yields declined this week from 1.758% at last Friday's close to 1.639% at yesterday's close. The yield on the 30-year bond declined from 2.955% to 2.825%. This improved equity valuations slightly, but ValuEngine still shows more overvalued sectors than undervalued sectors.
This morning we show that 50.7% of all stocks are undervalued with 49.3% overvalued. Twelve of 16 sectors are overvalued -- utilities by 17.9%, medical by 14.9%, consumer staples by 14.5%, finance by 13.4% and retail-wholesale by 12.9%.
Here are the sectors and industries I covered in my stories this week.
Book Profits on Tech Stocks
The SOX May Provide Another Warning
Don't Bank on Bank Stocks, Just Trade Them
Homebuilders' Valuations Are Extremely Speculative
has been consolidating below the Sept. 21 high at $1790.0, shy of my quarterly risky level at $1805.9.
Nymex Crude Oil
began the week below its 50-day simple moving average at $93.53 and a close today below $94.26 shifts the weekly chart to negative, which would be another sign of QE fatigue as it spreads into the energy sector. The euro versus the dollar stayed above its 200-day simple moving average at 1.2823.
It was a week of no new highs in the equity markets this week so far. The
will remain positive but overbought on their weekly charts while Dow transports still suffers QE Fatigue with a negative weekly chart.
Analysis of the yield on the 10-year Treasury note.
(1.639): The weekly chart for the U.S. Treasury 10-year shifts to neutral on a close today below the five-week modified moving average at 1.697%. My semiannual value level at 1.853% is the high end of the trading range and my semiannual risky level remains at 1.389%.
Analysis of Comex Gold
($1779.8): The weekly chart for gold remains positive but overbought with the five-week modified moving average at $1697.8. My semiannual and annual value levels are $1702.5, $1643.3 and $1575.8 with a quarterly risky level at $1805.8.
Analysis of Nymex Crude Oil
($92.10): The weekly chart for crude oil becomes negative on a close today below the five-week modified moving average at $94.26. My semiannual value level is $76.71 with my annual risky level at $103.58.