Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?


When to Capitalize on Capitol Hill

By  +Follow October 4, 2013 1:24PM
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
23 Aug 14 06:16:11
RT @FA_Futures: Confidently trade $IWM http://t.co/WoBqmNQFd1
Fractal Futures
23 Aug 14 06:13:27
Confidently trade $IWM http://t.co/WoBqmNQFd1
Greg Harmon, CMT
23 Aug 14 06:07:41
$SPY Trends and Influencers August 23, 2014 | Dragonfly Capital http://t.co/WQrPBnk2I8 $iwm $qqq $tlt $gld $uso $vix $uup $eem $fxi
Timothy Reazor
23 Aug 14 05:42:01
Just me in the studio this morn at 10 central-talking $SPY $QQQ & how $IWM drives us higher-click to listen live http://t.co/pP8iSe57vY
23 Aug 14 05:41:09
RT @TradersExpo: $SPY $QQQ $IYT $IWM $XLE The Week Ahead: A September Buying Opportunity? http://t.co/YjOKXwbbFG
Stock Market Monitor
23 Aug 14 05:27:24
$IWM: Portfolio Report Card: A Smartly Built $1.2 Million Investment Account http://t.co/8ES7D8ttLs http://t.co/8LwXdGtBtY
Forex Update
23 Aug 14 05:25:19
RT @MoneyShows: $SPY $QQQ $IYT $IWM $XLE The Week Ahead: A September Buying Opportunity? http://t.co/PbGz7Z4IfZ
23 Aug 14 05:22:49
$SPY $QQQ $IYT $IWM $XLE The Week Ahead: A September Buying Opportunity? http://t.co/PbGz7Z4IfZ
Traders Expo
23 Aug 14 05:22:26
$SPY $QQQ $IYT $IWM $XLE The Week Ahead: A September Buying Opportunity? http://t.co/YjOKXwbbFG
23 Aug 14 05:22:06
$SPY $QQQ $IYT $IWM $XLE The Week Ahead: A September Buying Opportunity? http://t.co/sSAM11yc0X
MoneyShow Trading
23 Aug 14 05:21:29
$SPY $QQQ $IYT $IWM $XLE The Week Ahead: A September Buying Opportunity? http://t.co/zL9kOhtIUs
23 Aug 14 05:20:10
$SPY $QQQ $IWM Market Message http://t.co/I7bOCtlrqd
: ) MrsGAttitude : )
23 Aug 14 05:18:24
RT @SeekingAlpha: Yellen Vs. Putin - Who Wins? http://t.co/NkWgWy11Qf $DIA $GLD $IWM $JNK $OIL $QQQ $UUP $SPY
Stock News Updates
23 Aug 14 03:27:23
$IWM: [video] Fast Money Final Trade: IWM, AAPL, SPY, HYG http://t.co/y1O8BgyZck http://t.co/PnuhcskjiZ
Seeking Alpha
23 Aug 14 02:54:53
Yellen Vs. Putin - Who Wins? http://t.co/NkWgWy11Qf $DIA $GLD $IWM $JNK $OIL $QQQ $UUP $SPY
Investors Hangout
23 Aug 14 02:49:16
$ACT EOD Data http://t.co/fwUjhMTwCd Also See: $MNGGF $IWM $ECAU $INCC ~
DX Fractalerts
23 Aug 14 02:41:35
Confidently trade $IWM http://t.co/QCjvTY58xf
Wall Street Monitor
23 Aug 14 02:27:25
$IWM: Stock Market Video Analysis for Week Ending 8/22/14 http://t.co/QkYzlPjAJM http://t.co/4FnZUE4XA7
Business News Watch
23 Aug 14 01:27:25
$IWM: Brace For Irrational Exuberance 2.0 http://t.co/uc2janmCb9 http://t.co/gJVJ67sjWx
Rosner Stocks
23 Aug 14 01:26:43
$XOM Message Board Posts http://t.co/jYDKHnmVXT Also See: $IWM $TCK/B.TO $GOOG $FDN ~
23 Aug 14 00:41:51
RT @philstockworld: Fallout Friday - Global Concerns Rock US Markets: $SPY $IWM $IYT $WAG $GMCR $TSLA $NLY $SCTY -- http://t.co/B5EJfnrKQt
AUD Fractalerts
22 Aug 14 23:45:48
What is the $IWM going to do next? Get real time alerts and analysis at http://t.co/R5lUznrCGI
QQQ Fractalerts
22 Aug 14 22:59:43
New $IWM alerts have recently been posted. Check them out now. http://t.co/OUMttKv3PU
JPY Fractalerts
22 Aug 14 22:46:54
What is the $IWM going to do next? Get real time alerts and analysis at http://t.co/fYU52GiSsY
Investors Hangout
22 Aug 14 21:49:06
$TSLA Summary http://t.co/i4YbLpBOgS Also See: $UUP $XLP $IWM $SH ~
Market Updates
22 Aug 14 21:27:28
$IWM: Stocks to Buy at All-Time Highs http://t.co/opJg9hGTN9 http://t.co/A46pFTaX3a
juan ignacio lagos c
22 Aug 14 21:20:26
RT @bespokeinvest: Apple's market cap is currently equal to 30% of the entire Russell 2000. $AAPL $IWM
Chasing Stars
22 Aug 14 21:11:29
$TEDU 52Wk Low http://t.co/woltiHotUC Also See: $LEI $HON $IWM $CSX ~
Fractal Euro
22 Aug 14 21:11:21
What is the $IWM going to do next? Get real time alerts and analysis at http://t.co/CRPSpw0Y2V
22 Aug 14 20:48:27
Confidently trade $IWM http://t.co/8gpAjLS9lY
22 Aug 14 20:38:35
What is the $IWM going to do next? Get real time alerts and analysis at http://t.co/nXiFK8Pvfk
Fractal Trading
22 Aug 14 20:37:47
New $IWM alerts have recently been posted. Check them out now. http://t.co/L31IijBE0r
Van Castle
22 Aug 14 20:00:33
RT @gtlackey: TP Weekly: Even $IWM still sporting Higher highs & lows plus a recent RSI PosRev. $QQQ $SPY strong http://t.co/weEHXYOgeR
G. Thomas Lackey Jr
22 Aug 14 19:11:59
TP Weekly: Even $IWM still sporting Higher highs & lows plus a recent RSI PosRev. $QQQ $SPY strong http://t.co/weEHXYOgeR
Bulls vs Bears
22 Aug 14 18:27:25
$IWM: A Short Term Watch Out For High RSI and Low Trin http://t.co/4ANLOIdFD0 http://t.co/Z8gvxQmQi1
22 Aug 14 18:12:55
RT @BrandonCragun: Over 100% roi @fitzstockcharts $aapl $gild $spy $qqq $iwm $fb $twtr worth the follow
Trade Fractals
22 Aug 14 17:46:57
Tell us what you think about this weeks $IWM alert. How are you trading it? http://t.co/pJY9NPEFY8
Investors Hangout
22 Aug 14 17:45:56
$PLUG Ask Size http://t.co/LwYsCJlHxC Also See: $IWM $XLV $SMH $T ~
David Peng
22 Aug 14 17:41:56
Why isn't the stock market correcting? Cuz I'm not long equities. $SPY $QQQ $IWM
G. Thomas Lackey Jr
22 Aug 14 17:37:34
August 22, 2014 Relative Strength Scans http://t.co/Fk1hLULblc $QQQ $IWM $TLT $FDN $IYH $LNKD $PCYC $INTC $YELP $SGEN $BMRN $TMUS $WAG
Stock Market Monitor
22 Aug 14 17:27:28
$IWM: Your first trade for Thursday http://t.co/asdOBbEG0a http://t.co/5Q9CgmZ6Si
Brandon Cragun
22 Aug 14 17:21:50
Over 100% roi @fitzstockcharts $aapl $gild $spy $qqq $iwm $fb $twtr worth the follow
22 Aug 14 17:17:50
New $IWM alerts have recently been posted. Check them out now. http://t.co/WX20OhQ4pb
Fractal Trading
22 Aug 14 17:02:47
Tell us what you think about this weeks $IWM alert. How are you trading it? http://t.co/vbleJJ8lah
Richard Hargrave
22 Aug 14 16:51:34
WEEKLY WRAP UP, $NYAD, $QQQ $NYMO, $IWM, $DIA, $BAC, $MNST, $GDX, $SPYDER's, $ETC $ETC. http://t.co/eBB6nRdMv2
Gene Hobbs
22 Aug 14 16:25:31
RT @alphatrends: VIDEO http://t.co/EMOvI7LovA Stock Market Analysis For Wk Ending 8/22/14 $SPY $QQQ $IWM $XLF $GLD $AAPL $TWTR $AAPL #tradi…
22 Aug 14 16:17:05
Why traders follow $SPY ? Because it's the benchmark of the market. $DIA is only blue chip, $IWM only small caps, $QQQ mostly tech.
Shelley D Terrell
22 Aug 14 16:07:07
RT @MoneyMischief: $IWM more records are about to fall. #WhenWillItEnd
22 Aug 14 15:55:20
RT @bigelam: $IWM working on bull flag. $CRM seeing positive reaction to earnings. These two tell me the money is going to flow into growth…
Jeff Quiggle
22 Aug 14 15:51:30
By  +Follow October 4, 2013 1:24PM



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.