Leaders vs. Laggards 11/09/05

Below the following intraday graph of the S&P 100, we detail a new graph series we have introduced.  In the graph we show a minute-by-minute rebalancing of the top vs. bottom performing S&P 100 stocks relative to the prior day’s close.  We then plot the average percentage gain of each group from that time through the end of the day.  Using 11/9 as an example, the stocks which had been the worst performers up until 11:30 gained an average of 0.90% from 11:30 to the close.  The graph also shows that the leading stocks at 12:20 actually went down 0.92% from 12:20 to the close.

Based on the overall pattern of today’s chart, there was little difference between the stocks in the S&P 100.  With the exception of a short time in the middle of the day, traders were no better off buying the leaders vs. the laggards.  This action implies a market driven more by traders in the futures than by traders of individual stocks.