Caught between the negative impacts of rising interest rates and falling stock and bond markets, investment banks like Morgan Stanley (MS) have been struggling in the relative strength rankings this year. MS, for example, exited the green zone of the SIA S&P 100 Index Report back in April and spent the summer bouncing along the boundary between the yellow zone and the Red Unfavored Zone. In the last month, MS has dropped 9 spots to 59th place.
Between October of 2022 and May of 2023, Shopify (SHOP.TO) climbed all the way up the rankings in the SIA S&P/TSX 60 Index Report from dead last to top spot. Since July, Shopify has been losing relative ground, dropping out of the green zone and returning to the Red Unfavored Zone for the first time since March. Yesterday Shopify finished in 32nd place, down 28 spots in the last month.
Teck Resources (TECK.B.TO) has been bouncing along the boundary between the Green Favored Zone and the yellow zone of the SIA S&P/TSX 60 Index Report through the summer. It has started to climb more consistently recently, moving up 3 spots on Friday and 6 positions over the last month to 13th place.
Continuing a steady climb up the rankings in the SIA S&P 100 Index Report which started back in January, retailer Costco Wholesale (COST) has returned to the Green Favored Zone for the first time since November of 2022. In the last month, COST has moved up 4 positions to 23rd place.
Canadian Pacific (CP.TO) has been sliding down the rankings in the SIA S&P/TSX 60 Index Report since April. This may be seen as a sign of concern among investors that like the airlines, railroad earnings may be impacted moving forward by rising fuel and labor costs. CP.TO has dropped 6 positions within the Yellow Neutral Zone over the last month to 26th place, its lowest rank since June of 2022.
Last month, Amazon.com (AMZN) returned to the green favored zone of the SIA NASDAQ 100 Index Report for the first time since November of 2020, after spending most of the intervening three years stuck in the red zone. The party didn’t last long, however, and yesterday, AMZN dropped back into the Yellow Neutral Zone, confirming that a relative strength uptrend that started back in May has ended. AMZN finished Tuesday in 31st place, down 5 spots on the day and down 13 positions in the last month.
Boeing (BA) has had a difficult month on both an absolute and relative basis. With the shares falling 11.0%, the plane maker has dropped 18 positions in the SIA S&P 100 Index Report, first falling out of the top 10, and more recently, dropping out of the green zone and into the Yellow Neutral Zone for the first time since December of 2022, finishing yesterday in 27th spot.
Defense contractor Lockheed Martin (LMT) has been steadily dropping down the rankings in the SIA S&P 100 Index Report since March. Back in July it fell into the Red Unfavored Zone and from then, it has lost 12.0% of its value. LMT finished Friday in 75th place, down 7 spots in the last month.
In what could potentially be seen as a sign of growing concern among investors about the health of consumer spending, the relative strength of credit card companies has eroded in recent weeks. Within the SIA S&P 100 Index Report, Capital One Financial (COF), for example, has been out of the green zone since March, peaked near the top of the yellow zone back in July, slipped back into the Red Unfavored Zone earlier this month. COF continues to drop down the rankings, finishing yesterday in 66th position, down 3 spots on the day and down 18 places in the last month.
Chipmaker Advanced Micro Devices (AMD) has been steadily sliding down the rankings in the SIA S&P 100 Index Report since peaking back in June, exiting the green zone and recently returning to the Red Unfavored Zone for the first time since May. Yesterday, AMD finished in 58th place, down 12 positions in the last month.
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