: indexes up, from 0.5% (Dow 30) to 1.1% (Russell 2000).
No positive/strong sector changes from weak to strong. No negative/weak sector changes. Current streak 5 positive/strong sectors in 13 days. Prior streaks are listed below, with most recent streaks listed last. One positive/strong sector close to changing to weak (+1). 2 negative/weak sectors close to changing to strong (-1). Current phase volatility is low (unchanged).
Prior Streak Summary (listed oldest to newest):
Positive
- 11 in 6 days
- 8 in 5 days
- Read the rest of this entry »
12/20/10, environment = POSITIVE/positive/higher (unch/unch/unch): 1 to strong/0 to weak/+1 net sector changes, 0 strong/3 weak wavering (0/-1), low volatility (unch)
U.S. STOCK ENVIRONMENT BOTTOM LINE FOR INITIATING NEW LONG POSITIONS (please see * at bottom of post):
Favorable due to: positive primary analysis reading (unch), positive secondary analysis reading (unch)
Mildly Favorable due to: none
Neutral due to: none
Mildly Unfavorable due to: none
Unfavorable due to: higher risk level (unch)
Today’s action: indexes mixed, from -0.1% (Dow 30) to 0.4% (Russell 2000).
One positive/strong sector change from weak to strong. No negative/weak sector changes. Current streak 5 positive/strong sectors in 12 days. Prior streaks are listed below, with most recent streaks listed last. No positive/strong sectors close to changing to weak (unchanged). 3 negative/weak sectors close to changing to strong (-1). Current phase volatility is low (unchanged).
Prior Streak Summary (listed oldest to newest):
Positive
- 11 in 6 days
- 8 in 5 days
- Read the rest of this entry »
12/17/10, environment = POSITIVE/positive/higher (unch/UP/unch): 0 to strong/0 to weak/0 net sector changes, 0 strong/4 weak wavering (0/0), low volatility (unch)
U.S. STOCK ENVIRONMENT BOTTOM LINE FOR INITIATING NEW LONG POSITIONS (please see * at bottom of post):
Favorable due to: positive primary analysis reading (unch), positive secondary analysis reading (UP)
Mildly Favorable due to: none
Neutral due to: none
Mildly Unfavorable due to: none
Unfavorable due to: higher risk level (unch)
Today’s action: indexes mixed, from -0.1% (Dow 30) to 0.4% (Russell 2000).
No positive/strong sector changes from weak to strong. No negative/weak sector changes. Current streak 4 positive/strong sectors in 11 days. Prior streaks are listed below, with most recent streaks listed last. No positive/strong sectors close to changing to weak (unchanged). 4 negative/weak sectors close to changing to strong (unchanged). Current phase volatility is low (unchanged).
Prior Streak Summary (listed oldest to newest):
Positive
- 11 in 6 days
- 8 in 5 days
- Read the rest of this entry »
12/16/10, environment = POSITIVE/mixed-positive/higher (unch/UP/unch): 0 to strong/0 to weak/0 net sector changes, 0 strong/4 weak wavering (-1/0), low volatility (unch)
U.S. STOCK ENVIRONMENT BOTTOM LINE FOR INITIATING NEW LONG POSITIONS (please see * at bottom of post):
Favorable due to: positive primary analysis reading (unch)
Mildly Favorable due to: mixed-positive secondary analysis reading (UP)
Neutral due to: none
Mildly Unfavorable due to: none
Unfavorable due to: higher risk level (unch)
Today’s action: indexes up, from 0.4% (Dow 30) to 1.1% (Russell 2000).
No positive/strong sector changes from weak to strong. No negative/weak sector changes. Current streak 4 positive/strong sectors in 10 days. Prior streaks are listed below, with most recent streaks listed last. No positive/strong sectors close to changing to weak (-1). 4 negative/weak sectors close to changing to strong (unchanged). Current phase volatility is low (unchanged).
Prior Streak Summary (listed oldest to newest):
Positive
- 11 in 6 days
- 8 in 5 days
- Read the rest of this entry »
12/15/10, environment = POSITIVE/neutral/higher (unch/unch/unch): 0 to strong/0 to weak/0 net sector changes, 1 strong/4 weak wavering (+1/0), low volatility (unch)
U.S. STOCK ENVIRONMENT BOTTOM LINE FOR INITIATING NEW LONG POSITIONS (please see * at bottom of post):
Favorable due to: positive primary analysis reading (unch)
Mildly Favorable due to: none
Neutral due to: neutral secondary analysis reading (unch)
Mildly Unfavorable due to: none
Unfavorable due to: higher risk level (unch)
Today’s action: indexes down, from -0.5% (S&P 500) to -0.2% (Dow 30).
No positive/strong sector changes from weak to strong. No negative/weak sector changes. Current streak 4 positive/strong sectors in 9 days. Prior streaks are listed below, with most recent streaks listed last. One positive/strong sector close to changing to weak (+1). 4 negative/weak sectors close to changing to strong (unchanged). Current phase volatility is low (unchanged).
Prior Streak Summary (listed oldest to newest):
Positive
- 11 in 6 days
- 8 in 5 days
- Read the rest of this entry »
12/14/10, environment = POSITIVE/neutral/higher (unch/DOWN/unch): 0 to strong/0 to weak/0 net sector changes, 0 strong/4 weak wavering (0/0), low volatility (unch)
U.S. STOCK ENVIRONMENT BOTTOM LINE FOR INITIATING NEW LONG POSITIONS (please see * at bottom of post):
Favorable due to: positive primary analysis reading (unch)
Mildly Favorable due to: none
Neutral due to: neutral secondary analysis reading (DOWN)
Mildly Unfavorable due to: none
Unfavorable due to: higher risk level (unch)
Today’s action: indexes mixed, from -0.1% (Midcap 400) to 0.4% (Dow 30).
No positive/strong sector changes from weak to strong. No negative/weak sector changes. Current streak 4 positive/strong sectors in 8 days. Prior streaks are listed below, with most recent streaks listed last. No positive/strong sectors close to changing to weak (unchanged). 4 negative/weak sectors close to changing to strong (unchanged). Current phase volatility is low (unchanged).
Prior Streak Summary (listed oldest to newest):
Positive
- 11 in 6 days
- 8 in 5 days
- Read the rest of this entry »
12/13/10, environment = POSITIVE/positive/higher (unch/unch/unch): 0 to strong/0 to weak/0 net sector changes, 0 strong/4 weak wavering (0/0), low volatility (unch)
U.S. STOCK ENVIRONMENT BOTTOM LINE FOR INITIATING NEW LONG POSITIONS (please see * at bottom of post):
Favorable due to: positive primary analysis reading (unch), positive secondary analysis reading (unch)
Mildly Favorable due to: none
Neutral due to: none
Mildly Unfavorable due to: none
Unfavorable due to: higher risk level (unch)
Today’s action: indexes mixed, from -0.6% (Russell 2000) to 0.2% (Dow 30).
No positive/strong sector changes from weak to strong. No negative/weak sector changes. Current streak 4 positive/strong sectors in 7 days. Prior streaks are listed below, with most recent streaks listed last. No positive/strong sectors close to changing to weak (unchanged). 4 negative/weak sectors close to changing to strong (unchanged). Current phase volatility is low (unchanged).
Prior Streak Summary (listed oldest to newest):
Positive
- 11 in 6 days
- 8 in 5 days
- Read the rest of this entry »
12/10/10, environment = POSITIVE/positive/higher (unch/UP/unch): 1 to strong/0 to weak/+1 net sector changes, 0 strong/4 weak wavering (0/-1), low volatility (unch)
U.S. STOCK ENVIRONMENT BOTTOM LINE FOR INITIATING NEW LONG POSITIONS (please see * at bottom of post):
Favorable due to: positive primary analysis reading (unch), positive secondary analysis reading (UP)
Mildly Favorable due to: none
Neutral due to: none
Mildly Unfavorable due to: none
Unfavorable due to: higher risk level (unch)
Today’s action: indexes up, from 0.4% (Dow 30) to 1.2% (Russell 2000).
One positive/strong sector change from weak to strong. No negative/weak sector changes. Current streak 4 positive/strong sectors in 6 days. Prior streaks are listed below, with most recent streaks listed last. No positive/strong sectors close to changing to weak (unchanged). 4 negative/weak sectors close to changing to strong (-1). Current phase volatility is low (unchanged).
Prior Streak Summary (listed oldest to newest):
Positive
- 11 in 6 days
- 8 in 5 days
- Read the rest of this entry »
12/09/10, environment = POSITIVE/mixed-positive/higher (unch/DOWN/unch): 1 to strong/0 to weak/+1 net sector changes, 0 strong/5 weak wavering (0/+1), low volatility (unch)
U.S. STOCK ENVIRONMENT BOTTOM LINE FOR INITIATING NEW LONG POSITIONS (please see * at bottom of post):
Favorable due to: positive primary analysis reading (unch)
Mildly Favorable due to: mixed-positive secondary analysis reading (DOWN)
Neutral due to: none
Mildly Unfavorable due to: none
Unfavorable due to: higher risk level (unch)
Today’s action: indexes mixed, from 0% (Dow 30) to 0.5% (Russell 2000).
One positive/strong sector change from weak to strong. No negative/weak sector changes. Current streak 3 positive/strong sectors in 5 days. Prior streaks are listed below, with most recent streaks listed last. No positive/strong sectors close to changing to weak (unchanged). 5 negative/weak sectors close to changing to strong (+1). Current phase volatility is low (unchanged).
Prior Streak Summary (listed oldest to newest):
Positive
- 11 in 6 days
- 8 in 5 days
- Read the rest of this entry »
12/08/10, environment = POSITIVE/positive/higher (unch/unch/unch): 0 to strong/0 to weak/0 net sector changes, 0 strong/4 weak wavering (0/-1), low volatility (unch)
U.S. STOCK ENVIRONMENT BOTTOM LINE FOR INITIATING NEW LONG POSITIONS (please see * at bottom of post):
Favorable due to: positive primary analysis reading (unch), positive secondary analysis reading (unch)
Mildly Favorable due to: none
Neutral due to: none
Mildly Unfavorable due to: none
Unfavorable due to: higher risk level (unch)
Today’s action: indexes mixed, from -0.1% (Midcap 400) to 0.5% (Nasdaq 100).
No positive/strong sector changes from weak to strong. No negative/weak sector changes. Current streak 2 positive/strong sectors in 4 days. Prior streaks are listed below, with most recent streaks listed last. No positive/strong sectors close to changing to weak (unchanged). 4 negative/weak sectors close to changing to strong (-1). Current phase volatility is low (unchanged).
Prior Streak Summary (listed oldest to newest):
Positive
- 11 in 6 days
- 8 in 5 days
- Read the rest of this entry »
12/07/10, environment = POSITIVE/positive/higher (unch/unch/unch): 1 to strong/0 to weak/+1 net sector changes, 0 strong/5 weak wavering (0/+2), low volatility (unch)
U.S. STOCK ENVIRONMENT BOTTOM LINE FOR INITIATING NEW LONG POSITIONS (please see * at bottom of post):
Favorable due to: positive primary analysis reading (unch), positive secondary analysis reading (unch)
Mildly Favorable due to: none
Neutral due to: none
Mildly Unfavorable due to: none
Unfavorable due to: higher risk level (unch)
Today’s action: indexes mixed, from 0% (Dow 30) to 0.5% (Russell 2000).
One positive/strong sector change from weak to strong. No negative/weak sector changes. Current streak 2 positive/strong sectors in 3 days. Prior streaks are listed below, with most recent streaks listed last. No positive/strong sectors close to changing to weak (unchanged). 5 negative/weak sectors close to changing to strong (+2). Current phase volatility is low (unchanged).
Prior Streak Summary (listed oldest to newest):
Positive
- 11 in 6 days
- 8 in 5 days
- Read the rest of this entry »
12/06/10, environment = POSITIVE/positive/higher (unch/unch/unch): 0 to strong/0 to weak/0 net sector changes, 0 strong/3 weak wavering (-1/0), low volatility (unch)
U.S. STOCK ENVIRONMENT BOTTOM LINE FOR INITIATING NEW LONG POSITIONS (please see * at bottom of post):
Favorable due to: positive primary analysis reading (unch), positive secondary analysis reading (unch)
Mildly Favorable due to: none
Neutral due to: none
Mildly Unfavorable due to: none
Unfavorable due to: higher risk level (unch)
Today’s action: indexes mixed, from -0.2% (Dow 30) to 0.6% (Russell 2000).
No positive/strong sector changes from weak to strong. No negative/weak sector changes. Current streak 1 positive/strong sectors in 2 days. Prior streaks are listed below, with most recent streaks listed last. No positive/strong sectors close to changing to weak (-1). 3 negative/weak sectors close to changing to strong (unchanged). Current phase volatility is low (unchanged).
Prior Streak Summary (listed oldest to newest):
Positive
- 11 in 6 days
- 8 in 5 days
- Read the rest of this entry »
12/03/10, environment = POSITIVE/positive/higher NEW POSITIVE STREAK (UP/unch/unch): 1 to strong/0 to weak/+1 net sector changes, 1 strong/3 weak wavering (-1/0), low volatility (unch)
U.S. STOCK ENVIRONMENT BOTTOM LINE FOR INITIATING NEW LONG POSITIONS (please see * at bottom of post):
Favorable due to: positive primary analysis reading (UP), positive secondary analysis reading (unch)
Mildly Favorable due to: none
Neutral due to: none
Mildly Unfavorable due to: none
Unfavorable due to: higher risk level (unch)
Today’s action: indexes up, from 0.2% (Dow 30) to 0.7% (Russell 2000).
One positive/strong sector change from weak to strong. No negative/weak sector changes. Current streak 1 positive/strong sector in one day. Prior streaks are listed below, with most recent streaks listed last. One positive/strong sector close to changing to weak (-1). 3 negative/weak sectors close to changing to strong (unchanged). Current phase volatility is low (unchanged).
Prior Streak Summary (listed oldest to newest):
Positive
- 11 in 6 days
- 8 in 5 days
- Read the rest of this entry »
12/31/10, environment = POSITIVE/mixed-positive/higher (unch/DOWN/unch): 0 to strong/0 to weak/0 net sector changes, 1 strong/0 weak wavering (+1/0), low volatility (unch)
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U.S. STOCK ENVIRONMENT BOTTOM LINE FOR INITIATING NEW LONG POSITIONS (please see * at bottom of post):
Favorable due to: positive primary analysis reading (unch)
Mildly Favorable due to: mixed-positive secondary analysis reading (DOWN)
Neutral due to: none
Mildly Unfavorable due to: none
Unfavorable due to: higher risk level (unch)
Today’s action: indexes mixed, from -0.8% (Russell 2000) to 0.1% (Dow 30).
No positive/strong sector changes from weak to strong. No negative/weak sector changes. Current streak 8 positive/strong sectors in 20 days. Prior streaks are listed below, with most recent streaks listed last. One positive/strong sector close to changing to weak (+1). No negative/weak sectors close to changing to strong (unchanged). Current phase volatility is low (unchanged).
Prior Streak Summary (listed oldest to newest):
Positive
Written by bdegracia
February 14, 2011 at 10:57 pm
Posted in Analysis, News and commentary