"the most profitable market moves in the United States occur when the overwhelming majority of world markets are in agreement"
| Indicator | Status | Bias |
|---|---|---|
| Stage Analysis | S&P 500 below MA(30) | Bearish |
| Advance-Decline | NYAD below MA(30), but rising faster than S&P500 | Bearish but improving |
| Market Momentum | NYAD MA(200) declining since May but range-bound since August. Still above zero. | Bearish/ Neutral |
| Highs vs Lows | NYHL broke above zero for the first time since July. | Neutral, improving |
| World Markets | VEU is below MA(30) and made a new 52-week low last week. | Bearish |
| Market Leader | AAPL is above MA(30) and close to all-time high. | Bullish |
| Price-to-Dividend | S&P500 dividend yield below 1930-2011 average, but higher than most data since 1995. | Neutral |
| Contrary Opinion | AAII sentiment survey: more bears (40%) than bulls (30%), but not extreme levels. | Neutral |
Individual sectors in the US market are not making a bullish case. Utilities are the best performers this quarter and are the only sector above their 50-day moving average. Every sector in the US stock market has a downward sloping 50-day moving averages.
Nevertheless, there were some powerful stocks that made all-time highs last week. This strength should be duly noted. There were strong fundamentals, growth, and institutional support for several companies that benefit from "the pooring of America" and Canada:
- FCFS (First Cash Financial Services | NASDAQ) - pawn and consumer finance stores
- HITK (Hi-Tech Pharmacal Inc | NASDAQ) - generic pharmaceutical products
- DG (Dollar General | NYSE) - a discount retailer of general merchandise
- AKRX (Akorn | NASDAQ) - a niche generic pharmaceutical company
- DOL (Dollarama Inc. | TSX) - operator of dollar stores in Canada
There are several other pharmaceutical stocks in the list (JAZZ, ALXN, VRUS), but I want to point out several stocks from the Priority List with high-volume moves last week:
- WPRT (Westport Innovations | NASDAQ) - alternative fuel, low-emissions technologies that enable engines to operate on fuels, such as compressed natural gas, liquefied natural gas, hydrogen, and biofuels. Olivier Tischendorf has a great overview of the "story stock" potential for this name.
- DMND (Diamond Foods | NASDAQ) - international packaged foods, including snacks, chips, and nuts.
- CLT (Celtic Exploration | TSX) - oil and gas exploration and production, that I've discussed before.
- AMZN (Amazon.com | NASDAQ) - online retailer
- AVR (Avion Gold | TSX) - focused in West Africa. Added to the S&P/TSX Composite Index last week.
- HANS (Hansen Natural | NASDAQ) - beverages, Monster Energy etc. One of the strongest stocks.
- AZO (Autozone Inc. | NYSE) - leading retailer and distributor of automotive replacement parts
"we only have two losses to report - a loss of opportunity or a loss of capital. And if we protect the capital, we know there will always be another opportunity." -Louise Yamada
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