It was another rocky month in the markets, but net-net, we are trading at about the same levels since last month’s issue.
Wall Street’s Best Dividend Stocks 307
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Market Views
Downside will bring Bargains
The market is responding both to the Fed, perhaps more than is realized, as they dismiss the 10-Year behavior and focus only on China. I believe it all matters; and don’t expect catastrophe at the end of the day, for the Nation (perhaps the long-term opposite). (A market crash is not a catastrophe incidentally; though it can appear so midstream all of this).
I do expect markets to continue resisting both consistent ongoing Fed policies and the American Renaissance, that I called for years ago. It’s a battle long overdue to be fought; which means this is what it’s about; albeit not being handled very adroitly. And while ‘our’ sell signal was very clear back in January; that doesn’t mean we’ll bottom yet; even as many are only now getting defensive (absurdly late recognition of distribution). I say it that way because, having prepared, I know our next major move (since we already lightened-up and this is a continuation/resumption of downside) will actually be the buy-side of newly bargain stocks ideally.
Gene Inger, The Inger Letter, www.ingerletter.com, April 10, 2018
Short-Term Chart Remains Negative
From a simple point of view, this market has once again bounced off of the still-rising 200-day moving average several times. If it were to close below there, then that would be very bearish, for a new leg of the downtrend would be in place. Until then, though, there is the possibility that the support in the 2580 area will hold, and further progress can be made on the upside.
Even so, the chart of $SPX will remain negative until the gap at 2750 is filled. That is a long ways from here and that gap may not be filled for quite some time.
The equity-only put-call ratios are split at this time. The standard ratio has curled over and begun to slightly decline. The computer analysis programs designate this as a buy signal. The weighted ratio, however, continues to rise and thus remains on a sell signal.
Market breadth has been quite strong in the last three days, but with Friday’s action, both breadth oscillators will be on sell signals once again. This is the shortest-term of our indicators and, as such, has been a pretty good indicator in this fast-moving market.
Lawrence G. McMillan, The Option Strategist, www.optionstrategist.com, 973-328-1303, April 9, 2018
Cautious
US Indices remain in short term tops, with the Dow Jones encountering its 50-day MA. Energy tests recent price highs and develops short term relative base. Our outlook remains somewhat cautious, but continue to watch to buy longs which have unwound into uptrends.
John Gray, Investors Intelligence, www.investorsintelligence.com, 914-632-0422, April 9, 2018
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The next Wall Street’s Best Dividend Stocks issue will be published on May 9, 2018
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