NEW YORK (TheStreet) -- The major equity averages surged to new highs Thursday as traders further inflate the QE-induced bubbles in the stock market. The new all-time highs are 15,650.69 Dow industrials, 1707.85 S&P 500, 6686.86 Dow transports and 1060.96 Russell 2000. The Nasdaq traded to a new multi-year high at 3678.50 vs. my new monthly pivot at 3663.
The ValuEngine valuation warning intensified with 77.1% of all stocks overvalued and with 46.3% overvalued by 20% or more. 15 of 16 sectors are overvalued, 14 by double-digit percentages, eight by more than 20%.
A close today above my monthly pivot at 3663 on the Nasdaq indicates upside to monthly and semiannual risky levels at 16,188 and 16,490 Dow industrials, 1742.5 and 1743.5 S&P 500, 3663 and 3759 Nasdaq, 7087 and 7104 Dow transports and 1092.24 and 1089.42 Russell 2000. The % upside shown in the table below is between 2.1% and 6.5%.
My quarterly value levels are 14,288 Dow industrials, 1525.6 S&P 500, 3284 Nasdaq, 5348 Dow transports and 863.05 on the Russell 2000 with My annual value levels lag at 12,696 Dow industrials, 1348.3 S&P 500, 2806 Nasdaq and 809.54 Russell 2000. The % downside risk is shown in the right most column in the table below. Note that the downside is more than 20% for four of the six averages in the table.Today's earnings scorecard covers companies that reported on Tuesday and Wednesday: On July 26 I wrote, Facebook Booms, Merck, Pfizer Earnings Loom and here's how the six performed since then: Aetna (AET) ($63.73) beat EPS estimates by 13 cents earning $1.52 a share. The stock held its 50-day SMA at $62.13 on July 30. My semiannual value level is $60.96 with an annual pivot at $62.77 and a new monthly risky level at $68.49. Cummins (CMI) ($122.94) beat EPS estimates by 23 cents earning $2.20 a share. The stock set a new 2013 high at $123.90 on July 30. My quarterly value level is $100.94 with a new monthly risky level at $131.11. (MRK) ($48.58) beat EPS estimates by 2 cents earning 84 cents a share. The stock moved sideways with my annual value level at $46.99, a quarterly pivot at $47.75 and semiannual risky level at $51.80.
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