1.Small Cap Stocks on Longest Winning Streak in 20 Years.

Small company shares on Friday notch their longest winning streak in 20 years on a shortened Black Friday trading session. The Russell 2000 Index rose 0.4% in in the shortened session to book its 15th advance in row. This streak ties a run last seen in February 1996. The longest ever streak, 21, was hit back in 1988.  Investors are betting that President-elect Donald Trump will relax regulations, lower taxes and pump money into infrastructure projects. Such policies should benefit small caps more than there larger brethren.

So far, the Russell 2000 has climbed 12.7% since Election Day, compared with an advance of 3.5% for the S&P 500.  History suggests that long streaks of gains tend to keep going. On the heels of the 1996 streak of gains, the Russell 2000 was 2.2% higher after the first month and 8.4% higher over the next three

Thanks to Dave Lutz at Jones for Chart

Continue reading →

1.  Entering Strong Seasonal Month with Under Allocation to Equities by Most Investors.

www.renmac.com

Continue reading →

Happy Thanksgiving!

1.Earnings Wrap Up….71% of S&P Beats Earnings.

S&P EPS UP 14% Y/Y IN Q3

FINANCIALS, TECH AND STAPLES EXCEEDING STREET ESTIMATES:As of last Friday, 474 of the S&P 500 Index companies have reported Q3 earnings, of which 337 have beaten earnings (71.10%) and 100 have missed (21.10%), albeit on lowered estimates.  Furthermore, 70 out of 108 companies beat on sales.   Thus far, 54 out of the 64 Financials that reported earnings and 54 of the 61 Tech firms that reported earnings have beaten estimates.

Rich Farr, Chief Market Strategist Jim McGovern, Market Strategist info@bluestonecm.com

Continue reading →

1.Risk Happens Fast with ETFs…$546 Million Pulled from EM Bonds in One Week.

Emerging Markets Biggest Outflows Since 2004

Strong dollar will make foreign debt more expensive.

Continue reading →

1.Seven Days Following Election $44.6 Billion Flowed into Equity ETFs…Second Biggest Surge on Record.

Investors were under allocated to equities coming into election.

Continue reading →

1.Rate Rise…Foreign Holdings of U.S. Treasuries Fell 0.7% in September Alone.

Foreign holdings of U.S. Treasury securities fell for a third straight month in September as China and Japan, the two biggest foreign owners of Treasury debt, both trimmed their portfolios – The Treasury Department says total foreign holdings dropped 0.7 percent to $6.15 trillion in September – China, the top foreign holder of Treasury debt, reduced its holdings 2.4 percent to $1.16 trillion in September – It marked the fourth straight month that China has cut back.

Continue reading →