The Monthly Streak

The S&P 500 Index is on its way to another impressive record.  With November winding down the index is headed for its thirteenth straight monthly advance which would break the longest streak in history: 



Steady. Higher. Relentless.

Hat tip Charlie Bilello

The Lone Man


Key bit: 

“Far away from cameras and fanfare,” Brown saw a “lone man” who he later realized was retired U.S. Marine Corps Gen. James Mattis, who is secretary of defense. At the time, he was surprised to see him at Section 60, but upon reflection, he told IJR, “I can’t imagine anywhere else he’d be on Veterans Day.”

An older man, who donned a hat and sweatshirt with Marine Corps logos and slogans, approached Mattis, shook his hand, and called it an “honor” to meet the general. While the father was moved to see him, he clarified to Mattis, “I know that’s just the kind of man you are.”

Brown explained to IJR that the man had been visiting the grave of his son, who was a Marine and told Mattis his son considered him “his hero.”

The general smiled and said something similar to, “Well, I think your son is one of mine.”

Read the whole thing:


Might be taking a run at 1300 (resistance).  A eventual close above 1300 would be encouraging to the bulls.

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Merck Stabilizing


Merck had a brutal second half of October.  Ahead of a disappointing third quarter earnings report the stock was already on its heels.  The post earnings flush, which began with a huge downside gap on October 27th, sparked a massive breakdown.  One day later MRK had extended the collapse from the September high to nearly 20%.  Since then shares have been stabilizing and are now setting up as a low risk buy.

Earlier this week MRK retested the October lows as downside pressure has eased.  As this area comes into play the stock has returned to a deeply oversold(daily MACD)level.  We believe shares are now setting up for a healthy rebound and are a low risk buy near current levels.  In the near term MRK should be considered a buy near the $55.00 to $54.00 area.  On the downside, a close back below the $53.00 area would indicate a more prolonged basing process is ahead.  

We remain long MRK in some managed accounts.



Johnson & Johnson Continues To Fade


JNJ has been steadily fading for the last four weeks.  The stock was able to extend its powerful   earnings inspired breakout before running out of steam near $144.00.  Since the October 24th peak shares have been in pullback mode.  As this week comes to a close the stock is at new November lows and has retraced nearly all of the post earnings rally.  This soft action will develop into a very low risk entry opportunity for patient investors.

We regard the $37.00 t0 $135.00 area as a major support.  This $2.00 zone includes the stock’s summer highs near the upper band and the September high near the lower band.  Also in this area is the 50 day moving average.  As this area comes into play, which will likely happen next week, JNJ will have erased the entire October 17th earnings inspired breakout.  We believe this A rated stock will attract attention once again here.  On the downside, a close back below $134.00 will indicate more rangebound trade is ahead before a return to rally mode.

At time of publication we are long JNJ in some managed accounts.




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So Earnings Have Been Pretty Good

To say the least.  Just how good? 

Third quarter earnings season is pretty much over and it will be the 23rd consecutive quarter that the final number exceeded the estimate. The highest revisions came from the important tech and financial sectors.

Hat tip Ryan Detrick



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It’s Over

Stat of the day(courtesy of Ryan Detrick):

So yesterday the S&P 500 closed more than 1% away from its all-time high. This came after 54 consecutive days closing within 1% of the all-time high. Where does that incredible streak rank? Second, behind only 84 days in ’64.

Steady. Higher. Relentless.

Hat tip LPL Research


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