Eighty-three percent of WMPs sold in the last five weeks have seen an expected return of 5-8%, an all-time high, Cui points out. Since each year is the same it offers a retail business the opportunity to plan for ROI (Return on Investment). We’ve seen WMPs rise 47.4% in Q3 2013, from a year ago. I had seen the strength in the Citigroup US Economic Surprise Index as a positive, because top-line growth was lacking in Q4 Street estimates, which left share buybacks and margin expansion doing most of the heavy lifting in Q4 EPS growth (see Is a Fed taper bullish or bearish for boutiques s?). In the past five weeks, we’ve seen sales and yields of WMPs spike. Deep cyclical sectors provide protection against rising bond yields and are well positioned to deliver better-than-anticipated profitability. Treasury yields become restrictive. While my $150 price target has been met, I’m looking to purchase more below $130. I write this particular column this time because of the recent rise in share price from just under 4 bucks at the beginning of the year to finish yesterday at $6.03. Trust products are up 60.3% in the same period and LGFV bonds are up 59.7% on the year.
Moreover, the consolidation period seems to be over as several major US equity rallied to all-time highs last week. Only after trading many times and analyzing the trends and results over a long period can a trader say he really understands trading stocks, and even then he will still lose on many trades. I will be closely monitoring the Manufacturing PMI reports from around the world in the first week of January for early indications of economic strength. For now, my base case scenario calls for a Santa Claus rally into the first few days of the New Year. In addition, Bespoke produced analysis showing the typical seasonal pattern for the DJIA and, if history is any guide, the rally is just starting and should continue until the first week of 2014. In the past, the Dow has advanced roughly 2% from now until the first week of January. Further analysis shows that a long position in the SPX initiated at the close on Friday, December 13, and held for 15 days would have been profitable 25 out of 29 years.
Rob Hanna at Quantifiable Edges produced analysis that initiating a long position in the NASDAQ Composite as of Friday’s close (until December 20) and held for eight days would have been profitable in 24 out of 26 years. Breadth indicators have been showing negative divergences for the last few months and they paint a picture of a rally that is running out of steam. The resistance band, shown in yellow, will be more challenging for this breadth indicator to overcome as this market advances. In fact, it is where you will find many major technology stocks, including Microsoft and Intel. If you’d like to find out exactly how to recognize the best TradeStation indicator options. The failure of a high beta sector like small cap stocks to assume market leadership is a knock against the longevity of this bull move. Shouldn’t higher beta stocks like mid and small cap stocks be leading the market upwards if this bull phase is to be sustainable? Bull 3X Shs(ETF)(FAS) – FAS continues to trade in a tight range between $21-$22. 3.10 again on Wednesday and continues to be resistance. As for the stock market, the Dow Jones will continue to see major resistance between 24,000-25,000. As for my long term investments, I own Tesla (TSLA), Beyond Meat (BYND), and Grayscale Bitcoin Trust (GBTC).