Financial Planners Fort Myers— Leadership Technology Stocks Breaking Down

Today marks the first day in a long time that you are seeing the NASDAQ under pressure with the overall market advancing to the upside.  Usually when stocks that have been the clear leaders of an exchange/index for weeks/months finally start to break certain moving averages on a pick up in volume it can mean more downside is not far off.

Be careful out there and be sure to contact your financial professional with any questions or concerns.

Past performance is no guarantee of future results. 

The NASDAQ is an unmanaged index.  Investors cannot invest directly in an index.

Eric Marvin, CFP®, CRPC®

JPT041612-671

Financial Planners Fort Myers— End of 1st Quarter

Today marks the end of the 1^st Quarter of trading for 2012.  The markets have seemingly been in rally mode for the past four months and to this day have not shown any clear signs of breaking down and reversing course.  The media has been hooting and hollering that the short-term top is here and that investors should been running for the exits.  Well, the stock market generally does not rise or fall when everyone expects it to do so.  For this reason, please try and block out the noise of the media who are paid to create stories and spin information around.  If there’s a change in your situation, you’ll want to consult with your financial advisor, but otherwise it’s generally a good idea to stick with your plan.

To quote Jessie Livermore-- (Famous Investor)

“They say you never go broke taking profits.  No you don’t.  But neither do you grow rich taking a four-point profit in a bull market.”

Past performance is no guarantee of future results. 

Eric Marvin, CFP®, CRPC®

JPT033012-553

Financial Planners Fort Myers— Bank Rally

Yesterday was another Fed Day for 2012 and the global markets got off to a good start with anticipation of what Ben Bernanke might say come mid-afternoon.  Well, after the markets digested the Fed news we actually started trending lower up until Jamie Dimon the CEO of J.P. Morgan made the announcement of a dividend hike and a stock buyback plan.  Almost immediately the major banks all started to rally on the news in anticipation that there would be more dividend increases and stock buybacks among other firms.  In fact, some have speculated that because J.P. Morgan came out with their news early that it caused all of the stress tests to be released ahead of schedule.  Meanwhile, the S&P 500 is at new highs and is looking to break past the critical level of 1400.  Only time will tell if it can break through or prove to be a  resistance level.

Past performance is no guarantee of future results. 

The S&P 500 is an unmanaged index.  Investors cannot invest directly in an index.

Eric Marvin, CFP®, CRPC®

JPT031412-423

Financial Planners Fort Myers— Uptrend Continues

The uptrend in the markets have resumed higher after some fairly heavy selling during Tuesday’s session.  As I have been saying for quite some time now, one cannot assume the uptrend is over until several factors begin to change.  These include looking at things such as moving averages, support levels, volume, breadth, etc.  As I write this we are waiting for news out of Greece to hopefully move one step closer to turning the corner in the European Sovereign Debt Crisis.  Only time will tell what will happen in Europe, but betting against the uptrend without a significant change in the factors mentioned above may prove to be costly.

Past performance is no guarantee of future results. 

The S&P 500 is an unmanaged index.  Investors cannot invest directly in an index.

Eric Marvin, CFP®, CRPC®

JPT030812-367

Financial Planners Fort Myers— Don’t Expect a Correction When Everyone Expects a Correction!

If you have been a bear on stocks for 2012 your year has probably been filled with lots of anxiety and nervousness about the continued increase in the global financial markets.  Now that we are approaching multi-year highs in the S&P 500 everyone is coming out of the woodwork to call a top and alert everyone to plan for a correction.  History often reminds us that when everyone starts to expect a sell-off to happen it often never materializes. 

It is important to remember that the markets can remain irrational for longer than most can remain solvent.  The moral of the story is that it is very difficult to try and time the top of any market, let alone one that continues to slowly move higher along the way.  This type of market never really shows characteristics of being overbought, thus making it extremely difficult to time.

Past performance is no guarantee of future results. 

The S&P 500 is an unmanaged index.  Investors cannot invest directly in an index.

Eric Marvin, CFP®, CRPC®

JPT030212-342

Financial Planners Fort Myers— Volume Trying to Tell us Something?

Over the course of the last several days on the major exchanges across the world there has been a significant decrease in overall volume.  This can mean several different things in general, but the fact that we are seeing lower volume while still making new highs is a bit concerning.  Are bullish investors getting tired?  Is it finally time for a pullback?

These are questions that will answer themselves over the course of the next day, weeks, or months as we head into Spring.

Past performance is no guarantee of future results. 

                              

Eric Marvin, CFP®, CRPC®

JPT022712-325

Financial Planners Fort Myers— Back to Headline Risk

Over the course of the last week our global financial system has gone back to trading on rumors and headlines that were so prevalent last year.  For a period of about three or four months we got back to focusing on fundamentals, economic reports, and earnings as to try and deviate ourselves from all of the “noise” in the marketplace.  Well, once things started heating up again for Greece the markets once again only want to focus on the latest rumor or headline.

As we approach the potential new highs in the S&P 500 that were set last April it is imperative that investors begin to expect at least some kind of pullback in the not too distant future.

The S&P 500 is an unmanaged index.  Investors cannot invest directly in an index.

Past performance is no guarantee of future results. 

Eric Marvin, CFP®, CRPC®

JPT021712-293

Financial Planners Fort Myers— Greece votes for Austerity

Over the weekend, Greece voted to implement even more painful austerity measures in order to receive another round of cash.  These measures are essential in order for them to make a bond payment coming up in March.  So far today, the markets appear to be cheering the news out of Europe, but only time will tell how long the euphoria will last.  Since the beginning of the year, the stock market has been in rally mode with stocks significantly outperforming other asset classes, but as we all know things can’t continue to go up in a straight line forever.

Past performance is no guarantee of future results. 

Eric Marvin, CFP®, CRPC®

JPT021312-277

Financial Planners Fort Myers— Consolidation

Over the last several days with the exception of yesterday the stock market has been in consolidation mode.  The moves lower have all been fairly contained in terms of percentage losses and have allowed the market to pull farther apart from the 200 Day Moving Average on the S&P 500.  Another thing to keep in mind is the lack of reaction to the macro headlines around the globe.  Six months ago, the market would have moved dramatically in either direction on the slightest news report.  However, today the market seems to be shrugging these events off.

Past performance is no guarantee of future results.  The S&P 500 is an unmanaged index.  Investors cannot invest directly in an index.

Eric Marvin, CFP®, CRPC®

JPT020212-224

Eric Marvin, CFP®— Turnaround Tuesday?

If the S&P 500 closes lower again today it will mark four straight down finishes for the index.  This news may take a backseat to the fact that today is the last day of January and should mark a great start to the New Year.  In fact, we may not even get four straight negative closes as today could be a possible “Turnaround Tuesday.”  According to market statisticians, Tuesday has one of the highest percentages for a possible market turnaround if the last three prior closes in the S&P 500 have all finished lower.  We will have to wait and see if this does in fact play itself out today.

Past performance is no guarantee of future results.  The S&P 500 is an unmanaged index.  Investors cannot invest directly in an index.

Eric Marvin, CFP®, CRPC®

JPT013112-194