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Dr. Kris
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Dr. Kris hails from the land o' lakes, beer, bratwurst, and Bucky Badger. She traded in her cheese hat for a propeller beanie and has never looked back. She 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... More
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  • Market Notes: Rolling The Dice--Market Going Up Or Down? May 12 2 comments
    May 12, 2014 5:27 PM | about stocks: K, PPC, ABG, SAH, ALK, DAL, LUV, IMBBY, RAI

    Just when you think the VIX can't sink any lower, it does. The VIX is now sitting squarely in contrarian land meaning that the chance of the market reversing direction is quite likely. BUT--and this is a big but--the market-leading Dow Transport Index (DTX) decisively broke through major overhead resistance today to hit a new all-time high. This is an extremely bullish technical event. On the one hand we have an extremely bearish sign (low VIX) and on the other hand we have an extremely bullish sign (high DTX), so what's an investor to do?

    I still think that buying a bit of portfolio protection wouldn't be a bad thing. On the other hand, I wouldn't want folks to miss out on another potential leg up in this rally. So, if you're itching to take on some long positions, I would follow the crowd. The so-called "smart money" is rotating out of utilities and into consumer staples including food products (Kellogg's (NYSE:K), Pilgrim's Pride (NYSE:PPC)) and tobacco ((Imperial (ITYBY), Reynolds (NYSE:RAI)), automotive retailers (Asbury Automotive (NYSE:ABG), Sonic Automotive (NYSE:SAH)), and airlines (Alaska (NYSE:ALK), Delta (NYSE:DAL), Southwest (NYSE:LUV)). All of the above mentioned stocks broke out to new highs today and many of them sport P/E's lower than the market average. (The current P/E of the S&P 500 is 19.)

    Stocks: K, PPC, ABG, SAH, ALK, DAL, LUV, IMBBY, RAI
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  • Hillbilly Stock Star
    , contributor
    Comments (747) | Send Message
     
    $DAL just me, TEPPER, and "The Real Housewives of Atlanta"! LOL! Long.
    12 May 2014, 05:55 PM Reply Like
  • Dr. Kris
    , contributor
    Comments (377) | Send Message
     
    Author’s reply » OK, just got to this comment...now trying to figure out what to make of it...
    13 May 2014, 12:40 AM Reply Like
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