Scott MartindaleBy Scott Martindale
President, Sabrient Systems LLC

As expected, August brought more volatility. Early in the month, the large cap, mid cap, and small cap indices all set new all-time closing highs while the CBOE Volatility Index (VIX) hit an all-time low. But then tough resistance levels failed to yield, the expected late-summer volatility set in, and support levels were tested. Nevertheless, the intra-month swoon (3% on the S&P 500) turned into a buying opportunity for the bulls, and by month-end the S&P 500 managed to eke out a small gain, giving it five straight positive months. Then the market started the month of September with a particularly strong day to put those all-time highs once again within spittin’ distance…that is, until North Korea detonated a hydrogen bomb in its testing area, while massive hurricanes created havoc. But by this past Friday, bulls had recovered key support levels.

One can only wonder how strong our global economy would be if it weren’t for all the tin-pot dictators, jihadis, and cyberhackers that make us divert so much of our resources and attention. Nevertheless, prospects for the balance of 2H2017 still look good, even though solid economics and earnings reports have been countered by government dysfunction, catastrophic storms, escalating global dangers, and plenty of pessimistic talk about market conditions, valuations, and credit bubbles. Thus, while equities continue to meander higher on the backs of some mega-cap Tech sector darlings and cautious optimism among some investors, Treasuries are also rising (and yields falling) to levels not seen since before the election in a flight to safety among other investors.

In this periodic update, I give my view of the current market environment, offer a technical analysis of the S&P 500 chart, review Sabrient’s weekly fundamentals-based SectorCast rankings of the ten U.S. business sectors, and then offer up some actionable ETF trading ideas. In summary, although September historically has been the weakest month of the year, our sector rankings still look moderately bullish, while the sector rotation model has managed to maintain its bullish bias, and overall the climate still seems favorable for risk assets like equities. Read on.... Read more about Sector Detector: Stock bulls shake off worries about mounting global dangers

Those who dare to fail miserably can achieve greatly.”  -- John F. Kennedy

According to multiple reports in the business media, the scene at Davos, Switzerland, home to the annual gathering of the World Economic Forum, appears to be more upbeat than during the last few years.

It’s probably not about the skiing. Read more about ETF Periscope: Contrarians Should Take Notice of Davos Highs, VIX Lows

daniel / Tag: IHI, FXH, XBI, VHT, IHE, healthcare, Eurozone, IMF / 0 Comments

Don't go around saying the world owes you a living. The world owes you nothing. It was here first. “ -- Mark Twain

So far, the month of January is proving to be a solid win for the Bulls. And, while the major market mover for the remainder of the month probably will be found in the earning season numbers yet to come, a series of macroeconomic trends seem as if support for the upward trend should continue, perhaps deep into the first quarter of the year. Read more about ETF Periscope: Macroeconomic Outlook Could Paint a Pretty Picture for US Market

daniel / Tag: XBI, FXH, IHI, IHE, VHT, SPX, DJIA, COMP, healthcare, Eurozone, ECB, Merkel, Draghi, BOJ, PIIGS / 0 Comments