01
Jun
2016

Sector Detector: Market breadth improves as investors rotate back to quality

The stock market rally off the February lows initially was led by the usual combination of short-covering, oversold bottom-feeding, and speculation (on “junk"). But then market action started showing signs of improving market breadth and a rotation back into higher quality companies -- the types of companies with characteristics Sabrient typically seeks in our GARP (growth at a reasonable price) selection process. It is notable that price action for the S&P 500 was very similar during 2015 to what occurred in 2011.

Author: smartindale / Tag: ETF, sectors, iShares, volatility, S&P 500, SectorCast, healthcare, utilities, technology, Consumer Goods, Financial, SPY, IWM, RSP, VIX, IYF, iyw, IYJ, IYZ, IYC, IYK, IYH, IDU, IYM, IYE, FTEC, FSTA, FHLC, FUTY, FIDU, FNCL, SMH, CNCR, KBWR, SEA, ITB, KBWD, AAPL, AMZN / 0 Comments
17
May
2016

Sector Detector: Global uncertainties, mixed economic signals, and summer doldrums conspire to paralyze investors

After showing weakness last week and creating some bearish-looking technical formations, stocks took a turn for the better on Monday. Perhaps it was renowned value investor Warren Buffett breaking from his usual aversion to tech companies and investing $1 billion in Apple (AAPL) that gave bulls a much-needed shot of confidence. But then things went south again on Tuesday, and some commentators are surmising that the strength in some of the economic data makes investors think the Fed is more likely to raise rates, i.e., we may be back to a good-news-is-bad-news reactionary environment.

Author: smartindale / Tag: ETF, sectors, iShares, volatility, S&P 500, SectorCast, healthcare, utilities, technology, Consumer Goods, Basic Materials, oil, gold, SPY, VIX, IYF, iyw, IYJ, IYZ, IYC, IYK, IYH, IDU, IYM, IYE, FTEC, FSTA, FHLC, FUTY, FIDU, FMAT, PSL, PPH, PYZ, IPAY, ITB, PWC, MOAT, AAPL / 0 Comments
03
May
2016

Sector Detector: Bullish sentiment solidifies even in the face of lofty valuations

The stock market rally from the edge-of-the-cliff reversal on February 12 has continued, and an assault on the all-time highs from almost one year ago (on the S&P 500) now seems plausible. If it can hit new highs, the 7-year bull market is back in business. We are about halfway through earnings season, and after several years of record corporate earnings that were at least partly fueled by Fed policies that helped finance M&A and stock buybacks, some fear that profit margins have peaked.

Author: smartindale / Tag: ETF, sectors, iShares, volatility, S&P 500, SectorCast, healthcare, utilities, technology, Consumer Goods, Basic Materials, oil, gold, SPY, VIX, IYF, iyw, IYJ, IYZ, IYC, IYK, IYH, IDU, IYM, IYE, FTEC, FSTA, FHLC, FUTY, FIDU, FMAT, PYZ, XSW, XPH, IPAY, MOAT, GDXJ, NFLX, CBS, AAPL / 0 Comments