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Wall Street’s Best Investments 800

Bullish sentiment remains high, both for investors and advisors. And one contributor also believes that the market is becoming more attractive for gold investors. Our Spotlight Stock is a two-pronged recommendation, as the company is benefiting from owning and selling off its land holdings, which also happen to be in one of the most profitable oil regions in the country. As I explain in my Feature article, this oil basin is nowhere near depletion, so the profits should continue to roll in for many years.

Wall Street’s Best Investments 800

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Market Views

We’re in the Sweet Spot

We’re currently in the “sweet spot” of the intermediate-term rally which began last November. This is the point where upside momentum has become so established that stock prices can be pushed higher with only minimal effort on the part of buyers and irrespective of underlying fundamentals. The path of least resistance for equities is still definitely higher, as the chart showing cumulative 52-week new highs and lows (internal momentum) attests.

Therefore, investors should maintain a bullish posture for now in anticipation of more gains ahead as we enter the New Year. At some point in the coming months, however, the market will likely reach the frenzied phase which characterizes all true melt-ups. When it does, the combined testimony of breadth, volume, internal momentum, and investor sentiment will provide the warning that it’s time to exit. Until then, however, expect higher prices in early 2018.

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Cliff Droke, Momentum Strategies Report, www.cliffdroke.com, 707-282-5594, December 19, 2017

Large-Caps Hit the Jackpot

As 2017 draws to a close, the bulls seem to be winning out. The Santa rally—a well-known anecdotal effect in the markets—and hopes that tax reform will be pushed through by Republicans at the last hour seem to be keeping the U.S. equity markets supported. The majority of gains for the quarter so far have only been enjoyed by larger, domestic companies. While the S&P is up more than 6.5% for the quarter, small-cap stocks are up only about 2.7%, and international developed stocks are up just over 2% for the quarter. While it would seem that the market is eager for opportunities for investment, and to take advantage of the changing regulatory environment, that appetite seems to be relegated to some of the least risky equity assets available, suggesting some caution going forward. Additionally, tax reform will likely be more advantageous for the largest companies than for smaller ones, which can explain part of this differential.
Ron Rowland, All Star Investor, www.AllStarInvestor.com, 800-299-4223, December 18, 2017

Gold on Upswing?

Gold’s decline may be nearing an end. So far, the jump up coincided with the last two December rate hikes. Gold rose each time and it continued rising into the new year. Let’s see how this December unfolds …

Gold jumped back above its 65-week moving average today, and it’ll look stable if it can now stay above $1,250. If so, it could be the start of a D bottom forming. Once gold rises back above $1,262, it’ll be firming up. Silver and gold shares fell more than gold, but let’s see if both can stay above this week’s lows near $15.65 for silver and 175 for the HUI Gold Bugs index. Keep your positions.

The resource sector looks good and the Australian dollar is jumping up with this good strength. Copper is resuming its rise while crude oil is holding near the highs.
Mary Anne & Pamela Aden, The Aden Forecast, www.adenforecast.com, 305-395-6141, December 14, 2017


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THE NEXT Wall Street’s Best Investments WILL BE PUBLISHED January 17, 2018
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