logo  
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

When to Capitalize on Capitol Hill

By  +Follow October 4, 2013 1:24PM
Share:
Tickers Mentioned:

With the political wrangling going on in the nation's capitol, Wall Street is once again stuck under a cloud of uncertainty as to the direction of the economy. But even considering what is at stake, the markets have held up relatively well since the shutdown took effect. We asked Toni Turner of TrendStar Trading Group on why and how traders and investors have managed to keep their cool thus far. 

Q: Were you surprised how well the market has held up for the most part after government the shutdown?

Turner: The markets have held up well, considering the stalement in D.C. We have to remember that this is the 18th shutdown since 1977, and differences—for better or worse—have always been worked out. As the famous Winston Churchill quote goes, “The Americans will always do the right thing … after they’ve exhausted all the alternatives.”

That said, the market is skeptical now, if not panicked. Most investors expect the powers-that-be on Capitol Hill to come to an agreement that will reopen the government and keep the federal government rising up to the debt ceiling. Still, it may be an emotional journey to the resolution destination. As such, I’m remaining on the sidelines here, executing only intraday trades. I am not adding core positions right now, because I want to be more convinced this environment offers high-quality buying opportunities. .

EQ: Based on how stocks are treading water right now, is the market positioned to pop on any surprise resolutions? Or is the risk of the effects of a prolonged shutdown greater?

Turner: If we get a resolution in Washington within the next few days, I do believe the market will pop and I believe that because at the moment the Russell 2000, which can lead as a leading indicator for the broader market, is still side-stepping along its all-time highs and has mostly ignored the events going on around it. Now, that may change, but that is what it is doing at this moment in time.

Should the iShares Russell 2000 Index ($IWM) break $104, which is where the 50-day moving average is, then I will pay more attention. So far, the iShares Transportation Average ETF ($IYT) is also holding up very nicely above its 50-day moving average. Even though the market sold off a little more toward the end of the day Thursday, the VIX came off of its highs above 18, so it does show that the market is not yet willing to fall dramatically, which tells me that it’s stronger and more resilient than we think.

EQ: Earnings season kicks off next week. What are some trends or developments that you’re monitoring?

Turner: I’ve been watching price-to-earnings ratios climb for the last two quarters, so for the third quarter, I’m really anxious to see if earnings can catchup with price for the fourth quarter. Typically, the fourth quarter can be one of the best of the year. If interest rates begin to rise—and they have—then I’m interested to see how that will have affected earnings.

EQ: Any sectors or industry groups that have caught your attention right now?

Turner: I like the iShares U.S. Healthcare Providers ETF ($IHF). Healthcare providers are going to be getting more customers by virtue of the Affordable Care Act, and there’s nothing like getting more new customers to help a business grow. For that reason, I’m watching the IHF here. Despite the market’s misery the last three or four days, the IHF has been climbing. If it can remain above the $86-$87 level, then perhaps it keeps going higher. Readers can go to iShares.com and check out the holdings in the IHF and see if there are any names there they’re interested in. The one I’m watching right now is Molina Healthcare, Inc. (MOH) , because it is big Medicaid provider, which will be expanded under the ACA.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


Liked What You Read? Join Equities.com and Connect With Your Favorite Financial Experts FOR FREE! Members of Equities.com gain access to our leading financial news and content, active social investment community, proprietary research tools including the 2014 Small-Cap Stars, E.V.A. reports and more.

Results for iwm
FXY_Fractalerts
28 Feb 15 16:31:58
New $IWM alerts have recently been posted. Check them out now. http://t.co/1UV0YlUZGZ
Fractalert
28 Feb 15 16:31:46
New $IWM alerts have recently been posted. Check them out now. http://t.co/2sWy1Vpi1g
Trading Fractals
28 Feb 15 16:31:39
New $IWM alerts have recently been posted. Check them out now. http://t.co/rYwysbOt4p
Rosner Stocks
28 Feb 15 16:31:11
$SBUX Financials Updated Saturday, February 28, 2015 7:25:17 PM $EFA $IWM $GPRO $CAT http://t.co/vB0shMQpVY
Investors Hangout
28 Feb 15 16:23:16
Stocks Trending Now: http://t.co/ge4HpD1s7y $INTC $C $IWM $HRB $RIG $OCAT $ASTI $EXK $CAT $XLI $VXX $BND ~
Matrix Markets $
28 Feb 15 16:08:17
S&P 500 Ends Week -0.5% Below All-Time High Week -0.3% YTD +2.5% http://t.co/3xE8vpPlJd $SPY $IWM $SMH $IBB $AAPL http://t.co/AZPsgiYYGO
Stock Forums
28 Feb 15 15:49:28
Stocks Trending Now: http://t.co/gLXIssORW9 $XFN.TO $FBIOX $XLB $IWM $DNKN $BBRY $FNMA $RIG $SMN $LVPIX $QCOM $MYEC ~
Jonathan Glaubach
28 Feb 15 15:36:21
RT @hedgopia: $VIX way cheaper than $VXV. Yellow flag is out. Time 2 at least dust off shorting cap. $SPX $SPY $NDX $QQQ $RUT $IWM http://t…
Clayton R.
28 Feb 15 15:25:12
Stock options chatroom HERE $FTNT $LVS $JNUG $JBLU $IWM $DUST $VRTX $NOW http://t.co/G03lRs6t4J #trading
ZOZO
28 Feb 15 15:17:31
$IWM 60 min chart lined http://t.co/HxEF8z5BjZ
Erick McClendon
28 Feb 15 15:14:37
RT @MarketParse: @Aggie_E $IWM Your tweet has been featured on Market Parse, for iPhone. http://t.co/YHInvBCk4m
TalkMarkets
28 Feb 15 15:13:31
Have The Breakouts Failed? Video $NYA $SPY $TLT $XLE $IWM $INDU $JNK $HEDJ $UUP $FEZ $AGG http://t.co/7h13bED0D0
ZOZO
28 Feb 15 15:13:04
$IWM 30 min chart below the 65 sma 8 ema 34 ema lined some possible support spots http://t.co/fxcWb246s3
ZOZO
28 Feb 15 15:12:06
$IWM 10 min chart with pivots http://t.co/3r6EjZIszr
Adam
28 Feb 15 15:09:46
RT @etfguide: Q&A: How Many ETFs Do You Need for a Well-Rounded Portfolio? http://t.co/fUu4NmPBOA $GSG $QQQ $DIA $IWM $BOND
David
28 Feb 15 14:38:13
RT @alphatrends: VIDEO http://t.co/tSFOpNMro9 Stk Mkt Analysis $SPY $AAPL $IWM $XLF $SMH $GPRO $BABA $AMGN $IBB $CELG $LVLT $BIDU $TSLA
Options Trader
28 Feb 15 14:24:25
Buffett: don't expect another 50 years of outperformance at Berkshire: NEW YORK (Reuters) - In ... http://t.co/sy9WVPZF5n $SPY $QQQ $IWM
Inside Stock Alerts
28 Feb 15 14:24:24
Buffett: don't expect another 50 years of outperformance at Berkshire: NEW YORK (Reuters) - In ... http://t.co/naNWsWrKcC $SPY $QQQ $IWM
Investors Hangout
28 Feb 15 14:23:16
Stocks Trending Now: http://t.co/48sklYjpAJ $INCC $SOXL $ONVO $EBAY $UVXY $NEM $PG $EGRX $KMI $DNKN $OKE $IWM ~
Michael Samhan
28 Feb 15 13:44:17
03-01-15 Trade Plan http://t.co/LEnsszmzkF $QQQ $IWM $AAPL $AKAM $AMAT $FB $FSLR $GOOG $V $BMY $BIIB $CELG
Caccone
28 Feb 15 13:42:51
RT @NorthmanTrader: Weekend Charts: Much Ado About Nothing http://t.co/SpPxX9FXR0 $SPX $NDX $AAPL $RUT $IWM $VXX $DJIA http://t.co/1UU3aC8i…
Danny Merkel
28 Feb 15 13:38:06
In my opinion, this is the best public chart list available: http://t.co/WB3aHC7EKP $DIA, $IWM, $STUDY http://t.co/XCMZv0zE0z
StockNewsWires
28 Feb 15 13:38:03
$SPY $DIA $QQQ $IWM: Bloomberg: Where Is Growth Coming From in the ETF Space?: http://t.co/beblN7lFMK
Joseph Ross
28 Feb 15 13:25:05
RT @Chasing__Stars: Stocks Trending Now: http://t.co/TOZZHCEjIZ $WBA $XLF $SWKS $TWTR $UA $TASR $INDY $AWAY $WMIH $X $IWM $EOG ~
Chasing Stars
28 Feb 15 13:24:34
Stocks Trending Now: http://t.co/TOZZHCEjIZ $WBA $XLF $SWKS $TWTR $UA $TASR $INDY $AWAY $WMIH $X $IWM $EOG ~
Top ETF Funds
28 Feb 15 13:13:38
Stock Market Video Analysis for Week Ending 2/27/15.. http://t.co/qYb5hjXxsc $IWM #ETF #ETFs #Stocks
Vix Updates
28 Feb 15 12:43:57
RT @hedgopia: $VIX way cheaper than $VXV. Yellow flag is out. Time 2 at least dust off shorting cap. $SPX $SPY $NDX $QQQ $RUT $IWM http://t…
Gil Cantu
28 Feb 15 11:37:14
RT @NorthmanTrader: Weekend Charts: Much Ado About Nothing http://t.co/SpPxX9FXR0 $SPX $NDX $AAPL $RUT $IWM $VXX $DJIA http://t.co/1UU3aC8i…
Ruisheng
28 Feb 15 11:16:13
RT @NorthmanTrader: Weekend Charts: Much Ado About Nothing http://t.co/SpPxX9FXR0 $SPX $NDX $AAPL $RUT $IWM $VXX $DJIA http://t.co/1UU3aC8i…
Michael tiny Saul
28 Feb 15 10:52:59
$QQQ $IWM $AAPL $AMZN $GOOGL #trading #investing #Stockmarket 4 Pros reveal their best trades 4 February and beyond http://t.co/ptnGxCcCZR
Options/stocks Gains
28 Feb 15 10:43:25
“@Taarriqq: Short was the right side to play in friday , boom $NFLX ( -10$) $FB $V $TRIP $IWM & LONG $GOOG 15$ $IBM”
Penny Stock Secret
28 Feb 15 10:24:29
Yesterday We Made $89,000 In Just One Trade More Info Here http://t.co/NovWYe2RAx .. $IWM $ANDI $GDSM
Stock Forums
28 Feb 15 10:17:40
Stocks Trending Now: http://t.co/gLXIst6tkJ $BABA $MYEC $OKE $OCAT $X $PM $IWM $XEG.TO $ACN $UA $RCHA $XPH ~
Angel Dan
28 Feb 15 10:08:02
$JCP $CLNE Handling The Winners and why I do not trade $SPY $DIA $IWM, $QQQ http://t.co/9O6rL3Pcm2
santiand
28 Feb 15 10:06:02
RT @NorthmanTrader: Weekend Charts: Much Ado About Nothing http://t.co/SpPxX9FXR0 $SPX $NDX $AAPL $RUT $IWM $VXX $DJIA http://t.co/1UU3aC8i…
Hidalgo
28 Feb 15 10:04:39
RT @NorthmanTrader: Weekend Charts: Much Ado About Nothing http://t.co/SpPxX9FXR0 $SPX $NDX $AAPL $RUT $IWM $VXX $DJIA http://t.co/1UU3aC8i…
Chasing Stars
28 Feb 15 10:02:22
Stocks Trending Now: http://t.co/TOZZHCEjIZ $MYEC $ASTI $BTZO $JPM $SNE $ADMD $MCP $IWM $BCR $HSU.TO $DIA $ASTI ~
Stock Forums
28 Feb 15 09:57:51
Stocks Trending Now: http://t.co/gLXIst6tkJ $BCR $ALXN $RSX $CTSH $HSU.TO $BABA $NFLX $FNMA $IWM $GDX $JCP $VZ ~
Michael Sanzo
28 Feb 15 09:55:17
RT @NorthmanTrader: Weekend Charts: Much Ado About Nothing http://t.co/SpPxX9FXR0 $SPX $NDX $AAPL $RUT $IWM $VXX $DJIA http://t.co/1UU3aC8i…
Michael Sanzo
28 Feb 15 09:49:45
RT @alphatrends: VIDEO http://t.co/tSFOpNMro9 Stk Mkt Analysis $SPY $AAPL $IWM $XLF $SMH $GPRO $BABA $AMGN $IBB $CELG $LVLT $BIDU $TSLA
Wayne Mountan
28 Feb 15 09:48:50
http://t.co/QKSNqxohBV stock_forums: Stocks Trending Now: http://t.co/Z795wMAQUt $RSX $FCX $EXK $INDY $IWM $DDD $IDGC $MHYS $XLE $BIV…
Stock Forums
28 Feb 15 09:48:06
Stocks Trending Now: http://t.co/gLXIst6tkJ $RSX $FCX $EXK $INDY $IWM $DDD $IDGC $MHYS $XLE $BIV $KMI $BCR ~
Investing Lanes ™
28 Feb 15 09:40:43
RT @SAlphaETF: IWM: Tracking The Russell 2000 Looks Like A Smart Move http://t.co/Y0MZO4cyXP $SPY $IWM
Gene Hobbs
28 Feb 15 09:39:59
RT @alphatrends: VIDEO http://t.co/tSFOpNMro9 Stk Mkt Analysis $SPY $AAPL $IWM $XLF $SMH $GPRO $BABA $AMGN $IBB $CELG $LVLT $BIDU $TSLA
James DiPlata
28 Feb 15 09:36:12
RT @alphatrends: VIDEO http://t.co/tSFOpNMro9 Stk Mkt Analysis $SPY $AAPL $IWM $XLF $SMH $GPRO $BABA $AMGN $IBB $CELG $LVLT $BIDU $TSLA
Options Trader
28 Feb 15 09:35:46
Erie Indemnity Passes Through 3% Yield Mark: Looking at the universe of stocks we cover at Divi... http://t.co/B3P6T6j73V $SPY $QQQ $IWM
Ben C. Banks
28 Feb 15 09:34:04
$IWM || First time in a while we've seen faulty signs, potentially setting up for a pullback :: http://t.co/v1MaRFlTgi
Brian Shannon
28 Feb 15 09:31:53
VIDEO http://t.co/tSFOpNMro9 Stk Mkt Analysis $SPY $AAPL $IWM $XLF $SMH $GPRO $BABA $AMGN $IBB $CELG $LVLT $BIDU $TSLA
Investors Hangout
28 Feb 15 09:29:03
Stocks Trending Now: http://t.co/ge4HpDj3w8 $PBR $GEVO $WIN $QDF $FNMA $SLV $CSCO $BBRY $TVIX $SLV $IWM $UWTI ~
royfberger
28 Feb 15 09:27:06
Unreal SKY tonight $MAT $TSM $IWM $PFE $DRC $LVS $CL $WTW $APC $GDX http://t.co/JUFJoVvAWo http://t.co/xsb10hXnAZ
				
				
By  +Follow October 4, 2013 1:24PM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.