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Bob Palmerton
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Mr. Palmerton is the founder of Baseline Analytics TrendFlex, a market trend-following system incorporating high-probability trend change signals. Robert is a Registered Investment Advisor. He is co-founder and advisor to The Absolute Return, LLC, which manages a family of absolute return... More
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  • Baseline Analytics Market Tour Update

    New highs and strong bullish indicators wrapped up this week's market activity. There does not appear to be any noteworthy level of extreme complacence in the markets; we will view these new highs as continuing to be supportive of positive market activity.

    The S&P 500 broke out of a consolidating pattern from the 2080 area and broke into the 2100's with a close at 2110. "Known Sure Thing" -KST is solidly positive, having printed a positive cross-over in late January when the S&P 500 was in the 2060 area. VIX and Put Call, although at relatively low levels, are not quite at extreme lows that would suggest a high level of complacency and a shift to the downside in the short term trend. See the chart below:

    (click to enlarge)

    Internal market strength is supportive of the uptrend. Note that the advance-decline ratio and new highs are positive and stretching to new indicator highs. In addition, the NYSE Summation Index has surpassed the 400 level, commonly viewed as a bullish development, as it too confirms the strength of this uptrend:

    (click to enlarge)

    Finally, our economic technical indicators are bullish. We regularly review the price relationship between corporate bonds and intermediate Treasuries. That relationship is positive and has established a firm uptrend after a several-month hiatus of consolidations. In addition, small cap stocks and consumer discretionary stocks have been outperforming large caps and consumer staples, respectively, further supporting the "risk-on" trade in equities.

    (click to enlarge)

    Although some trading-range activity in the indices would not be abnormal at this stage of the bull market, we would continue to seek opportunistic long positions as the character of the stock market likely will shift to a "stock-pickers" market as the rally moves forward. We are inclined to support bullish trades for the next 4-8 weeks with sensible stops on long positions.

    Visit our expanded market coverage and timely investment opportunities at Baseline Analytics.

    Tags: SPY, market trend
    Feb 24 8:59 PM | Link | Comment!
  • New Month, New Dividend: 3 Top Choices For The Week Of Jan 5th.

    A new month brings new ex-dividend stocks. Each month, Baseline Analytics screens the month's upcoming ex-dividend stocks to identify those representing the most technically-attractive opportunities. Next week, 28 stocks have met our technical criteria, representing attractive income-generating opportunities.

    Here are our top 3 choices for the week:

    Gentex

    Gentex (NASDAQ:GNTX) goes ex-dividend on Monday with a 1.7% yield. This automotive products company sports a 21% Return on Equity and has beat its earnings estimates for the past four quarters. GNTX surged above its 50-day moving average with its most recent earnings beat. A bit expensive at a forward PE of 17 and a PEG Ratio of 3.15, GNTX could still offer an attractive industrial option for your portfolio.

    (click to enlarge)

    Monsanto

    Monsanto (NYSE:MON) goes ex-dividend on Wednesday with a 1.6% yield. MON currently sits at its 50-day moving average, representing an attractive entry point. Monsanto has a Return on Equity of 26% and a reasonable PEG Ratio of 1.60. MON earnings announcement for the November-ending quarter is on Wednesday. Given its earnings miss at the August-ending quarter, we're looking for a meet or beat this time.

    (click to enlarge)

    Ratheon

    Ratheon (NYSE:RTN) goes ex-dividend on Monday and sports a 2.2% yield. The defense technology company has beat earnings estimates over the last four quarters and is attractively-valued at 9/8x EV/EBITDA and a 20% Return on Equity.

    (click to enlarge)

    To see the full list of next week's technically-attractive ex-dividend stocks, sign up for our free 30-day trial (no credit card needed). Click here to get started. Visit Baseline Analytics and learn about our TrendFlex family of market trend indicators, as well as our ETF timing opportunities and StockStash selections.

    Tags: MON, RTN, GNTX, Dividends
    Jan 03 1:52 PM | Link | Comment!
  • Small Cap Gems And Breakouts

    Here's another Baseline Analytics FLASH report. This week, we present small cap stocks with Returns on Equity of 10% or higher. Technically, these stocks have exhibited a price jump on stronger trading volume vs. their average trading volume over the last week.

    (click to enlarge)

    FRAN leads the list this week. Francesca Holdings, an operator of a chain of retail boutiques based out of Houston, had seen some tough trading days (and not so great company news) until FRAN announced a new CEO on Friday.

    Visit Baseline Analytics Home Page and click on the FLASH REPORT link for this week's list.

    Tags: FRAN
    Dec 06 12:28 PM | Link | Comment!
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