The Markets & More ... February 3, 2017

Comments

• JohnChisum

  February 2017

  Thanks for posting these Markets and More in the morning. Well appreciated.
• Old_Skeet

  February 2017 edited February 2017

  Good morning @JohnChisum and others,
  
  John, thanks for stopping by and making comment.
  
  I started this as a daily post because of Ted's absence due to declining health. Hopefully, @Ted will be back and take over the morning slot again along with the many reads he provided for us through the years.
  
  Until he returns I plan to keep posting "The Markets & More" each weekday morning and I welcome comments to help keep the board engerized.
  
  I have learned from others that have made and make post. Hopefully, others have learned from some of my post as well.
  
  Now, I'm gone to watch the markets open.
  
  I wish all ... "Good Investing."
  
  Old_Skeet
• bee

  February 2017 edited February 2017

  Thanks as well @Old_Skeet
  
  I receive this "Chart of the Day" from McClellon in my email and I thought it might fit into this thread nicely.
  
  Some investors struggle with the value of technicals. I see them as just one more tool in the toolbox.
  
  This site is rich with technical data and does a good job of interrupting those technicals.
  
  This article looks at the AD line created by the daily ratio of Advancing and Declining issues in the market. Here the A_D line is being compared to the Dow (with the author's interruption):
  mcoscillator.com/learning_center/weekly_chart/a-d_line_new_high/
  
  Investopedia does a great job of explaining this concept (A/D Line):
  investopedia.com/terms/a/advancedeclineline.asp
  
  
• Old_Skeet

  February 2017 edited February 2017

  Hi @bee,
  
  Thanks for stopping by and making comment.
  
  I remember, when I first started posting, years back, at the fund alarm site there were some that were not the most cordial. You being the person that you are, along with being a former school teacher, quickly brought order and told them, in quick words, to mind their manners. And, in effect, went on to say ... that we need to welcome new folks and not run them away just because they present different views. That still resonates well with me.
  
  At times, I still get called out to posture my statements. With this, I have no issue whatsoever. For if we are not prepared to present and posture our views we sould not present them.
  
  I have referenced the McClellan Oscillator for sometime that you highlite in this thread. For me, it is another way an investor can determine if value currently prevails. I have provided a link below that will take one to The Week That Was. Scroll down until you come to The Week Ahead. In the Week Ahead one will find reference in this section to the NYSE McClellan Oscillator along with its reading and what it means.
  
  https://www.stocktrader.com/2017/01/29/weekly-market-recap-jan-29-2017/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+Stocktrading101+(StockTradingToGo)
  
  No doubt, there are many ways to find and read value in the markets and thus determine if they are under valued or over valued. To me, the McClellan Oscillator does this. Some others might take issue with this.
  
  Thanks again for bringing this tool forward.
  
  Skeet
• bee

  February 2017 edited February 2017

  @Old_Skeet,
  
  Thanks for the kind words and for your willingness to share your investing approach. Many paths up the mountain.
  
  Always enjoy seeing/reading what's "Old_Skeet Sleeves"!
• TSP_Transfer

  February 2017

  PAYDEN & RYGEL WEEKLY REVIEW Getting Back To Work
  January’s jobs report bolsters the view that the cycle still has plenty of room to run and that the Fed can still afford to move slowly. Slowly, not because the economy is weak, but because there are few signs of “overheating” or of “being behind the curve.” We are looking for signs/talk/concerns of in ation “heating up” before we get too worried about a more aggressive Fed.
  
  
  Highlights of the Week:
  • Treasuries:March rate hike probabilities dropped to approximately 30% from over 35% with no mention at the meeting of changes to reinvestment on their balance sheet and lower average hourly earnings in the nonfarm payroll report.
  Equities:....some of the world’s largest companies by market cap reported better than expected
  quarterly results. The biggest among them all is tech giant Apple, which reported quarterly earnings of $3.36 per share and revenues of $78.4 billion,beating consensus estimates of $3.22 per share and $77.3 billion.
  Securitized Products:Blackstone’s Invitation Homes opportunistically snapped up cheap homes from the depths of the housing crash, while earning rental income as prices recovered. Ten years later, we see evidence that institutional SFR business models are sustainable longer term. This week, Blackstone took Invitation Homes public (ticker: INVH). And even Fannie Mae is now financing large single-family rental portfolios.
  High Yield THE GOP/Trump talk of corporate tax reforms are mostly designed to favor companies with operations in the United States. Sectors of the U.S. High Yield universe are generally made up of small cap, U.S.-oriented companies, which should benefit from proposed reforms.
  Municipals: Municipal funds notched a fourth consecutive week of in ows, further bolstering the market as new issue supply has been limited. Fundamentals continue to be favorable,
  https://www.payden.com/weekly/wir020317.pdf
  
  President Trump has his work cut out for him
  As of January 27, 2017, the U.S. technology Fab Five by market capitalization are Apple (NASDAQ:AAPL), Google (GOOGL, GOOG), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), and Facebook (NASDAQ:FB). Collectively, the market capitalization of these companies has recently topped $2.5 trillion.
  
  
  
  
  
  President Trump has his work cut out for him, as the "Tech Fab Five" currently command market capitalizations of $2.5 trillion, and yet, they only employ 535K people.
  
  
  For perspective, the size of the U.S. labor force is 159.6 million people, and despite the $2.5 trillion collective market capitalization of the Fab Five, these companies employee a measly 0.33% of the population
  http://seekingalpha.com/article/4040833-rising-popularity-hygge-age-uncertainty
  
  Amazon Plans $1.5 Billion Air Hub Near Cincinnati for Fleet
  Cargo planes are one of the latest tools the Seattle retailer is using to control and improve delivery. Other efforts include increased technology and increased trucking capacity. The company already has a worldwide network of about 149 fulfillment centers and 20 sorting centers that handle online orders and uses 45,000 robots.
  
  Amazon will employ 2,000 workers at the new facility when it opens at Cincinnati/Northern Kentucky International Airport. Chief Executive Officer Jeff Bezos earlier this month pledged to hire 100,000 people in the U.S. over the next 18 months.
  https://www.bloomberg.com/news/articles/2017-01-31/amazon-plans-new-air-hub-in-kentucky-to-support-fast-deliveries
  Healthcare,Public Universities,Walmart and US Military dominate state's employment pictures
  
  https://www.stocktrader.com
• hank

  February 2017 edited February 2017

  Thoughtful comments from bee & Ol' Skeet. I love hearing what others are thinking or doing. Makes me think. And I never feel compelled to follow their lead. One, perhaps, feels his way is the only way, and there I have problems. But we can read what we choose to here.