Last week, the market was very selective, with only Large-cap Growth in positive territory — think Apple (Nasdaq: AAPL), Amazon (Nasdaq: AMZN), and American Express (NYSE: AXP). All other cap/styles were negative — and the smaller you were, the more you lost. In fact, this entire month the market has beat up on small-caps with its “the smaller you are, the more you lose” bias.
It was an odd week. Economic indicators were mixed, with the usual villain, the initial jobless claims report, disappointing us once again. To be sure, there was much positive news from reporting companies, but revenue growth was again spotty, although better than last quarter. The disappointers include Boeing (NYSE: BA), Northern Trust (Nasdaq: NTRS), Terex (NYSE: TEX), and USG Corp. (NYSE: USG). Seven more banks failed on Friday, and a rather significant player in the commercial real estate field, CapMark, filed for bankruptcy. Read more…
Tweet This Post
Categories: What the Market Wants Tags: AAPL, AMZN, AXP, BA, CapMark, energy, healthcare, HOGS, KMGB, KVA, NTRS, sectors, TEX, USG
At Sabrient, we are “market relative” meaning our Buy-rated equities outperform the market and our Sell-rated equities under-perform the market compared to its relative benchmarks. We do not try to time the market or even give more weights to up or down markets. But we are cognizant of current events and macroeconomic events as it takes long term investment strategies like those of New York University economist Nouriel Roubini to win in markets. Roubini who predicted the current crisis, and as stated in Money magazine:
…Roubini himself hasn’t bought or sold a thing in response to his own forecasts: He has all of his money in a diversified portfolio of index funds. “That’s how I’ve invested for the past 20 years and how I’ll invest for the next 20,” he says. “I take the long-term view.”
Read more…
Tweet This Post
by Scott Martindale, Senior Managing Director
Last week’s Sector Detector post debuted a new ranking system by Sabrient Systems that is calculated using fundamentals research on exchange-traded funds rather than the usual price momentum that most other indexes are based on.
However, the new SectorCast system encountered a data error on a single telecom stock that sent the entire sector score into the cellar. Instead, telecom should have been the strongest sector rather than the weakest.
The model has been adjusted so that such a data error won’t create this situation again. We apologize for the error. Read more…
Tweet This Post
Categories: Sector Detector Tags: CBB, DOW, IYZ, MWW, NIHD, quantitative-model, RAI, sector-analysis, stock-trading, SWY, TXT, VMC, XLB, XLP, XLU
David Brown
(Monday, October 19, 2009 5:45 pm PDT) On Monday of last week, I posed the question whether the market was about to break out or top off, and for most of the week breaking out seemed the likelier outcome. The plethora of positive earnings, together with better-than-expected revenue from a number of major players — Google (Nasdaq: GOOG); JP Morgan (NYSE: JPM); Intel (Nasdaq: INTC), among others — fueled the market onward with the Dow crossing 10,000 and the S&P 500 approaching 1,100. Read more…
Tweet This Post
Categories: What the Market Wants Tags: AAPL, BAC, CEP, energy sector, financial sector, FVE, GE, GOOG, IAAC, IBM, INTC, JPM, sectors, VISN
by Scott Martindale, Senior Managing Director
Scott Martindale
This is my first Sector Detector column. In each weekly post, I will be using the new SectorCast ranking model, which was just released by Sabrient Systems. It’s still based on Sabrient’s fundamentals-based quantitative models, but it will be much more dynamic with a 1-month forward look–rather than the 3-months of our prior scoring system.
Also, I will broaden the scope a bit by tracking the top two Sector ETFs long and bottom two short, rather than just one on each side. And on occasion, I might even toss in some stock ideas from within those sectors. Read more…
Tweet This Post
Categories: Sector Detector Tags: AEE, CAG, CII, DOW, KR, POM, SOT, VMC AMT, XLB IYZ, XLP, XLU
by David Brown, Chief Market Strategist
David Brown
(Monday, October 12, 2009 4:55 pm) All major indices closed at or very near 2009 highs on Friday as the week featured a combination of better-than-expected economic news and a sprinkling of early earnings announcements on the plus side. From a technical perspective, the market is extended as the Dow reaches for 10,000 and the S&P500 aims for 1,100. Will it breakout now…or take a breather and wait for good earnings reports to provide the fuel to propel it? This week should provide some clues. Read more…
Tweet This Post
Categories: What the Market Wants Tags: ABT, AMD, Biotechs, C, COST, energy, financials, HE, HITK, INTC, JNJ, JPM, market stats, MyStockFinder, PRE, SCHW, SectorCast, sectors
We’re very proud to introduce the Sabrient SectorCast, a new forward-looking sector ranking system that the Sabrient team has been working on for some time. David Brown will include it with What the Market Wants each week. Here’s are the new stats:
Tweet This Post
by David Brown, Chief Market Strategist
David Brown
(Monday, October 5, 2009, 5:18 pm) Today feels like Groundhog Day. Whereas in last week’s newsletter I called the market “a mirror image” of its previous week, today it’s the opposite. As I review last week’s market performance, it’s hard to find any changes from the prior week. In fact, last week virtually repeated the previous week’s style/cap performance, with Small-cap Value the worst, losing 3.4%, and Large-cap Growth, the best, down 1.3%.
It was a week of mixed economic data. On the one hand, we had a positive GDP revision and positive consumer spending, and on the other hand, a very poor and unexpected increase in jobless claims, along with the continuing rise in unemployment to a worrisome 9.8%. Read more…
Tweet This Post
Categories: What the Market Wants Tags: AFAM EZPW, BARE, consumer staples, Goldman Sachs, health care, KBM, large-cap growth, market stats, SectorCast, sectors, small-cap value, SOLR, UAM, utilities, VIP