Early last week, stocks broke out, with the S&P 500 setting a new high with blue skies overhead. But then the market basically flat-lined for the rest of the week as bulls just couldn’t gather the fuel and conviction to take prices higher. In fact, the technical picture now has turned a bit defensive, at least for the short term, thus joining what has been a neutral-to-defensive tilt to our fundamentals-based Outlook rankings. Read more about Sector Detector: Stocks provide a tepid breakout as Fed greases the skids. So now what?

Last week, neither Fed Chairmen Bernanke nor European Central Bank (ECB) President Draghi committed their respective organizations to a specific solution to the economic woes of the U.S. or Europe. President Draghi’s firm statement last week that “the ECB is ready to do whatever it takes to preserve the Euro” lacked substance. Yet, that statement sent the S&P 500 roaring up +3.56% over July 26 and 27. Read more about What the Market Wants: A Lesson in Listening to Politically Inspired Chatter

david / Tag: CTSH, WDC, NTES, CMI / 0 Comments

Banks Fairly Valued and Contributing to Market Strength

Continuing last week’s strength, Financials and Technology led the market again today. Banks were up nearly +2% intraday, although they lost some of their steam when put-option trades in Financial ETFs reached 4-month highs.  Last week, they roared ahead +7%, and they are now up more than +20% year-to-date. Read more about What the Market Wants: Banks Fairly Valued and Contributing to Market Strength

david / Tag: AGO, AMP, CMI, RGA / 0 Comments

The stock market is behaving extremely well from a technical perspective. And why not? The world seems stable enough to give investors the confidence to maintain a “risk-on” allocation. Sure, there is still plenty to worry about. But more and more, investors are growing bolder. The Dow is at its highest level since 2008 and wants to challenge 13,000. The Nasdaq is at its highest level since 2000.  Read more about Sector Detector: Quack, quack…ducks are lining up for the bulls

smartindale / Tag: ADS, CMI, ETF, Facebook, IDU, IYC, IYE, IYH, IYI, IYJ, IYK, IYM, iyw, IYZ, linkedin, sector-rotation, sectors, SNX, SPY, TDG, VIX / 0 Comments

%&$#?@! the Government

By David Brown, Chief Market Strategist, Sabrient Systems Read more about %&$#?@! the Government

david / Tag: AAPL, CAT, CMI, HAL, IBM, JNJ, KO, MSFT, PRGO, T / 0 Comments