Bulls continue to shake off global challenges to keep the market in rally mode heading into the end of the first quarter, led by powerhouse sectors Basic Materials and Energy as well as Healthcare and upstart Telecom. In fact, the S&P 500 is on track to achieve its largest first quarter return since 1998. The SPY closed today at 132.77, up 5.6% on the quarter with one more trading day to go. Read more about Sector Detector: Materials Leads Bulls in Ensuring Strong First Quarter
It is about time for an update on RSY's positions and trades. Since our last update RSY has unwound its position in MRH in two trades as Sabrient downgraded it to sell for profits of around $978; RSY unwound its position in LZ by first buying back the covered call at $14.30 and selling LZ for around $133.83 netting a little over $1500 profit; and LZ provided a dividend of $36. The time premium for the June calls narrowed to around 50 cents. Read more about Rock Solid Yields (RSY): Update, The Need for a "Craziness Index"
TheInvestor’s (H)Edge Portfolio, managed by David Brown, is a long/short, absolute-return portfolio of 13 Longs and 13 Shorts. Each week David reviews one long position and one short position and either renews or replaces the stocks, based primarily on the stocks’ scores in the Sabrient Outlook Rankings. Learn more more about the Investor’s (H)Edge Portfolio. Read more about Investor's (H)Edge Portfolio
Market bulls found support at the right time and pulled another rabbit out of their hat. It’s good to have friends in high places, as the Fed’s POMO money continues to flow, including another $6+ billion today for the purchase of Treasuries (which tends to find its way into equities). Last Wednesday, I suggested that the extreme weakness might have been a selling climax, and it turns out that is was – at least for the short term. Read more about Sector Detector: Energy and Materials Help Bulls Put Up a Fight
The events in Japan have shown that there are always risks and uncertainties in any investment. Just think what the value of time-share condos at Ōkuma near the Fukushima Dai-ichi Nuclear Power Plant is about now. While insurance can compensate individuals for these risks and uncertainties, it does not negate the costs to society when tragedies do occur. Read more about Rock Solid Yields (RSY): Buffett makes a call, Unload LZ. Buy DLN 200 @ $47.01
Editor’s note: TheInvestor’s (H)Edge Portfolio, managed by David Brown, is a long/short, absolute-return portfolio of 13 Longs and 13 Shorts. Each week David reviews one long position and one short position and either renews or replaces the stocks, based primarily on the stocks’ scores in the Sabrient Outlook Rankings.Read more about Investor's Hedge Portfolio: Staying Balanced in an Unbalanced World
THE BANKS MUST BE RESTRAINED, AND THE FINANCIAL SYSTEM REFORMED, WITH BALANCE RESTORED TO THE ECONOMY, BEFORE THERE CAN BE ANY SUSTAINED RECOVERY - Jesse
Last week I wrote about the market’s impressive run off the March 2009 V-bottom. But since then, the bottom has fallen out, led by the Technology sector. Those of you who read this column regularly know that I have been opining that the rally has been pretty much manufactured by the Fed and their quantitative easing initiatives, but more recently the signs of economic recovery have been taking shape without much inflation. Read more about Sector Detector: Tech Leads Market Down Amid Global Crises
Last week David Brown noted that the week was nasty for the equity market, and this coming week looks as if it might continue the nastiness. We not only have the same problems as David stated below, but we also have the ongoing tragedies happening in Japan. We all pray for the safety of all their citizens and visitors and that they will recover quickly from the damage that has been the worst disaster since the end of World War II. Read more about Rock Solid Yields (RSY): Sell MRH @ $18.01
Editor’s note: TheInvestor's (H)Edge Portfolio, managed by David Brown, is a long/short, absolute-return portfolio of 13 Longs and 13 Shorts. Each week David reviews one long position and one short position and either renews or replaces the stocks, based primarily on the stocks' scores in the Sabrient Outlook Rankings.Read more about Investor's (H)Edge Portfolio: A Nasty Week and a Highly Caffeinated Short
Today marks the two-year anniversary of the V-bottom that launched an impressive bull market. Since then, the SPY large cap is up about 95%, while MDY mid cap and IWM small cap are up about 135%. Leading sectors include Basic Materials, Industrials, and Financials, which are each up at least 150%. Pretty impressive. Read more about Sector Detector: Bulls Pause to Celebrate 2-year Anniversary
Editor's note: Publication of What the Market Wants was delayed until today because of some ambiguous results from our sector stats. David Brown explains this in the sidebar at the end of the newsletter.Read more about What the Market Wants: Crazy is as Crazy Does
This month marks the first time since July 1 that the first trading day of the month wasn’t an up day. That’s 8 months in a row of money pouring in on the first trading day. Furthermore, recall that July 1 marked a low for the SPY at 101.13 that ended a 2-month correction to the 13-month rally off the March 2009 V-bottom, and launched a new 8-month rally. Is the fun over now? Read more about Sector Detector: Market Shifts into Neutral
Bulls continue to shake off global challenges to keep the market in rally mode heading into the end of the first quarter, led by powerhouse sectors Basic Materials and Energy as well as Healthcare and upstart Telecom. In fact, the S&P 500 is on track to achieve its largest first quarter return since 1998. The SPY closed today at 132.77, up 5.6% on the quarter with one more trading day to go. 
The market advanced steadily this week with the S&P 50 reaching 1313.80 today, which is above both its 30-day and 50-day moving averages and positive on a great majority of technical indicators. 
The markets are standing firmly on some shaky ground. 
Smoke on the water -