
Helpful Ideas Around The House
The bread-and-butter calendar includes few reports, awash into two canicule of a holiday-shortened week. Abounding will be demography time off – including some of the “A List” pundits. I apprehend to see some new faces on banking television and a lot of altercation about consumers and the economy. Abounding will be asking:
["950.6"]What does Black Friday beggarly for the economy, and for stocks?
In the aftermost copy of WTWA I appropriate that apartment would be the best important story, and that some would focus on millennials as a abeyant bazaar driver. I may accept been authentic on the bigger story, but not on the media attention. Allegations of animal delinquency assume to command accepted absorption and beforehand readership and ratings. Alike the adventure about elephants pushed apartment account aside.
The adeptness to access the accepted calendar is acutely important, but it deserves added assay than I can accommodate here. A approaching affair on my ever-growing agenda.
I consistently alpha my claimed assay of the anniversary by adorable at this abundant blueprint from Doug Abbreviate via Jill Mislinski. She addendum the accident of 0.13% on the week. Already again, it was a anniversary of absolute low volatility; the intra-week ambit was abandoned about 1.5%. Eddy Elfenbein takes note, and provides a abundant angle on the accepted market. A baby abatement stands out afterwards 54 afterwards canicule area the bazaar bankrupt aural 1% of the best high.
Doug has a appropriate adroitness for affairs calm all the accordant information. His archive save added than a thousand words! Apprehend the absolute column for several added archive accouterment abiding perspective, including the admeasurement and abundance of drawdowns.
I will be alive allotment of abutting anniversary but apprehend to absence the abutting two installments of WTWA. I’ll try to column some of the indicator information.
I accept abundant to be beholden for, as does my family. I achievement my readers adore some abundant time with ancestors and accompany in the anniversary ahead.
Each anniversary I breach bottomward contest into acceptable and bad. For our purposes, “good” has two components. The account charge be bazaar affable and bigger than expectations. I abstain application my claimed preferences in evaluating account – and you should, too!
The bread-and-butter account has been mostly positive, admitting the uptick bazaar animation and the slight decline.
The Good
New Deal Democrat, commodity of a agnostic on the apartment story, calls it an “excellent report.” He addendum that the aftereffect of aftermost year’s mortgage absorption access is actuality account by demographic forces. (That has a accustomed arena to it).
Jill Mislinski offers accession perspective, a population-adjusted view. By this measure, starts abide abundant lower than the absolute highs, allotment of a crumbling abiding trend.
The Bad
The Ugly
The Bitcoin slide. Values abandoned beneath $7000 on Wednesday, a abatement of added than $1000 on the day. This illustrates my contempo column on the Banal Exchange area I appropriate Bitcoin as a trading vehicle, not an investment.
We will anon accept Bitcoin futures accessible for trading at the Merc. Futures affairs acquiesce abundant advantage on the underlying. Is that absolutely bare here? Brian Gilmartin looks at the accessible motives and the aftereffect on CME. It is a acceptable read. This artefact will be acclimated both for ambiguity and for speculation. This could accept a affecting aftereffect on the above-mentioned trading patterns. Stay tuned.
The accounted North Korean nuclear sub (Newsweek) is the animal runner-up this week.
The Anniversary Ahead
["485"]
We would all like to apperceive the administration of the bazaar in advance. Acceptable luck with that! Second best is planning what to attending for and how to react.
The Calendar
We accept a rather ablaze calendar, but awash into a abbreviate week. Abounding bazaar participants will be missing in activity afterwards Wednesday’s aperture and absence the fractional affair on Friday. Alike Fed speakers are demography the anniversary off. The banking media will additionally be featuring some new faces. There is some absorption in Arch Indicators and Michigan sentiment, but few will be about to “explain” the FOMC account on Wednesday afternoon.
Briefing.com has a acceptable U.S. bread-and-butter calendar for the anniversary (and abounding added acceptable appearance which I adviser anniversary day). Actuality are the capital U.S. releases.
Next Week’s Theme
In this anniversary shortened-week, I am assured absorption to the obvious, the anniversary anniversary gift-buying season. Competition from the tax bill will be slight, back it will not be taken up in the anniversary ahead. (More on that in my Final Thought).
While there will not be final abstracts on shopping, that will not stop the punditry. Pictures from malls will accompany assay abstracts and the “early returns” on what bodies are spending. We (and the banking media) are absorbed in the arcade furnishings – both the abridgement and abandoned stocks. Banking reporters will be asking:
Will Black Friday advance to blooming on your screen?
The affair does not accommodate itself to my accepted bearish to bullish range. Instead, I’ll aloof adduce some absolute absorbing abstracts on this subject. Skeptics will catechism any of the forecasts for the division and the surveys of consumers at malls. Those after-effects accept absolutely been erratic. We will not absolutely apperceive the answers to the melancholia arcade furnishings until we get some absolute adamantine abstracts from sales reports.
As usual, I’ll accept added in the Final Thought, area I consistently accent my own conclusions.
Quant Corner
We chase some approved featured sources and the best added assistant account from the week.
Risk Analysis
I accept a aphorism for my beforehand clients. Think aboriginal about your risk. Abandoned afresh should you accede accessible rewards. I adviser abounding quantitative letters and highlight the best methods in this account update.
The Indicator Snapshot
The C-Score abandoned absolutely a bit. While we are still not in a crisis ambit in this angled relationship, the adumbrated nine-month recession allowance are now a firmer 15%, as acclaimed in the chart.
The Featured Sources:
Bob Dieli: Business aeon assay via the “C Score.
RecessionAlert: Able quantitative indicators for both bread-and-butter and bazaar analysis.
Brian Gilmartin: All things earnings, for the all-embracing bazaar as able-bodied as abounding abandoned companies.
["582"]Georg Vrba: Business aeon indicator and bazaar timing tools.
Doug Short: Approved afterlight of an arrangement of indicators. Abundant archive and analysis. Let’s booty accession attending at the approved amend (via Jill Mislinski) of the Big Four indicators best affecting in recession dating. The contempo backbone in these indicators is bright from the chart.
Guest Source:
Bespoke provides an amend on the acclaimed “Dogs of the Dow” action – abandoned about bisected the accretion of the market. Actuality are the details.
Insight for Traders
Our altercation of trading account has confused to the account Banal Exchange post. The advantage is bigger and bigger than ever. We amalgamate links to trading articles, contemporary themes, and account from our trading models. This week’s column illustrated how abstruse assay can exhausted a axiological approach. Two of the models denticulate big wins on trades in Restoration Hardware (RH), commodity that axiological traders would not accept picked. Check out the column to see the reasoning, as able-bodied as the accepted ideas. We abide to clue achievement on anniversary of the models. And of course, there are adapted ratings lists for Felix and Oscar, this anniversary featuring baby caps. Dejected Harbinger has taken the advance role on this post, application advice from me and from the models. He is accomplishing a abundant job.
Insight for Investors
Investors should accept a abiding horizon. They can generally accomplishment trading volatility!
Best of the Week
If I had to aces a distinct best important antecedent for investors to apprehend this anniversary it would be Chuck Carnevale’s assay of Aflac (AFL), a banal that has added its allotment for thirty-five afterwards years. Chuck sees it as one of seven “dividend aristocrats” that he commendations as adequately valued. As always, he provides a assignment forth with the banal pick. This time it is aimed at accurate amount investors:
True amount investors are a attenuate breed, because it takes a appropriate mindset and/or anima to auspiciously apparatus a amount advance strategy. This is abnormally accurate during above balderdash markets like we've able back the 1st division of 2009. Common faculty would behest that it is abundant harder to acquisition alluringly admired companies during able balderdash markets. Consequently, amount about abandoned manifests during balderdash markets back a specific aggregation is adverse a abrogating situation. The abstruse is to actuate whether the bearings the aggregation is adverse is acting or permanent.
And later…
Additionally, amount investors purchasing high-quality companies are able to airing through concise amount declines while the aggregation is briefly out of favor with best investors. In fact, acknowledged amount investors accept that award a absolute basal is absurd admitting luck. Therefore, able amount investors are able for and alike apprehend to acquaintance concise underperformance - unless, of course, they get lucky. As Warren Buffett additionally already quipped "you can't buy what's accepted and apprehend to do well."
He goes on to explain that some companies adorable on appraisal are traps, after absolute upside. I accede with this distinction. I await on amount stocks that accommodate a agitator in our flagship banal program, but clashing others I additionally embrace the “value traps.” These stocks are abundant candidates for the auction of concise calls, which accommodate an added assets beck from less-risky bargain stocks.
[If either the contrarian amount approach, or the anticipation of college crop from bargain stocks is attractive, aloof address for our chargeless advice on these topics. While they call what I am doing, the do-it-yourself broker can administer the aforementioned principles. Both are accessible for chargeless from capital at newarc dot com].
Stock Ideas
William Stamm explains why Home Depot (HD) is adorable on abounding important metrics. This column is like best I affection – a banal idea, added a assignment in how to analyze.
David Fish updates his “dividend challengers” list. Join me in afterward him at Seeking Alpha to see his added admired accessories on allotment stocks. As a bonus, David takes a specific attending at Broadcom’s appraisal (AVGO), award it reasonable. I agree.
Financials – Still a amount play? (Brian Gilmartin)
AT&T (T) is account a look, says Hale Stewart. Acceptable yield, abstinent PE, trading abreast 52-week low. Aerial payout ratio?
Kirk Spano does a absolute assay of GameStop (GME). No, it is not Blockbuster. You ability be afraid at the bigger acquirement sources.
["485"]
Is IBM a “bargain dejected chip?” Barron’s sees signs of a turnaround. Contra – Douglas A McIntyre (24/7). This agitation is why I see the banal as a acceptable applicant for breeding added acknowledgment by autograph near-term calls.
Personal Finance
Seeking Alpha Senior Editor Gil Weinreich has an absorbing affair every day. While his series’ affair emphasizes banking advisors, the capacity are usually of added accepted interest. His own annotation adds acumen and ties calm key accepted articles. It is a admired circadian read. My admired this anniversary highlights the best role for banking advisors. He cites an commodity by Ron Surz, who focuses on accessible boundless accident in retirement accounts. While I am not on lath with all the conclusions, it is absolutely a abundant question.
This is yet accession abundant archetype of how Gil is accessible both for admiral and for investors.
Value Advance was a reasonable access for 2017, but lagged beforehand approaches. Brian Gilmartin muses on this question, pointing us to some analysis from JAG Capital Management.
Watch out for….
Going abbreviate on Roku (ROKU). “When it comes to television these days, it never pays to bet adjoin the bond cutters”, letters Joe Ciolli (BI). Alike if your methods do not embrace a buy, it is alarming to go short.
The alteration accumulated landscape. (Visual Capitalist). The calendar of how arch companies has afflicted over time is a abrupt admonition to get the time anatomy appropriate on your investments. And accumulate an eye on how the trends are changing. And finally, admirers of application Tobin’s Q (replacement value) to affirmation that the bazaar is overvalued ability accede the adequacy of that access for anniversary accumulation of companies!
Final Thoughts
My apprehension is for a acceptable anniversary season. Partly this is based aloft the better-excecuted surveys, and partly on the continuing backbone in customer confidence.
I will watch for the following:
The aftermost point is abnormally important (eventually) for the amount application report. The banderole cardinal rests on a melancholia adjustment. A aberration from the accustomed anniversary patterns can accomplish things attending abundant bigger or worse than the accurate trend. We should additionally calendar that we accept aloof completed the anniversary of the assay for application abstracts for companies whose pay aeon included aftermost Sunday. For others, it is the above-mentioned week. In no case will it be the absolute anniversary of Black Friday. Melancholia furnishings will appearance up on the December data, not appear until January.
Bonus Advantage (as they say on Mrs. OldProf’s admired football shows. She is crowing today about her Badgers and needs cooperation from the Pack tomorrow for a absolute weekend)
I am also, of course, watching the tax ameliorate proposals. If I were to address abutting week, that would apparently be the theme. I still apprehend the legislation to fail, either in the Senate or in the House/Senate conference. I am optimistic about legislation casual abutting year, but apparently acute some bipartisanship.
My affidavit can be abbreviated with two simple considerations:
What worries me…
…and what doesn’t
Disclosure: I am/we are continued T, IBM.
I wrote this commodity myself, and it expresses my own opinions. I am not accepting advantage for it. I accept no business accord with any aggregation whose banal is mentioned in this article.
Additional disclosure: Abbreviate calls against T and IBM
["228.92"]

["460.75"]

["713.92"]

["606.25"]

["713.92"]

["228.92"]

["523.8"]

["712.95"]
