“The arrival of former Bank of Israel Governor Stanley Fischer and former U.S. Treasury official Lael Brainard will add two strong voices to back Chair Janet Yellen's view that loose monetary policy needs to be extended to turn around a slack labor market…Interviews with former colleagues and a review of their public statements and published material also suggest both will want the Fed to remain in activist mode long after its current programs wind down and its bloated balance sheet shrinks.” Story at…
I commented yesterday on divergence between the Russell, Nasdaq and S&P 500. I could have saved myself some trouble if I had just picked up the following story…
CORRECTION COMING: GARTMAN (CNBC)
-Up-volume is falling. Volume over all is falling. Perhaps we are running out of buyers
-Statistical analysis shows complacency and a “calm-before-the-storm” level of market activity. (This is an accurate indicator, but declines have been small (5% or so) in 2013 and 2014.
-VIX fell to 12.16 at the S&P 500 top on 13 May. That is a level at which pull-backs have started recently, although pullbacks have been small. VIX is up 7% since then, but that is not a huge rise. While the rise in VIX has not generated a sell signal in the NTSM VIX indicator, it is worrisome.
-Tuesday, the S&P 500 Bounced from the 1868 50-dMA during the day and moved up in the late day trading. The computers are at work, and perhaps the computers will manage to stop the correction again.
--INDIVIDUAL VALUE STOCKS (New Feature)--
ENSCO (ESV): HOLD
Motley Fool suggests that the owners of floating rigs have overbuilt and rig-rentals and revenues will fall in the future. Commentary at…
Research has shown that to have a diversified portfolio no one stock should be more than 4% of the portfolio total, or stated another way, if your total portfolio consisted of individual stocks, you would need at least 25-stocks to be “diversified.”