Thread: S Fund

Profits at S&P 500 companies will grow about 10% in the fourth quarter. That would be modest compared with about 20% growth in the third quarter but enough to extend a record streak of double-digit growth to 18 quarters.

This year's simultaneous rallies in both big-cap and small cap indexes suggest that much of the money being used to buy stocks lately is cash that had been sitting on the sidelines, rather than money rotating from investment in one sector to another. With all the new money coming into the market, there's room for chunks of it to go to different strategies at once. People are willing to take these risky gambles in small-cap stocks. But they're also looking for safer, dividend-paying large caps. Keep an eye on falling housing prices. Financial companies, including many regional banks, which make up a third of the indexes may see big declines in fourth quarter profits. Money will eventual rotate out of small caps IMHO.

Originally Posted by vectorman

The one thing I've learned from watching those talking heads on CNBC is that they tell you what is going on after the fact. They are the ones who have bought international stock back in the middle of June. Now that its up big they want the amateur investor to run to internationals and push then alittle higher while at the same time the big boys are selling and buying small caps. In about two months you'll hear how great small caps are and that is the place to be, after the fact.

I posted this 8/18/06, well its been alittle more than two months, but after this nice climb in small caps, I'm now hearing the talking heads say buy small caps because December is a good month to be in small caps. Yesterday I had a co-worker who usually doesn't follow the market tell me to go 100% S fund. I also notice you don't hear the correction word as much as before. Now its just, " we are looking for a 3-4% pullback, and then higher." MMMMMMMM .

... if S closes in the 18.55 range (I think dwcp already hit the support line on the intraday charts when it was around -.80'ish), today or monday will prove good support buys on a support line that gave good buys on 11/2 and 10/3. ^VIX is also very close to screming "buy now!"

Nice day for the S fund!!!!

Originally Posted by Robo5555

Nice day for the S fund!!!!

No kidden Milk is probably grinnen from ear to ear.

Originally Posted by mayday

No kidden Milk is probably grinnen from ear to ear.

Just got lucky.

Moving into a seasonally good if not exceptional period for the S Fund re January effect.

Luck to All.

Dell

Hey Dell,

I just turned the page in my STA and.........small cap, January effect. Move over, I think I will join ya in a bit.

... if the s fund closes anywhere near 19.01 or +.36% it's topped out too in the short term. Anything north of that establishes a new trend. The trend lines are so steep though, that just one day of small movement extends that resistance line upward, probably somewhere 19.10 for tomorrow. I wish I had the cahones of pointman, will probably get defensive with the g-penny.

You'll be missed, but don't feel sad two out of three ain't bad.

... the VIX has me a little befuddled, thought it would be red this AM. A bull I may be.