Thursday October 9, 2014

$SPY I closed out the position in $RFMD shortly after the open today after the Opinion was downgraded to Neutral.  With the  current  Asset Allocation recommendation remains at 25% Long and 75% Cash the Alpha One Model Portfolio is a little under invested at 20% Long, but I will not be adding to the portfolio until the Market Models begin to reverse themselves.

The markets were due for a bounce after Wednesday’s selloff but it took a dovish FOMC meeting minutes to spark an upside reversal.  With the Fed temporarily out of the way until near the end of the month, earnings are likely to drive the market in the next couple of weeks. AA reported after the bell this afternoon. From first look, it was a good one. Stay selective during an earnings season.

Here is an interesting statement from ROBERT KEISER, Vice President, Global Markets Intelligence at Standard and Poor’s.

“…Returning to the outlook for third quarter S&P 500 earnings growth and stock market performance, the resumption of respectable and very often better-than-expected quarterly earnings has proven to be the backbone of this bull market since its inception in March 2009. Sustained positive earnings growth has consistently propelled the market higher, often in opposition to high visibility concerns such as the "fiscal cliff," federal budget sequestration, and now potentially Fed monetary policy. Expectations for a resumption of double-digit earnings growth bode well for the out-look for stocks, presuming Fed policy and the entire interest rate normalization process turns out to be little more than a technical adjustment.”