Tze: 9:30 AM
Looks like we are going to have two more contributors coming on board this week. I will introduce them soon. Stocks are falling a little bit while treasuries gain. The economy is just not picking up no matter how one spins it.
Tze: 9:00 AM
The stock model is updated to reflect Monday’s market move. You can download the entire model Excel output file here: StockModelFile_20110830 Remember we do welcome individual stock and ETF commentary requests. All you have to do is submit your request or questions in the comments section of this post and we will promptly reply.
For 08/30/2011 trading session, we are going to focus short position in Morgan Stanley (MS) and a long position in Genworth Financial (GNW).
Charts are provided by contributor Roller Coaster.
Morgan Stanley is weak fundamentally with a model ranking of quntile 5 (worst). Its EPS related factors are below its peers in the financial sector and its earnings growth relative to its PE is very low. MS has retraced back to the consolidation area which may serve as resistance. The 20 EMA and 50 EMA are sloping downwards.
GNW (Genworth Financial) on the other hand is fundamentally strong (model ranking of quintile 1 (best)). We can see that from its much lower than average P/E, Prices/Sales and Price/Book related metrics within the financial sector. GNW looks like it is in a bottoming process. RSI and MACD lines are pointing up.
ETF Model Update:
You can download the entire ETF model Excel output file here: LeveredETFModelOutFile_20110830
The bullish sentiment of the bull ETFs are mainly concentrated on the commodity related ones. We are not certain if this kind of bullishness is good for the general market as run in commodity very often signal possible downturns in the general stock market. Today, we are highlighting DIG (Proshares Ultra Oil/Gas) and AGQ (Proshares Ultra Silver).
AGQ recently is making higher highs, and higher lows. It’s now pulled back to the 20 EMA and 50 EMA, that are rising slightly. AGQ’s ranking has been improving in the ETF model, moving from the worst ranking of 5 to 1 recently.
DIG has found temporary support at $37.50. It may now close the gap, or retrace to the 50 EMA. DIG’s generated a new buy signal with a ranking of quintile 2 for trading session 08/30/2011.
MS – down 1%
GNW – down 1.5%
AGQ – up 3%
DIG – down close to 2%
FOMC Minutes this afternoon.
yea nothing major from the Fed until next month as Bernanke indicated at Jackson Hole.
When will Chris and the other gentleman register on the site? Please let me know so I can designate them as contributors.
I’ll let you know.
RIMM surged 40% in just a few weeks.
Actually given today’s gain it would be almost 50%.