Beginning on Monday, August 6, the S&P 500 has turned in daily returns of +0.23%, +0.51%, +0.06%, +0.04%, and -0.13%. The average return has been 0.15% per day. Is this thing even alive?

The VIX (S&P 500 Volatility Index) hit a 52-week low, closing today at 13.70.  The market hath neither fear nor pulse.  In fact, besides 2008, today’s VIX close was the lowest since 4/5/2005, almost before VIX began trading in late 2003. Read more about What the Market Wants: Does This Market Have A Pulse?

The rejection of the offer by Covington to purchase all outstanding shares of Advocat (AVCA) represents a missed opportunity for capital gains in this position for the RSY portfolio. Covington, luckily, has kept the offer open and has written a letter to shareholders expressing their position in support of the buyout (reprinted below.). If the offer was dead, then we might expect a drop to pre-offer levels at around the mid $4 range as stated in the letter. Read more about Rock Solid Yields (RSY): Buy CNAF, CMO, Optional Options, Updates

Advocat Inc. (AVCA) is rated Strong Buy by Sabrient for its excellent value and growth scores of 92.9 and 83.8 respectively (out of 100). With less-than-average market risk, it is expected to outperform the market significantly. AVCA's accounting and governance ranks it at the top for conservative practices, which is noted by Sabrient rating AVCA at 82.5 for its Fundamental Score. Beneficial owners have been accumulating positions in this Micro-cap stock. Read more about Rock Solid Yields (RSY): Buy AVCA at $5.59

Back into the Abyss. Now What?

By David Brown, Chief Market Strategist, Sabrient Systems

The last several weeks have brought a steady flow of small but important improvements in the domestic economy (see summary below), but investors have shunned risk, keeping the markets spiraling downward. Read more about What the Market Wants: Back into the Abyss. Now What?

It has been a wild ride for the markets lately -- to say the least. One strategy on volatile market days is to “Buy The Dip." For a prudent investor, it does mean having a strategy in place to know exactly what position to enter and at a price that seems reasonable for long term investing. Read more about Rock Solid Yields (RSY): Update, Buy on the Dips (Covered Calls)

Sabrient rates Deluxe Corporation (DLX) a Strong Buy for its solid value profile, which makes it one of the better value stocks in today's market despite modest growth and momentum scores. The RSY portfolio loves growth at a reasonable price (GARP) stocks, but value is more important versus growth rates. Weakness in the projected earnings growth gives it a low Earnings Score from Sabrient. Read more about Rock Solid Yields (RSY): Gilded Deluxe and Optional Options

The table below is a summary of the RSY trades and dividend payouts since inception. Since the last update, we added 100 shares of TOT at $61.07 on March 31st, and today we added 600 shares of STM at $11.82 which was below our bid price of $11.99, along with 400 shares of TESS at $11.62. Hopefully, if you had an order in the morning, it executed at the bid of $11.51, but if you went with a market order you got it for $11.62. Read more about Rock Solid Yields (RSY): Update, More Alpha from Changes in Dividend Policy?

What We Need is a Craziness Index

by David Brown, Chief Market Strategist, Sabrient Systems

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. Read more about Investor's (H)Edge: What We Need is a Craziness Index

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

I am going to begin today by updating a few cash transactions in the Rock Solid Yield virtual portfolio since our post on January 12th.   On Jan. Read more about Rock Solid Yields (RSY): Update, Sell FL 200 @ $17.89