"THAT'S JUST MY OPINION" - VOL. - 18
Let's see if we can figure this market out and more importantly let's make an educated prediction of the markets next direction. So what happened this week? More talk of taper from the FED in next week's meeting. Remember taper is no where close to FED tightening! The economic numbers that came out last week were a mixed bag - some good - some were just alright - the unemployment numbers I thought were very disappointing! That last number in my opinion is the number that will prevent the FED next week from tapering I still believe that the taper will not begin until March, when Janet Yellen takes the helm as the New FED Chairman (Chairwoman). I believe it would be a tremendous mistake if the FED tapers next week - I do not see enough growth in the U.S. at this point of a very slow recovery to warrant a taper. I think we need to see more improvement in the U.S. economic numbers for at least one more quarter for it to make sense!
"THAT'S JUST MY OPINION"
So why was the market down for the week? It was not only the FED tapering fear -Iran pulls out of talks with the six world powers to protest the expansion of U.S. sanctions. More importantly the money managers of funds that have made 28 to 31% so far this year we're taking money off the table leaving them with a lot of cash on hand to reinvest in the market if the FED does nothing this week.
That is why I am still bullish on this market up to year end and also all of January 2014. Here is my reasoning - look at all the companies that are announcing dividend increases. ABT for example increased their dividend 57%! GE increased their dividend 16%. You will see more and more companies increasing their dividends. Let's look at some stocks and how they performed this week.
MU - up 0.77 cents or up 3.45% for the week.
YHOO - up 0.87 cents or up 2.24% for the week.
ABBV - up $1.02 or up 1.99% for the week.
AIG - up 0.18 cents or up 0.36% for the week.
Now let's look at some losers for the week.
T - down .32 cents or down 0.94% for the week
MO - down .36 cents or down 0.96% for the week.
C - down .52 cents or down 1.01% for the week.
BIP - down .43 cents or down 1.14% for the week.
DIS - down .97 cents or down 1.37% for the week.
ABT - down $1.13 or down 3.01% for the week but remember they increased their dividend 57%.
CLMT - down $1.00 or down 3.75% for the week. This stock on a weekly chart is way oversold!
NKE - down $3.21 or down 4.03% for the week. Remember they have earnings on Thursday.
MFA - down .04 cents or down 0.56% for the week. This stock on a weekly basis is way oversold!
The stock that got killed was,
LULU - down $10.64 or down 15.23%.
Some things to look for,
Sprint is mulling to bid for T-Mobile.
Is it possible that in the future bank stocks will spin-off some of their parts?
I saw the following article that may make that happen!
U.S. authorities agree this week on a final draft of the Volcker Rule, named after former FED chairman Paul Volcker, which seeks to ensure banks cannot make speculative trades that are so large and risky that they threaten individual firms or the wider financial system.
Thomas Hoenig, vice chairman of the Federal Deposit Insurance Corp. (FDIC) which guarantees deposits at U.S. banks, said if the new rule is successful it could add momentum to his push to split up large banks! I'm a big fan of company spinoffs - they usually become huge winners for investors!
"THAT'S JUST MY OPINION"
Thank You,
Len Dwelle
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