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Below is a free market analysis that you can get everyday.
JW
abprosys@xxxxxxx <mailto:abprosys@xxxxxxx>
Audio version of this email at http://www.abslive.com/brs.ram
Audio market summary at http://www.abslive.com/abslive.ram
--------======== BRS CALLS ========---------
S&P 500 BBBBB
30-Year Bond B
Hitech BBBB
Banks BBBBB
Financials BBBBB
Food S
Consumers F
Drugs SS
Retail BBBB
Transports F
Industrial Materials S
Manufacturing S
Energy SSSSS
Phones SSSS
Utilities SSSS
YELLOW BBBBB
SILVER BBBB
RED BBBBB
GREEN BBBBB
Buy/Sell/Flat - explanation below
Commentary: If you bought risk and sold safety last Thursday or Friday or
Monday, you are probably feeling good right now. The BRS model said stay
long the risky names and they outperformed markedly after the Fed lowered
rates at 3:15 today. But it's been so much easier to worry about negative
surprises than positive ones over the last two months. Everyone thought the
Fed would wait. Because? Because a surprise cut (like we saw today) would
indicate that the Fed was even more trepidatious than we thought. Maybe it's
linked to a Brazil bail-out. Maybe the hedge funds are finished liquidating.
For sure, lots of people who went out of business over the last few days
would have survived if they had been able to hang in there. I am thinking of
these leveraged fixed income guys who had to sell-out to their lenders at
firesale prices. Brokers win: Hedge funds lose. Rough justice.
How big was the swing? Intraday not that big because what worked best after
3:15 was doing well earlier in the day. But clearly banks and financials
captured the lion's share of the late rally while the slowpoke safe
utilities, foods, phones and oils couldn't keep up. Since last Thursday the
long-short Yellow portfolio is up 25%...that's massive. The Red portfolio
has jumped 16% in a week. It's tough catching the turning points but once
they turn this factor stuff is very trendy. Too far too fast? Sure but don't
forget how bad it's been for the brokers and banks. Now they have a friend
in Washington.
Question: Do you think Greenspan and the Fed did this to reward the
Republican Congress for the IMF funding or to help Bill Clinton help the
non-isolationist Democrats or because things really are worse than they
seem? What's your theory? No fair watching talking heads on
CNBC......probably no help either.
Comments? Send them along.....if you know someone who would like these
emails..let us know.
B = Buy - Bullish
For S&P and Bonds a long signal..for sectors long the sector while short the
S&P..
for Hedged Colors long High Risk names and short Low Risk names
S = Sell - Bearish
For S&P and Bonds a short signal..for sectors long the S&P while short the
sector..
for Hedged Colors long Low Risk names and short High Risk names
F = Flat - Neutral
each letter indicates approximately how many days bullish, bearish or flat
Red - High Beta vs Low Beta typically techs vs utilities, phones ,consumers
Yellow - Yield Curve Proxy - Banks and Brokers vs Phones and Utilities
Green - Industrial Cyclicals such as papers, metals, mfgrs. vs
Economy-insensitive names such as consumers, phones and drugs
Silver - Growth eg drugs and techs vs Value eg energy, industrials and
banks.
If you are an institutional investor who would like more detailed intraday
analysis, please contact us directly about soft dollar arrangements.
This email is not a recommendation to buy or sell securities but solely to
inform its recipients. The opinions expressed are not necessarily those of
Dynamic Imaging Systems Corp.
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