FED issued a “quite bullish” statement.
The statement is much more positive on the US economy than prior
statements. It was deemed “hawkish”
because the better economic news might cause them to raise rates sooner, but
after an initial decline, markets rebounded and finished higher. For a video and statement analysis, see…
http://www.cnbc.com/id/102132620?trknav=homestack:topnews:1MARKET REPORT
Wednesday, the S&P 500 was down about 0.1% to 1982 (rounded).
VIX was up about 5% to 15.15.
The yield on the 10-year Treasury Note rose to 2.32%.
Late day buying has been the rule for a while and that is bullish for stocks.
RSI is neutral at 63. 70 is overbought.
MARKET INTERNALS (NYSE DATA)
The 10-day moving average of the percentage of stocks advancing (NYSE) fell to 63% at the close Wednesday. (A number above 50% is usually good news for the markets.) New-highs outpaced New-lows Wednesday. The spread (new-highs minus new-lows) was +136. (It was +154 Tuesday). The 10-day moving average of change in the spread was +71. In other words, over the last 10-days, on average, the spread has increased by 71 each day. Internals switched to 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 is BUY. Volume and Price indicators are positive. It doesn’t matter at this point, because I called a BUY on 17 October based on Technical analysis.
MY INVESTED STOCK
POSITION
I moved some funds back into the market on Friday, 17
October 2014 as a trade and increased my position
in stocks from 30% to about 40% overall.
I added more Monday, 20 Oct, to bring my stock investments up to 50%.
This move was based on my comments 16 Oct that a Tradable bottom had been
set. It appears that this will be a
durable bottom and not just a trade.
Either way, since 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
Discussion on oil prices on CNBC were all over the place Monday, from $80 to $65. It reminds me of 2007 when there were experts on CNBC predicting $10/gallon gas.
