Stephen Weiss of Short Hills Capital said on CNBC that the stock market is on the cusp of a huge bull market. He had the following comment and question for PIMCO’s CEO: Corporations are strong and profits and fundamentals are great. How can PIMCO advise people to walk away from risk? El-Erian replied:
“We need top line growth [revenue growth]…we need genuine growth…Europe is slowing; China is also slowing. Can you get growth to validate the fundamentals; that is the question.” Transcribed from CNBC
…The first quarter marked the third time in the last four quarters that the percentage of companies reporting revenues above estimates finished below 50%...
…The blended revenue growth rate for Q1 2013 is -0.3%, down from an estimate of 0.4% at the end of the quarter (March 31). However, only two of the ten sectors are reporting a decline in revenues: Energy and Materials.”
The 10-dMA of breadth remained at 47% today, Thursday, a number that probably indicates trouble ahead.
Thursday, the S&P 500 closed UP 0.4% to 1654 (rounded).
The NTSM system sold at 1575 on 16 April. (This is just another reminder that I should follow the NTSM analysis and not act emotionally – I am under-performing my own system by about 2%!)