In a year in which stock prices mostly have been driven by news rather than fundamentals, three things stood out last week. First, terrorism has taken on an unsettling new face -- the stay-at-home mom down the street or your long-time co-worker at the plant -- as the dark side of the exponential growth in social media rears its ugly head (with something much more sinister than porn sites or online bullying). Second, with the strong jobs report on Friday, the Federal Reserve seems to have all their ducks in a row to justify the first fed funds rate hike in nine years. Read more about Sector Detector: Sector rotation model stays bullish, although fundamental rankings are still stuck in neutral

Some weeks when I write this article there is little new to talk about from the prior week. It’s always the Fed, global QE, China growth, election chatter, oil prices, etc. And then there are times like this in which there is so much happening that I don’t know where to start. Of course, the biggest market-moving news came the weekend before last when Paris was put face-to-face with the depths of human depravity and savagery. And yet the stock market responded with its best week of the year. Read more about Sector Detector: Bulls wrest back control of market direction, despite global adversity

For the first time in the 98-year history of the Federal Reserve, its chairman held a news conference after its FOMC policy meeting. So, what was the big news? QE2 will end in June as planned, but as I speculated last week, they will keep the balance sheet steady by continuing to reinvest maturing assets into the debt markets. They will also keep the Fed Feds Rate in the 0.00-0.25% range. Both of these are stimulative to the economy. Read more about Sector Detector: All Systems Are Go

smartindale / Tag: ABC, ETF, IDU, iShares, IYC, IYE, IYF, IYH, IYJ, IYK, IYM, iyw, IYZ, KRO, linkedin, long/short, SCR, sector-rotation, sectors, SSRI / 0 Comments

Volatility returned to the marketplace with a vengeance last week, and we should be prepared for more of the same this week. On Wednesday, Thursday, and Friday the market moved 2% or more – in opposite directions each day.  The S&P 500 was down 2% on Wednesday, up more than 2% on Thursday, and down again on Friday nearly 3%. Read more about What the Market Wants: Well, What's It Gonna Be . . . Trick or Treat?

david / Tag: ABC, ADM, market stats, RCI, SectorCast, sectors, WLP / 0 Comments