Santa Claus Mojo Continues Despite the Cliff
NEW YORK ( TheStreet) -- Today is month end and thus today's closes are inputs to my proprietary analytics. On Monday we will have new weekly and monthly value levels, pivots and risky levels. It appears that stock Mojo should be strong enough to continue the Santa Claus rally that began from the lows of two weeks ago.
Stocks are fundamentally neutral according to www.ValuEngine.com as 60% of all stocks are undervalued, but 11 of 16 sectors are overvalued. The construction sector is the most overvalued by 14.6% followed by the consumer staples sector overvalued by 14.4%. The cheapest sector is multi-sector conglomerates at 6.9% undervalued.
On Monday, I wrote,
On Tuesday, I wrote,
Analysis and Key Levels for U.S. Capital Markets:Analysis of the Yield on the 10-Year Treasury Note (1.622%): The monthly chart shows that the decline in yield is overdone, but with a potential QE4 on the way yields should stay low. The five-month modified moving average is 1.755% with the 120-month simple moving average at 3.647%. The weekly chart continues to favor a trading range between my semiannual value level at 1.853% and my semiannual risky level at 1.389% with the five-week MMA at 1.675% and the 200-week SMA at 2.777%. Analysis of Comex Gold ($1,725.70): The monthly chart remains positive with the five-month MMA at $1,679.7. The weekly chart is neutral with the five-week MMA at $1,725.30. This favors a trading range between my semiannual pivot at $1,702.50 and quarterly risky levels at $1,844.90 and $1881.40. My semiannual and annual value levels are $1,643.30 and $1,575.80.
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