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

ETF Periscope: A Perfect Storm of Foolishness

by Daniel Sckolnik of ETF Persicope

“A rich man is nothing but a poor man with money.” -- W.C. Fields

It is easy to regard the current debate on the matter of raising the debt ceiling as something of an exercise in absurdist comedy.

The problem with that conceit, however, is that the situation isn’t really very funny at all. Read more about ETF Periscope: A Perfect Storm of Foolishness

daniel / Tag: DJIA, ETF, SPX, VOX, XRT / 0 Comments

DOW 12,000: Floating a Trial Balloon or Bursting a Bubble?

by Daniel Sckolnik of ETF Periscope

“I didn't end up going bankrupt . . . I made some great investments and I held on to my money, which also enables me to have the freedom to do what I want now. But it's not about finances. No matter what, it's about keeping it real.” -- Vanilla Ice Read more about ETF Periscope: DOW 12,000: Floating a Trial Balloon or Bursting a Bubble?

daniel / Tag: DJIA, Dow Jones Industrial Average, IDU, KOL, KRE, S&P 500 Index, SPX, XRT / 0 Comments