Two-horned bull?

Mike Panzner points out that the bull has become two-horned , as laggards become leaders in recent days.  Once the S&P 500 reached a new multi-year closing high of 1326.57 on 9/26 (beating the prior peak of 1325.76 that was reached on 5/5), the sector laggards began to play catch-up.

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S&P500 Sector Performance
past month versus prior 3

Twohornedbull
Source: Michael Panzner, Collins Stewart

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One theory: fund managers who had sat out the first phase of the bull
run scrambled to invest in stocks and sectors that had trailed behind,
in an effort to keep up.

This chart shows how the pre-9/26 sectors have fared, and how the markets have run since then:

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   6/13 – 9/25  
 
  9/25 – 10/24  
 
SECTOR RETURN RANK RANK RETURN
Telecom Svcs 15.63 1 9 2.10
  Info Technology 11.82  2 6 3.88
  Health Care 10.36 3 7 2.29
Financials 9.59 4 8 2.16
  Cons Discretionary 7.95 5 3 5.94
Cons Staples 7.91 6 10 1.63
Utilities    6.63  7 4 4.96
Materials 6.61 8 2 6.24
  Energy 5.17 9 1 8.48
  Industrials 1.70 10 5 4.83
  S&P 500        8.39 3.85

 

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Interesting stuff. Thanks, Mike.

Category: Investing, Markets, Technical Analysis

Record Short Interest Prevents Correction

Category: Markets, Psychology, Technical Analysis, Trading

Blog Spotlight: Global Economic Analysis

Another edition of our new series:  Blog Spotlight.

We put together a short list of excellent but somewhat overlooked
blog that deserves a greater audience. Expect to see a post from a
different featured blogger here every Tuesday and Thursday evening,
around 7pm.

Up next in our Blogger Spotlight:  Michael Shedlock and Mish’s Global Economic Trend Analysis. Mike is one of the editors of The Survival Report, covering stocks and the economy. He also writes for the Daily Reckoning, and co-edits Whiskey & Gunpowder. He also runs stock boards on the Motley Fool, Silicon Investor, and TheMarketTraders. He is an avid photographer, when not writing about stocks or the economy, with over 80 magazine and book covers to his credit.

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Mish_geta

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Earnings,  Confidence, and Boxes

Countrywide
reported
third-quarter profit rose 2
percent, less than analysts expected, as demand for home loans slumped. The
company’s shares surged higher on plans to lay off more than 2,500 employees
and buy back up to $2.5 billion of stock, and as higher profits in other units,
including Countrywide Bank, cushioned the mortgage decline.

It seems the street just can’t get enough bad news. CFC
rallied 5% as investors warmly welcomed news of more layoffs. CFC is already
talking about the 2008
recovery
. It’s never too early to do that. “By 2008, surviving players will be positioned for ‘one hell of a year’”
said CEO Angelo Mozilo.

Ford lost $5.8 billion, or $3.08 per share, during the 3rd
quarter this year. Sales fell 10% to $36.7 billion. Excluding special charges,
Ford posted a loss from continuing operations of $1.2 billion or 62 cents per
share. Last year during the same period, Ford posted a net loss of $284
million, or 15 cents per share. Ford has now lost $7.2 billion for the year. 3Q
output was down 11% vs. 17% drop in overall North American sales and a 25% drop
in F-series pickups. The company plans
4Q North American output cuts of 21%.

Ford called those results “clearly
unacceptable”
. Shares of Ford are also up since the announcement. Yes those
results are “unacceptable” but what is Ford doing about it? Ford’s “Way
Forward” plan, calls for eliminating 44,000 hourly and salaried jobs, closing 16 factories and making other
changes by 2012. Part of the “Way Forward” is to Kill Taurus and
along with it a lot of jobs at US assembly plants.

Read More

Category: Blog Spotlight

The Return of CNBC.com

Category: Financial Press, Web/Tech

How Good Are Earnings Really?

Category: Earnings, Economy

IBM Suing Amazon over Patents

Category: Corporate Management, Intellectual Property, Technology, Web/Tech

Log in problem fix

Category: RR&A

Why 2006 won’t be like 1995

Category: Economy, Federal Reserve, Inflation

The Linkfests never stop!

Category: Weblogs

Media Appearance: WSJ Report With Maria Bartiromo (10/22)

Category: Media