Overheard On The Street
Here’s what they’re saying at mid-day:
Paul Desmond, President, Lowrey’s
Research: “Higher prices should still be ahead. We have maintained a
bullish outlook since July 14th, when our Intermediate Trend buy-signal was
registered. And, a second buy signal was recorded on August 17th. Although no
further buy signals were registered last week, the outlook for the weeks and
months ahead remains positive, at least for carefully chosen portfolios.
“There was some improvement in market breadth last week, primarily in
the interest-sensitive stocks. The number of stocks at new 52-week highs is also
at very nominal levels. Also, only about 60% of stocks are above their 30-day
moving averages. All of these indicators show that the primary trend is
positive, but selectivity is the key to profits.”
Brian Belski, Fundamental Market
Strategist, U.S. Bancorp/Piper Jaffray: “Is this recent rally too good to
be true? When the number of doubters and cynics are decreasing, it’s hardly ever
good. The arguably near self-fulfilling prophecy that a fourth quarter rally
will happen has all of a sudden brought the major stock market indices either to
or within an eyelash of new highs.
“While our fourth quarter outlook mirrors the herd’s opinion, we believe
that much of the recent rally has been reactive to near-term news events without
much talk of their macro consequences. For instance, too much of an economic
slowdown could hurt corporate profits if productivity wanes. Therefore, we are
advising a strategy of owning quality leaders within individual spaces, groups,
and sectors over the near term, especially given the near term complacent
attitude about rising index prices.”
Paul Rabbitt, President,
RabbittAnalytics.com: “Stocks have risen substantially from the July lows
and are susceptible to any scenario considered less than ideal. Investor
sentiment has grown to the most optimistic level since the first of this year,
which suggests a contrarian sell signal. Additionally, investors have rightly
concluded the Fed is done raising rates.”