- Variant Perceptions has been warning clients to beware of small caps as liquidity is withdrawn. Large caps should become more in favor for many reasons, including cash on their balance sheets.
While the market continues to digest yesterdays' comments from new Fed Chairwoman Janice Yellen that rates will begin to rise possibly as early as six months after tapering is complete (mid-2015 rather than late 2015), banks are definitely yelling pahtay with big gains across the financial sector today.
Even $C (who I normally detest) is attempting to breakout of a beautiful double bottom pattern.
Like it or not, banks will be more willing to lend in a rising rate environment and let's face it; it's tough to make a buck when you're lending at 3%. I would imagine this will be good for broker/dealers as well although not shown here. Now if only we could get Congress to do away with that pesky transaction tax…
Of no surprise is that many of these names are in the phone/tablet and cloud arena. One however that I am very interested in watching is the lawsuit between Aereo and large broadcasters (FOX, CMCSA, CBS and DIS). Little, tiny underdog Aereo won the initial round in court however an appeal to the Supreme court ruling later this year is a make or break for broadcasters who typically do not charge for local channels for those with antennaes. …
This in follow up to my February post pondering if the shipping index had bottomed which was most definitely chucked in to the round file by most as the market has become convinced the industry is dead. I still beg to differ.
Being a big believer in moving averages, if I see a stock or Index with rising moving averages, I take it as a sign of buying within a name. That being said, if I see falling longer term moving averages (100d and 200d), that to me signals trouble; stay away or short any pop. However when I see longer term MA's flattening.......my curiosity is peaked from a bottom fishing point of view. My first thought…
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