Sterling Investment Services look at Thursday’s market and our thoughts on Friday’s market. Additionally we take a look at the Dow Jones Utilities Average (chart included) and its recent breaking of the long term support line dating back to March of 2009 that was recently broken, as well as our thoughts on what this means for the overall market.
Tag Archive for S&P 500
Sterling Market Commentary for Thrusday November 15th, 2012
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Sterling Investment Services analysis of Wednesday’s market activity, and our expectations for the upcoming trading day as well as our overall thoughts on the stock market. We have updated our technical support and resistance levels for the Dow Jones Industrial Average, Dow Jones Transportation Average, and the NASDAQ 100 Index ‘NDX’. In addition we have added the S&P 500 ‘SPX’ to our list of daily indices covered, We are also taking a look at the KBW Bank Index ‘BKX’ today. The chart on the ‘BKX is worth taking a look at.
Sterling Market Commentary for Thursday October 11th, 2012
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A Few Thoughts on Thursday’s Market: In looking at the charts from yesterday’s trading activity, I noticed continued weakness in the vast majority of the indices I track. The Dow Jones Industrial Average, Philly Semiconductor Index ‘SOX’, the S&P 100 ‘OEX’, S&P 500 ‘SPX’, the S&P Retail Index ‘RLX’, the M.S. Cyclicals ‘CYC’, and Amex Biotech ‘BTK’ indices all either hit or move lower through their 40 day moving averages. Again, this is generally considered a negative trading signal for the market. While the computers may initially move the market higher this morning due to the initial jobless claims numbers, I do not think they are going to overcome a slowing economy. Let us not forget that initial jobless claims, and the unemployment rate are lagging indicators. This means that they are providing us with a picture of what has already happened. They are not forward looking looking indicators which will provide you with an indication of what may be happening now or in the future. The initial jobless claims and the unemployment numbers are not providing us with a picture of an improving economy, they are confirming that the economy improved in the past. The forward looking indicators are showing a slowing economy. Economic conditions around the world are contracting, the world economy is slowing, and there is a good chance the U.S. economy will drop back into a recession in the next 6 months. This is not a recipe for a rising market with interest rates already at record levels.
Sterling Market Commentary for Wednesday October 10th, 2012
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A Few Thoughts on Wednesday’s Market: In looking at the charts from yesterday’s trading activity I was struck by the apparent breakdown and weakness in the vast majority of the charts I looked at. While there is a good possibility several of these indices could bounce from these levels, another couple of down days will break the upward trend that has been in place since early summer and signal the start of a new downward trend. The charts of the various sector indices I track can be grouped into 3 basic categories. The 1st being the capitalization weighted tech indices that are very heavily weighted with Apple, Inc. ‘AAPL’. Due to the excessive weighting of Apple within these indices as Apple has moved lower, these indices have been dragged lower at a sharp paces. Basically a kind of “Live by the Sword, Die by the Sword” situation.
Sterling Market Commentary for Monday August 20th, 2012
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In looking at the charts from Friday’s market, I noticed a couple of things. The 1st being that there were a significant number of stocks that broke through downside support on fairly heavy trading volume, and a lot less stocks broke through upside resistance on heavier than normal trading volume. The other item I noticed is that the S&P 500 ‘SPX’ has yet to surpass its yearly high of 1,419.04 set on April 2nd of this year; while the S&P 100 ‘OEX’ (which we do not hear much about anymore) surpassed its yearly high of 645.29 set on April 2nd of this year with its close of 646.22 on August 10th. While a couple of weeks of action may not be too significant in the long run, until we reach the long run there may be some significance in the short term message………………….
Sterling Weekly for the Week of April 2nd, 2012 – A Look at 1st Quarter Index Performance Results
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We saw the end of the 1st quarter of the year last week. As usual I like to take a look at the performance of the various sector indices I track and see what the market is telling us. I usually find these results to be somewhat interesting. I have published the results below for your review as well……………..In looking at the results of the 1st quarter 2012, the average index gained 12.21%. Overall a very good performance, but one that we should not expect to be repeated for each of the remaining 3 quarters as that would equate to a 48% plus annualized return. As far as the major market indices are concerned, the Dow Jones Industrial Average was up by 994.48 points or approximately 8.14%, the S&P 500 was higher by 150.87 points or approximately 12%, and the NASDAQ 100, obviously benefiting from the effect of Apple, was higher by 477.44 points or approximately 20.96%………………………..i have stated many times that I believe that Bull Markets are primarily the result of 2 things; the first being new technology, and the second being changes in government regulation. The results of the 1st quarter are pretty well explained by that thesis. The top performing indices were either the result of new technologies, such as the Amex Biotech Index and the various technology indices that were heavily influenced by Apple, Inc. ‘APPL.’ The second set of indices, those influenced by government regulation were the interest rate indices, the TYX, TNX, and FVX. The poor performing indices reflect the same results, rising interest rates is a negative for the Utility industry, and precious metals such as gold and silver. Additionally the beginning of the implementation of Obamacare and its massive amounts of regulation is a negative for the Healthcare related indices.
Sterling Market Commentary for Tuesday March 27th, 2012
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A Look at Monday’s Market: The overall market moved sharply higher in a broad based move that saw every index I track move higher on the day as well. The strongest sectors were the airlines, High Tech, Financial, Retailers, Healthcare…
Sterling Market Commentary for Friday February 24th, 2012 – A Quick Look at Oil
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Also, it should be noted that despite the upward movement of the Dow Jones Industrial Average and the S&P 500, the Dow Jones Transportation Index has been moving lower. For those who believe in the Dow Theory this is a negative signal for the overall market. My thoughts are that the Dow Transports are being pushed lower due to higher oil prices; additionally the Dow Jones Transportation Average is generally considered to be a fairly reliable indicator as transports companies ship goods and services, thus providing a good look at where the economy is going. If this trend continues, then the odds are that the broad market will follow the transports lower, not the other way around. ….
Sterling Market Commentary for Wednesday February 1st, 2012
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The overall market finished Tuesday mixed with the S&P 500 and the Dow Jones Industrial Average finishing slightly lower, while the NASDAQ finished the day slightly higher. There was strength in the Transports, Utilities, Banking, Airlines, Broker/Dealers, High Tech, Oil & Gas, Biotech, and Healthcare indices. There was weakness in the Gold/Silver, Commodities, Cyclicals, Consumer, Retailers, Insurance, and Oil Services indices. Oil was lower by $0.30 to $98.48 per barrel, and Gold was higher by $6.80 to $1,737.80 per ounce. In the grain markets, Wheat was higher by $0.212 to $6.660 per bushel, and Corn was higher by $0.074 to $6.452 per bushel, while Soybeans were higher by $0.36 to $11.990 per bushel.
Sterling Market Commentary for Thursday January 26th, 2012
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I will admit I am just not enthused about much of anything this morning. I am deeply disappointed by the negative campaigning by the Republican candidates, I think Obama’s election year politics are going to be deeply destructive, and the Bernanke’s Fed is creating a bond bubble and in the process enabling disasterous policies that could make the 2008 financial crisis look like a warmup event. Additionally I do not see the European financial crisis as really being solved, or anything close to it. I guess I am just in one those moods.