“In 2017 Technology (XLK) was ranked in the top 3
Momentum Plays for 52% of all trading days in 2017 (if I counted correctly.)
XLK was up 35% on the year while the S&P 500 was up 18%.” Story at…
CRUDE INVENTORIES (OilPrice.com)
“A day after the American Petroleum Institute surprisedthe
market with a substantial inventory build, the Energy Information
Administration dispelled doubts about the balance between supply and demand by
reporting a draw of 1.1 million barrels for the week to January 19.” Story at…
DOWDUPONT KUDOS FOR TRUMP (Seeking Alpha)
“Pres. Trump's approach to international trade is giving
U.S. companies an unexpected boost when they negotiate overseas deals,
DowDuPont (NYSE:DWDP)
Chairman Andrew Liveris tells a panel at the World Economic Forum in Davos,
Switzerland. U.S. companies have new leverage when negotiating with foreign
countries, Liversis says, because countries now are concerned that if they fail
to give American companies "a shot," their own firms could be denied
opportunities in the U.S. “It’s had an unintended consequence, which is
actually amazing,” Liveris says. “And maybe that, at the end of the day, is
Pres. Trump’s strategy.” Story at…
MARKET REPORT / ANALYSIS
-Wednesday the S&P 500 was down about a point to 2838.
-VIX was up about 3% to 11.47.
-The yield on the 10-year Treasury was little changed at
2.649%.
-My sum of 17 Indicators rose from +4 to +6 today. (A “+”
number means that most indicators are bullish.) Longer term, the indicators are
flat. There are plenty of bullish indicators: The late-day action is still
headed up implying the Pros are neutral to Bullish.
I am bearish short-term – topping indicators still look
stretched. Longer term I am a bull.
TODAY’S RANKING OF 15 ETFs (Ranked Daily)
The top ranked ETF receives 100%. The rest are then
ranked based on their momentum relative to the leading ETF. While momentum isn’t stock performance per
se, momentum is closely related to stock performance. For example, over the 4-months
from Oct thru mid-February 2016, the number 1 ranked Financials (XLF) outperformed
the S&P 500 by nearly 20%. In 2017 Technology (XLK) was ranked in the top 3
Momentum Plays for 52% of all trading days in 2017 (if I counted correctly.)
XLK was up 35% on the year while the S&P 500 was up 18%.
*For additional background on the ETF ranking system see
NTSM Page at…
TODAY’S RANKING OF THE DOW 30 STOCKS (Ranked Daily)
The top ranked stock receives 100%. The rest are then
ranked based on their momentum relative to the leading stock. Avoid GE and
Merck. Their 120-day moving average is falling.
*I rank the Dow 30 similarly to the ETF ranking system.
For more details, see NTSM Page at…
WEDNESDAY MARKET INTERNALS (NYSE DATA)
Market Internals switched
to Positive on the market.
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 2014, using these
internals alone would have made a 9% return vs. 13% for the S&P 500 (in on Positive,
out on Negative – no shorting).
LONG TERM INDICATOR
Wednesday, Price and Volume indicators were positive; Sentiment
& VIX indicators were neutral. This adds up to a BUY indication, but at
this point a BUY signal is meaningless.
The NTSM system is designed to issue BUY signals near a Bottom as
conditions rapidly improve. Now, it is
just an indication that the market is doing well. The NTSM long-term signal can sometimes
signal BUY at the top if conditions are too good. The last actionable Buy signal
was on 15 November 2016.
MY INVESTED STOCK POSITION:
TSP (RETIREMENT ACCOUNT – GOV EMPLOYEES) ALLOCATION
I remain FULLY INVESTED at 50% stocks in the S&P 500
Index fund (C-Fund) with the remainder is 50% G-Fund (Government securities).
This is a conservative retiree allocation, but I consider it fully invested for
my situation.
