Skip to main content

June 7, 2014 – Weekend Market Comment

June 7, 2014 – This market is on fire. U.S. stocks furthered their record climb this week, with both the Dow Jones Industrial Average and S&P 500 in uncharted terrain, after the May jobs report showed slow but steady improvement in the labor market. In fact almost every sector from aggressive areas like Transportation, Consumer Discretionary and Technology to the safer bets like Utilities all hit new highs this week.

Market skeptics, of course, argue that complacency is again running high on Wall Street, which is worrisome. Citigroup, for example, says its proprietary sentiment tracker has moved further into the "euphoria" stage, which suggests investors are getting overconfident. And in another bad sign, Ned Davis Research says legal insider selling by corporate executives is on the rise, signalling that executives think their shares are fully valued. Of course you don't need experts to tell you this, you have got charts. Look at the VIX at a new record low.


  
Our Primary Sell Indicator is approaching a nosebleed. By the way we have a new CME4PIF School all about the Primary Sell Indicator.


The NYSE 50 day overbought shows you what percentage of stock on the NYSE are above their 50 day moving average. As you can see still room to go with only some 77% of big board stocks above their 50 day moving average.


Another sign that the market is healthy is a renewed interest in smaller cap stocks. As you can see that move has just begun.


Even if you pull way back and look at the markets since in 1960 the S&P 500 has not really gotten too far ahead of itself.

But lets face it, really all you can say is "boy things are going well". Now you must decide if you are counter-trend-player and pull back a bit here or a momentum player and stay all in. Well this week I did a little of both. This week I raised my trailing stops on L3 communications, Under Armour and Tripadvisor, both up some 20% in the last three weeks. I took some profits in L3 communications, but plan to get back in later yes you can thank me for a great week 121 to 125. I also moved into some stable banking stocks previously I bought Bank of New York Mellon -- BK and now I am also in Canadian Mortgage company MCAP -- MKP (with a great dividend 7%+) and added to my Bank of Nova Scotia -- BNS. There are a few reasons to look at lenders, first off they are lower volatility stocks so if this is too much exuberance you are safer and they have a nice dividend but interest rates are currently too low and that means that these firms will do well if rates start to rise and they probably will.  






Read My Disclaimer Here


Popular posts from this blog

Seven Wonders of CBC Decision Making

You gotta love this, in semi-socialist Canada we have a government run TV network – the CBC. Think PBS with poor content and a way bigger budget. They decided to run a contest to select the “7 Wonders of Canada”. The results are typical of what a CBC committee would do and it shows why crown corporations have no business competing in the entertainment business. Here is the web page: http://www.cbc.ca/sevenwonders/the_judges.html
Talk about the Seven Wonders of CBC decision making: Can you believe that through the power of politically correct committee-think -- a canoe and an igloo are "wonders" in Canada -- but the CN Tower, Cathedral Grove and the Bay of Fundy are not? A wonder is a place you can visit and feel awed by; what tourist would travel to Canada to see a canoe? I assure you I did not go to Egypt to see a felucca, I wanted to see Pyramids that touch the sky. The CBC decision-making process is typical of New Age thinking, where the overriding concern seems to be no…

November 26, 2016 – Weekend Market Comment

November 26, 2016 – Welcome to my weekend market comment, an analysis tool I use in my own portfolio decisions, published free to the web every weekend before the New York opening bell. You can read the latest version each week by bookmarking http://cme4pif.blogspot.ca/. For full details read my disclaimer (link at the bottom of this page).

Yet another parabolic up week for the markets. Honestly folks valuations are really stretched here. The air is so thin at this altitude. Then again the markets can and do (on a short term basis) anything they want. Still I would expect a little pull-back in the next two weeks.


Lets see what is in the charts this week:

CLICK HERE: To see the 100 and 200 series charts



101 Bull Bear Bull market (dark green over red) and now the short term (light green) is up sharply. Also note the dark green 50 day average is in a firm uptrend. NOTICE THE SLOPE (second window), this could be part of a new long term uptrend.Bull market -- expect bullish outcomes…

October 24, 2015 – Weekend Market Comment

October 24, 2015 – Welcome to my weekend market comment, an analysis tool I use in my own portfolio decisions, published free to the web every weekend before the New York opening bell. For full details read my disclaimer (link at the bottom of this page).


The Blah Blah Blah (courtesy of CNBC) Nasdaq closes at two-month high on tech surge. U.S. equities closed sharply higher Friday after the Chinese central bank cut interest rates and after three tech giants posted better-than-expected earnings.

The Dow Jones industrial average closed up 157.54 points, or 0.9 percent, at 17,646.70, led higher by Microsoft and with Nike leading decliners. The S&P 500 ended 22.64 points higher, or 1.10 percent, at 2,075.15, with information technology leading six sectors higher as utilities led decliners. The technology sector also posted its first four-week winning streak since November. The Nasdaq closed up 111.81 points, or 2.27 percent, at 5,031.86. U.S. Treasury yields traded higher, …