The Cause of Monday’s Sell-Off

By David Brown, Chief Market Strategist, Sabrient Systems

david / Tag: AGCO, ALOG, PAAS, sectors, SPY / 0 Comments

david trainerAs an adult, Halloween tends not to be that scary for me--usually.

But after last week’s stock market rally in the face of the deteriorating situation in Europe and the rest of the world, I am afraid…for the stock market and am reminded of fall/winter 1999.

The 4th quarter of 1999 was an absolutely fascinating and terrifying time as my naïve beliefs about market rationality and efficiency were proven patently false.

Wall Street Shuffle and the EU Hustle

“Many people take no care of their money till they come nearly to the end of it, and others do just the same with their time.” --  Johann Wolfgang Goethe

The sound you heard this past week was the market blasting upwards, reacting to what would seem to be, by all indications, good news out of Europe. But will this newfound wave of euphoria last?

daniel / Tag: / 0 Comments

smartindale / Tag: ETF, GTS, IDU, IYC, IYE, IYF, IYH, IYJ, IYK, IYM, iyw, IYZ, linkedin, long/short, sector-rotation, sectors, SPRD, VMW, WLP / 0 Comments

In the last week, two of Sabrient's favored stocks have rewarded investors with big moves.

On the long side, HealthSpring Inc. (HS) is up 96%  this year. While previously gaining over 75% before the market correction in August, HS rose over 30% on Monday on news that CIGNA would buy them for 3.8 Billion to expand their Medicare business. HS is part of the Sabrient Baker's Dozen, a batch 13 stocks that we expect to perform well for the entire year starting January 1, 2011.

walter / Tag: GMCR, HS / 0 Comments

Sabrient's forward-looking SectorCast rankings have now been completely updated with the new Thompson Reuters Business Classification (TRBC). There have been several changes to the sector names, as stocks have been regrouped.

Note: The Undesignated sector is composed of about 360 random stocks that Thompson-Reuters decided didn't fit into any of their other categories.

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Market Surges to 2-Month High--Why?

By David Brown, Chief Market Strategist, Sabrient Systems

david / Tag: AAPL, BAC, C, CAT, CI, GS, HS, HUM, JAZZ, ORCL, RNOW, SNX, VXX, WFC, WNR / 0 Comments

Pick the VIX as a Sweet EU Hedge

“There is no exception to the rule that every rule has an exception.” -- James Thurber

daniel / Tag: COMP, DJIA, EFSF, ETF, EU, NASDAQ, SPX, VIX, VXX / 0 Comments

Time to Evaluate Buy/Write on GCI, MIPS and SNP

By Scott Brown, President, Sabrient Systems

Time, why you punish me?

Like a wave bashing into the shore

You wash away my dreams

Time, why you walk away?

Like a friend with somewhere to go

You left me crying

Can you teach me about tomorrow

And all the pain and sorrow running free

sbrown / Tag: / 0 Comments

Technology and Materials have been the major drag on the market this week, through Wednesday. Surprisingly, Financials and Energy have held up pretty well. It’s tough for the Technology sector, the S&P 500, and the Nasdaq to perform when the biggest market-cap company—Apple (AAPL)—misses estimates for the first time in forever, I think. Or was it 2004?

smartindale / Tag: ETF, GTS, HUM, IDU, IYC, IYE, IYF, IYH, IYJ, IYK, IYM, iyw, IYZ, linkedin, long/short, sector-rotation, sectors, SPRD, VMW / 0 Comments

david trainerBefore I delve into the accounting loopholes used to prop 3rd-quarter earnings, I will start with pointing out the intimidating amount of ETF choices in the financial sector.

There are 25 financial sector ETFs.  These 25 ETFs have drastically different stock holdings and, therefore, allocations. The lowest number of holdings is 24 while the highest is 496, per figure 1.

dtrainer / Tag: BAC, C, JPM, KBE, KBWP, VFH, XLF / 0 Comments

From Roses to Thorns?

By David Brown, Chief Market Strategist, Sabrient Systems

Last week things looked rosy for the markets, after the European bailout fund was finally ratified by the last holdout, Slovakia, just 10 days before the October 23 EU summit.

david / Tag: AGII, CI, ICON, IRDM, TEO / 0 Comments

ETF Periscope: 1000 Points and 10 Days Later

You've got to be very careful if you don't know where you are going, because you might not get there."  --  Yogi Berra

The Dow has just come off an impressive two-week run. The question now is, was that just a sprint that will leave investors winded, or is a breakthrough of a 10-week sideways trend about to occur?

daniel / Tag: COMP, ETF, EU DJIA, NASDAQ, SPX, VIX, VXX / 0 Comments

Market Rally Continues But Not Sure Why...

By David Brown, Chief Market Strategist, Sabrient Systems

david / Tag: AA, AAPL, CVI, GOOG, JPM, RS, sectors, UTHR / 0 Comments

david trainerThere are 36 “large cap value” ETFs.  Per Figure 1, these 36 ETFs have drastically different stock holdings and, therefore, allocations. The lowest number of holdings is 30 while the highest is 1178.

How do investors pick the ETF that will deliver the best performance?

Figure 1: Holdings Count of Large Cap Value ETFs

dtrainer / Tag: DIA, DVY, IVE, IWD, JNJ, SDY, T, VIG, VTV, VYM, XOM / 0 Comments

ETF Periscope: Preoccupied Wall Street

“When we remember we are all mad, the mysteries disappear and life stands explained.” -- Mark Twain

If investors have been feeling like they’ve suffered from a nasty case of whiplash recently, it is certainly understandable.

daniel / Tag: AA, COMP, ETF, EU DJIA, GOOG, JPM, NASDAQ, SPX / 0 Comments

david trainerHaving too many choices can be intimidating. And there are definitely lots of choices when it comes to ETFs. For example, in the equity market alone, there 30+ technology sector ETFs, 35 "large cap value," and 20 financial ETFs. A very healthy selection abounds for every category of ETF.

dtrainer / Tag: AAPL, acn, FTQ, FXL, GOOG, IGM, IGN, IGV, iyw, MSFT, MTK, ORCL, PNQI, RYT, SKYY, SOXL, SOXX, TYH, USD, VGT, XLK, XSD / 0 Comments

Rockwood Holdings and Agilent are Bargains for Buy/Write

by Scott Brown, President, Sabrient Systems

I sit looking ‘round
I look at my face in the mirror
I know I’m worth nothing, without you
And like one and one don’t make two
One and one make one
And I’m looking for that free ride to me

I’m looking for you
I’d pay any price just to win you
Surrender my good life for bad

sbrown / Tag: A, ROC / 0 Comments

david trainerWhen CNBC asked me to take the bear case in a “Stock Brawl” on Starbucks (SBUX — neutral rating) last Thursday (9/28/11), I said sure — I can do that again.

dtrainer / Tag: BAGL, CBOU, DNKN, GMCR, IWF, IWY, MCD, PEET, RPG, SBUX, VUG, xly / 0 Comments

Where's the Next Support?

By David Brown, Chief Market Strategist, Sabrient Systems

david / Tag: A, COH, EQT, FXE, MHS, VXX / 0 Comments

ETF Periscope: Traveling Sideways with Max Volatility

“By three methods we may learn wisdom: first, by reflection, which is noblest; second, by imitation, which is easiest; and third by experience, which is the bitterest.” --  Confucius

Wall Street must be feeling on the beat-up side right now.

daniel / Tag: DJIA, EFSA, ETF, European Financial Stability Facility, NASDAQ, PIIGS, RWM, SH, SPX / 0 Comments