The University of Michigan Consumer Sentiment Index was revised up to 86.9 for the final October reading from 86.4 in the preliminary reading…Consumer sentiment has little influence on consumption.” Story at…
http://www.briefing.com/Investor/Calendars/Economic/Releases/mich.htm
PERSONAL INCOME UP; PERSONAL SPENDING DOWN (Briefing.com)
“Personal income increased 0.2% in September; down from a 0.3% increase in August…Personal spending declined 0.2% in September …Without a sizable acceleration in income growth, sustainable consumption growth will be difficult.” Story at…
http://www.briefing.com/Investor/Calendars/Economic/Releases/income.htm
THE BEARS ARE IN HIBERNATION FOR GOOD (CNBC)
The Federal Reserve has handed the ball off to the market after ending its bond-buying program, "and the market is taking the ball and running," Michael Crofton, president and CEO of Philadelphia Trust Company, told CNBC's "Closing Bell." "The bears are now back in hibernation for good," he added.” Story at…
http://www.cnbc.com/id/102138778?trknav=homestack:topnews:9
My Cmt: Uh-oh. That sounds an awful lot like: “Stock prices have reached what looks like a permanently high plateau." - Irving Fisher October 21, 1929
BUY THE RUMOR; SELL THE NEWS
That could be what is going on this week with an
expectation that Republicans will take the Senate. In theory, that will be good for Corporate
Tax reform. Selling the news means markets
may drop (some) after the election. We’ll
see.RELATIVE STRENGTH INDEX (RSI)
RSI is now up to 83 and that is oversold. It suggests a pullback of some sort (usually small) is overdue.
SMART MONEY
There has been late day selling over the last 10-days as traders take profits.
MARKET INTERNALS (NYSE DATA)
The 10-day moving average of the percentage of stocks advancing (NYSE) remained 63% at the close Friday. (A number above 50% is usually good news for the markets.) New-highs outpaced New-lows Friday. The spread (new-highs minus new-lows) was +144. (It was +136 Wednesday). The 10-day moving average of change in the spread was +26. In other words, over the last 10-days, on average, the spread has increased by 26 each day. Internals remained neutral on the market, because the smoothed 10-dMA of up-volume is falling.
Market Internals are a decent trend-following analysis of
current market action, but should not be used alone for short term trading.
They are usually right, but they are often late. They are most useful when they diverge from
the Index. In 2013, using these
internals alone would have made a 16% return vs. 30% for the S&P 500 (in on
Positive out on Negative – no shorting).
Of course, few trend-following systems will do well in an extreme
low-volatility, straight-up year like 2013.
NTSM
The long-term NTSM system analysis switched to BUY Friday. Price and Volume indicators are positive. Others indicators are neutral.
MY INVESTED STOCK
POSITION
I moved some funds back into the market on 17 October
2014 as a trade and increased my position
in stocks from 30% to about 40% overall.
I added more 20 Oct, to bring my stock investments up to 50%. I am
semi-retired, 50% is Fully-invested for me.--INDIVIDUAL STOCKS FROM A VALUE HOUND--
ENSCO (ESV): BUY
The chart looks good and oil prices are close to a bottom so I think Ensco is again a Buy. See related video on this page…
http://finance.yahoo.com/q?s=esv&ql=1
