Weekly Market Recap -- 11/27

A confusing week to say the least but if you put the headlines aside and just look at the numbers you will see that the market has stalled but not reversed.  We get our data from Barchart and use 3 yardsticks because although they each are a measure of market momentum, they each do it in a slightly different way.  No single yardstick is accurate all the time so if we look at the market in 3 different ways we get a better feel of which way the trend is going.

Value Line Index -- Contains 1700 stocks so it is much broader than the S&P 500 or very narrow Dow 30 -- Shows a caution sign this week

• The Index gets a 64% Barchart buy signal
• Up .45% for the week
• UP 2.76% for the last month
• Closed Friday at 2679.79 which is 10.84% above its 50 day moving average of 2587.27
• Relative Strength Index is 57.40%

Barchart Market Momentum -- Contains approximately 6000 stocks -- Percentage of stocks closing above their Daily Moving Averages for various time periods -- Above 50% is always good -- This week we have a caution in the 20 DMA

• Friday only 46.06% closed above their 20 DMA, 59.69% closed above their 50 DMA, 75.15% closed above their 100 DMA
• Last Week only 47.44% closed above their 20 DMA, 64.39% closed above their 50 DMA, 77.35% closed above their 100 DMA
• Last Month 56.50% closed above their 20 DMA, 78.05% closed above their 50 DMA, 80.97% closed above their 100 DMA

Ratio of stocks hitting new high/new lows for various time periods -- 1.0+ bullish, 1.0 neutral, below .99 bearish -- This week we have all 3 periods positive

• 1 month new highs/new lows-- 389/266 = 1.46
• 3 month new highs/new lows -- 321/96 = 3.34
• 6 month new highs/new lows -- 263/57 = 4.61

Summary and Investment Strategy -- The week wasn't strong but we didn't see a reversal either.  We do have a mixed signal which should give you caution.  The Value Line Index was up for the week but the majority (50%+) didn't closed above their 20 Daily Moving Average.  Financial problems in Europe and political problems in Asia are making investors nervous.  Nervous people don't invest.  Watch these 2 yardsticks on a daily basis this week.

Jim Van Meerten is an advisor to Marketocracy Capital Management who uses his model portfolios not only to manage their mutual funds but also their clients Separately Managed Accounts. You can read his blogs about those model portfolios and investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.

Disclosure: Jim Van Meerten through Marketocracy Capital Management has an interest in the stocks mentioned in this blog.

Xerox deserves a second look

Xerox Corporation (XRX) is The Document Company and a leader in the global document market, providing document solutions that enhance business productivity. The Company has expertise in the production and management of documents: color and black-and-white, digital and paper, across networks or on a desktop, in a commercial print facility or a quick-print shop, for the small office or the global enterprise.

The acquisition of Affiliated Computer Systems has given earnings per share a boost.  The company continues to invest in R&D in the area of digital publishing and will be the world leader in this technology.  The low interest rate environment, if it continues, will help keep down the interest costs of this leveraged company.

The recent price momentum has given the stock an 80% Barchart technical buy signal with the stock advancing 29 times and up 39.37% in the last quarter. It trades around 11.78 which is 17.47% above its 50 day moving average of 11.13.  The 14 day Relative Strength Index is 58.82% and rising.

The company has always been a Wall Street brokerage favorite and the Street has published 7 buy, 3 hold and no negative reports released recently.  Although sales are expected to increase by 42.50% this year and  only 6.30% next year the real story in in earnings projections of a 55.00% increase this year and 18.30% next year.

The security continues to be a core position with the general investing public and over on Motley Fool the CAPS members vote 402 to 66 that the price will beat the market with the All Stars voting in the same direction 110 to 55.

Fool notes that the last 12 Wall Street journalists articles have been positive.

Xerox is an old favorite who:

• Enjoys recent price movement
• 80% Barchart technical buy signal
• Wide and positive investor sentiment
• Wall Street projection of continuing increases in sales and earnings

Jim Van Meerten is an advisor to Marketocracy Capital Management who uses his model portfolios not only to manage their mutual funds but also their clients Separately Managed Accounts. You can read his blogs about those model portfolios and investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.

Disclosure: Jim Van Meerten through Marketocracy Capital Management has an interest in the stocks mentioned in this blog.

Biotime - BTX -- added

This morning I added Biotime (BTX) to the Barchart Van Meerten Speculative portfolio.  BTX. headquartered in Emeryville, California, develops blood plasma volume expanders, blood replacement solutions for hypothermic low temperature surgery, organ preservation solutions and technology for use in surgery, emergency trauma treatment and other applications. BioTime's lead product Hextend is manufactured and distributed in the U.S. by Hospira, Inc. and in South Korea by CJ Corp. under exclusive licensing agreements.

This is a speculative pick based on price momentum alone.  The stock has a 96% Barchart technical buy signal, hit 17 new highs and is up 39.12% in the last 20 trading sessions.

The price is currently at 7.92 which is 71.65% above its 50 day moving average of 5.96.  The Relative Strength index is 75.90% and risng

Jim Van Meerten is an advisor to Marketocracy Capital Management who uses his model portfolios not only to manage their mutual funds but also their clients Separately Managed Accounts. You can read his blogs about those model portfolios and investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.

Disclosure: Jim Van Meerten through Marketocracy Capital Management has an interest in the stocks mentioned in this blog.

UPS delivers

You have to love United Parcel Service (UPS).  They are continuing to grow in the international market by almost 20% a year,  Their huge cash position allows them to buy back shares; over 7 million share have been bought back already.  They are beating the pants off the US Postal Service which seems; at least in my mail box, to only delivers junk mail these days.

United Parcel Service, Inc. is the world's largest express carrier, the world's largest package delivery company and a leading global provider of specialized transportation and logistics services. Their primary business is the time-definite delivery of packages and documents throughout the United States and in over 200 other countries and territories. They have established a vast and reliable global transportation infrastructure,developed a comprehensive, competitive and guaranteed portfolio of services and consistently supported these services with advanced technology.

Barchart's 13 technical momentum indicators are all signalling a buy for a 100% buy signal.  The stock is trading around 69.69 which is 3.55% above its 50 day moving average of 67.71.  The stock has a 14 day Relative Strength Index of 59.90% and it is on the rise.

Wall Street brokerages believe this price momentum is warranted and has published 21 buy, 6 hold and no negative reports for their clients.  Sales are forecasted to increase 9.50% this year and 7.70% next year.  As sales increase a lot of that will flow to the bottom line.  Analysts estimate earnings will increase by 52.80% this year, 17.80% next year and continue for 5 years at an annual rate of 12.83%.

The general investor is taking notice and on Motley Fool votes 1398 to 221 that the stock will beat the market.  The more experienced All Stars agree with a vote of 400 to 49.

Fool follows a lot of Wall Street columnists and note that all of the last 27 articles on the company have been positive.

For long term investors this might be the right time to add this to your core holdings:

• Recent price momentum shows that the stock hasn't topped out
• Wall Street Analysts forecasts double digit increases in earnings for at least 5 years out
• Large cash position will allow stock buy backs to continue
• 100% Barchart technical buy signal
• Large and positive following by both Wall Street and the general investor

Jim Van Meerten is an advisor to Marketocracy Capital Management who uses his model portfolios not only to manage their mutual funds but also their clients Separately Managed Accounts. You can read his blogs about those model portfolios and investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.

Disclosure: Jim Van Meerten through Marketocracy Capital Management has an interest in the stocks mentioned in this blog.

4 Hot ETFs - 11/24

RFG -- S&P MidCap 400 Pure Growth ETF -- 100% Barchart technical buy signal -- 14 new highs and up 9.80% in the last 20 trading sessions -- Trading at 76.01 which is 16.69% above its 50 day moving average of 69.65 -- Relative Strength Index is 70.64% and rising

JKH -- Morningstar Mid Growth Index ETF -- 100% Barchart technical buy signal -- 14 new highs and up 7.60% in the last month -- Trading at 92.47 which is 13.07% above its 50 day moving average of 86.52 -- Relative Strength Index is 66.75% and rising

XES -- Oil & Gas Equipment & Services ETF -- 96% Barchart technical buy signal -- 13 new highs and up 11.14% in the last month -- Trading at 34.59% which is 20.09% above its 50 day moving average of 31.28 -- Relative Strength Index is 66.12%

FVL -- Value Line 100 ETF -- 100% Barchart technical buy signal -- 13 new highs and up 7.21% in the last month -- Trading at 12.94 which is 15.54% above its 50 day moving average of 12.07 -- Relative Strength Index is 68.06% and rising

Jim Van Meerten is an advisor to Marketocracy Capital Management who uses his model portfolios not only to manage their mutual funds but also their clients Separately Managed Accounts. You can read his blogs about those model portfolios and investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.

Disclosure: Jim Van Meerten through Marketocracy Capital Management has an interest in the stocks mentioned in this blog.

Electro Scientific Industries -- ESIO

This morning I added Electro Scientific Industries, Inc. (ESIO) to the Barchart Van Meerten Speculative portfolio,  ESIO and its subsidiaries provides electronics manufacturers with equipment necessary to produce key components used in wireless telecommunications, computers, automotive electronics, and many other electronic products. Additionally, they produce a family of mechanical and laser drilling systems for production of printed wiring boards and advanced electronic packaging, as well as machine vision products for manufacturers of semiconductors, electronics and other products.

The stock has good price movement and great Wall Street analysts reports.  The security has a 96% Barchart technical buy signal with 13 new highs in the last 20 session and a 17.80% increase in price.  The stock trades at 14.16 which is 28.49% above its 50 day moving average of 11.95.  The 14 day Relative Strength Index is 72.32%

Wall Street brokerage analysts are very high on this stock with 4 buy recommendations based on projections of double digit growth in both sales and earnings.  They estimate sales will increase 68.30% this year and continue by a 17.90% increase next year.  The fantastic earnings projections are to increase by 266.70% this year, 120.00% next year and continue for a 5 year compounded EPS growth of 14.00% annually.

This stock is not unnoticed by the general investor.  On Motley Fool the CAPS members vote 242 to 11 that the stock will beat the market with the All Stars in agreement 101 to 1.  Fool notes that the last 2 articles by Wall Street columnists have been positive.

This stock has:

• Recent positive price momentum
• 96% Barchart technical buy signal
• Wall Street brokerage buy recommendations based on projections of double digit increases in sales and earnings
• A wide and positive investor sentiment

Jim Van Meerten is an advisor to Marketocracy Capital Management who uses his model portfolios not only to manage their mutual funds but also their clients Separately Managed Accounts. You can read his blogs about those model portfolios and investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.

Disclosure: Jim Van Meerten through Marketocracy Capital Management has an interest in the stocks mentioned in this blog.

Nike fills big shoes

Nike (NKE) is banking on their new LeBron and Kobe line-up of athletic shoes and athletic wear to rejuvenate the Nike brand. Nike, Inc.'s principal business activity involves the design, development and worldwide marketing of high quality footwear, apparel, equipment, and accessory products. Nike is the one of the largest sellers of athletic footwear and athletic apparel in the world. The company sells its products to retail accounts in the United States and through a mix of independent distributors, licensees and subsidiaries in numerous countries around the world.

The stock has been on a move lately and has a 100% technical buy rating on Barchart.  The stock trades at 85.70 which is 14.02% above its 50 day moving average of 81.29.  The stock has a Relative Strength Index of 66.66% and is rising.  In the last week the price is up 6.47%.

This stock is very popular with the Wall Street brokerage crowd who have published 12 buy and 7 hold recommendations for their brokers to push to their clients.  They predict that sales will increase 8.00% this year and 7.60% next year.  The earnings are estimated to increase by 13.70% this year, 12.30% next year and continue for the next 5 years at a rate of 10.45% per year.

The general investing public likes this company too with the CAPS members on Motley Fool voting 1751 to 116 that the stock will bet the market.  The All Stars are in agreement with a vote of 561 to 20.

Motley Fool notes that the Wall Street columnists they follow have written positive articles 22 to 0.

This stock has a lot going for it:

• Recent positive price momentum
• 100% Barchart technical buy signal
• Trend Spotter (tm) buy signal
• Positive sales and earnings projections buy Wall Street analysts
• Very large following with the general investing public.

Jim Van Meerten is an advisor to Marketocracy Capital Management who uses his model portfolios not only to manage their mutual funds but also their clients Separately Managed Accounts. You can read his blogs about those model portfolios and investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.

Disclosure: Jim Van Meerten through Marketocracy Capital Management has an interest in the stocks mentioned in this blog.

5 Stocks for 11/21

Here are 5 stocks you might want to do further research on.

FTK -- Flotek Industries - 100% Barchart buy signal--Trading at 3.27 which is 109.62% above it;s 50 day moving average of 1.82-- 17 new highs and up 101.85% in the last month -- Relative Strength Index 82.00%

VVI- Viad Corp -- 96% Barchart buy signal -- Trading at 23.00 which is 51.92% above its 50 day moving avertage of 19.46 -- 16 new highs and up 45.57% in  the last month -- Relative Strength Index 70.42% and rising

SHS -- Sauer-Danfoss-  96% Barchart buy signal -- Trading at 30.92 which is 65.35% above its 50 day moving average of 23.28 -- 16 new high and up 45.57% in the last month -- Relative Strength Index 82.62% and rising

CALP - Caliper Life Sciences -- 96% Barchart buy signal -- Trading at 5.93 which is 77.54% above its 50 day moving average of 4.35 -- Relative Strength 85.94% and rising

DMC -- Document Security Systems -- 100% Barchaty buy signal -- Trading at 4.78 which is 32.70% above its 50 day moving average of 3.72 -- Relative Strength Index 82.78% and rising

Jim Van Meerten is an advisor to Marketocracy Capital Management who uses his model portfolios not only to manage their mutual funds but also their clients Separately Managed Accounts. You can read his blogs about those model portfolios and investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.

Disclosure: Jim Van Meerten through Marketocracy Capital Management has an interest in the stocks mentioned in this blog.