Amid Rout In Stocks And Some Signs Of Stability, SPY Short Put

It is a top.  But is this the top? All of a sudden, it is not a crazy question to ask.  The ferocity by which U.S. equities have dropped in recent sessions, one has to wonder if this marks a … Continued

Amidst Signs Of Excesses, Momentum Intact – Watching Shorter-Term Averages For Clues N/T

A P/E of 17x on the S&P 500 large cap index cannot be called euphoric.  A little above average, sure, but not euphoric.  On forward operating earnings using next year’s estimates, that is what the index is currently trading at. … Continued

Downward Revision Trend In S&P 500 Earnings Estimates Intact Despite Improvement In Macro Of Late

posted in: Economy, Equities | 0

Of late, U.S. economic data have been coming in better than expected.  Is this getting translated into better corporate sales and earnings? The Citi Economic Surprise Index has shot up from -80 in the middle of the year to 56. … Continued

Spread Between S&P 500 Dividend Yield And 10-Year Yields Can Potentially Hurt Stocks If Rates Rise Under Proposed Tax Regime

posted in: Equities | 0

The spread between the dividend yield of S&P 500 companies and 10-year Treasury yields has gone negative the last four quarters, albeit not by much.  This could exacerbate if – big IF – the White House’s proposed tax cuts pass … Continued

Amidst Elevated ’18 Estimates, Wide Gap Between GAAP And Non-GAAP

posted in: Economy, Equities | 0

As of last Thursday, a little over four-fifths of S&P 500 companies reported 2Q17 results.  Of the 422 companies, 70.1 percent beat on operating earnings, 20.6 percent missed and 9.2 percent met, as per S&P Dow Jones Indices. In the … Continued

With Handsome Gains YTD, Major U.S. Indices Give Out Signs Of Fatigue

posted in: Economy, Equities, Technicals | 0

Amidst 2Q17 earnings and elevated multiples, some signs of fatigue are showing up on major U.S. indices. As of last Thursday, 2Q17 operating earnings of S&P 500 companies were on course for $30.70.  In the year-ago quarter, they were $25.70 … Continued

1Q17 Revision Trend In Earnings Good – One-Hit Wonder Or To Last Through ’17 and ’18?

posted in: Economy, Equities | 0

As of last Friday, per S&P Dow Jones Indices estimates, 1Q17 sales of S&P 500 companies were $293.82/share.  This amounts to a decline of 2.4 percent quarter-over-quarter, but year-over-year sales were up 7.2 percent.  This was the fastest quarterly growth … Continued

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