You don’t have to agree with every aspect of “Dow Theory” to appreciate one of its most venerable features. In particular, the Dow Jones Transportation Index should lead the way higher for the Dow Jones Industrial Average. Why has this particular axiom maintained a level of popularity for more than a century? In essence, transporters “take” materials to [...] Continue Reading...
Last week, I wrote a piece on ETFs with remarkably positive trends in relative strength. Specifically, I highlighted 3 successful investments that rarely garner media coverage, yet deserved a bit more of the limelight. (See “Three ETFs With Momentum That You Probably Don’t Know Exist.”) I received a great deal of direct feedback on this particular article. [...] Continue Reading...
According to Paul La Monica at CNN Money, the level of insider selling is near the highest that it has been in a decade. Specifically, close to 1800 S&P 500 executives cashed in shares over the most recent 3-month period. Does this mean that the “smart money” is leaving equities? Or do perma-bears love to point [...] Continue Reading...
Last year, world equity markets obsessed over the movement of sovereign debt yields in Portugal and Greece. Here in 2012, Spanish and Italian bond yields have risen enough to scare investors back into the perceived safety of U.S. treasuries. In fact, iShares Barclays 7-10 Year Treasury Bond Fund (IEF) is near 52-week highs. Unfortunately, concerns about the 3rd and 4th [...] Continue Reading...
There are a variety of ways to interpret stock market volatility. A rising CBOE Volatility Index (VIX) often typifies greater fear on the part of “options” investors such that they require protection against a monstrous sell-off. A widening of the daily trading range on a popular benchmark may also be indicative of explosive moves to the downside or upside. Moreover, upward revisions to the [...] Continue Reading...
There are roughly 1400 exchange-traded vehicles on the U.S. exchanges. And yet, only a small fraction of them (about 5%) can lay claim to $1 billion in assets under management. These 70-75 influencers often explain the direction of stock, bond, currency and commodity markets. In fact, there have been times when a single asset defines the entire investing landscape. For example, PowerShares DB [...] Continue Reading...
How does the state of California intend to combat its exorbitant debts? Left-leaning leaders have proposed higher income taxes on the “rich” as well as increasing sales tax rates. Unfortunately, California already sits near the top of the country’s taxation ladder. At present, top marginal bracket payers are shelling out nearly 10%… close to 3x the [...] Continue Reading...
The Dow and the S&P 500 may have experienced the worst 2-week losses since November. Still, is it really time to panic? When one considers the reality that the major averages are less than -4% from multi-year highs, abandoning stock assets seems a bit premature. That said, you may want to avoid certain investments. For example, [...] Continue Reading...
Financial stocks rocketed ahead in the first quarter and Bank of America (BAC) recently received a high-profile upgrade. So why is the SPDR Select Sector Financials Fund (XLF) one of the worst performers over the last 5 days? Aluminum giant, Alcoa, surprised Wall Street with its stronger-than anticipated earnings report. So why is the SPDR Select Sector [...] Continue Reading...
Less than two weeks ago, a large number of media writers and analysts were expressing their exuberance for higher stock market highs. Most seemed to ignore the possibility that fewer and fewer corporations were participating in the S&P 500’s accomplishments. Sell in May and go away? The smart money may have already rebalanced in March… and it’s not like [...] Continue Reading...
