It was a tough week across the board for stock markets around the globe.
The Dow Jones was down 2.87%, the S&P 500 fell 2.77% and the NASDAQ tumbled 2.58%. The MCSI Emerging Markets Index broke its winning streak, ending the week down 4.27%.
Not surprisingly, your Bull Market Alert portfolio also endured losses across the board, although none of your positions hit their stops.
Perhaps surprisingly, three positions — the ProShares Ultra Nasdaq Biotechnology ETF (BIB), Palo Alto Networks, Inc. (PANW) and HDFC Bank Ltd. (HDB) — all hit 52-week highs before pulling back.
The Rubicon Project, Inc. (RUBI) fell below its 50-day moving average and moved to a HOLD.
It has been a tough start to 2015 for U.S. stock markets, with all of the major U.S. stock indexes posting losses for the month. The S&P 500 was down 3.1% for the month of January — its biggest monthly slide in a year.
The market has been stuck in choppy, range-bound trade since late November. In the two months since then, neither the bulls nor the bears have come out on top. And a choppy, indecisive market is exceptionally difficult to play.
The U.S. stock market has also exhibited volatility we haven’t seen in a long time. The Dow Jones moved by at least triple-digit points 13 times out of the total of 19 trading days in 2015.
This week, the combination of softer U.S. gross domestic product (GDP) data, signs of continued slowdown in China and the new radical left-wing Greek government’s collision course with the rest of Europe continues to weigh on investor sentiment.
That’s why I am holding off on making a new Bull Market Alert recommendation until the market provides a better sense of direction. I’ll be back with a new recommendation next week.
Finally, I hope to see many of you at the World Money Show in Orlando this coming week at the Gaylord Palm Resort & Convention Center. To register for free admission to the investment conference, click here or call 1-800-970-4355 and mention you are my subscriber. Use priority code 038045.
Portfolio Update
WisdomTree Japan Hedged Equity ETF (DXJ) remained flat last week, despite a very tough week for the broader markets. The European Central Bank’s (ECB) recent unveiling of a $1.11 trillion quantitative-easing package was very good for Asian markets, pushing large inflows into regional funds. This situation also pushed DXJ back up to its 200-day moving average (MA), providing a solid base for future upward movement. DXJ is a HOLD.
Euronet Worldwide (EEFT) was down 10.86%, falling in tandem with the exceptionally hard-hit Dow Jones and S&P 500 indexes. The four analysts providing coverage on EEFT all have a recommendation of “Strong Buy” in place. EEFT will report earnings on Feb. 11, before markets open. The analysts’ consensus estimate is $0.67 earnings per share (EPS). EEFT is a HOLD.
Palo Alto Networks, Inc. (PANW) closed the week flat but managed to hit a new 52-week high earlier in the week. This bet on the ever-growing need for better online security has been trading sideways over recent weeks, despite significant negative market pressure to the downside. PANW remains above the 50-day MA, the 50-day MA remains in a positive uptrend and PANW remains a BUY.
The Rubicon Project, Inc. (RUBI) fell 6.71%. Despite closing out a tough week, RUBI was once again recognized as one of the top global platforms on Pixalate’s Global Seller Trust Index for its high-quality marketplace and superior network of seller domains. Quantcast also ranked the Rubicon Project number one for the largest worldwide reach of any advertising platform, noting an audience of more than 500 million people (approximately 20% of the world’s online population). RUBI slipped below its 50-day moving average and to a HOLD last week.
MasterCard (MA) lost 2.80%. MasterCard reported earnings last Friday, beating analysts’ expectations, with profits jumping 29% on higher purchase volume and revenue. Earnings per share (EPS) came in at $0.69 and revenue rose 14% to $2.42 billion. Forecasts called for $0.67 EPS on $2.39 billion in revenue. MA is a HOLD.
HDFC Bank Ltd. (HDB) gave back 6.74% for its first week in the Bull Market Alert portfolio. Although it hit a new 52-week high earlier in the week, HDB could not escape the broad sell-off in the markets on Friday. Nevertheless, HDB has several positive catalysts, which should push it higher once this recent pullback ends. HDB is a BUY.
Latest Special Report
As a courtesy, I want to bring to your attention the newest version of The Top 12 Stocks for 2015, which features three of my top investment recommendations, as well as bonus picks from each of my fellow investment newsletter editors at Eagle. This report and others are available FREE on my website to you.
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