By Scott Martindale
President, Sabrient Systems LLC

Overall, it appears that the stock market continues to focus more on improving fundamentals than on the daily news. We continue to see improved market breadth, low volatility, lower sector correlations, and capital flows into higher quality companies with solid fundamentals, attractive valuations, good earnings quality, and strong market position. Small and mid-caps have been leading market segments, especially those from the Energy sector. Among large caps, Technology and Financial sectors have been strong during Q3, while defensive sectors Utilities and Telecom have pulled back across all market caps after showing inordinate strength for much of the year (although they still remain strong YTD).

All of this is bullish – and is illustrative of the healthy broadening of the market. Although some traders appear to be taking some chips off the table in deference to September’s notoriety as the worst performing month of the year, I think the path of least resistance for stocks is to the upside.

In this periodic update, I give my view of the current market environment, offer a technical analysis of the S&P 500 chart, review our weekly fundamentals-based SectorCast rankings of the ten U.S. business sectors, and then offer up some actionable ETF trading ideas. Read more about Sector Detector: Healthcare struggles under election campaign attacks, while Tech, Financial, and Small Caps lead an overall bullish market

November got off to a strong start early last week, and the rally broadened to include financial and retail stocks. But after a torrid six weeks of bullish behavior while ignoring (or perhaps reveling in) concerns about the global economy during, U.S. stocks encountered some strong technical resistance in the middle of last week, and it has continued into Monday. The Dow Jones Transportation Index continues to a drag on the overall market, and this segment will need to gather some enthusiasm if the broader indexes are to resume their advance. Read more about Sector Detector: Bullish conviction kicks into gear, as the stars align for holiday cheer

When I’m in my sales role, I view every prospective client as falling into one of two broad baskets: those looking for a reason to say yes, and those looking for a reason to say no. I always try to focus on the former and spend little time on the latter. Likewise, last week’s market was dominated by those looking for a reason to sell. And so they did. Good news in the jobs and unemployment reports spooked investors on Friday, and stocks fell hard. So, for the moment we are back to a Fed-driven good-news-is-bad-news story line, or so it would seem. Read more about Sector Detector: Investors find a reason to sell, teeing up a new buying opportunity

david trainerThe financial sector is one of four sectors to earn our “dangerous” rating and is the worst-ranked sector in the our 3Q11 Sector Roadmap report according to my methodology at New Constructs. Read more about Don’t Gamble In Financial Sector ETFs

dtrainer / Tag: AFL, C, FAS, FXO, IAK, IAT, IYF, IYG, KBE, KBWP, KCE, KIE, KRE, KRU, MS, PFI, PIC, PJB, RWW, RYF, TRV, UYG, VFH, XLF / 0 Comments

ETF Periscope: Emperor’s New Clothes, Wall St. Edition

“Apparently there is nothing that cannot happen today.” --  Mark Twain

The U.S. equity market has just come off one of its worst weeks since March of 2008. It ended the week at a level lower than it found itself way back in January of this year, while giving serious indications that it may continue to head south.

Not to worry, though. Read more about ETF Periscope: Emperor’s New Clothes, Wall St. Edition

daniel / Tag: DJIA, ETF, GDP, IAT, ISM, IYZ, SPX / 0 Comments

ETF Periscope: Oil Speculators Get Spanked. Or Did They?

by Daniel Sckolnik of ETF Persicope

“It is better to travel well than to arrive.” -- Buddha

Watching crude oil take a serious plunge this week gave motorists a reason to cheer, but left oil traders with a strong, queasy feeling.

Well, at least some of them. Read more about ETF Periscope: Oil Speculators Get Spanked. Or Did They?

daniel / Tag: Crude Oil, DJIA, ETF, FXU, IAT, IEA, IYM, IYZ, NYMEX, RGI, RTL, S&P 500 Index, SPX, Strategic Petroleum Reserve, XLK, XLU / 0 Comments

Could I Interest You In a Slightly Used Parthenon?

by Daniel Sckolnik of ETF Periscope

“I do not believe in a fate that falls on men however they act; but I do believe in a fate that falls on them unless they act.” -- Buddha Read more about ETF Periscope: Could I Interest You In a Slightly Used Parthenon?

daniel / Tag: DJIA, ETF, EU, European Union, FXU, Greece, IAT, IMF, IYM, NASDAQ, RTL, S&P 500 Index, SPX / 0 Comments