“Economic growth increased in all 12 Federal Reserve
districts, a relatively upbeat Fed Beige Book showed on Wednesday. The pace of growth was described as "moderate"
to "modest," according to the release, which details economic
projections from the central bank's members.” Story at…
http://www.cnbc.com/id/101731584
ISM NON-MANUFACTURING RISES (dShort.com)
“Today the Institute for Supply
Management published its latest Non-Manufacturing
Report. The headline NMI Composite Index is at 56.3 percent, up from
last month's 55.2 percent…there is relatively little history for ISM's
Non-Manufacturing data, especially for the headline Composite Index, which
dates from 2008.” Commentary and analysis from Advisor Perspectives at…
http://www.advisorperspectives.com/dshort/updates/ISM-Non-Manufacturing.php
ADP REPORT – JOBS DISAPPOINT (WSJ)
“U.S. businesses added new workers at a
slower-than-expected pace in May, according to a survey of hiring released
Wednesday. Private-sector payrolls in the U.S. increased by 179,000
new jobs in May, says the national employment report compiled by payroll
processor Automatic Data Processing Inc. and forecasting
firm Moody's Analytics. ‘Job growth moderated in May…’ said Mark Zandi, chief
economist at Moody's Analytics that compiles the data. ‘The job market has yet
to break out from the pace of growth that has prevailed over the last three
years.’" Story at…
http://online.wsj.com/articles/private-businesses-create-just-179-000-jobs-in-may-says-adp-1401884878Excluding the screwy winter, it would appear that the economy continues to muddle along.
MARKET REPORT
Wednesday, the S&P 500 was up about 0.2% to 1928 (rounded).
VIX rose about 2% to 12.10. VIX remains at a point that
has recently aligned with the start of corrections. The yield on the 10-year Treasury Note was unchanged at 2.60% at the close.
The Bond Ghouls remain worried.
MARKET INTERNALS (NYSE DATA)
The 10-day moving average of stocks advancing on the NYSE
rose to 58% at the close Wednesday. (A
number above 50% for the 10-day average is generally good news for the market.)
New-highs outpaced New-lows Wednesday.
The spread (new-highs minus new-lows) was +152. (It was +130 Tuesday.)
The 10-day moving average of change in the spread was +12 . In other words, over the last 10-days, on
average, the spread has INCREASED by 12 each day. The smoothed 10-dMA of up-volume
was DOWN today and that kept the internals neutral on the market. 
NTSM
The NTSM analytical model for LONG-TERM MONEY remained
HOLD Wednesday. Sentiment rose to 73%-bulls
(5-dMA of {bulls/(bulls+bears)} for funds invested in selected Rydex/Guggenheim
funds at the close on Tuesday. Amateur traders are becoming more bullish, but
this value was 85%-bulls on 19 May. Sentiment, Price, Volume & VIX
indicators all remain neutral.
MY INVESTED POSITION
I increased my stock allocation to 50% invested in stocks
on 26 March because of the NTSM indicators turned positive 24 Mar at the
close. 50% in stocks is fully invested
for me, given my age (semi-retired) and the risk inherent in today’s stock
market. I am watching closely to see if it is time to reduce my long-term stock
holdings.
--INDIVIDUAL STOCKS--
ENSCO (ESV): BUY
The chart looks OK with higher lows and it made a higher high on the
1-month chart so I again rate ESV as BUY. It doesn’t hurt that it was upgraded
to Buy on 27 May by The Street.com. For my initial discussion see the NTSM blog at:
http://navigatethestockmarket.blogspot.com/2014/05/coppock-curve-says-stock-crash-nowblow.htmlENSCO benefited from an upgrade of Diamond Offshore 29 May by Morgan Stanley. Morgan Stanley upgraded Diamond Offshore to equal weight. They said, “Our Underweight thesis based on significant negative earnings revisions has largely played out. We also believe that the cycle is turning and that floater availability has peaked.”
TESARO (TSRO): BUY
For my initial discussion see the NTSM blog at:
http://navigatethestockmarket.blogspot.com/2014/05/gdp-contractsjobless-claims.html
[28 May 2014] BMO Capital upgraded Tesaro (NASDAQ: TSRO) from Market Perform to Outperform with a price target of $46.00. Posted at…http://www.streetinsider.com/Upgrades/BMO+Capital+Upgrades+Tesaro+(TSRO)+to+Outperform/9071511.html
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.”
