Market Outlook- Norman Levine, managing director, Portfolio Management Corp. FOCUS: North American Large Caps

Norman Levine, managing director, Portfolio Management Corp.

FOCUS: North American Large Caps

Market outlook:

We are currently at a time when it is difficult to commit additional money to either the stock or bond markets. In Canada, the market is dominated by resource, materials, and financials. Of those three, the only area where we would commit new money would be the financials, and even there we would be extremely selective. While many investors are tempted to buy oil and mining shares because they are down quite a bit, we think it is far too early and we think those investors will be badly burned if they step in now. There will be a time to buy, it’s just not now. Be wary of brokers peddling new issues in the oil and gas area. Lots of companies are issuing additional shares in order to shore up their balance sheets before prices fall any further. Just because they are selling doesn’t mean you have to buy. As for the U.S. market, near-free money has caused most stocks to become quite overvalued. Regional banks are one of the only areas where we would be committing new money. European stocks are much more attractive but the falling Euro will somewhat limit returns, although the falling Canadian dollar helps to mitigate those currency losses. As far as the bond market goes, we continue to have a historically low commitment to bonds as the interest rates received are extremely paltry. We do have a component, though, as bonds are generally a good foil to equities but we are loath to commit more to that area until interest rates become more attractive. Good quality non-resource dividend paying stocks, especially those with a history of regularly raising their dividends, are a much more attractive alternative at this time.

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Dow and S+P -Ascending Triple Top Breakout

Ascending Triple Top Breakout

An Ascending Triple Top Breakout is basically back-to-back Double Top Breakouts. These breakouts form three X-Columns that ascend with each breakout. Because there are three X-Columns and two O-Columns, the pattern is just as wide as a classic Triple Top Breakout. The ability to forge back-to-back higher highs shows underlying strength that is indicative of an uptrend. As with the other patterns, this Ascending Triple Top Breakout can form as a continuation or reversal pattern.

 See the sample below:

Central Bank Annoucement Rallies Markets

U.S. bond yields fell further after the U.S. central bank signaled a more cautious outlook for U.S. economic growth and slashed its projected interest rate path, in a sign that it remains concerned about the health of the recovery.

Benchmark U.S. 10-year note yields fell to 1.916 percent, from a yield of 2.05 percent before the Fed's announcement. 

U.S. five-year and seven-year note yields hit nearly three week lows of 1.477 percent and 1.797 percent, respectively, following the decision, while 30-year bond yields fell to 2.57 percent, from a yield of 2.61 percent earlier.

On the short end of the yield curve, three-year note yields fell 0.934 percent, its lowest since early February, after the start of Fed Chair Janet Yellen's press conference in the wake of the release.

http://www.cnbc.com/id/102514760#. 

 

 

North American Markets Dropping ....

 

Scams...Wolf of Wall Street Live On Be Careful!

 The Greed Report: Wolf of Wall Street type scams live on

By Scott Cohn | American Greed Special Correspondent

If you think self-proclaimed “Wolf of Wall Street” Jordan Belfort’s pump-and-dump scam is a colorful piece of stock market history that’s been addressed by regulatory reforms, look no further than an order just this week from the Securities and Exchange Commission. It’s proof the practices that made Belfort a legend among crooks are alive and well.

The order suspends trading in 128 so-called penny stocks, also known as microcaps, over-the-counter, or pink sheet securities—the same kinds of stocks that Belfort and his Stratton Oakmont cronies trafficked in. Ostensibly, they are shares of companies that are too small to be listed on a stock exchange. As a result, they are subject to less stringent standards than big corporations. The stocks sell for as little as a few cents a share.

Some penny stocks are legitimate. A small company, say a startup with an innovative product, could decide to sell microcap shares to the public as a way to raise money for expansion. Theoretically, an investor can buy a piece of the action for a small amount of money, and then make a killing if the company takes off. Say you buy 1,000 shares of Company X at 10 cents a share, and the price climbs to $5.00. Your $100 investment is now worth $5,000—a 4,900 percent increase!

Some investors find those kinds of returns hard to resist, which is exactly what scam artists are still counting on 20 years after Jordan Belfort’s penny stock scam came to an end.

Because microcap companies issue such a small number of shares, a crooked brokerage can accumulate enough to manipulate them Belfort-style—hyping the stock to unsuspecting investors in order to pump up the price, then dumping the rest until the stock becomes worthless and the investors who bought during the run-up are wiped out.

The new SEC order targets dozens of companies in 24 states and Canada that officials say could be fodder for future pump-and-dump schemes. All the stocks have legitimate-sounding names. They even have ticker symbols like their big-stock brethren. But the agency says these companies are essentially zombie stocks—dormant firms that a modern-day Belfort could seize, pump and dump.

Read Full Article At This Link

American  Greed Belfort Update Videos At This Link