Scott MartindaleGiven all the geopolitical drama and worrisome news headlines – ranging from tensions with Russia and North Korea to “Brexit 2.0” and “Frexit” to uncertainties of Trump’s fiscal stimulus to the looming debt ceiling – it’s no wonder stocks have stalled for the past several weeks. Especially troubling is the notable underperformance since March 1 in small caps and transports. Nevertheless, economic fundamentals both globally and domestically are still solid. Global growth appears to be on a positive trend that could persist for the next couple of years, and Q1 earnings season should reflect impressive year-over-year corporate earnings growth, although not without its disappointments – as we already have seen in bellwethers like Goldman Sachs (GS), Johnson & Johnson (JNJ), and International Business Machines (IBM).

I continue to like the prospects for US equities for the balance of the year. I expect breadth will be solid, correlations will stay low, and dispersion high such that risk assets continue to look attractive, including high-quality dividend payers and growth stocks, particularly small caps, which I think will ultimately outperform this year despite their recent weakness. All of this bodes well for stock-pickers.

In this periodic update, I give my view of the current market environment, offer a technical analysis of the S&P 500 chart, review Sabrient’s weekly fundamentals-based SectorCast rankings of the ten U.S. business sectors, and then offer up some actionable ETF trading ideas. Overall, our sector rankings still look bullish, although the sector rotation model has, at least temporarily, moved to a neutral stance as the short-term technical picture has become cloudy. But after the pro-EU election results in France on Sunday, stocks may be ready for an upside breakout, no matter what Trump accomplishes in this final week of his first 100 days on the job.  Read on.... Read more about Sector Detector: Rankings remain bullish as a promising Q1 earnings season begins

Scott MartindaleLike any superhero or action movie star who relies upon a “trusty sidekick,” Mr. Market stays strong, confident, and bold with the Federal Reserve at his side. Chairman Bernanke (and heir apparent Janet Yellen) firmly believes that the wealth effect provided by rising stock and housing markets is essential for maintaining consumer spending and corporate earnings growth. Read more about Sector Detector: Fed reiterates its role as Mr. Market’s trusty sidekick

smartindale / Tag: iShares, sectors, ETF, SPY, VIX, IBM, iyw, IYF, IYK, IYJ, IYE, IYZ, IDU, IYC, IYH, IYM, KBWI, IXN, GOOG, CVLT, SBNY, RE / 0 Comments

Scott MartindaleAs most everyone expected, Congressional brinksmanship gave way to an eleventh hour agreement that will put the government back in business and raise the debt ceiling. However, it’s only a temporary measure that merely defers another knock-down/drag-out for a few months. The question is, how will investors react after an initial bullish burst of relief? Read more about Sector Detector: Bulls run with a temporary green flag from Congress

smartindale / Tag: iShares, sectors, ETF, SPY, VIX, IWM, IBM, YHOO, INTC, AXP, EBAY, MA, N, AAPL, RE, iyw, IYF, IYE, IYH, IDU, IYK, IYC, IYM, IYZ / 0 Comments

Scott MartindaleSmall caps, mid-caps, Financials, Telecom, and Consumer Discretionary were among the market segments that hit new highs this week, even as bearish sentiment and short interest have risen, and there is still plenty of idle cash on the sidelines looking for a home. Read more about Sector Detector: Higher quality may be back in vogue

smartindale / Tag: sectors, ETF, iShares, SPY, VIX, IWM, EES, CACI, HRS, PB, C, SNTS, GNW, PCBK, IYH, IYF, iyw, IYK, IYC, IYE, IYM, IDU, IYZ, IYJ, BAC, IBM, SNDK / 0 Comments

“Success is not final, failure is not fatal: it is the courage to continue that counts.” -- Winston Churchill

For the moment, investors continue to see any signs of a sharp market drop as a clear buying opportunity, rather than as a time to panic and exit the market.

In other words, greed currently trumps fear on Wall Street.

Is this a perfect time for a contrarian play or what? Read more about ETF Periscope: Gold Gets Smacked Down as Wall Street Continues to Soar

That’s been hard to figure lately.  Uncertainty has not eased.  Not in Europe.  Not in the Middle East. Not in China or Japan. Not in the U.S., with a dead-heat election battle and unknown future Congressional dynamics.  Companies overall continue to beat earnings, mostly, and miss on revenues.  Now there is a certainty: earnings cannot keep going up if revenues keep going down. Read more about What the Market Wants: Looking for Certainty Amidst Uncertainty

david / Tag: AFL, LCC, PG, DANA, YHOO, AAPL, GOOG, WDC, STX, CAT, MSFT, INTC, IBM / 0 Comments

Scott MartindaleFive years ago this month, the S&P 500 hit all-time high of 1576. It closed Wednesday at 1461. Can the market make a run at that all-time high? Well, the biggest threat at the moment to bullish sentiment is the Fiscal Cliff, but both presidential candidates have a plan for dealing with it, and Congress is unlikely to want to take the fall for defying the new President and sending the country back into recession. Read more about Sector Detector: Stocks back in rally mode even without Tech leadership

smartindale / Tag: ETF, sectors, iShares, VIX, SPY, qqq, iyw, IYF, IYH, IYK, IYE, IYC, IYJ, IYM, IYZ, IDU, AAPL, GOOG, TRV, MA, QCOM, CVX, AA, YUM, WMT, BAC, C, JPM, INTC, IBM / 0 Comments

U.S. stocks are raring to rally. Earnings reports have been quite good. Consumers are spending despite stubbornly high unemployment. Interest rates are at rock bottom, which is good for borrowing and also makes stock yields relatively attractive. So what’s the problem? Oh, just the usual—fear of a European debt meltdown triggering a global recession. Read more about Sector Detector: Financials and Materials take the heat

smartindale / Tag: CTCT, ETF, GMCR, IBM, IDU, ISRG, IYC, IYE, IYH, IYI, IYJ, IYK, IYM, iyw, IYZ, linkedin, long/short, NFLX, sector-rotation, sectors, SPPI, SWI / 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

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