2016-07-10
From my Friday morning June 24 blog, where I opined that the rapidly falling Dow Industrials Average would stabilize at just over 17,000, which it did to the surprise of most money managers and traders, through Friday July 7, two weeks later, the Dow has lifted over +1,000 points.
How did this +6% gain happen in just nine trading sessions? I said it all on June 24:
BREXIT may be over-turned or at the least stalled by counter-forces in the legal and political arena. I expect that process to begin to calm fears. However, the reality is that decision-making uncertainty will serve as another deflation/recession driver, which will cause all central banks to do precisely what I have been expecting. Basically worthless money printing and credit expansion will serve to stave a global economic collapse but mostly cause the prices of (most) equities and gold to soar. Coming soon. These are historic times. Remember, the market is a game that plays people, and there are seldom times like this where the powers that be are in full-out spinning mode. Don’t get played.
The sellers got played!
This week, there will be many important corporate news releases, including for many US airlines, an industry I presently like because there are many Value companies in the list.
In particular, Delta [DAL] and JetBlue [JBLU] are my highest Value rated and are in my Cara 100 US listed companies. Virgin America and Spirit are also highly rated.
The airlines to report this week are:
07-11 United Continental
07-11 Spirit Air
07-11 Virgin America
07-12 American Air
07-12 Copa
07-13 JetBlue [Cara 100]
07-14 Delta [Cara 100]
The full list of reporting companies on my list to watch:
News releases week of Jul 11
As per my Daily Lesson #10, which I published today (July 10) on the subject of Value companies, this is the time in the market cycle, i.e., when Growth company stocks are over-priced, that you need to look for Value.
I’m finding Value all over the world. Apart from the Goldminers, I like the Auto industry generally and many Oil company stocks as well as the Airlines. It’s time to do your homework because, like it or not, the equity market is going higher. Chasing Growth company stocks higher though makes no sense, but market risk in the Value segment is acceptable, I believe.
Have a great week.
/Bill
