Optimism

Last week I noted with optimism that my guess was: “the bull market resumes shortly” …So far so good as IBD notes:

For the week, the Nasdaq added 2.2%; the S&P 500, 1.6%; and the Dow, 1.5%. The S&P 600 rose 3.2%

They also point out that July has launched decent rallies in the past.

What did I see in my weekend review?

The 10-yr Treasury yield is really climbing now at 2.71

IBD (Investor Business Daily) still has: Market in Correction.

Copernicus Systems has switched to: Long, but still mixed IMHO.

Moneys Flows:  All three still pointed own…all still in positive territory.

Currently my "Stocks for a Trade" now consists of:

YHOO   -.38%

ETF’s for a trade are:

QQQ -1.79% 

XLF -.07% 

IBB +3.93%.

SPY -1.96%

What will I do?

This week I did reload some VXX. My confidence in picking up small gains with this index is gaining. It seems to work adequately with market orders. This also seems to offer some insurance and helps to brighten those down days by being available to turn some profits.

The holdings for a trade are still mostly red, but IBB is now positive and hopefully the laggards will have their day soon. The rapidly rising interest rates should mean the banks will be able to earn more and this in turn should boost XLF

I am comfortable with the current holdings for trades, but XLY and PCLN still deserve that closer look.

I am overdue for a complete review of dividend payers and  hope to comment on this in the next few weeks. I have done a preliminary review of 5 year price gain for this group and I see that the following have been outstanding: GWW, KSU, SJM, CHD, LEG, LOW and WAG.

  

The method used is to look for:

•    Profitable US companies (positive EPS)
•   Consistently pay a dividend
•   Consistently grow the dividend over time
•  Have a great 5 year dividend growth rate
•  Outperform the S &P 500 over a 1 year or 5 year span….or have an outstanding dividend

I hope you have a great week.