Sector Rank Spread Fluctuates Ahead of Earnings Season

The Sector Rank Spread edged up slightly ahead of the earnings season, which will be unofficially kicked off by Alcoa's earnings report (AA) the coming Monday. Fluctuation is normal during an earnings season as new fundamental data enter the ranking system. In the past four weeks, the SRS was contained in a narrow band. We think that this week's slight change is not significant. We'll have a stable outlook after the earnings season.