“Gordon Scott, CMT, co-author of the book Invest to Win…has noticed an interesting phenomenon in the movements of the overall stock market which he relates to the 12-month holding period for long term capital gains taxes. If an investor holds a share of stock or other investable asset for more than a year, and has a profit, then the income tax owed on that profit is at a lower rate than for ordinary income. So an investor has at least some incentive to hang onto a winning trade until the 366th day after entering that trade.
“With 49% of the companies in the S&P 500 reporting actual results, the percentage of companies reporting earnings above estimates is above the four-year average, while the percentage of companies reporting revenue above estimates is below the four-year average.” Factset Earnings Insight available from Factset at…
“At this stage of Q3 2013 earnings season, 57 companies in the index have issued EPS guidance for the fourth quarter. Of these 57 companies, 49 have issued negative EPS guidance and 8 have issued positive EPS guidance. Thus, the percentage of companies issuing negative EPS guidance to date for the fourth quarter is 86% (49 out of 57). This percentage is well above the 5-year average of 63%.” Factset Earnings Insight available from Factset at…
Monday, the S&P was up 0.1% (2pts) to 1762 (rounded) for another new high at the close.
(2) Only 45% of stocks advanced.
(3) Only 44% of volume was up.
(4) Cyclical stocks were down 0.3%.
(5) The S&P 500 sold off a couple of points in the last hour.