Events Calendar
«  »
SMTWTFS
 123456
78910111213
14151617181920
21222324252627
28293031 
Search the Site

The Fred Report - Mid Week Update February 8, 2012

Print


Previous    Next


The FRED Report – Financial Research, Education & Data

Mid Week Update

 

Volume 4, Issue 12

February 8, 2012

 

Download PDF Version here


Update of Market View

The stock market continues to advance towards the 137 area on SPY, the next resistance. Key numbers on SPY are a close above 136.43 (the previous high close for SPY), and then the high at 137.18. The broader indexes such as NYA, IWM are lagging a bit, and so are the Transports – a concern. We think this is because European money is coming into the U.S. stock market. One interesting thing we note is that the Dow Industrials have made new recovery highs, and Small-cap is making new all-time highs. We think this is because two key events are happening now: The first is the U.S. economy is improving, and the second is that European money buys US Dow Industrials-type names. We show charts of the Dow Industrials and Transports below – we like the market but would feel much better if the transports were leading the industrials.
The European fears have been pernicious but we are seeing some rallies in these markets, such that the markets are suggesting these concerns are overblown. The FXE and FXF still look like a potential Head and Shoulders bottoming formations. If this is the case, a strong rally, both in the currencies and in the European market indexes, should result. 

 

Other Points of Interest    

We continue to have questions about Emerging Markets, so we show weekly charts below, both relative to the SPY. A quick look at these charts shows that IJR performed better on the decline into the October low, as well as during the ensuing rally. We are not saying that emerging markets won’t rally – but we ARE saying that U.S. small cap has been outperforming, and should continue to outperform, although EEM may be “cheaper”. Indeed – sometimes cheap is for the birds!

 

 




DISCLAIMER: 
Fred Meissner is primarily responsible for the research in this report and certifies that: (1) all of the views expressed in this research accurately reflect his personal views about any and all of the subject securities or issuers; and (2) no part of his compensation was, is, or will be directly or indirectly related to the specific recommendations or view expressed him in this research.
 
This report is for your information only and is not an offer to sell, or a solicitation of an offer to buy, the securities or instruments named or described in this report.  Interested parties are advised to contact the entity with which they deal, or the entity that provided this report to them, if they desire further information.  The information in this report has been obtained or derived from sources believed by Fredco Holdings, Inc. to be reliable, but Fredco Holdings, Inc. does not represent that this information is accurate or complete.  Any opinions or estimates contained in this report represent the judgment of Fredco Holdings, Inc.  at this time and are subject to change without notice.  Fredco Holdings, Inc.  or its employees, officers, directors, principals, agents, affiliates or adviser may from time to time provide advice with respect to, acquire, short sell, hold or sell a position in, the securities or instruments named or described in this report.
 
Fredco Holdings, Inc. does not have investment banking relationships with any of the companies mentioned in this report and does not conduct investment banking business, in general.  Fredco Holdings, Inc.  and its employees do not receive compensation of any kind from any of the companies in this report.  Fredco Holdings, Inc. , its directors,  officers, principals, agents, advisers, affiliates and employees may maintain a financial position in the securities mentioned in this report, provided however that no buying or selling  activity will be taken with respect to a security referenced in a report by such parties within three days of such report’s publication.
 
The information contained herein was prepared by Fredco Holdings, Inc., which is solely responsible for the contents of this report.
 
Copyright 2010-2014 Fredco Holdings, Inc..  All rights reserved. This report is a publication of Fredco Holdings, Inc.  located at 4514 Chamblee-Dunwoody Rd, Suite 112, Dunwoody, GA 30338.