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AlphaQuant Analytics Market Update - May 19, 2017

As the markets continue to recover a bit from Wednesday's drop, we're finally starting to see a few positives in our numbers, but not enough to get overly excited about. Of the fifteen indexes, sectors, and groups we follow, eleven currently have our lowest AlphaQuant Momentum Rank of "D". When a group has this ranking, we look for a large number of stocks to move from their "D" ranking (which signifies a stock which has downward momentum), to move up in rank to a "B" rank (a stock that had downward momentum, but that momentum has dissipated - a consolidation area). These are the positive numbers mentioned, but there have not been enough to signify anything special as of yet. The only two sectors that had somewhat significant numbers in this area were the Energy and Financials, which had 13.49% and 8.90% respectively. These percentages represent the percent of the total stocks in the group that moved from one rank to another, in this instance moving from a "D" rank to a "B" rank. Having said that, these are two groups to keep an eye on for further strength. The Energy group also had its AlphaQuant Momentum Rank upgraded from "D" to "B". This is our primary rank.

There was one other sector that had its AlphaQuant Momentum Rank upgraded today and that was the Utilities. The group's ranking was raised from a "D" to a "B", which is a bullish indication. All four of our rankings are now bullish for the sector.

Other minor upgrades included the Small Caps, Consumer Discretionary, and Industrials, which all saw their short-term "A+B/C+D" rank upgraded from "C+D" to "A+B". This is a short-term ranking that tends to be more volatile and less reliable, but also where strength is usually seen first.

A more stable upgrade was found in the Biotechnology sector that had it's "A+C/B+D" ranking upgraded to "A+C" from "B+D". The primary AlphaQuant Momentum rank remains "D", though.

The only negative action in our numbers today was found in the Gold & Silver Mining group which was downgraded from an "A" AlphaQuant Momentum Rank to a "C". This was due to 10.64% of our Gold & Silver Mining universe dropping from an "A" rank to a "C" rank. This group had a bullish upgrade on 05/08/2017.

For a better understanding of the method of analysis used by AlphaQuant Analytics, please view our video on our website, on our "Understanding AQA Research" page. And to see today's full report, please go to YouTube at