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Market recap: The familiar buy-the-dip trade was back in action, and a bigger than expected...

Market recap: The familiar buy-the-dip trade was back in action, and a bigger than expected rise in consumer sentiment plus a gain in leading economic indicators bolstered the view that maybe the economy isn't so bad. All key S&P sectors were in the green, led by energy and industrials. The dollar index jumped to its highest since July 2010, one of the factors behind gold's seventh straight losing session.
Comments (9)
  • bbro
    , contributor
    Comments (10144) | Send Message
     
    S&P 500...Price to Sales now 1.51...
    17 May 2013, 05:18 PM Reply Like
  • Sir. Monaco
    , contributor
    Comments (367) | Send Message
     
    U.S.'s China Imports fall 26.5% from Jan to March,

     

    I given more detail in my instablog, but I would be careful in the markets right now,
    19 May 2013, 07:11 PM Reply Like
  • al roman
    , contributor
    Comments (9277) | Send Message
     
    I know we all work hard and have held our market up.
    17 May 2013, 08:36 PM Reply Like
  • CraigPowell
    , contributor
    Comments (121) | Send Message
     
    The stock market’s record highs seem to have some people convinced that investing is child’s play.
    How many people had the same believe in the stock market last December?
    Very few, and here is one of them with accurate forecast on 2013 market direction published last December: http://tinyurl.com/d4n...
    18 May 2013, 04:09 AM Reply Like
  • mrdirt
    , contributor
    Comments (596) | Send Message
     
    Brokerage Houses Are Optimistic on the Recovery of Stocks
    Brokers in Meeting Predict Recovery

     

    A reassuring message to the stock market community went out last night over the country-wide network of private wires operated by brokerage houses. This was the result of a tacit agreement reached yesterday afternoon at a special meeting of the partners of about thirty-five of the largest wire houses of the New York Stock Exchange, at which the stock market situation was canvassed thoroughly…

     

    ...Much of the selling of the last few days, the brokers felt, was induced by hysteria. The views of all of the brokers present were heard, and none knew of anything disturbing to the general market situation…

     

    — The New York Times, October 25, 1929
    18 May 2013, 07:58 AM Reply Like
  • CraigPowell
    , contributor
    Comments (121) | Send Message
     
    Five Largest One Day Percentage Losses:
    1. 1987-10-19 -22.61%
    2. 1929-10-28 -13.47%
    3. 1929-10-29 -11.73%
    4. 1931-10-05 -10.73%
    5. 1929-11-06 -9.92%

     

    Sorry, we are in 2013 and not in 1929 and even not in 1931, please compare Apples with Apples and not with the Oranges.
    Dow in 2013( From December 31 ) is up+17.17%
    18 May 2013, 12:59 PM Reply Like
  • samooh
    , contributor
    Comments (12) | Send Message
     
    so is 1670 in SP500 and 15400 is point to sell off to make 10 correction at least
    18 May 2013, 04:49 AM Reply Like
  • Petrarch
    , contributor
    Comments (873) | Send Message
     
    we are 1000 points from the March 09 low. it is amazing to consider.

     

    CAPE is about 22. In 1999 it was +40 as I recall. We are from the danger zone on valuation in terms of that metric

     

    In any case in a zero rate environment how do you figure a PE? using the 10 year at about 2% - the implied market multiple should be about 22. My guess is that as Fed policy normalizes this comes back down to about 15. Right now the market is trading at about 14 to 15 times - the lower number is if you back out net cash. So it feels like the market anticipates the Fed move and rightfully so - rates must normalize at some point.

     

    bottom line. we will go higher from here another 15 to 20% as thhis cycle fully unfolds - reach PE's of 18 to 19 and then correct back to the 15 range as Fed policy normalizes.

     

    P
    18 May 2013, 10:42 AM Reply Like
  • Tack
    , contributor
    Comments (14131) | Send Message
     
    That the market indices and dollar are moving in tandem is particularly notable and not to be overlooked. This indicates genuine strength, not asset compensation for weak dollars.
    18 May 2013, 10:58 AM Reply Like
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