Hedge Fund Managers Slow Off The Mark!
October 01, 2012
Market Information for this Week.....
Hedge Fund Managers Slow Off The Mark! – October 01, 2012
As we head into the fourth quarter of 2012, many hedge fund managers are behind the eight-ball, as this group has remained stubbornly underexposed to equities throughout the recent uptrend. Will they play catch-up to secure window-dressing for their funds?
The Dow Theory and Transport – October 01, 2012
Over the past few months, the DJI has rallied pretty strongly, while the transports have lagged. Therefore, it is worth observing the numbers to confirm the idea behind Dow Theory, and figure out what these divergences have meant in the past.
The Week Ahead in the Stock Market – October 01, 2012
The stock market will open October with a busy week ahead, highlighted by low expectations for global manufacturing data and the U.S. jobs report, but that could set the stage for positive surprises that help lift the market.
Also the information required in regard to earnings, economic data, ETFs is also included.
The Economy and Earnings in the Week Ahead – October 01, 2012
Reports about the economy dominate the news flow this week, with the September non-farm payroll report coming out on Friday as the most significant. The tepid pace of jobs improvement has been a persistent source of frustration for investors. But the loss of momentum in the manufacturing sector in recent months has added to those worries. The two ISM surveys on deck this week will give a good sense of where the factory and service sectors stood.
Also, there is a total of 16 companies reporting results this week, including five S&P 500 companies. Expectations for the third quarter remain quite low, with total earnings expected to drop 3% from the same period last year. This growth expectation reflects a 2.4% drop in total revenues and a 10-basis point expansion in net margins.
The Past Week Stock Market Results – October 01, 2012
The stock market closed its best third quarter since 2010 after a wave of central bank actions sparked a dramatic reversal in equity markets, but in the past week signs of weakness in the economy drove stocks lower.
The S&P 500 climbed 5.9 percent over the past three months as central banks geared up to boost liquidity to markets and kick-start their flagging economies. The move has lifted the benchmark index as much as 17 percent this year, recently pushing the S&P to its best level in five years.
The Major ETFs in the Week Ahead – October 01, 2012
As expected, early in the past week, the selling continued. By Wednesday, many of the major ETFs reached more important support. The correction does not appear to be over, and if stocks fail to rally above last Thursday’s highs early in the week ahead, a deeper correction looks more likely.
Clearly, the short-term outlook favors a cautious approach for now, and be sure you have your stops in place.
October is a seasonally strong period, which suggests a better buying opportunity is likely in the weeks ahead.