Some good articles to read this week:
The Recipe for Another Depression – Jim Jubak
The Road Not Taken – Jim Welsh September Investment Letter
Gold Price in Euros Pointing Downward – Tom McClellan
Not Yet Out of the Woods – John Hussman
SPY – SP500 60 Minute Intraday Chart
NYSE Market Internals – 15 Minute Chart
Top Chart – This indicator shows me if the majority of shares traded are bought or sold. When the red line spikes up and trades above 5 then I know the majority of traders are buying over covering their shorts. I call this panic buying because traders are buying in fear that the market will continue higher and they will miss the train. When everyone is buying you know a pullback is most likely to occur.
UUP – US Dollar Daily Chart
GLD – Gold Daily Chart
Weekend Trading Conclusion:
Summers: Good Riddance – Barry Ritholtz
Sequential Signals – John Hussman
Why There’s Such a Dividend Deluge – Jim Jubak
Excerpt From “Traders, Guns & Money” (Part 3) – Satyajit Das
It’s been a wild ride the past few days. Now, thanks to comments from Obama and FOMC, it seems like everyone is waiting to see what the market will do from this pivotal point onward.
SP500 – SPY ETF, Daily Chart
20 Year Bonds – TLT Fund, Daily Chart
US Dollar – UUP Fund, Daily Chart
Mid-Week Market Analysis Conclusion:
Several months ago I wrote an article highlighting 3 Deep Value Momentum Stocks With Price Momentum. I decided to revisit the article and screen since I have not done so since the original article was written.
The three stocks that made the first screen were ALG, GLAD, and QLTI. Below is a snapshot of their returns since the first screen:
|Trend Analysis||3/22/10 Open||Current||Return Excluding Dividends||Dividends Since 3/22|
|ALG||Here||18.47||22.03||19.27%||$.12/share (19.92% return incl dividends)|
|GLAD||Here||11.16||11.12||-0.36%||$.42/share (3.41% return)|
This update was done at random and the original screen was performed randomly. In other words, the day the screen is run will greatly impact the results. ALG has traded as high as $26.98 between March and today, GLAD at $13.63 and QLTI $6.67.
Using Finviz.com I searched for value stocks that traded at a 52 week high as of Wednesday September 22nd. The criteria to identify stocks are below:
Traded (not necessarily closing) at 52 Week High on Wednesday September 22nd.
Price/Book < 1
Total Debt/Equity < 1
Positive Return on Assets
Positive Return on Equity
Positive Return on Investment
Market Cap > $100 million
I should emphasize again that this screen could be run daily with different qualifying stocks. This is simply a follow-up and another screen for me to look at a few months down the road. I hesitate to include closed-end funds like 2 of the stocks below, but will include them for informational purposes:
|CHY||Calamos Convertible & High Income Fund||Here||Closed-End Fund – Debt||891.16||12.76|
|EVV||Eaton Vance Limited Duration Income Fund||Here||Closed-End Fund – Debt||1928.25||16.44|
|FEIM||Frequency Electronics Inc.||Here||Communication Equipment||52.82||6.41|
|KCAP||Kohlberg Capital Corporation||Here||Diversified Investments||138.37||6.12|
|NUHC||Nu Horizons Electronics Corp.||Here||Electronics Wholesale||128.04||6.91|
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|Ticker||Name||Free Trend Analysis||Rank||MktCap||Industry|
|AHC||A. H. Belo Corporation||Here||97.72||152.56||Printing & Publishing|
|SGMA||SigmaTron International||Here||94.57||24.47||Electronic Instr. & Controls|
|CUO||Continental Materials Corpora||Here||93.09||28.26||Misc. Capital Goods|
|HAST||Hastings Entertainment, Inc.||Here||90.14||61.08||Retail (Specialty)|
|CGL.A||Cagle’s, Inc.||Here||89.26||30.47||Food Processing|
|PTSI||P.A.M. Transportation Service||Here||87.05||118.06||Trucking|
|RCKY||Rocky Brands, Inc.||Here||86.91||58.37||Footwear|
|HWG||The Hallwood Group Incorporat||Here||82.4||51.86||Textiles – Non Apparel|
|REX||Rex American Resources Corp.||Here||80.6||133.77||Chemical Manufacturing|
|WCAA||WCA Waste Corporation||Here||80.1||96.5||Waste Management Services|