Weekend Review and Watchlist

Overview

Another big week with the major indices all up over 3% to all time highs, and the Dow posting closing records every day this week for the first time in over 17 years (April 1999, h/t @callieabost).

Turning to the chart I typically use for giving context to market corrections, the S&P has now put in a strong sequence of higher highs and higher lows since the 2015 bear market lows. It's also yet to have a 5% pullback (closing basis) since that downturn finished, and is currently 6.7% above its 200-day MA:-

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Here are the weekly charts of the Dow, S&P, NASDAQ, Transports, Russell, MidCap, MicroCap.

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All time highs across the board. We've also started to see some strong moves in Europe, with the DAX finally breaking out of its 4-month range this week:-

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NYSE breadth climbed to fresh highs, and sentiment remains elevated with AAII bulls above 40% for the 4th consecutive week, and the second highest NAAIM reading in its survey's history (highest being Jan 2013) h/t @ukarlewitz.

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Sector Analysis

Specifically ranking the sectors when most of them along with the indices are at all time highs becomes a fairly academic exercise that will very much depend on your timeframe, but Financials, Energy, Materials, Consumer Discretionary, Technology, and Industrials are all in strong uptrends.

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The laggards moved higher too but remain in clear downtrends. Real Estate, Staples, and Utilities, all made it back above their 50-day, but are still below their 200-day. At the bottom, Healthcare couldn't even reclaim its 20-day.

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Alpha Capture Portfolio

Our model portfolio had another good week +3.4% vs +3.1% for the S&P. It's enjoying a long overdue winning streak, outperforming the market for 6 of the last 7 weeks. This week's gain was also enough to take it back into positive territory YTD, having been down over 10% just 5 weeks ago.

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Watchlist

The advance in the market continues and we can see just how broad it is across all our names. We currently have 16 portfolio names, 9 additional trade ideas, and 25 stocks on our watchlist. Financials, Industrials, Materials, Energy, Technology, and Consumer Discretionary are all well represented.

Here's a sample from our full list of 25 names:-

$JPM

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$BRK.B

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$SNA

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$DE

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$FCX

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$CVX

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$HAL

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$MSFT

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Posted to Alpha Capture on Dec 10, 2016 — 11:12 AM

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