Dan Stewart CFA®
President/Chief Investment Officer
NorAm Asset Management
Wow, I felt like I was on a rollercoaster yesterday. The markets opened in the green, only to have a vicious selloff around an hour into trading and continued till 1:00 ET.
The NASDAQ actually touched its 200 day moving average (200 DMA), but then the reversed higher. The markets always want to revert to the mean.
But will it last and can the markets break out higher. That depends on how earnings are perceived. Right now thought, there
It is a 50-50 coin toss,is a lot of risk. We essentially finished right where we started on the day.
and I can go to Vegas for that. Therefore, I am only going to invest in the strongest stocks in the strongest sectors.
Our 2 most recent purchases, Continental Resources (CLR) and Schlumberger (SLB), had solid days. CLR was up .86% and SLB was 1.66, so both companies beat all of the major indices.
Bottom line is I want to get past the plethora of economic releases tomorrow and get a better fell for earnings season before I ‘ante up.’ Housing Starts and the Fed’s Beige Book release both come out today along with many other economic reports. Many big names report earnings today (see below).This is why the best stocks in the strongest sectors are important. And it is not even about return, it is about risk. They actually carry less risk because they are so fundamentally strong and have institutional ownership (mutual funds) backing them.
We will provide further ideas as they become available. Don’t forget our weekly video newsletter coming out at 9:30 a.m. on Saturday just before our Wall Street Shuffle radio show. You can follow along with charts and graphs the topics and investments we will be discussing.
For a complimentary portfolio review, e-mail me at Dan.Stewart@NorAmAsset.com and we would be happy to review positions. We can evaluate your sector risk and individual equity exposure.
We have numerous economic reports including the release of the Fed’s Beige Book, Housing Starts, and Building Permits just to name a few. The entire list of economic reports is below.
We have 17 companies reporting on the S&P 500, 2 of which, IBM (IBM) and American Express (AXP) are also included in the DOW. Many financial companies report today including Bank of America (BAC), one of the most widely held stocks in the U.S. Google (GOOGL) also reports and many eyes will be watching GOOGL.
We have 28 companies reporting in the broader markets as go headlong into earnings season. Some notables are below.
Remember to tune into The Wall Street Shuffle Saturdays on 1190 AM at 10 a.m. in DFW. You can also listen via iHeart radio.
Again, as a newsletter subscriber, you will receive short weekend video at 9:30 a.m. on Saturday so you can watch & then follow along on The Wall Street Shuffle radio show as we will be covering these topics specifically.
I hope you enjoy the show. If you have any investment questions you would like discussed on the air or specific investment questions in which you would like personal advice, e-mail me at Dan.Stewart@NorAmAsset.com and I will be happy to respond.
Dan Stewart CFA®
Chief Investment Officer
NorAm Asset Management
Economic Reports Today:
MBA Mortgage Applications
Fed releases Beige Book
Some Notable Earnings Reports Today:
American Express (AXP – before open)
Abbott Labs (ABT – before market)
Bank of America (BAC)
Kinder Morgan Corp (KMI – after market)
Google (GOOGL – after market)
Kansas City Southern (KSU – after market)
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Moreover, no reader or listener should assume that any information or discussion presented serves as personalized investment advice from NorAm Asset Management, Inc. or from any other investment professional, and is not an offer of solicitation for the sale or purchase
of any specific securities, investments, or investment strategies. You need to have your own, individual investment advice suitable for your personal situation.
Investments involve risk and unless otherwise stated are not guaranteed.