FreeRealTime Logo
Home
 | 
News
 | 
Markets
 | 
Research
 | 
Tools
7:06:56 AM EST - Sunday, November 19, 2017Markets are closed for the weekend.
  View WatchList |  Edit Watchlist |   Symbol Search | Portfolio Tracker  


Research
Sabrient
More Sabrient
Research Reports
Top10 Stock Lists
Sector Forecast
Risers&Divers
About Sabrient
InvestorWords
BusinessDictionary
Dealflow



What The Market Wants - Newsletter
Sign-up for email delivery of this newsletter
* Email
* First Name
* = Required Field

WHAT THE MARKET WANTS: Flight to Where?

By David Brown, Chief Market Strategist, Sabrient Systems, LLC

Last week's rally gave us the first positive week in a month, and it continued today, with the S&P 500 gaining a robust +3% in one day and barreling through the theoretical ceiling of 1200, to close at 1210.

The reasons for the rally? Hard to say.

Based on the deluge of worrisome news of last week, one would think that a rational market would flee to safety. Turbulence continued in Libya; violence worsened in Syria with no end in sight; ditto for Iraq and Afghanistan; and the euro weakened further when it was revealed that Finland demanded collateral for guaranteeing the bailout loan to Greece. Closer to home, two chaotic events struck Washington D.C., but this time, rather than Congress, it was the startling earthquake and a damaging hurricane. And then, there was Fed Chairman Bernanke's speech at Jackson Hole, Wyoming. His remarks were initially perceived as negative, with the market immediately dropping 200 points, but it quickly recovered and kept on going up.

Worrisome economic reports would also suggest a flight to safety. Jobless claims increased last week; the first revision to the second quarter GDP fell from 1.3% to 1; consumer income rose only +0.3% versus an expected +0.4%.

But the market paid scant attention to all these worries. Small-cap Growth, the antithesis of a flight to safety, led the cap/styles, up +6.7% for the week; Large-cap Value, the epitome of a flight to safety, was the worst performer at +4.0%. As for sectors, if you're worried about the state of the economy, you'll flee to safe sectors like Utilities, Consumer Non-Durables, Energy, and Health Car -- and if you're optimistic about the future, you'll head to Capital Goods, Technology, and Basic Industries.

[To see the market stats, go to http://sabrient.com/blog/

Previous Newsletters

Aug 29 2011
Aug 29 2011
Aug 29 2011



Exchange market data provided by QuoteMedia. Fundamentals by Morningstar. Data delayed 15 minutes unless otherwise indicated. Real-time ECN Stock Quotes from BATS Exchange. Data and information is provided for informational purposes only, and is not intended for trading purposes. Neither FreeRealTime.com nor any of its data or content providers shall be liable for any errors or delays in the content, or for any actions taken in reliance thereon. By accessing the FreeRealTime.com site, a member has agreed to the FreeRealTime.com Member Agreement.

Copyright © 1998-2017 FreeRealTime.com, Inc. All rights reserved.
User Agreement, Privacy Statement, Member of the Investing Channel Ad Network