Interesting Data On Buybacks

by Chris

Corporate buybacks are a big tailwind to these “”markets.””

CNBC put out an article this weekend noting that there are $350 billion in corp buybacks left from the recent spate of announcements.  The implication being that there’s plenty of muppet buying power left to elevate things again.

Man, will corporations ever be properly incentivized to do the right things?

At any rate, I just discovered that there’s an ETF that tracks corporations that do the most buybacks.  (Of course there is…why didn’t I just automatically know this?)

Here’s how it has performed of late:

Ooopsie!

That’s fairly solid technical damage right there.  And to a line with a LOT of support.  Hundreds of billions of dollars of support.

However, on the other hand, the Dow bounced right at support last week, or was it vigorously defended by “someone” right at support?

Roughly speaking, 25,000 is the line in the sand.

In summary, I was surprised to see that the corp buyback ETF broke the line while the Dow didn’t.  That’s a mismatched set of signals here.

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