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| | | The Week Ahead... and an Alternative Tactic for Traders
This week is what I refer to as the "Compass of the Stock Market." This compass will tell us the direction of the market going forward this quarter. This last week of January will feature no fewer than 130 members of the S&P 500 Index reporting their quarterly financials, beginning with Caterpillar (NYSE - CAT) Monday before the market open and Apple (NASDAQ - AAPL) after the market close. Other notable companies reporting this week include Visa (NYSE -V) and ExxonMobil (NYSE - XOM).
Make no mistake. The results themselves, the future guidance proclaimed by these companies' management teams, and how all of the information is digested by Wall Street will serve as a major aspect of the market's direction for this quarter. Interestingly, the S&P 500 Index is down around 1% or so on a year-to-date basis while the primary small-cap index, the Russell 2000, is up incrementally. This is odd due to the fact that the consensus sentiment is that large-cap stocks are undervalued relative to small caps. Perhaps institutional investors are waiting to see confirmation of strong financial results before going all-in ... or conversely, are prepared to sell if the numbers disappoint.
To read more click here >> or visit http://www.thestockjunction.com
We Are in a Wimpy Market
If it seems counterintuitive that one can invest in small businesses by investing in the stock market, you are sorely mistaken. No, there is no ETF or vehicle that represents a series of small public or private businesses in disparate businesses and domiciled all over this great nation. Still, considering that the consensus expectation is that the small business owner will increase spending for the first time in years; investors should seek out exposure to this segment.
According to our due diligence, the best way to play this trend is to buy shares of NASDAQ-listed Newtek Business Services, Inc. (NASDAQ - NEWT - $3.31), which seems to be the perfect proxy for small businesses.
To read more click here >> or visit http://www.thestockjunction.com
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