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The First Coverage Weekly Street Sentiment Derived from the aggregated analysis of thousands of actual trade ideas and data being sent in real-time from the sell-side to the buy-side, the First Coverage Weekly Street Sentiment provides a snapshot of market trends and a unique perspective of the... More
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  • Weekly Street Sentiment: Somebody Check the Sell-Side for a Pulse! 0 comments
    May 19, 2009 10:33 PM | about stocks: SQM, MT, VOD, T, AXP, STI, BAC, RAND, MSA, XEL, CHG

     

    FIRST COVERAGE WEEKLY SENTIMENT (May 20, 2009)
     
     
     
     
     
     
     
     
     
     
    Somebody Check the Sell-Side for a Pulse!
     
    Will someone hold a mirror up to the collective sell-side to see if we can get a fog?
     
    For the fifth week in a row, there is much more activity surrounding the closing of ideas than the opening of new positions, and the low level of this ratio, from which our Certainty index is derived, is a clear indication that the sell-side would rather be on the side lines for the near term than leading the charge.
     
    This, of course, creates opportunity for those brave (or crazy) enough to continue their capital allocation suggestions. That being said, we will spend the majority of this week’s commentary identifying the stocks on both sides of the market where we are seeing the remaining sell-side professionals congregate.
     
    Overall, the sentiment trend is still bullish; however, the strength and conviction seem more and more fragile every day. That being said, those who have followed the indicator by being long since March 9 have done extremely well and are probably sleeping better than they have at any time since mid-2008.
     
    Changes this week are highlighted by both Basic Materials and Telecommunication joining Technology and Health Care to bring the grand total of industries with bullish sentiment to four. The tickers in Basic Materials and Telecommunications that currently have the strongest bullish sentiment (or the best of the best as some would say) are identified in the tables below:
     

    Basic Materials:
    SQM
    SOCIEDAD DE CHILE SC
    MT
    ARCELOR MITTAL
    YRI
    YAMANA GOLD INC COM NPV

     

    Telecommunications:
    RCI-B
    ROGERS COMMUNICATIONS INC. CL B
    VOD
    VODAFONE GRP
    T
    TELUS CORPORATION

     
    We continue to only have one industry with bearish sentiment associated with it in the longer term, and that is Financials. Below we’ve identified the tickers that have the most bearish sentiment associated with them within Financials:
     

    Financials:
    AXP
    AMER EXPRESS INC
    STI
    SUNTRUST BANKS
    BAC
    BK OF AMERICA CP

     
    Finally, the last change we have to comment upon is a short-term bearish sentiment, which is found associated with Utilities and Industrials. Below we have identified the tickers with the greatest negative change in sentiment in these two industries, which could help explain the negative movement.
     

    Symbol
    Company
    Industry
    RAND
    RANDSTAD HOLDING
    Industrials
    MSA
    MINE SAFETY APPL
    Industrials
    XEL
    XCEL ENERGY INC
    Utilities
    CHG
    CH ENERGY GRP HLDG
    Utilities

     
    So, the sell-side is clearly lining up on both sides of the market. Bear, bull or otherwise, you can find someone today who thinks your way and has some suggestions as to where you should put your capital.   And at that end of the day, isn’t that what makes a market?
     
    Until next week …
     
    About The First Coverage Weekly Street Sentiment
    Derived from the aggregated analysis of thousands of actual trade ideas and data being sent in real-time from the sell-side to the buy-side, the First Coverage Weekly Street Sentiment provides a snapshot of market trends and a unique perspective of the mindset of the Street for the week ahead. The following data has been extracted directly from all information transmitted in the past week by sell-side representatives from more than 250 firms submitting information to portfolio and asset managers across North America via the First Coverage platform.
     
    About First Coverage
     
    For media inquiries, please contact Deborah Jorge at First Coverage: Deborah.Jorge@FirstCov..., 617-303-0067 (office) or 413-531-0959 (mobile).
     
    --DISCLAIMER—
    First Coverage’s Weekly Street Sentiment (“WSS”)is derived from sources believed to be reliable, but which we furnish “AS IS” and “WITH ALL FAULTS.”  We do not warrant or guarantee the suitability, timeliness, sequence, accuracy, or completeness of WSS. THERE ARE NO WARRANTIES OF ANY KIND, EXPRESSED, IMPLIED OR STATUTORY(INCLUDING, WITHOUT LIMITATION, SUITABILITY, TIMELINESS, TRUTHFULNESS, SEQUENCE, ACCURACY OR COMPLETENESS), ANY IMPLIED WARRANTIES ARISING FROM TRADE USAGE, COURSE OF DEALING, OR COURSE OF PERFORMANCE, OR THE IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR USE OR PURPOSE.  THERE ARE NO WARRANTIES, EXPRESSED OR IMPLIED, AS TO THE RESULTS TO BE OBTAINED FROM USE OF WSS. Any analysis, observation or other opinion that WSS may contain is, and must be construed solely as, a statement of opinion and not a statement of fact, indication of preference or recommendation of any nature. Content contained in WSS is not intended to and does not constitute investment advice and no investment adviser-client relationship is formed.
    Stocks: SQM, MT, VOD, T, AXP, STI, BAC, RAND, MSA, XEL, CHG
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