Daily Market Summary

S&P futures are up 0.58% in morning trading
Crude oil futures are down 1.57%
Gold futures are down 1.44%
Bond Futures are down 0.02%

 

S&P futures are up 12 in morning trading. As we have been stating, we expect to see a run to the 2088 level with a possible push up to 2134. The VIX is getting into a very low area, so I’m struggling to see how far we can go from here. Wall Street climbs a wall of worry though.  We have many stocks now into our State 1, and 70% are in bullish states. The only ones not bullish are banks and brokers. If financials are weak, I’m skeptical for any substatial move higher. The problem possibly,  are we experience irrational exuberance 2.o?

Look at a chart from  www.multpl.com regarding PE Ratio’s

pe chart

It shows the current PE Ratio of 22.74, which is well above the mean PE Ratio for the S&P of 15.58. Remember, companies are guiding lower, so the “E” in PE (earnings) will be lower. If we calculate the S&P earnings at $90.00 and use the mean S&P number of 15.58, we get the S&P down to the 1400 level. Let wait and see.

 

Stocks that entered State 1 yesterday:
WMT            WAL-MART STORES INC
NFLX           NETFLIX COM INC

Stocks that entered State 8 yesterday:
LM                 LEGG MASON INC
MNST             MONSTER BEVERAGE CORPORATION

 

 

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