This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

QE Fatigue Spreads from Transports to Semiconductors

Stocks in this article: FDX NSC SOX CAT

U.S. Treasury 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.

Sept. 24: Book Profits on Tech Stocks

Sept. 25: The SOX May Provide Another Warning

Sept. 26: Don't Bank on Bank Stocks, Just Trade Them

Sept. 27: Homebuilders' Valuations Are Extremely Speculative

This week Comex Gold 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 Dow industrials, S&P 500, the Nasdaq and Russell 2000 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.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs