Coolhand's Market Analysis

Last week, the Top 50 had a total stock allocation of just 9%. Not surprisingly, stocks rallied with the C fund posting a 1.78% gain, while the S fund tacked on 2.97%. This week, some dip buying is evident in the Top 50 as stock allocations rose 20%. Still, total stock allocations for this group are quite conservative at 29%.




As you can see, the Top 50 increased stock holdings over last week.
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It wasn't that long ago (April 30th to be exact), that the Top 50 had a total stock exposure of 92%. The week after that their exposure dropped a whopping 61% for a total stock allocation of 31%. The broader market fell that week, but not by much (S fund was only down about 0.24%). We had some dip buyers in the group a week later as total stock exposure for the Top 50 rose to 48.6%. But those dip buyers met with stiff selling pressure as stocks plummeted (S fund was down 6.03%) for the week. ...

Last week we saw an incredible drop in total stock allocation for the Top 50. As a group, their total stock allocation fell by 61%. The herd (total tracker) also reduced stock exposure (by 8.82%). Reduced stock exposure proved to be the correct weekly call. Unfortunately, as ugly as the selling pressure seemed, damage was minimal for the domestic stock market. For the week, the C fund dropped about 1.06%, while the S fund only fell about .24%. However, the I fund fared the worst with a drop of 1.6%. ...

The Top 50 had a huge allocation going into the new trading week. Huge. The Total Tracker also had a sizeable shift, but it's the Top 50 that got my attention. Here's the charts:




My historical data is limited, but going back to July of 2010 I haven't seen a weekly stock allocation shift anywhere near as large as the one we got this week. For the new week, the Top 50 dropped their collection stock exposure ...