“Euro-area manufacturing and services growth unexpectedly slowed to the weakest pace this year…Purchasing Managers Indexes for both industries fell and a composite gauge dropped to 52.3 in September from 52.5 in August, London-based Markit Economics said today.” Story at…
http://www.bloomberg.com/news/2014-09-23/euro-area-suffers-unexpected-slowdown-from-factories-to-services.html
GOLD: A TREACHEROUS TRADE (CNCB)
"Owning gold has been just a treacherous, boring,
nasty trade that just keeps losing money for anybody who buys it," he
said. "There will be a time when inflationary pressures will once again
exhibit themselves, but that time is not now." On CNBC's "Fast Money,"
Gartman said that investors are looking at a deflationary environment. "If you're fearful about inflation, you're
wrong," he said. "Grain prices are down. Iron ore prices are down.
Crude oil prices are down. Rubber prices are down." Story at…
http://www.cnbc.com/id/102022997
STOCKS ABOVE THEIR 200-dMA (Index Indicators)
Chart from…The above chart shows that less than one-half of all stocks are above their 200-dMA. That’s not good with the S&P 500 very near its highs. The minus 1-standard deviation level is also a point associated with a falling market or even a bottom. Given that the S&P 500 is near a high, I think it suggests that the Index has much further to fall. Time will tell.
MARKET REPORT
Tuesday, the S&P 500 was down about 0.6% to 1983 (rounded). VIX was up about 9% to 14.93.
The yield on the 10-year Treasury Note dropped to 2.53% at the close.
MARKET INTERNALS (NYSE DATA)
The 10-day moving average of the percentage of stocks
advancing (NYSE) rose to 42% at the close Tuesday.
New-lows outpaced New-highs Tuesday.
The spread (new-highs minus new-lows) was minus-117. (It was -128 Friday).
The 10-day moving average of change in the spread rose to minus-14. In other
words, over the last 10-days, on average, the spread has decreased by 14 each
day. The smoothed 10-dMA of Up-Volume is
still advancing so the internals remained neutral; otherwise they would have
been negative.
NTSM
Tuesday, the NTSM is HOLD. All indicators are neutral, but the VIX indicator
is rising and that may push the indicator to sell. Sentiment is not currently a
sell, but it is so high I may treat it as a negative if VIX signals sell.
MY INVESTED STOCK POSITION
I made a BUY call on Monday, 18 August 2014 because the charts were looking better; therefore, I upped my invested percentage to 50% invested in stocks on Tuesday 19 August. The 5-10-20 Timer and Market Internals both gave positive signals on 19 August confirming the previous day’s Buy signal. 50% is Fully invested for me since I am semi-retired.
--INDIVIDUAL STOCKS FROM A VALUE HOUND--
ENSCO (ESV): BUY
For my initial discussion see the NTSM blog at:
http://navigatethestockmarket.blogspot.com/2014/05/coppock-curve-says-stock-crash-nowblow.html
ENSCO’s chart doesn’t look good now since it has fallen below prior lows as the oil drillers have not performed well. On the plus side, dividend is 6%. PE is 8.5 so downside is somewhat limited.
TOO CHEAP TO IGNORE (Forbes)
“Ensco has a strong buy rating according to ValuEngine and is 19.6% undervalued with a one-year price target at $50.25.” – Story at…
http://www.forbes.com/sites/investor/2014/09/22/transocean-and-three-other-energy-stocks-too-cheap-to-ignore/?partner=yahootix
