April-Some Thoughts.
From Market Talk: {Excerpt}
US stocks made the most of April, even if they weren’t able to muscle past a big resistance point today in the month’s final session, and have now put together a blistering two-month rally. DJ slips 18 {points yesterday} to 8168; still {the} index gained 7.3% this month and 15.6% over the past two months. That’s the best two-month spurt since November 2002. That was the start of the last bull market, incidentally.
S&P 500 {lost} 1 {yesterday} to 873, after earlier piercing key resistance; the index is up 18.7% the past two months, which is its best two-month run since February 1975. S&P rose as high as 889 during today’s session, above key resistance at 879, a level it hasn’t seen since early January. But it wasn’t able to hold the mark.
Nasdaq Comp added 5 {yesterday} to 1717.
Materials, consumer discretionary, industrials higher; energy down sharply. Financials slip......
Chrysler becomes the first US auto maker to file for bankruptcy protection since, what, DeLorean? The administration, which is shepherding the process, hopes to have Chrysler in and out of bankruptcy court in one to two months, and with GM’s deadline to restructure coming up in a month, we wonder if Chrysler is the proverbial canary in a coalmine for a possible GM filing....
....Was {yesterday's} slippage, and the S&P’s inability to vault over 879, a sign? No more of a sign than yesterday’s rally in the face of a steep contraction in GDP.
“From a fundamental valuation perspective, there are an increasing number of reasons to be more cautious - most notably, the high P/E levels,” Vinny Catalano says at Minyanville. “At current price levels, the S&P 500 operating earnings for this year must come in around $60 to justify an average times P/E of 15.” He sees 13 or 14 as more appropriate.
S&P 500 {lost} 1 {yesterday} to 873, after earlier piercing key resistance; the index is up 18.7% the past two months, which is its best two-month run since February 1975. S&P rose as high as 889 during today’s session, above key resistance at 879, a level it hasn’t seen since early January. But it wasn’t able to hold the mark.
Nasdaq Comp added 5 {yesterday} to 1717.
Materials, consumer discretionary, industrials higher; energy down sharply. Financials slip......
Chrysler becomes the first US auto maker to file for bankruptcy protection since, what, DeLorean? The administration, which is shepherding the process, hopes to have Chrysler in and out of bankruptcy court in one to two months, and with GM’s deadline to restructure coming up in a month, we wonder if Chrysler is the proverbial canary in a coalmine for a possible GM filing....
....Was {yesterday's} slippage, and the S&P’s inability to vault over 879, a sign? No more of a sign than yesterday’s rally in the face of a steep contraction in GDP.
“From a fundamental valuation perspective, there are an increasing number of reasons to be more cautious - most notably, the high P/E levels,” Vinny Catalano says at Minyanville. “At current price levels, the S&P 500 operating earnings for this year must come in around $60 to justify an average times P/E of 15.” He sees 13 or 14 as more appropriate.
*Long ETFs related to the S&P 500, Dow Jones Industrial Average, Nasdaq Composite.
*Long Sector ETFs related to Materials, Industrials, Energy and Financials.
posted by CR English at 6:04 AM
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