More of the same this week. Markets inching higher on low volume. Crude oil spiking. Tensions in the Middle East. The Bank of Japan trying to do too much. The markets do seem overbought right now, but have been for weeks now. Will this correction ever come? The Nasdaq Composite is holding its trend line. The index is overbought, and [...]
The S&P 500 once again finds itself higher for the week. The index broke out nicely following its test at the 50 week moving average. Up next? 1370. The Nasdaq Composite is straddling its upward trend line. The Nasdaq is a market on fire, but will it come crashing down, or continue to make multi-yr highs? Crude oil has been [...]
Joseph Gomez, Sr. Investment Advisor and Portfolio Manager Of the nineteen economic indicators released this week, nine were weaker than expected, eight were stronger, and two were in line. Once again this week, strength was concentrated in employment and housing related indicators. Thursday’s initial jobless claims report showed that the nation’s employment picture continues to improve. In terms of expectations, this week's total of 348K was well below consensus expectations of [...]
The S&P 500, despite its worst day in a few months, was slightly down for the week. It's right at its short-term uptrend line, so this coming week could be pivotal. The Nasdaq Composite is still overbought and has a short-term gap to fill in the charts. But it held its uptrend line on Friday, so once again, tomorrow may be [...]
Joseph Gomez, Sr. Investment Advisor and Portfolio Manager With a gain of 6.8% six weeks into the year, the S&P 500 is currently off to its best start to the year since 1990. The S&P 500 is currently 21 points away from taking out its prior bull market closing high of 1,363.61 made on April 29th of last year. Surprisingly, if you want [...]
What is “capital”? This term is oft-used but little understood in the investing and broader business worlds – indeed, even in the economics profession itself, there is confusion about its precise meaning. But it is a categorical magnitude of immense importance not only for investment decisions but also for the betterment of human life and indeed, the advancement of civilization [...]
The S&P 500 has once again bounced off its upward trend line on its way to new highs, on the back of the announced Facebook IPO and pretty much nothing new from Europe. The index is very overbought at the moment though, so buyer beware. It's above the 70 level in the Relative Strength Index, and closed above the upper [...]
Joseph Gomez, Sr. Investment Advisor Why am I more optimistic about the future of the stock market? I can't help it when I read that mutual fund outflows last year topped $130 billion, or 3 times more than in 2010. Despite the 20% or so rally in the S&P 500 since early October, there were outflows of $28.8 billion in December 2011 [...]
Joseph Gomez, Sr. Investment Advisor The Nasdaq made a multi-year high this week. The index is now up 11.54% for the year, which is nearly double the 6.94% YTD return for the S&P 500. The key to this rally has been the strength we’ve seen in the Financial and Technology sectors, which make up roughly 35% of the market when combined. The S&P [...]
The investment team made the decision to take advantage of recent market strength and take our risk/return perspective from extremely favorable back close to neutral. The decision is the result of economic factors we have pegged as worthy of concern and further monitoring, a potential peak in short term investor sentiment and the uncertainty surrounding the future currency situation in [...]
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