U.S. equities have vigorously rallied for the past six weeks to gain +20%, bringing the S&P 500 just above 1200, as Q1 2010 earnings hit the tape. In short, the charts are begging for a pullback, but earnings and economic indicators are giving no reason to sell. Most analysts agree that the good news is mostly baked in stocks, but sellers have left the building and buyers keep coming out of the woodwork.

Here we’ll focus on a few indicators related to the S&P 500, and tell investors why they should be taking profits at these levels.

The January 18 – 22 business week will begin one day late, due to Martin Luther King Jr holiday, leaving only Tuesday to Friday for market action to be staged. The most notable economic data releases will be the Housing Market Index (HMI) and Housing Starts numbers; while Treasury International Capital data, the Producer's Price
[continue reading...]

Crude Oil The oil issue has been speculative to this point. It's hard to argue against 90 dollar oil when we saw 145 in July 2008, but the fundamentals aren't congruent with the price growth we've seen and this trader finds it easier to argue FOR $60/ barrel oil. Crude supply in the U.S. remains
[continue reading...]

As Bank of America (BAC) recently announced plans to repay it's $45 billion borrowed under the TARP program, simultaneously news broke covering the request for deferral of nearly $60 billion of borrowed funds by the Dubai World sovereign fund. One could deem the global financial arena murky at best, as anticipated economic data will cover
[continue reading...]

Analysts across field are calling for the U.S. economy to "bottom out" in the second half of 2009, calling for GDP growth in Q4 but hesitant to take a stand regarding the near term economic forecast. Meredith Whitney drew her own proverbial line in the sand, calling for shares of Goldman Sachs (GS) to reach
[continue reading...]

Following the pre-market release of earnings from Bank of America (BAC) on Monday, U.S. equity futures were down sharply across the board. BAC reported 2009 Q1 earnings of $0.44 per share compared to $0.23 per share a year earlier and analysts expectations of $0.04. B of A will present the firm's financial situation in a
[continue reading...]

Bulls found evidence to further their exposure to U.S. equities on Monday as markets climbed to post the largest daily increase of the new year. The Dow Jones Industrial Average (DJIA) gained nearly 500 points and the S&P 500 soared 7%. The surfacing of a tangible Treasury plan to create the promised "public/private investment program"
[continue reading...]

After profiting from a trade, humility can be a lucrative virtue… Regardless of how often one tracks the health of the stock market during these turbulent times, it would be impossible to ignore the fury of the recent rally in U.S. equity markets. Many have called for this rally to be the first leg of
[continue reading...]

Growth in U.S. equity markets over the past two weeks has been fueled by new found confidence in the banking sector as XLf, the Financial Select Sector SPDR, as it has driven higher by 52% at the close on Thursday. The decline in bank stocks over the past two days has caused the Dow 30
[continue reading...]

*** Bank of America has gained 88% from the $3.00 buy point I recommended on Friday March 6, 2009. The stock is trading up 14% on the day at $5.64. I believe it has room to move upward, but it will most likely pull back some from here. Cash in on your handsome gains if
[continue reading...]