$SPY The jobs report
(nonfarm payrolls +321K with unemployment rate at 5.8% and hourly earnings
+0.4%) sent both the DJIA and the S&P 500 to fresh records Friday. Although
the jobs report gave the market a significant upside surprise, the reaction in
stock prices was relatively minor. The jobs report didn’t give bulls any more
momentum as the short term MACDs across the four major indices tracked by the
Major Market Model are still heading lower. While stocks can continue to grind
higher and the DJIA may make a run at 18000, there is no reason to be too
excited over the jobs number.
The technical condition of
the market remains mixed as the Momentum indicator continues to decline while
the Strength indictors all move higher. Remain cautious into the yearend
keep tight stop loss alerts and do not be afraid to take profits if individual
names weaken.
The past week was a busy one
for the Alpha One Portfolio process, first the Master List was updated and no
contains 165 names down from 178 in the previous list. However, the Buy component of the list is
significantly higher reflecting the rotation into Industry groups which are
more in favor with investors at this time.
As mentioned on Friday the following names were sold $KNX, $LRCX, $LUV,
$MAR, $SNA. Well into Friday’s session
$GMCR was also sold as the Stop Loss had been violated and the technical
condition continued to weaken. The other
names which were liquidated were sold as the result of their not being on the
refreshed Master List.
These names were added to
the portfolio to take the allocation to 75% in line with the current recommendation.
$FL, $TMO, $DLTR, $PZZA, $AAPL and $MA.
Further sales were undertaken
in the following names to rebalance the portfolio as we enter a new trading year.
On January 2, 2015 the excess capital in the Alpha One Model will be transferred
to the Alpha Two Model in accordance with the operating procedures for the
portfolios leaving $60,000.00 to begin the New Year. The names effected by the
rebalancing are $SWKS, $EA, $ROST, $MU, $CBG, $ALXN, $VRX and $BIDU.
No comments:
Post a Comment