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30,000-Foot View of the S&P 500

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Incredibly, 20% of the S&P 500's weight is comprised of 10 stocks, including Apple, Microsoft, and Chevron. Here, a look at these and more.

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MINYANVILLE ORIGINAL We wanted to finish out the week with a 30,000-foot overview of the S&P 500 (INDEXSP:.INX). Currently, we have a Strong Buy, or 5 rating, on the S&P 500. For newer readers, our proprietary algorithm, which we use for the S&P 500 and individual stocks, has been used for the last 13 years to run institutional money.

Our current view on the S&P 500 was reiterated this past Monday. Ever since peaking over two weeks ago, the index has been consolidating within the confines of the proprietary triangle we have designated. Based on our parameters, there are clearly two points on a near term trading basis that are critical in determining the market's next directional move: Key Resistance at 1459.00 and Key Support at 1421.50. For those investors / traders who are currently long, we would suggest remaining within that posture on an intermediate to longer term basis if price action remains above 1421.50. A close above 1459.00 would warrant adding to a long position. A close below 1421.50 and we would liquidate longs and go net short (for those traders who are long and do not wish to see profits erode, you can trade between the two parameters outlined).


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We feel there is little edge in trying to trade the broad market and we only look at individual S&P 500 names. Below is our proprietary heat map with our rating system. For new readers, 1 is a Strong Sell, 2 is a Sell, 3 is a Hold, 4 is a Buy, and 5 is a Strong Buy. This heat map is not based on percentage returns over a specific time like you will find elsewhere. It is displaying the strongest and weakest names within the S&P 500.


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No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
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