Please ensure Javascript is enabled for purposes of website accessibility

Wall Street’s Best Investments 797

This month’s Spotlight Stock is a technology company that is a leader in the all-important cloud business, and Nancy’s Feature further explores that cloud industry and the up-and-coming applications that should see it expand greatly in the near future.

Wall Street’s Best Investments 797

[premium_html_toc post_id="138706"]

Market Views

No Change in the Bull

The S&P 500 (SPY) made a new all-time high last Friday. The SPY made a high today of 250.12 intraday, very close to the upside channel objective at 251.50, but was unable to get through. A break above 251.50 would suggest a further rise to 259.00 Declines this year have been small and relatively brief; there is no indication to believe this will change.

1.png

wsbi797-marketview-300x196.png

The lower portion of the chart is the 12-26-9 MACD, a measure of momentum. MACD is on a buy since late August. MACD has broken its daily downtrend from its March 1 peak, suggesting further gains lie ahead.

Even though this is normally a seasonally weak period, the major averages keep extending their gains. As long as the SPY stays above 241.83 (red rectangle), and the ishares Russell 2000 Index ETF (IWM) stays above 140.39 (its hourly gap), continue to ride the trend.
Dr. Marvin Appel and Gerald Appel, Systems and Forecasts, www.systemsandforecasts.com, 800-829-6229, September 18, 2017

New Highs Keep Coming

Despite a slew of potentially negative domestic economic reports, all three major U.S. indices reached new highs last week. Retail sales and industrial production were both down for the month (-0.2% and -0.9%, respectively), and consumer sentiment fell month over month, largely due to recent news events, which should not have a long-term impact. Despite this, business inventories were up, likely in preparation for the holiday shopping season. The Dow Jones Industrial Average rose 2.1%, the NASDAQ 100 rose 1.3%, and small-cap stocks took the lead domestically, with the Russell 2000 rising 2.3% for the week.

The typical underperformance or correction in September has not yet materialized, and as we move into the holiday season, it is less and less likely from a seasonality perspective (other factors may, of course, challenge this trend).
Ron Rowland, All Star Investor, www.AllStarInvestor.com, 800-299-4223, September 18, 2017

Hopeful, but Cautious

Despite two hurricanes, racial turmoil, foreign terror attacks, domestic violence, oil disruption, and a genuine nuclear threat from Korea, the stock market remained remarkably stable near all-time highs. This is genuinely amazing, especially in light of a continuing media war against the President. At the same time, the President’s approval has actually improved. He now has 48% approval. If he gets this above 50% on a sustained basis, the odds of his agenda getting passed go up substantially. We believe this is why the market remains at elevated levels. It is expensive if we fail at tax reform, corporate repatriation, regulatory reform, or infrastructure development.

But current levels could be viewed as very attractive if any substantive portion of that agenda works its way through Congress. We will remain somewhat hopeful but also cautious enough to retain a large cash position.
Sean Christian, The Personal Capitalist, 9524 East 81st Street, Suite B #1715, Tulsa, OK 74133, September 15, 2017


To read the rest of this month’s issue, download the PDF.


THE NEXT Wall Street’s Best Investments WILL BE PUBLISHED October 18, 2017
Neither Cabot Wealth Network nor our employees are compensated by the companies we recommend. Sources of information are believed to be reliable, but are in no way guaranteed to be complete or without error. Recommendations, opinions or suggestions are given with the understanding that subscribers acting on the information assume all risks. © Cabot Wealth Network. Copying and/or electronic transmission of this report is a violation of U.S. copyright law. For the protection of our subscribers, if copyright laws are violated, the subscription will be terminated. To subscribe or for information on our privacy policy, call 978-745-5532, visit www.cabotwealth.com or write to support@cabotwealth.com.