Are Institutions Showing Their Faith In The Economy?

The Seasonal Forecaster newsletter has 13 open stock positions right now: 12 long stock trades and 1 short stock trade. Most were entered in the past two months. Seven are sporting gains of 3% or more.

The majority of open positions fall into two general categories:

1.    Industrials (manufacturers and service providers)

  • Pioneer Natural Resources (PXD), down 2%
  • Ingersoll-Rand (IR), up 2%
  • Crane Co (CR), up 18.5%
  • Rockwell Collins (COL), up 2.2%
  • Haliburton (HAL), up 10.3%
  • Honeywell (HON), up 5%

2.    Consumer (retail)

  • Yum! Brands (YUM), up 3.1%
  • CVS Health (CVS), up 5.1%
  • Coach (COH), up 5.4%
  • Brinker International (EAT), up 11.9%

The fact they fall into two general categories wasn't intentional, but it makes an interesting point. I picked the best trade candidates by considering fundamentals, seasonal patterns, and technical setups. It just happened that the best technical setups fell into these two categories.

Consumer/retail strength can be attributed to seasonal patterns. But the best trade candidates, based on a stock selection strategy that usually identifies institutional participation, generally falling into the manufacturing and retail categories strongly suggests institutional faith in an economy picking up strength.

Yes, Facebook (FB) is up 5.9% since mid-December and Google (GOOG) is up 9%. But Crane, a maker of fluid control systems and composite materials, Haliburton, a supplier of oil drilling services, and Brinker (think Chilis Grill & Bar and Maggianos Little Italy) are up double-digits.

Financials are not the glamour stocks right now. Tech isn't the hot sector. It's the companies that build or help build real things, big things, complicated things. And it's the companies where people, who are feeling better about their situation, treat themselves to something nice.

Of course, there's much more you need to know and many more stocks you can capitalize upon each and every day.  To find out more, please click on the following link: www.markettamer.com/seasonal

By Gregg Harris, MarketTamer Chief Technical Strategist

Copyright (C) 2015 Stock & Options Training LLC

Unless indicated otherwise, at the time of this writing, the author has no positions in any of the above-mentioned securities.

Gregg Harris is the Chief Technical Strategist at MarketTamer.com with extensive experience in the financial sector.

Gregg started out as an Engineer and brings a rigorous thinking to his financial research. Gregg's passion for finance resulted in the creation of a real-time quote system and his work has been featured nationally in publications, such as the Investment Guide magazine.

As an avid researcher, Gregg concentrates on leveraging what institutional and big money players are doing to move the market and create seasonal trend patterns. Using custom research tools, Gregg identifies stocks that are optimal for stock and options traders to exploit these trends and find the tailwinds that can propel stocks to levels that are hidden to the average trader.

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