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.


Signup for our daily newsletter and get our best articles emailed right to you!

Results for iwm
♫♪ Soul Girl ♪♫
19 Sep 14 04:27:55
RT @chessNwine: NEW POST: Stock #Market Recap 09/18/14 {Video} http://t.co/HfXExWuSYd $IWM $QQQ $SPY $VHC $YHOO
UPBOptionMil
19 Sep 14 04:16:46
It's easy calling out a top in this market day after day after day when you have no skin in the game $SPY $QQQ $IWM
Sherard Gore
19 Sep 14 04:15:07
RT @lancejepsen: GST Morning Market Intelligence Report $spy $qqq $iwm http://t.co/zO2eqz9ZBc
Ian Aguilar
19 Sep 14 04:15:04
RT @lancejepsen: Why ChyronHego Has Exploded Upward $chyr $qqq $iwm http://t.co/27nf8aQ1Xk #Stocks http://t.co/q8cZIdQuQe
Robin Murray MD CFII
19 Sep 14 03:52:01
Technically underpinning the markets #Russell Micro/Small caps $IWM $IWC #Bull #action $DIA $XLF $SPY $QQQ #ETF http://t.co/BV4MaXELwg
Carolyn B Miciano
19 Sep 14 03:47:17
Why its important to simulate Options trades http://t.co/uSvTKOxyWM $SPY $QQQ $IWM
Tito
19 Sep 14 03:23:12
So much for Scotland. Spivs are foiled again!! $iwm $spy
Fractal Assets
19 Sep 14 03:14:42
What is the $IWM going to do next? Get real time alerts and analysis at http://t.co/HEd5TctqVq
Stock_Tracker
19 Sep 14 03:11:14
Russell 2000 ETF (IWM) 115.43 $IWM Why Anxious Investors' Pressure Could Push Small Cap Stocks Lower at The St http://t.co/GFmtYYZqPs
GuerillaStockTrading
19 Sep 14 03:05:03
GST Morning Market Intelligence Report $spy $qqq $iwm http://t.co/6nxfYY7oPx
Fractalert
19 Sep 14 02:59:33
New $IWM alerts have recently been posted. Check them out now. http://t.co/nXiFK8Pvfk
Stock Rocket
19 Sep 14 02:57:16
$NETE Gained 551.93% In The Past 6 Weeks! Major News: http://t.co/PU7GW934W5 $IWM $ANDI $GDSM
Read_this_n0w
19 Sep 14 02:24:40
Scotland .. 55% against seperation $SPy $INDU $IWM
Ben Obadia
19 Sep 14 01:15:21
a $IWM wedge breakout on opex day could provide a lot of opportunity
Surfergirl
19 Sep 14 00:14:06
Quad witch $SPY ex div Index rebalance-volume on open&close 7amPT LEI report $FAS broke upper res,is leading $IWM $TNA tight on hrly :)💜
FMD Capital
19 Sep 14 00:07:01
ETFs To Hedge A Seasonally Weak September $RWM $IWM $SPLV http://t.co/PBeNrh57XY
TalkMarkets
19 Sep 14 00:07:01
ETFs To Hedge A Seasonally Weak September $RWM $IWM $SPLV http://t.co/V3AWMkvLZy
Fractal Bear
18 Sep 14 23:45:59
Confidently trade $IWM http://t.co/j5gRftwmLV
Edmond Willard
18 Sep 14 23:45:16
RT @lancejepsen: Why ChyronHego Has Exploded Upward $chyr $qqq $iwm http://t.co/27nf8aQ1Xk #Stocks http://t.co/q8cZIdQuQe
Phil Blake
18 Sep 14 23:45:14
RT @lancejepsen: GST Morning Market Intelligence Report $spy $qqq $iwm http://t.co/zO2eqz9ZBc
CD Paving
18 Sep 14 23:42:52
RT @philstockworld: Friday Morning Market Thoughts - Caution Urged as Futures Contracts Roll Over: $SPY $DIA $IWM $QQQ #iPhone6Plus -- http…
PolgarStocks
18 Sep 14 23:42:28
$AKBA Change Click Here: http://t.co/zrnwM9pR9u Also See: $HALB $MINE $IWM $EFA ~
Chasing Stars
18 Sep 14 23:41:12
$AKBA Day Low Click Here: http://t.co/2WEQSBJEfW Also See: $IWM $T $MU $HFCO ~
SI Fractalerts
18 Sep 14 22:55:55
Confidently trade $IWM http://t.co/4xdmwh5gCc
Huey Owens
18 Sep 14 22:25:11
RT @lancejepsen: Why CTI BioPharma is Soaring $ctic $ibb $iwm http://t.co/YI9KojPNKb http://t.co/XSCPWiUsgc
Mike Wilgus
18 Sep 14 22:08:22
RT @alphatrends: Scotland, low $VIX, $IWM divergence, Fed, hmmmm, what other useless info have the bears hung their hat on recently? http:/…
Investors Hangout
18 Sep 14 22:06:22
$TEMN Dividend Click Here: http://t.co/nvu0j6W1fH Also See: $IWM $EA $XRT $GRCU ~
GBP Fractalerts
18 Sep 14 21:55:01
New $IWM alerts have recently been posted. Check them out now. http://t.co/wVzPm7Zjpc
Investors Hangout
18 Sep 14 21:51:06
$RSII Financials Click Here: http://t.co/3uK7FZ2aFv Also See: $VIIC $CLF $IWM $KNDI ~
Anthony
18 Sep 14 21:49:31
RT @OMillionaires: “Most Hated Rally”… must mean your short or in cash.. or just a miserable person..huh? $SPY $SPX $DIA $QQQ $IWM #IHAVEBE…
Timmy! Boutillier
18 Sep 14 21:42:01
The market blows its load tomorrow $SPY $QQQ $IWM
Stock Rocket
18 Sep 14 21:31:44
$NETE Gained 551.93% In The Past 6 Weeks! Major News: http://t.co/h5N34SPJ6o $IWM $ANDI $GDSM
Axios
18 Sep 14 21:18:52
Great chart of $IWM vs $SPY and how it is breaking down significantly (no big secret, right). http://t.co/o0u7s0kRh8
Auto Binary option
18 Sep 14 20:56:59
RT @AdamHGrimes: just got back from traveling... blog post coming tomorrow: we'll take a proper look at this death cross business. stats ar…
Adam Grimes
18 Sep 14 20:36:54
just got back from traveling... blog post coming tomorrow: we'll take a proper look at this death cross business. stats are convincing $iwm
Investors Hangout
18 Sep 14 20:34:56
$MNVN Company Info Click Here: http://t.co/M14gwLCqGd Also See: $GRCU $IWM $XLF $ADBE ~
Fractal Assets
18 Sep 14 20:21:27
Confidently trade $IWM http://t.co/gWGJs3N8ht
Brian Shannon
18 Sep 14 20:07:36
Scotland, low $VIX, $IWM divergence, Fed, hmmmm, what other useless info have the bears hung their hat on recently? http://t.co/RBYPMd1zS1
Langan Stocks
18 Sep 14 19:59:36
$MLCG Ideas Click Here: http://t.co/OlfGvkj8Ta Also See: $TEMN $EBAY $IWM $MNVN ~
Trading Fractals
18 Sep 14 19:55:58
Confidently trade $IWM http://t.co/k4TfUbkxDS
SPY Alerts
18 Sep 14 19:31:40
Confidently trade $IWM http://t.co/vzDcwc3BmZ
Edward Gofsky
18 Sep 14 19:29:56
RT @chessNwine: NEW POST: Stock #Market Recap 09/18/14 {Video} http://t.co/HfXExWuSYd $IWM $QQQ $SPY $VHC $YHOO
OTPicks.com
18 Sep 14 19:21:29
http://t.co/hjgLwIcNgz danrocks: $HD Making Some Noise $IWM $DIA $RAD $TBT $TGT: danrocks http://t.co/fOlCnC9U7v http://t.co/hjgLwIcNgz
OTPicks.com
18 Sep 14 19:21:27
http://t.co/QkCFZ8H3V8 danrocks: $HD Making Some Noise $IWM $DIA $RAD $TBT $TGT: danrocks http://t.co/SWs23Q0zXe http://t.co/QkCFZ8H3V8
Denise Shields
18 Sep 14 19:17:56
RT @lancejepsen: Why ChyronHego Has Exploded Upward $chyr $qqq $iwm http://t.co/27nf8aQ1Xk #Stocks http://t.co/q8cZIdQuQe
Percy Patel
18 Sep 14 19:17:53
RT @lancejepsen: GST Morning Market Intelligence Report $spy $qqq $iwm http://t.co/zO2eqz9ZBc
MJR
18 Sep 14 19:04:45
@Jesse_Livermore @jessefelder Seeing as how $IWM likely made its highs for rest of decade,back in march,I could see that happening
Darlene Lowery
18 Sep 14 18:49:39
RT @lancejepsen: Why CTI BioPharma is Soaring $ctic $ibb $iwm http://t.co/YI9KojPNKb http://t.co/XSCPWiUsgc
P
18 Sep 14 18:40:46
RT @OMillionaires: “Most Hated Rally”… must mean your short or in cash.. or just a miserable person..huh? $SPY $SPX $DIA $QQQ $IWM #IHAVEBE…
UPBOptionMil
18 Sep 14 18:35:28
RT @OMillionaires: Was called bullish to a fault, drank the Kool-Aid : http://t.co/oG5HjtY6DG || http://t.co/s0zNFiQdIg $SPY $SPX $DIA $QQQ…
				
				
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.