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Wall Street’s Best Dividend Stocks 317

I’m happy to say that the market is looking better, with the Dow Jones Industrial Average seeing a 6.8% improvement since last issue. I think investors were relieved that the government shutdown was over (although, we don’t know if that will last!). As well, unemployment (not counting the shutdown consequences) is still steady, consumer confidence is up, and housing prices look pretty stable right now. All of that positive news is reflected in our contributors’ market sentiment, as you’ll see in our Market Views section.

Wall Street’s Best Dividend Stocks 317

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Market Views

Bullish; Time for Strategic Buying

With the emerging markets outlook continuing to improve, investors shouldn’t worry about the lack of upside catalysts in the coming months. The U.S. stock market is still benefiting from strong corporate earnings momentum and equally strong internal momentum (based on the momentum of new 52-week highs versus new lows on both major exchanges). Investors are therefore justified in remaining bullish on an intermediate-term basis. On a strategic note, some conservative buying can still be done in the sectors and industries which are showing the most relative strength and solid fundamentals. In particular, investors should be looking at consumer staples, pharmaceuticals, and real estate equities, as well as the tech sector in general.
Cliff Droke, Momentum Strategies Report, www.cliffdroke.com, 707-282-5594, February 5, 2019

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Intermediate-Term Buy Signal

Small Caps are ahead of large-caps. There is no consistent style preference among large or small-cap ETFs.

Our intermediate-term U.S. equity model is on a “buy” as of January 22. The yield on 10-year Treasury notes is 2.69%. Our investment-grade bond model remains on its Jan. 2 buy signal. Since that buy signal, the total return of the Vanguard Total Bond Market Index Fund (VBMFX) is up +0.62%.
Dr. Marvin Appel and Gerald Appel, Systems and Forecasts, www.systemsandforecasts.com, 800-829-6229, February 4, 2019

Buyers in Control

It’s now been six strong weeks for the overall market, with the market’s evidence steadily improving over that time. It’s not a raging bull market yet, with relatively few new highs and a still-iffy longer-term trend, so pullbacks are possible (likely?), but there’s no question that the buyers are in control, and the lack of selling pressures seen is a good sign.
Michael Cintolo, Cabot Top Ten Trader, www.cabotwealth.com, 978-745-5532, February 4, 2019


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The next Wall Street’s Best Dividend Stocks issue will be published on March 6, 2019
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