A Possible "Good Start"

PUBLISHED Feb 5, 2023, 1:18:10 AM        SHARE

img
imgTom Hamilton

February 3, 2023 - A nice breakout of the trading range, but significant weakness was shown on Friday. There are a number of positive momentum and breath indicators out there but markets (very) rarely go up or down in a straight line. Thus I’m expecting a retracement back to around the 11492 price level (NASDAQ Composite Index). After a retracement we will have a much better idea of the true strength of a potential rally higher.

Earnings or potential earnings are what drives the stock market over the long term and this week was not a good one for US Tech companies. While Meta *(a.k.a. facebook) *had a good report, Google, Amazon and Apple did not. These companies did “OK” but gave poor earnings guidance going forward.

The US jobs report is one reason for providing the fuel for the past weeks market performance. The hope is for a “soft landing” and the FED helped that out with Powell indicating maybe only two more small rate increases this year. That’s all it took for the move higher with the FOMO (fear of missing out) bringing the quick surge higher. (“The Bottom Is In”) I doubt if it will last based on the rather modest volume during the week. This leads one to think that the price surge was driven more by the options market (covering options short positions) than by “real buying”.

The US Dollar dramatic move higher on Friday certainly did not help this market sustain the move. Next week should be interesting to see if there is a follow through of Bullish Dollar sentiment. (Note: Dollar higher is generally not Bullish for US stocks.) The Short Term Sector Strength table is shown attached –

So I’m getting more Bullish in the long term but expecting a correction in the short term, at least back to the breakout levels, perhaps lower. The economy remains strong but earnings will continue to be stressed.
And . . . the deficit crisis would really throw a major monkey wrench into the whole thing. Sad, but true. Have a good week. …………. Tom ……………….

Price chart by MetaStock; table by www.HighGrowthStock.com. Used with permission. More information at: www.Special-Risk.net .



Sound investments
don't happen alone

Find your crew, build teams, compete in VS MODE, and identify investment trends in our evergrowing investment ecosystem. You aren't on an island anymore, and our community is here to help you make informed decisions in a complex world.

More Reads
Which Utility is Most Invested in Renewable Energy. Are They Worth Your Investment?
Image

U.S. utilities are on a path to convert their power generation fleets to renewable energy. But are they worth your investment?

The Top Utility Stocks by Wind Energy, but Should you Invest?
Image

The stock market may be selling renewable energy stocks at a premium. Let’s discuss which utility stock you should invest in that is also a good financial investment.

SCHD vs. VIG: Which Dividend Growth ETF Fits in Your Portfolio?
Image

Dividend-yielding ETFs (exchange-traded funds) have become the rage recently as tech stocks on the Nasdaq have plummeted, and people are seeking more income. So it is no surprise that people have been talking about dividend growth ETFs like SCHD and VIG.

In a New Era of Bonds
Image

Do I need Bonds in my portfolio? We are in a new Era of bonds, so I thought it was time to ask the question do I need bonds in my portfolio?

VOO vs. VYM vs. VIG – The Vanguard ETF Trifecta!
Image

The GOAT of the industry. Vanguard. John Bogle. Bogleheads. The creator of the mutual fund and home of the best exchange traded funds out there.

The Zen Ten – My Top Picks for 2023
Image

I’ve been publishing the Zen Ten list each December since 2008. I pick my favorites and stick with them all year – no trading.

December 2022 Passive Income
Image

A new year has come. Man oh man did 2022 ever fly by? The market continues its downward spiral and we can see even better prices out there for long term investors. I think this will continue for at least the first half of 23, but who knows.

5 Key Benefits of Long Term Investing in Dividend Stocks
Image

Long-term investing in dividend stocks provides the following 5 key benefits:

Dividend Income Update December 2022
Image

The beginning of every month is exciting for all dividend income investors as we look back at the previous month and see how much passive dividend income our portfolios generated. No doubt, these are the best posts to write and read online as it only provides further proof that dividend investing can work over time and that anyone can create an ever growing passive income stream.

January 2023 Stock Considerations
Image

With a new trading year already in full swing it is time, once again, to highlight some of my potential stock purchases. While the market had a nice bounce the last couple of months, there is still no shortage of stocks that are becoming fairly valued to undervalued.

3 Best Buy and Hold Dividend Stocks for 2023
Image

Competition has heated more than ever in almost every sector. As a result, it has become challenging to identify the best buy-and-hold dividend stocks in 2023. However, some companies have a strong business model in place, and thus they enjoy a meaningful business moat. In addition, they have proved resilient to recessions.

High Dividend 50: Cogent Communications Holdings
Image

Despite boasting 41 consecutive quarters of dividend increases and currently trading with a hefty yield of 6.4%, Cogent Communications is not making a splash with investors.

High Dividend 50: Enbridge Inc.
Image

Enbridge Inc. (ENB) is a Canadian energy infrastructure company that offers a high dividend yield of more than 6% at current prices. While its valuation is not the lowest in the midstream space, the valuation is still reasonable and justified by Enbridge’s higher-than-average quality.

High Dividend 50: Leggett & Platt
Image

Leggett & Platt may not be a well-known name, but it is likely that millions of consumers come in contact with the company’s products every day. Despite being under the radar, Leggett has increased its dividend for 51 years in a row, meaning it is a Dividend King.

Is Boot Barn (BOOT) a Buy?
Image

Boot Barn Holdings (BOOT) is considered a BUY up to a price of $73.20. The company has performed well over the pandemic even though it’s in retail.

High Dividend 50: The Bank of Nova Scotia
Image

The last time The Bank of Nova Scotia (BNS) cut its dividend was back in 1942, in the midst of World War 2.

High Dividend 50: V.F. Corporation
Image

V.F. Corporation (VFC) has an exceptional dividend growth record, with 50 consecutive years of dividend growth.

High Dividend 50: Fortitude Gold Corporation
Image

Mining stocks don’t really have a reputation for consistently paying substantial dividends due to the industry’s cyclical nature.

High Dividend 50: Kronos Worldwide
Image

Few companies in the specialty chemicals industry have a history of paying consistent dividends over a long period of time.

High Dividend 50: New York Community Bancorp
Image

New York Community Bancorp (NYCB) is currently offering a very attractive dividend yield of 7.4% while it is also trading at a low forward price-to-earnings ratio of 7.4.

Resources for Publishers
Resources for New Investors
Boosted with BossCoin
Financial Literacy Leaders
user_profile
Tom Hamilton
user_profile
Wise Intelligent
user_profile
Mark Robertson
user_profile
Kevin Matthews II
user_profile
Akeiva Ellis
user_profile
Brendan Dale
user_profile
Kenneth Chavis IV
user_profile
Sharita Humphrey