Daily Issues

Market Dodges IBM Bomb

October 20, 2014

In summary, nice up day but volume was low. I suspect that bulls will improve on today's effort tomorrow and later in the week once more high-quality growth companies like Apple (AAPL) report improved results despite the many challenges in their way.

Let's consider some new recommendations to take advantage of the potential for renewed confidence.

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Trades Update

October 17, 2014

My expectation is that the low of the recent turmoil was hit on Wednesday morning. Though it may be tested again the coming week, it should hold once again as sellers step aside and allow buyers to take the S&P 500 back up toward the 1,975 level at least, if not all the way back to 2,000. U.S. corporate earnings will be negatively impacted by the surge of the dollar, but the past month and a half's downturn has discounted that, and now it is probably time to discount the recovery.

Given that, I'll keep my focus on bullish opportunities, and I have updated entry instructions for a new long. But I want to stay nimble in case a short-term move up later next week is a 'trap.' I review that possibility in today's podcast.

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Crude Oil, Equities Show Signs of Life in Late Thursday Trading

October 16, 2014

Stocks were slammed at the open today as a wave of margin calls hit markets around the world, and then lightened up after all that forced selling to finish around flat. Treasurys initially rallied in the morning as well, and then turned weaker following comments from the St. Louis Federal Reserve Bank chief, James Bullard, that were construed as suggesting that the central bank should consider delaying its exit from quantitative easing due to declining inflation expectations.

That was a whiff of verbal methamphetamine to investors, who are so very sad about the Fed ending its money-printing campaign, so naturally the comments lifted stocks to their highs for the day...which, admittedly, weren't that high.

In today's Trader's Advantage, I'll explain the factors that guide my expectations concerning future QE and whether stocks will continue higher into the end of the year. Then I'll explain how that translates into my plans for our Buy List.

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Which of the following sectors of the market do you think will outperform for the balance of 2014?

  • Utilities
  • Energy
  • Healthcare
  • Technology
  • Financials
  • Industrials