by David Brown, Chief Market Strategist
David Brown
The market doesn’t seem to know which way it wants to go. Last week was literally the mirror image of the previous week. The best style/cap two weeks ago was Small-cap Value; last week it was the worst (-3.4%). The worst style/cap two weeks ago was Large-cap Growth; this week it was the best (-1.9%).
Sectors were no different, with last week’s three winners — Financials, Industrials and Materials –turning up as this week’s big three losers, led by Materials, down -4.7%. Last week’s losers — Consumer Staples, Health Care and Telecom — were this week’s best performers, led by Health Care, down only 1%. In all my years of participating in the market, I don’t recall ever seeing such a complete turnabout in a single week. Read more…
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by Scott Martindale, Senior Managing Director
Scott Martindale
Today the market sold off a bit, but the Sabrient Investor’s (H)Edge long/short absolute return portfolio was up +2.3%, and gained +3.8% vs. its market benchmark. This is the great value of an absolute return strategy that helps you sleep better at night.
For the first several months of the year, the portfolio was outperforming its benchmark whether the market was going up or down. It was the best of all worlds. Read more…
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SeekingAlpha.com writes that “The Claymore/Sabrient Defensive Equity Index ETF (DEF) . . . offers exposure to equities that tend to perform relatively well in economic downturns. “ Here is the article.
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By David Brown, Chief Market Strategist, Sabrient Systems, LLC
David Brown
(Monday, September 21, 2009, 2:45 p.m. PST ) While I am not a psychiatrist, I am tempted to diagnose our current market as borderline schizophrenic because it has shown a tendency to go up on bad news but also often go down on good news.
To be sure, there was a fair amount of good news last week, with retail sales beating their numbers handily, the New York Manufacturing Index doing the same, and Chairman Bernanke declaring that the recession is very likely over. So as one might expect, the market was up for the week. However, by the time most of this good news was made public (on Thursday), the market went down. Read more…
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In an interview with Howard Gold of the Money Show Video Network, Sabrient’s Chief Market Strategist David Brown reviews some of the specialized indices that Sabrient has developed for ETF providers. Tickers: DEF, NFO. Here’s the interview. (03:17)
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Earnings quality is one of the factors that quantitative analysts like Sabrient System’s David Brown look at in developing the analysis they provide to institutions. He talks about this with Howard Gold of the Money Show Video Network. Here’s the interview. (03:29)
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In an interview ith Howard Gold of the Money Show Video Network, David Brown, chief market strategist of Sabrient Systems, says the market is rewarding companies with low debt and strong cash flow and revenue growth. Here’s the interview. (03:35)
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By David Brown, Chief Market Strategist, Sabrient Systems, LLC
David Brown
Initial signs of market weakness on Friday and again today (Monday) resulted in immediate support arriving to drive it back up. The underlying bid continues. Now that the bigger players are returning to their desks, volume should return, as well. So I’ll be interested to see which way it wants to go in the near term. A correction to the summer gains has become so anticipated that it might not happen…but I’m staying cautious. Read more…
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Categories: What the Market Wants Tags: CNX, COCO, CYH, energy, financials, market stats, S&P500, sectors, technology, telecom, UVV
by Scott Martindale, Senior Managing Director
Scott Martindale
I’d like to follow up on my prior post about UNG dropping below $9 and looking like a good long-term investment. It appears that the fund has filed with the SEC to resume creation of shares by the end of September, which would likely impact the current 15%+ premium to its NAV. ETFs aren’t supposed to trade at a significant premium or discount to NAV (like CEFs do) because of their ability to create or redeem shares “on the fly.” So, when that ability to create shares is resumed, this artificially-induced premium should go away, possibly taking down shares prices by as much as 15%.
Don Dion wrote about this early this morning and thought it would hit UNG shares hard:
http://www.thestreet.com/story/10597817/1/dion-investor-alert–ung-shares-to-slide.html?cm_ven=GOOGLEFI
Instead, UNG is up another 3% to near $11, lagging a bit behind natural gas futures which were up about 12% to about $3.30. Any correction to the premium might possibly bring shares down below $10, so if you are a short-term trader and got in after my prior post when it dipped below $9, you might consider locking in some profit. Nevertheless, thinking long-term, natural gas is a valuable commodity and clean fuel source that won’t stay down forever. Perhaps that’s what investors are thinking even today.
– Scott Martindale
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by David Brown, Chief Market Strategist, Sabrient Systems
David Brown
The market spent the month of August in a fog of mixed and contradictory economic results, often moving up on negative news and down on positive news. Last week was no exception, and it’s doubtful whether we’ll get any improved visibility this week, either.
The market dove early in the week, based on the sharp plunge in the Shanghai composite, and for the rest of the week, clung to middle ground, despite slightly positive news from the ISM and the Chicago PMI, and even better-than-expected pending home sales. Inexplicably, however, on the negative employment report that pegged unemployment at 9.7%, the market continued to move ahead, as if still in a fog. So we hit a pothole but so far have missed the detour sign. Read more…
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Categories: What the Market Wants Tags: EGN, energy, financials, GARP, healthcare, market stats, QCOR, sector, SNP, SVR, utilities