Posts filed under “Index/ETFs”

Trannie Swan Dive to Take Down Crude Oil

The Dow Transportation Index was down almost 4 percent Tuesday and if there is any silver lining  in the current market turmoil is that Trannies usually lead crude down, which will drop gas prices.  The chart below shows the 12.2 percent swan dive in the Dow Transports since July 7th with crude oil barely moving.  We’re expecting a catch-up trade to the downside for crude oil in the next few days.

If oil falls,  the price of gas falls, which acts as a tax cut for the consumer — the good kind of stimulus!   See here for our gas price sensitivity matrix on consumer budgets.   A person who  drives 70 miles per day, for example, saves around $1,500 on an annual basis for every $1.00 decline in the price of gasoline.    All bets off if the Fed cranks up QE3.

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Category: Index/ETFs, Technical Analysis

The New Nasdaq

Nasdaq OMX is rebalancing the Nasdaq-100 index (QQQs), which currently has one company — Apple (AAPL) as more than 20% of the index. The WSJ notes “Apple’s market capitalization is roughly $300 billion, twice that of Google. But its weighting in the index was five times that of Google. After the rebalancing, Google’s share of…Read More

Category: Index/ETFs

Dow Jones by the Numbers

I normally NEVER care about PR releases — they are rarely on topic, and mostly worthless — but this run of Dow Jones data was surprisingly relevant to the end of Q1: Dow Jones Industrial Average Long term data · Highest intraday level (12419.71 at 12:08:49 on 4.1.11) since June 6, 2008. · Down 1787.81…Read More

Category: Index/ETFs, Investing, Markets

10 Reasons I Am Thinking About Japan

As of late, I have been intrigued by Japan. It is a part of the world that investors seem to detest ignore, despite signs of technical improvement. I’ve talked about this in the office, and with some of our clients who either own specific Japanese names — or live there. The thought process is Japan…Read More

Category: Index/ETFs, Investing, Technical Analysis, Trading

Value Line Arithmetic vs Geometric Index

My pal David Rosenberg points out that the Value Line Arithmetic Composite Index is at an ALL TIME HIGH. (This is an equal weighted price index of the 1650 stocks surveyed by Value Line, averaged daily). Dave writes: “The average stock, by the way, according to the Arithmetic Value line index, just hit a new…Read More

Category: Index/ETFs, Markets

Comparing World Indices

Today’s chart porn is a quick look at major world indices since January 2000, via the always excellent D-Short. > click for ginormous chart > Hat tip Grant Williams

Category: Index/ETFs, Investing, Technical Analysis

Investing Like a Psychologist: Listening to Market Themes

Quick:  What do great symphonies, great novels, financial markets, and the conversations of clients and therapists have in common? Answer:  All follow distinctive themes.  Much of the meaning that we find from all of them lies in our ability to track these themes across their many shifts and permutations. A composer or novelist brings themes…Read More

Category: Commodities, Currency, Fixed Income/Interest Rates, Index/ETFs, Psychology

Jeremy Siegel is not having a good year

Its been a tough year for the U Penn prof. First, the market has gotten cut nearly in half, something many buy & hold investors admit is possible, but is supposed to a rare occurrence. But as we have seen in 2008, and 2001-03, and 1972-73, these sorts of brutal bear markets are a lot…Read More

Category: Index/ETFs, Investing, Markets

8,893 “Bill Millers”

> I am especially pleased to present today’s Think Tank piece by James Bianco. Jim has run Bianco Research out of Chicago since November 1990. He has been producing fixed income commentaries with a circulation of hundreds of portfolio managers and traders. Jim’s commentaries have a special emphasis on: money flow characteristics of primary dealers,…Read More

Category: Index/ETFs, Investing, Think Tank

FusionIQ S&P 500 Equity Market Review

Kevin Lane is one of the founding partners of Fusion Analytics, and is the firm’s director of Quantitative Research. He is the main architect for developing their proprietary stock selection models and trading algorithms. Mr. Lane is a member of the Market Technicians Association. ~~~ As seen below in the S&P 500 has been capped…Read More

Category: Index/ETFs, Markets, Think Tank