Each week we update the year to date returns on the Erlanger Chart Room Universe. There are a couple reason why we do this exercise each week. Especially at this time of the year.
The first reason to track year to date returns is so that one can understand if stocks are improving or deteriorating. Simply tallying up the numbers each week enables one to see how things are changing.
The second reason to track the returns is to look for names that are starting to move higher or lower each week. This is a subsort but it lets you get into a name that is up 50% and weeks from now might be up 75%. Trends persist and if early you can ride that train to nice gains.
The third reason is that at this time of year mutual funds have to decide if they are going to sell their losers. They are more likely to sell if gains are paltry and yet the client base could get hit with a tax bill.
So now that we know the reasons, the question is what are the numbers telling us this week?
There are 2440 stocks higher for the year. Of those , 119 are up by more than 100%. Notable names up more than 100% include Twilio (TWLO) up 228%, Fossil (FOSL) up 218%, Etsy (ETSY) up 128%, Noodles (NDSL) 114% and Square (SQ) 110%.
There are 2164 stocks lower for the year. Notabale dogs that are vulnerable to tax selling include General Mills (GIS) down -20%. JD.COM (JD) down -22%, Franklin Resources (BEN) down -25% and Lending Tree (TREE) down -32%.
So 53% are higher and 47% are lower. This is unchanged over the past week. The risk of tax related selling is a 5.5 out of 10 and we need to watch this closely over the next two months.