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Dr. Kris
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Dr. Kris has two degrees from MIT because one just wasn't enough. Her life goal was to figure out the universe and having done that (at least to her satisfaction), she decided to tackle something even more difficult—the stock market. Applying the scientific method along with an insatiably... More
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  • Intraday Market Notes: Bears Going Into Hibernation -- January 17 0 comments
    Jan 17, 2013 4:12 PM | about stocks: PHO, FIW, PIO, MOO, PALL, IHI, XLY, IXJ, XLV, KIE, KBE, XHB, TKF, EWK, EWQ, RNE, TTF, OIL, DBO, USO

    4:00 pm ET: Following several days of digesting gains, the major averages took off again. This market is so bullish it's almost dizzying. The media is saying that Main Street (aka the retail investor) is rotating out of low-yielding bonds and into stocks, searching not only for dividends but price appreciation as well. This is a bit worrisome on two levels: 1. When Main Street piles in is when Wall Street (aka the "smart money") runs for the exits; 2. The buying spree will have to end at some point--but will it be sooner or later?

    To answer this question, I honestly cannot say. The internals, alas, aren't telling us anything. The VIX has chosen to take up residence in the basement apartment and the etfs based on VIX futures aren't hinting at a rebound anytime soon. So, on the surface it looks as if the bulls have permission to party like its 1999 and we could easily see the S&P (SPX) retest its all-time high of 1550. The Dow Transport Index (DTX) has already broken to a new all-time high so there are no identifiable headwinds to impede upward momentum. But this doesn't mean that stuff can't happen! Since volatility is so low (meaning that options are cheap), it would be prudent for long-term investors to protect their portfolios with LEAP puts. (If you don't know what you're doing in this regard have your broker or investment adviser help you with it.)

    There's so much action in today's market that in the interest of time and space, I'll just summarize it.

    Commodity funds at new highs: Water (PHO, FIW, PIO), Agribiz (NYSEARCA:MOO), Palladium (NYSEARCA:PALL).

    Sector funds at new highs: Medical devices (NYSEARCA:IHI), Consumer discretionary (NYSEARCA:XLY), Healthcare (IXJ, XLV), Insurance (NYSEARCA:KIE), Banks (NYSEARCA:KBE), Homebuilders (NYSEARCA:XHB), Transports (NYSEARCA:IYT)

    Country funds at new highs: Turkey (TKF--we noted two compelling Turkey stocks yesterday), Belgium (NYSEARCA:EWK), France (NYSEARCA:EWQ), Eastern Europe (NYSE:RNE), Thailand (TKF--this fund just won't quit!)

    Notable break-outs: Oil (OIL, DBO, USO), Semiconductors (SOXX, SMH)

    Note to Subscribers: There will be at least one new Stock of the Day.

    Themes: long ideas Stocks: PHO, FIW, PIO, MOO, PALL, IHI, XLY, IXJ, XLV, KIE, KBE, XHB, TKF, EWK, EWQ, RNE, TTF, OIL, DBO, USO
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  • My philosophy & to paraphrase Einstein: "Try not to become a [person] of success, but rather a [person] of value."
    1 day ago
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