3.31.21 - Daily Growth Stock Techno-fundamental Analysis Drop

Welcome to the daily Amyrlin Analytics drop, where we use techno-fundamental analysis to keep you in tune with the market, give you a graphical overview of the day's activity, and help you invest with conviction.

Quick note: We're pleased to be bringing the daily drop analysis to you absolutely free all the way through the end of April 2021. Starting Friday, April 2, however, you will be required to be a free subscriber to Amyrlin Analytics in order to access these analyses.

New Relative Strength Highs in Top Groups

The concept of relative strength is integral to tracking institutional activity in the markets. For the analysis below, we are only looking at stocks who are in the top 10 performing industry groups. The purpose of this analysis is three-fold: 1) understand how stocks in top groups performed today; 2) understand how many stocks in those top groups accomplished performance today, relative to the S&P 500, that was better than at any point in the last year, and 3) of those stocks, which are highlighted in neon green, what is their liquidity, and overall price percentile rank?

Tip: It's harder for big liquid stocks to make big single-day price moves. So when it happens, take note!

Where's the Strength Coming From?

Every day in the market carries its own tenor, but no matter the color of the tape, there is always strength to take note of. In the plot on the left, every day we highlight the groups that saw the most stocks achieve new 52-week highs in relative strength. Next to it, we call out the individual stocks that are making those relative strength highs, while plotting the performance of the overall group, and shading the stocks according to their price performance percentile rank.

Tip: In the graph to the right, groups are represented by the black dots. The closer to the top right corner of the plot a group is plotted, the stronger it is. Stocks with the strongest price performance will be shaded purple.

Price and Volume in Leading Groups

Only price pays, but volume confirms. Always take note of the volume of activity when observing a stock's price move. In the below plot, the vertical and horizontal lines represent the median price and volume activity for the day, analyzing only stocks that are in the leading 10 groups. Stocks that saw increased volume compared to the last 50 trading sessions are labeled and colored, and the stock's liquidity is visualized via the size of the bubble.

Tip: On days when this plot populates without color, that means that there were no stocks that saw above average volume in leading groups.

Price and Volume in Leading Groups - Group Breakout

This is the same analysis as the one preceding it, with each group receiving a distinct plot. This breakout is useful for quickly understanding which top groups received outsized volume during the most recent trading session. The groups are ordered by their current rank, so that the top-ranked industry group is positioned at the top left, and the second-ranked industry group is directly adjacent to it on the right.

Tip: On days when this plot populates without color, that means that there were no stocks that saw above average volume in leading groups

Top Industry Groups

The market moves rotationally, and what is performing well during one market wave, may not be during the next. Each day we check in on the top 30 industry groups, helping you pick up which themes institutional investors are targeting.

Past Price Action vs Today's Price Action

Often times in the market, a technical theme is evident. Sometimes beaten down stocks are bought heavily, other times stocks that have made great price runs are sold heavily. This analysis helps us very quickly identify this sort of technical thematic activity in the market.

Tip: the dashed-line represents no price move, so if the thicker, solid black line is above the dashed line, that area of the market (as defined by stock strength), generally advanced in price during the most recent trading session. Because we focus on stocks with high price performance percentile ranks, we highlight the area of the plot where these stocks are printed.

Relative Strength Deciles

This analysis segments all stocks into ten categories, based on what the stock's price performance percentile rank is, and then plots the distribution of today's price action for each segment. The high point on the "hill" of the distribution is where the greatest number of stocks inside that decile performed today.

Tip: the dashed vertical line represents no move. The green vertical line inside each distribution represents the median price move made today by stock's in the associated relative strength decile. A wide distribution means that price action in the decile was very diverse, and a narrow distribution means that most stocks in the decile performed similarly.

Price and Volume - Growth Focus

This is the same analysis of stocks in leading groups from earlier in the newsletter, but with a focus on growth stocks, which are defined as stocks with three quarters worth of accelerating fundamentals, or triple digits earnings and sales from the last reporting period.

Tip: On days when this plot populates without color, that means that there were no stocks that saw above average volume in leading groups.

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