Investors remain 95% invested in the stock market through the ETF of the S&P 500 Index, symbol SPY. Gains for 2017 = 18%
12-05-17 Weak economic numbers in China generated a sharp drop in Copper and added weight to the false breakout reversal lower in stocks this week. The inflection point we outlined last week for the 1st and 4th has so far coincided with a short term top. Stocks and most commodity markets are being pressured lower.
12-04-17 Tax Bill generated a false gap higher for now. Tax news is positive, but with less benefit to low tax rate Tech sector, we are seeing a rotation toward traditional sectors such as Rail, Housing and Banks while Techs are liquidated after enormous 2017 gains. Can’t rule out a correction phase for the whole market.
12-03-17 Tax legislation has passed the main obstacle in the Senate with odds rising to 99% that a final package will arrive near year end. Option sentiment is in the overbought zone, but the Fear & Greed Index requires a couple strong days of gains still.
11-14-17 Our current expectation remains that more serious corrections of 10% or more will hold off until the 1st quarter of 2018. Tech stocks are among the most vulnerable in these declines. 2018 should mark a shift to commodity and financial stocks after a more serious market correction is completed in the 1st half of the year.
Stocks we favored in 2017/2018: Rotating away from Tech toward housing, industrial, material and financial starting 11-09-17
BLD Topbuild : USCR US Concrete : STRL Sterling Construction : PNR Pentair : MMM 3M : WM Waste Mgmt’ : BA Boeing : CGNX Cognex : GVA Granite Construction : PPG Industries : PLD Prologis : DCT Industrial Trust : AMZN Amazon : BABA Alibaba : HOFT Hooker Furniture : TMHC Taylor Morrison Home : CBG CBRE Group : ANET Arista Networks : VMW VMWare : CONE Cyrus One : Nutanix NTNX : EQIX Equinix : BOX : RHT RedHat : ADBE Adobe : ZBRA – Zebra Tech’ : CRM Salesforece.com : GOOGL Alphabet : DXC Tech : NTNX Nutanix : COR Coresite : IBM : AAPL Apple : NEWR New Relics : ZAGG : FTNT Fortinet : PANW Palo Alto Networks : SWKS Skyworks Solutions : ON On Semi : OLED Universal Display : Vantiv VNTV : PYPL PayPal : V Visa : MA Mastercard : GPN Global Payments : Accenture ACN : UNH United Healthcare : TFX Teleflex : EXAS Exact Sciences : A Agilent : ISRG Intuitive Surgical : ABT Abbott lab PODD Insulet : XPO Logistics : UNP Union Pacific : OLLI Ollies : Starbucks SBUX : STZ Constellation Brands :ALB Albermarle : IDTI Integrated Devices : TTWO Take 2 Interactive : CFR Frost : WTFC wintrust fin’ : XRAY Dentspply Sirona : ALGN Align tech : WYNN Wynn Resorts : DWDP Dow Dupont : SLCA Silica :
Indexes – ETF’s: SPY : QQQ : XLK : IWR : XLF : KRE : KOL
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