Top Advisors Corner

Gene Inger: The Inger Letter October 14, 2016

Propelled higher by Oil and Dollar strength - Monday's stock market thrust higher, though it wasn't reflecting the dogfight that followed testy positions taken by not just the candidates, but within the 'Parties'. Later in the session the edge came-off the rally; and it faded as we desired. (I am optimistic that again we probe the high-end of the recent range to only falter; dropping back to the bottom of the S&P's recent range.) 

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Mary Ellen McGonagle: The Best Way To Participate In The Recent Move Into Biotech Stocks

Biotech stocks have been quite strong lately although you wouldn’t know it by studying the charts of the group’s biggest names.  Heavyweights such as Gilead (GILD) and Celgene (CELG) appear to be in a downtrend or stalled.  Gilead is facing a decline in expected earnings while Celegene is facing stiff comparisons after a strong 2015.

On the other hand, smaller unknown names have been gapping up in price and reversing downtrends.  Last week alone, many down and out Biotech stocks rallied strongly pushing the Russell 2000 Small Cap Index was up 2.4% - more than double the S&P and Nasdaq.

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Tom McClellan: Bond Market Knows What Fed Should Do

 This article first appeared in McClellan Market Report #515, published Sep. 21, 2016, and reflects a theme we have reported on multiple times before. 

We have an unblemished 21-year track record of predicting what the Fed should do, with 100% accuracy.  What the FOMC actually does is often different from what it should do.  As of the Sep. 21 FOMC meeting announcement, the Fed has missed another chance to do the right thing. 

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Alan Newman: Crosscurrents - September 19, 2016

Excerpts from the June 27th issue

Rationales & Targets

Apropos comments made on page three, Janet Yellen, the Chair of the Board of Governors of the Federal Reserve, has often spoken of the wealth effect.  There is a widespread supposition that every dollar increase in household equity wealth generates two to four cents in additional spending.  The supposition also holds that every dollar increase in residential wealth yields nine to as much as 15 cents in additional spending.  Thus, a bull market that adds $5 trillion in wealth and a robust housing market that adds another $5 trillion in wealth is presumed to add a minimum of $550 billion in GDP, which would take growth from a weak 2% to a far more reasonable 5.3%.  The problem is, it doesn’t quite work.  

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Mark Young: Wall Street Sentiment - A Looming Turn?

Some of you may be familiar with the Wall St. Sentiment Survey that we conduct and provide to StockCharts. We've been running this survey for over 20 years now and have come to notice certain patterns that may not be obvious to the casual observer. One such pattern is the one we have this week; the dead-even split. We have found that when our surveyees are split evenly, it presages a short-term reversal. So, given the current down trend, we would expect a decline into a low of some sort this week and a reversal. 

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Mary Ellen McGonagle: Can Apple's Stock Keep Climbing? Charting and History Can Help With the Answer

In a week marked with volatility, one stock has been in a clear uptrend.  After news of the release of its iPhone 7 on Friday, Apple’s stock (AAPL) has been up over 10%.  While the initial release news wasn’t overly exciting, it’s the subsequent announcements that the Plus model as well as the smaller model’s black colored version have sold out.

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