It was a flat week for mainstream U.S. stock indexes with both the Dow Jones and the S&P 500 ending the week only slightly in the black. NASDAQ, however, rose 1.71%, and MCSI Emerging Markets Index recovered 0.71%.
Big gainers in your Bull Market Alert portfolio included Bank of Ireland (IRE), soaring 8.39%, and last week’s recommendation, the ProShares Ultra Russell 2000 (UWM), up 3.16%. Google Inc. (GOOG) also ended the week 2.68% higher. Trina Solar Limited (TSL) continues to exhibit remarkably high volatility and moved back to a HOLD.
With quick 46.15% and 36.80% gains in the Bank of Ireland (IRE) April $15 call options and ProShares Ultra Russell 2000 (UWM) January $80 call options I recommended last week, I am recommending that you book all of your profits in each of these positions.
With the U.S. market up six consecutive sessions, the market is now technically overbought and most market sentiment indicators portend a pull back.
Here is a quick summary chart of current sentiment indicators from sentimentrader.com.
Overall, the market has been remarkably robust, and those who bet against it this year have been burned badly. I found it interesting — and perhaps even ominous — that some of the market’s “permabears” are throwing in the towel and are conceding that the market will continue to march higher — though for all of the wrong reasons.
I’ll be back with a new Bull Market Alert recommendation next week.
Portfolio Update
Bank of Ireland (IRE) jumped 8.39% last week. IRE had been trading sideways and consolidating gains for several weeks now. This type of action builds the pressure that propels a stock to its next sustained move. The catalyst for this week’s jump was Standard & Poor’s reaffirmation of Ireland’s “BB+/B” rating and “Stable” outlook. This announcement follows on the heels of recent positive ratings announcements by Fitch and Moody’s. IRE is a BUY.
Google Inc. (GOOG) rose 2.68% last week as it attempts to break upwards from its own sideways trading pattern. Google’s most recent effort takes aim at Apple’s “Siri” voice-command function. Google unveiled the latest beta version of its “Voice Search” feature recently, introducing “Hotword” functionality. This feature gives PC users the ability to simply speak the phrase “OK Google” to their Chrome Web browser, awakening the Voice Search feature, and then speak their search query in natural language. This is much like the latest “always listening” technology found on Motorola’s Moto X mobile phone. This technology will likely become a part of Google’s Android 4.4 (“Kit Kat”) operating system, bringing its groundbreaking voice recognition and results accuracy to the next generation of Google’s smartphones. GOOG is a BUY.
AutoNation (AN) closed the holiday week perfectly flat. AutoNation is the largest auto retailer in America and has 266 “brick-and-mortar” dealerships in addition to its powerful Web site. One aspect that differentiates AutoNation from most other retailers is AN’s Web-based auto sales listings, which include every vehicle in its inventory. This gives AN the ability to “show” its entire inventory to all potential customers, all the time, giving the company a considerable edge over most competitors. AN is a HOLD.
iShares MSCI Spain Capped Index (EWP) rose 1.65% over the holiday-shortened trading week and continued its rise from the 50-day moving average. Spain recently announced regulatory approval to give its banks a 30 billion euro capital infusion. This will serve to buoy Spain’s banks while the economic recovery gains steam. EWP is a BUY.
Trina Solar Limited (TSL) fell 12.00% last week. Trina Solar announced a new $45 million joint venture last Friday with the Yabang Investment Group. This venture will bring its solar-module production capacity to 500 megawatts over the next year. TSL is a HOLD.
Stratasys (SSYS) added 0.68%. In an effort to bring greater awareness of 3D-printing to the masses, Stratasys’ subsidiary MakerBot will provide Saks Fifth Avenue holiday shoppers with beautiful 3D-printed snowflakes. Although a great promotional idea, placing items produced with 3D-printed technology into the hands of the public is perhaps the best way to show off what people will be able to produce in their own homes eventually. SSYS is a BUY.
db X-trackers Harvest China ETF (ASHR) rose 1.73% last week. The HSBC Purchasing Managers Index (PMI) came out on Sunday, reflecting continued strength and expansion in China’s manufacturing sectors. ASHR is a BUY.
ProShares Ultra Russell2000 (UWM) had a bullish first week in your portfolio, rising 3.16%. UWM adds considerable bullish boost to your portfolio through its “2x” returns on the super-charged small cap sector. UWM is up 67% year-to-date and boasts a 24% five-year average return. UWM is a BUY.
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