Dr. Kris'  Instablog

Dr. Kris
Send Message
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
My company:
Stock Market Cook Book
My blog:
Stock Market Cook Book
  • 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 (NASDAQ: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
Back To Dr. Kris' Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (2)
Track new comments
  • Hillbilly Stock Star
    , contributor
    Comments (746) | 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 (374) | 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
Full index of posts »
Latest Followers

StockTalks

  • Tain't funny, McGee: So, when did the Sunday comics turn into the Op-Ed page?
    44 minutes ago
  • Green shoot: $UUP advancing +0.5% since Tuesday's breakout. Should be clear sailing until next area of resistance in $25.55-$25.60 range.
    2 days ago
  • Realty Check: Real estate funds at all-time (post-inception) highs $VNQ $DRN. [Nod to CNBC's Diana Olick for swiping her handle.]
    2 days ago
More »

Latest Comments


Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.