Two-Tier Market – Small Companies to Dominate ?

Investor's first read an edge before the open

DJIA: 17,880
S&P 500: 2,0662,080
Nasdaq  Comp.: 4,8864,917
Russell 2000:    1,260
Tuesday, April 7, 2015   9:09 a.m.

CONCLUSION:

   The market successfully tested critical support yesterday and rebounded impressively to keep its Feb. – Mar.  consolidation range (DJIA 17,600 – 18,200; S&P 500: 2,040 – 2,115) intact, now setting the stage for an upside breakout.  The Nasdaq Comp. is positive, but  the small company Russell 2000 is close to an upside breakout confirming my conclusion that the Street is opting for greater risk.

    Today’s support is DJIA 17,847 (S&P 500: 2,076; Nasdaq Comp.: 4,906). The bullish case improves with a break above DJIA: 18,010; S&P 500: 2,090; Nasdaq Comp.: 4,950.  

KEY FACTORS: 

Private sector employment (new hires) reported Friday plunged to 129,000 in March from 210,000 in February (revised). 

-Economic  indicators reported last week were mixed.

-Q1 earnings for some companies to suffer from U.S. dollar’s strength and plunge in

  oil prices. Impact could be felt for at least two quarters for some companies.
-Market still keyed on the Fed and it’s first bump up in interest rates, which with a slight softening in recent economic reports looks like it may happen later rather than sooner.

Concern that the U.S. economy is beginning to slump.

COMMENTS:

The Street is in a quandary and doesn’t  know what to do. Earnings suck, international economies are on the verge of a serious recession, the Street welcomes bad economic news here, so the Fed won’t raise interest rates any time soon, but where else can one put their money ?  It all smacks of great opportunity, but also great risk,  It is what it is, so we must deal with it.  IMHO, there is an enormous amount of outright manipulation of stock prices and earnings period is where a lot of it takes place. Q1 earnings will soon be reported  –  #@*&))#

Note: Source of economic data

For a weekly economic calendar and good recap of  indicators, go to mam.econoday.com.
George Brooks
Investor’s first read
A Game-On Analysis, LLC publication

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 

Note: I discontinued my daily – before – open publishing of Investor’s first read on November 5, 2014, after 6 years (1.600 posts).  Future publishing will be on a less frequent basis and not always before the market opens. In the interim, I will publish as I see necessary as I craft a new format.

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 

Investor’s first read, is a Game-On Analysis, LLC publication for which George Brooks is sole owner, manager and writer.  Neither Game-On Analysis, LLC, nor George  Brooks  is  registered as an investment advisor.  Ideas expressed herein are the opinions of the writer, are for informational purposes, and are not to serve as the sole basis for any investment decision. References to specific securities should not be construed  as particularized or as investment advice as recommendations that you or any investors purchase or sell these securities on their own account. Readers are expected to assume full responsibility for conducting their own research pursuant to investment decisions in keeping with their tolerance for risk.

 

 

 

 

Critical Dow/S&P Support to Be Tested

Investor’s first readDaily edge before the open

DJIA: 17,763
S&P 500: 2,066
Nasdaq  Comp.: 4,886
Russell 2000:    1,255
Monday, April 6, 2015   9:08 a.m.

CONCLUSION:

     How will the Street take news Friday that the new hires jobs report for March came in well below projections ?  Is the economy beginning to weaken ?  If so will the market get whacked by selling, as pre-market futures today suggest ?

     Then too, indications that the economy is slumping increase the odds that the Fed won’t raise interest rates anytime soon ?  The Street has repeatedly considered that bullish.

     The market  continues to be locked in its Feb. – Mar.  consolidation range (DJIA 17,600 – 18,200; S&P 500: 2,040 – 2,115).  The Nasdaq Comp. is struggling, but  the small company Russell 2000 remains buoyant confirming my conclusion that the Street is opting for greater risk.

    Today’s support is DJIA 17,650. Breaking that 17,600 comes into play, and that is an “iffy” support. Bulls need to step in NOW to prevent a breakdown. S&P 500 must hold above 2,040.
     It would be very bullish if the market rebounds before 11:00 and closes at its high for the day.

 KEY FACTORS: 

Private sector employment (new hires) reported Friday plunged to 129,000 in March from 210,000 in February (revised). 

-Economic  indicators reported last week were mixed.
-Market still keyed on the Fed and it’s first bump up in interest rates.

Concern that the U.S. economy is beginning to slump.

COMMENTS:

The Street is in a quandary and doesn’t  know what to do. Earnings suck, international economies are on the verge of a serious recession, the Street welcomes bad economic news here, so the Fed won’t raise interest rates any time soon, but where else can one put their money ?  It all smacks of great opportunity, but also great risk,  It is what it is, so we must deal with it.  IMHO, there is an enormous amount of outright manipulation of stock prices and earnings period is where a lot of it takes place. Q1 earnings will soon be reported  –  #@*&))#

Note: Source of economic data

For a weekly economic calendar and good recap of  indicators, go to mam.econoday.com.


George Brooks
Investor’s first read
A Game-On Analysis, LLC publication

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 

Note: I discontinued my daily – before – open publishing of Investor’s first read on November 5, 2014, after 6 years (1.600 posts).  Future publishing will be on a less frequent basis and not always before the market opens. In the interim, I will publish as I see necessary as I craft a new format.

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 

Investor’s first read, is a Game-On Analysis, LLC publication for which George Brooks is sole owner, manager and writer.  Neither Game-On Analysis, LLC, nor George  Brooks  is  registered as an investment advisor.  Ideas expressed herein are the opinions of the writer, are for informational purposes, and are not to serve as the sole basis for any investment decision. References to specific securities should not be construed  as particularized or as investment advice as recommendations that you or any investors purchase or sell these securities on their own account. Readers are expected to assume full responsibility for conducting their own research pursuant to investment decisions in keeping with their tolerance for risk.

 

 

 

Key Day !!

Investor’s first readDaily edge before the open

DJIA: 17,763
S&P 500: 2,066
Nasdaq  Comp.:4,886
Russell 2000:    1,255c
Friday, April 3, 2015   8:58 a.m.

CONCLUSION:
How will the Street take news this morning that the new hires jobs report for March came in well below projections ?  Is the economy beginning to weaken ? If so will they sell ?

But, wait a minute.  Doesn’t this increase the odds that the Fed won’t raise interest rates anytime soon ?  The Street has repeatedly considered that bullish.

The market  continues to be locked in its Feb. – Mar.  consolidation range (DJIA 17,600 – 18,200; S&P 500: 2,040 – 2,115).  The Nasdaq Comp. is struggling, but  the small company Russell 2000 remains buoyant confirming my conclusion that the Street is opting for greater risk.  New Highs in the Russell are possible in coming days.

Today’s support is DJIA 17,650. Breaking that 17,600 comes into play. Bulls need to step in NOW to prevent breakdown. S&P 500 must hold above 2,040.
It would be very bullish if the market rebounds before 11:00 and closes at its high for the day.

 KEY FACTORS: 

Mortgage apps and refi’s were up sharply in the 3/27 week, which bodes well for this summer’s real estate season.

-ADP Employment tanked in March with 189,000 new hires vs projected 240,000. Private sector employment (new hires) reported today plunged to 129,000 in March from 210,000 in February (revised).  

-Other economic indicators reported Wednesday were mixed.
-The Fed and it’s first bump up in interest rates.

Concern that the U.S. economy is beginning to slump.

COMMENTS:
All these seven-figure guys on Wall Street don’t know what to do. Earnings suck, international economies are on the verge of a serious recession, the Street welcomes bad economic news here, so the Fed won’t raise interest rates any time soon, but where else can one put their money ?  It all smacks of great opportunity, but also great risk,  It is what it is, so we must deal with it.  IMHO, there is an enormous amount of outright manipulation of stock prices and earnings period is where a lot of it takes place. Q1 earnings will soon be reported.  

Note: Source of economic data
For a weekly economic calendar and good recap of  indicators, go to mam.econoday.com.

George Brooks
Investor’s first read
A Game-On Analysis, LLC publication

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 

Note: I discontinued my daily – before – open publishing of Investor’s first read on November 5, 2014, after 6 years (1.600 posts).  Future publishing will be on a less frequent basis and not always before the market opens. In the interim, I will publish as I see necessary as I craft a new format.

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 

Investor’s first read, is a Game-On Analysis, LLC publication for which George Brooks is sole owner, manager and writer.  Neither Game-On Analysis, LLC, nor George  Brooks  is  registered as an investment advisor.  Ideas expressed herein are the opinions of the writer, are for informational purposes, and are not to serve as the sole basis for any investment decision. References to specific securities should not be construed  as particularized or as investment advice as recommendations that you or any investors purchase or sell these securities on their own account. Readers are expected to assume full responsibility for conducting their own research pursuant to investment decisions in keeping with their tolerance for risk.

 

 

Small Caps Heating Up

Investor’s first readDaily edge before the open

DJIA: 17,696
S&P 500: 2,059
Nasdaq  Comp.:4,880
Russell 2000:    1,251
Thursday, April 2, 2015   9:02 a.m.

CONCLUSION:

Yesterday’s plunge took the DJIA and S&P 500 down to the lower end of the Feb. – Mar.  consolidation range (DJIA 17,600 – 18,200; S&P 500: 2,040 – 2,115), but a rebound shortly after the open stabilized prices, heading off a breakdown. The Nasdaq Comp. also rebounded early in the day but the small company Russell 2000 remained solidly in an uptrend confirming my conclusion that the Street is opting for greater risk.  New Highs in the Russell are likely this week or early next as is a rebound in the other three market averages.

Today’s support is DJIA 17,653; S&P 500: 2,055; Nasdaq Comp. 4,862c.

Today’s resistance is 17,801; S&P 500: 2,073; Nasdaq Comp.:4,906.

 KEY FACTORS: 

Mortgage apps and refi’s were up sharply in the 3/27 week, which bodes well for this summer’s real estate season.

-ADP Employment tanked in March with 189,000 new hires vs projected 240,000.

-Other economic indicators reported Wednesday were mixed.
-The Fed and it’s first bump up in interest rates.

Concern that the U.S. economy is beginning to slump.

For a weekly economic calendar and good recap of  indicators, go to mam.econoday.com.


George Brooks

Investor’s first read

A Game-On Analysis, LLC publication

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 

Note: I discontinued my daily – before – open publishing of Investor’s first read on November 5, 2014, after 6 years (1.600 posts).  Future publishing will be on a less frequent basis and not always before the market opens. In the interim, I will publish as I see necessary as I craft a new format.

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 

Investor’s first read, is a Game-On Analysis, LLC publication for which George Brooks is sole owner, manager and writer.  Neither Game-On Analysis, LLC, nor George  Brooks  is  registered as an investment advisor.  Ideas expressed herein are the opinions of the writer, are for informational purposes, and are not to serve as the sole basis for any investment decision. References to specific securities should not be construed  as particularized or as investment advice as recommendations that you or any investors purchase or sell these securities on their own account. Readers are expected to assume full responsibility for conducting their own research pursuant to investment decisions in keeping with their tolerance for risk.

 

 

 

 

 

Big Move Imminent ?

Investor’s first readDaily edge before the open

DJIA: 17,776
S&P 500: 2,067
Nasdaq  Comp.:4,900
Russell 2000:    1,252
Wednesday, April 1, 2015   9:11 a.m.

CONCLUSION:

Yesterday’s plunge suggests the market continues to be locked in a consolidation pattern (DJIA 17,600 – 18,200) with the potential of a major move of 600 DJIA points either way beyond those limits.

Watch for a big move today.  A rebound before 11:30 suggests the bulls have it. Break below DJIA 17,600 (S&P 500: 2,040) – a bad omen.

Bulls may be encouraged  by the soft ADP employment numbers, since they suggest a Fed interest rate hike is not happening soon.

 KEY FACTORS: 

Mortgage apps and refis were up sharply in the 3/27 week.

-ADP Employment tanked in March with 189,000 new hires vs projected 240,000.
-The Fed and it’s first bump up in interest rates.

Concern that the U.S. economy is beginning to slump.
COMMENTS:

Hang on, market can make a big move shortly.
George Brooks

Investor’s first read

A Game-On Analysis, LLC publication

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 

Note: I discontinued my daily – before – open publishing of Investor’s first read on November 5, 2014, after 6 years (1.600 posts).  Future publishing will be on a less frequent basis and not always before the market opens. In the interim, I will publish as I see necessary as I craft a new format.

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 

Investor’s first read, is a Game-On Analysis, LLC publication for which George Brooks is sole owner, manager and writer.  Neither Game-On Analysis, LLC, nor George  Brooks  is  registered as an investment advisor.  Ideas expressed herein are the opinions of the writer, are for informational purposes, and are not to serve as the sole basis for any investment decision. References to specific securities should not be construed  as particularized or as investment advice as recommendations that you or any investors purchase or sell these securities on their own account. Readers are expected to assume full responsibility for conducting their own research pursuant to investment decisions in keeping with their tolerance for risk.

 

 

 

 

Again – The Bulls Need to Follow Through

Investor’s first readDaily edge before the open

DJIA: 17,9761
S&P 500: 2,086
Nasdaq  Comp.:4,947
Russell 2000:    1,257
Tuesday, March 31, 2015   9:11 a.m.

CONCLUSION:

After solid gains in the DJIA and S&P 500 yesterday, the market has recouped two-thirds of last week’s sharp losses. But today’s market will open lower. This looks more like a consolidation than a top formation.

Today’s Support is  DJIA 17,852 (S&P 500: 2,076; Nasdaq Comp.: 4,918)

Watch for buyers jumping on early weakness as a signal of a near-term attack on the upper end of the Feb./Mar. trading range of DJIA 17,600 – 18,200 (S&P 500: 2,040 – 2,115).
Looks like the Street is opting for more risk; speculation in small company stocks not far behind.

KEY FACTORS: 
-The Fed and it’s first bump up in interest rates.

Concern that the U.S. economy is beginning to slump.
COMMENTS:
I really think the Street is stumped, bullish one day, bearish the next. That spells more risk, than reward except for the most nimble trader !!

 

George Brooks

Investor’s first read

A Game-On Analysis, LLC publication

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 

Note: I discontinued my daily – before – open publishing of Investor’s first read on November 5, 2014, after 6 years (1.600 posts).  Future publishing will be on a less frequent basis and not always before the market opens. In the interim, I will publish as I see necessary as I craft a new format.

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 

Investor’s first read, is a Game-On Analysis, LLC publication for which George Brooks is sole owner, manager and writer.  Neither Game-On Analysis, LLC, nor George  Brooks  is  registered as an investment advisor.  Ideas expressed herein are the opinions of the writer, are for informational purposes, and are not to serve as the sole basis for any investment decision. References to specific securities should not be construed  as particularized or as investment advice as recommendations that you or any investors purchase or sell these securities on their own account. Readers are expected to assume full responsibility for conducting their own research pursuant to investment decisions in keeping with their tolerance for risk.

 

 

Street Opting for Greater Risk

Investor’s first readDaily edge before the open

DJIA: 17,712                                   

S&P 500: 2,061

Nasdaq  Comp.:4,891

Russell 2000:    1,240

Monday, March 30, 2015   9:11 a.m.

CONCLUSION:

Pre-open futures activity indicates strong open.

Today’s resistance starts at DJIA 17,873 (S&P 500: 2,076; Nasdaq Comp.: 4.926)

No room for a rally failure here.

KEY FACTORS:

  • The Fed.  This has been around forever, but at some point the Street will decide the rise in interest rates is imminent and take stocks down to a comfort level after which odds favor a big rally.
  • A sudden weakening in the economy (alternating good and so-so numbers likely to continue.
  • Unexpected international development (Russian invasion Ukraine).

COMMENTS:

Strength today can lock in a consolidation pattern that started in early February between DJIA 17,600 and 18,200 (S&P 500: 2,040 and 2,115).

Russell 2000 marches to a different drumbeat and is in a solid uptrend suggesting the Street is looking for bigger gains in small stocks.

George Brooks

Investor’s first read

A Game-On Analysis, LLC publication

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 

Note: I discontinued my daily – before – open publishing of Investor’s first read on November 5, 2014, after 6 years (1.600 posts).  Future publishing will be on a less frequent basis and not always before the market opens. In the interim, I will publish as I see necessary as I craft a new format.

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 

Investor’s first read, is a Game-On Analysis, LLC publication for which George Brooks is sole owner, manager and writer.  Neither Game-On Analysis, LLC, nor George  Brooks  is  registered as an investment advisor.  Ideas expressed herein are the opinions of the writer, are for informational purposes, and are not to serve as the sole basis for any investment decision. References to specific securities should not be construed  as particularized or as investment advice as recommendations that you or any investors purchase or sell these securities on their own account. Readers are expected to assume full responsibility for conducting their own research pursuant to investment decisions in keeping with their tolerance for risk.

 

 

 

 

 

Street Not Sure What the Hell to Do

Investor’s first readDaily edge before the open

DJIA: 17,678                                    

S&P 500: 2,056

Nasdaq  Comp.:4,863

Russell 2000:    1,231

Friday March 27, 2015   9:04 a.m.

CONCLUSION:

     Yesterday, the DJIA and Nasdaq Comp. briefly broke below the March lows, the S&P 500 did, but rebounded as expected though not dramatically.

     A robust rebound here would suggest stability at best, though I am leaning more toward a sideways-to-slightly-down consolidation.

     Buy the dips has worked for years regardless of  news. One of these days it won’t work, so don’t wander too far from the exit.

      Yesterday’s rally was unimpressive indicating an attempt to decline at the open. Failure to attract buyers before 9:50 suggests a drop in the DJIA to 17,494 (S&P 500: 2,032; Nasdaq Comp.: 4,815)

     Resistance begins at DJIA 17,748, S&P 500: 2,064, Nasdaq Comp. 4,888.

COMMENTS:

     I really don’t think the Street knows what the Hell it wants to do. What it needs is to get off the Fed teet, and stop buying bad news because it reduces odds of a near-term increase in interest rates, and selling good news because it does. Were any of these people around in 2008 when bad was “BAD” ?

    Anyhow, this is a casino for sound sleepers, investors and traders quick afoot and pockets deep enough to offset bad timing with new commitments to average out losers.  At some point, the lemmings will all head for the exit and we’ll get a 12% to 16% plunge.

    I’ve been charting stocks for 47 years and have never seen so much inconsistency/ manipulation in active stocks, especially when earnings reports are released – minefield !

George Brooks

Investor’s first read

A Game-On Analysis, LLC publication

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 

Note: I discontinued my daily – before – open publishing of Investor’s first read on November 5, 2014, after 6 years (1.600 posts).  Future publishing will be on a less frequent basis and not always before the market opens. In the interim, I will publish as I see necessary as I craft a new format.

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 

Investor’s first read, is a Game-On Analysis, LLC publication for which George Brooks is sole owner, manager and writer.  Neither Game-On Analysis, LLC, nor George  Brooks  is  registered as an investment advisor.  Ideas expressed herein are the opinions of the writer, are for informational purposes, and are not to serve as the sole basis for any investment decision. References to specific securities should not be construed  as particularized or as investment advice as recommendations that you or any investors purchase or sell these securities on their own account. Readers are expected to assume full responsibility for conducting their own research pursuant to investment decisions in keeping with their tolerance for risk.

 

 

 

 

 

 

 

Big Test !

Investor’s first read Daily edge before the open

DJIA: 18,076                                   

S&P 500: 2,099

Nasdaq  Comp.:4,982

Russell 2000:    1,252

Thursday,  March 26, 2015    9:12 a.m.

  • Another sharp plunge – is this the beginning of a major correction ?
  • Based on past performance – one would expect a sharp rebound in a day or two.
  • The swing factors defy an answer.  Here’s why:

    The Street is insanely addicted to every move, suggestion, and hint from the Fed about its first bump in interest rates. To-date, sluggish reports of any sector of the economy prompted buying, since it reduced the likelihood the Fed would raise rates soon. Strong reports prompted a drop in the market.

    However, yesterday’s 300-point drop in the DJIA was attributed to a weak Durable Goods report and concern that the economy may finally be weakening.  Go figure.

CONCLUSION:

    I don’t now, nor have I felt for years, that the Street has a consistent approach to assessing risk/opportunity. Markets in the past have flourished with interest rates at much higher levels, yet a bump up, however slight, is expected to spook the Street.

    Yes, but what about interest rates ?  Aren’t the odds of a near-term bump in interest rates less if the economy falters ?  Be prepared for the Street to do an about face.

    What the market needs is for that first bump up.  Most likely the market will plunge before or in response to that bump, then odds favor a rebound. We had this senseless behavior with “taper” and the Street shook it off once it became obvious the economy and stock market would not crash when the Fed began to cutback on bond purchases.

SHORTTERM:

     One of the best ways to sense direction in the market is to assess its ability to move in the opposite direction to the present trend.  In this case, how robust will the next attempt to rally be ?  Unimpressive and  strained suggests more downside; robust suggests a turn.

     April 1 marks the beginning of the six month (April-November) period that has historically underperformed the six months between November and May. The beginning of that slowdown has been more consistent than the follow through which has been interrupted by frequent and substantial rallies.

TODAY:

Expect a spike down at the open possibly breaking below the March low of DJIA 17,620 (S&P 500: 2,039) to DJIA 17,537 (S&P 500: 2,032) before an attempt to rebound.

Resistance begins at DJIA: 17,837 (S&P 500: 2,074).  The Nasdaq Comp will may break the 4,842 March low before an attempt to rebound from 4,817.

George Brooks

Investor’s first read

A Game-On Analysis, LLC publication

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 

Note: I discontinued my daily – before – open publishing of Investor’s first read on November 5, 2014, after 6 years (1.600 posts).  Future publishing will be on a less frequent basis and not always before the market opens. In the interim, I will publish as I see necessary as I craft a new format.

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 

Investor’s first read, is a Game-On Analysis, LLC publication for which George Brooks is sole owner, manager and writer.  Neither Game-On Analysis, LLC, nor George  Brooks  is  registered as an investment advisor.  Ideas expressed herein are the opinions of the writer, are for informational purposes, and are not to serve as the sole basis for any investment decision. References to specific securities should not be construed  as particularized or as investment advice as recommendations that you or any investors purchase or sell these securities on their own account. Readers are expected to assume full responsibility for conducting their own research pursuant to investment decisions in keeping with their tolerance for risk.

 

 

 

 

 

 

Yellen Express Plants Seeds for Speculation

Investor’s first readDaily edge before the open

DJIA: 18,076      
S&P 500: 2,099
Nasdaq Comp.:4,982
Russell 2000: 1,252                         

Thursday,  March 19, 2015    8:52 a.m.

    Monday, Wall Street celebrated bad news of  slumps on Industrial Production, New York area manufacturing and homebuilding.

     The Street was heartened by the reports, since they suggest the Fed will not raise its benchmark interest rate in the near future when the economy is slowing.

    Yesterday, Fed Chief Janet Yellen assured the Street it would continue to be be accommodative in its policy, i.e. don’t fret a rise in interest rates anytime soon. 

    It is clearly the Yellen Market now, she owns it.

    I have been a bull with warnings of a correction at times since March 10, 2009, and remain so as we enter the final blow-off stage, one of rank speculation with a predictable result – a bear market when no expects it.

    That could still be months or even a year or two out.

     What amazes me is the behavior of the Street.  Amateurish !

     What happens when  bad news becomes worse news and Yellen’s comments lose their clout ?

      What’s my point ?

      These silly reactions to predictable statements by Fed’s Yellen are setting up a horrendous correction/bear market.

      Most likely “easy money” will be made in bundles before the crunch.  I still don’t hear  much boasting by the small investor about big scores in the market, so the fever hasn’t reached a shrill pitch – YET.

       Quadruple Witching Friday looms bringing the potential for increased volatility. On the 3rd Friday of March, June, September and December index futures, index options, stock options, and stock futures expire.

TODAY:  Yesterday, the DJIA reached  Tuesday’s projection of 18,096 , but exceeded  my  2,094 target.

Near-term support is DJIA 17,967,  S&P500: 2,092, Nasdaq Comp.:4,972. The Russell 2000 is simply on a tear, reflecting a surging fever to get on board the Yellen Express.

     Speculative fever is mounting.

George Brooks

Investor’s first read

A Game-On Analysis, LLC publication

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 

Note: I discontinued my daily – before – open publishing of Investor’s first read on November 5, 2014, after 6 years (1.600 posts).  Future publishing will be on a less frequent basis and not always before the market opens. In the interim, I will publish as I see necessary as I craft a new format.

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> 

Investor’s first read, is a Game-On Analysis, LLC publication for which George Brooks is sole owner, manager and writer.  Neither Game-On Analysis, LLC, nor George  Brooks  is  registered as an investment advisor.  Ideas expressed herein are the opinions of the writer, are for informational purposes, and are not to serve as the sole basis for any investment decision. References to specific securities should not be construed  as particularized or as investment advice as recommendations that you or any investors purchase or sell these securities on their own account. Readers are expected to assume full responsibility for conducting their own research pursuant to investment decisions in keeping with their tolerance for risk.