View From The Hill: February-9-2016

Posted on Posted in Views From The Hill

Commentary

bulls-and-bears4This evening’s comments will be brief. Not much has changed in terms of short-term bullish rallies within a bear market. A key level of support @ 1870 was violated and therefore I am still anticipating another test of the low @ 1812. From a longer-term or monthly perspective, potential support tests are @ 1785 and 1570. Whether either scenario is realized remains to be seen. Anything is possible but the accomplishment of such would be remarkable considering:

  • The current P/E multiple for the SP-500 exchange traded fund (SPY) is already @ 16.
  • Retracement to the above price levels results in market valuations ranging from @ 15.7 to 13.8 P/E levels (assuming no drastic downward revisions in earnings estimates).
  • The U.S. economy is easily generating minimum GDP growth @ 2% and although the rate of its expansion has decelerated, it is still more favorable to some other G20 countries.
  • The Federal Reserve is biased toward raising rates while other major G20 countries are in economic contraction and/or continue to ease monetary policies.
  • Hmmmmm……

 

Keep your powder dry @ Hillbent…

 

 


Performance Summary

*Trends: ST = short-term; MT = Intermediate-term; LT = long-term

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Market Condition

 

Daily  Chart Analysis
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vfth-mkt-diary2-2-9-2016
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Volume Radar Alerts

  • Vol % = volume percentage greater than average volume
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Disclaimer

Hillbent does not provide individualized market advice. The information we publish regards securities in which we believe our readers may be interested and our reports reflect our sincere opinions. Nevertheless, they are not intended to be personalized recommendations to buy, hold, or sell securities. Investments in the securities markets, and especially in options, are speculative and involve substantial risk. Each individual investor should determine their respective appropriate level of risk. It is recommended that you seek personal advice from your professional investment advisor and conduct further independent due diligence research before acting on information published in any of our reports. Most of our information is derived directly from information published by the companies on which we report and/or from other sources we deem to be reliable, without our independent verification. Therefore, we cannot assure the completeness or accuracy of information contained within these reports and we do not in any way warrant or guarantee the success of any action which you take in reliance on our statements. Hillbent.com, Inc. or its affiliates may own positions in the equities mentioned in our reports. We do not receive any compensation from any of the companies covered in our reports.

 

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