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. To read our full disclosure, please go to: http://www.equities.com/disclaimer

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
Swing Trade Warrior
9 Oct 15 05:09:31
#WaferGen Bio-systems, Inc ... https://t.co/9eqXoUqFoK $SPY $QQQ $IWM $VIX @warriornewsfeed @daytradewarrior http://t.co/5nqsd97T5v
9 Oct 15 05:09:01
Bulls Keep Buying Into The Close $SPX Also $IWM $QQQ http://t.co/JtkqyDx7ln
9 Oct 15 04:56:34
Delaying an inevitable rate hike is not a good thing. Heal the market, not set it up for failure. $QQQ $SPY $DIA $COMPQ $SPX $DJIA $RUT $IWM
Rosner Stocks
9 Oct 15 04:51:08
_SPY S&P 500 SPDRs % Change http://t.co/R6TVlZcQgv $_SPY $IWM $ALIM $JPM #_SPY #tradeideas #stock
9 Oct 15 04:49:34
XLF Financials Select Sector SPDR Yield http://t.co/6S4lx9IsLw $XLF $NPWZ $DWTI $IWM #XLF #stockmarket #pennystocks
David Settle
9 Oct 15 04:45:03
ICYMI: 10/08/15 - Today's Market Forecast video can be viewed here: https://t.co/T7nJ89jOJ0 Discussed: $SPY $IWM $USO $TLT $EEM $XLK $ARMH
Stock Forums
9 Oct 15 04:43:23
NUGT Direxion Daily Gold Miners Bull 3x Shares Summary http://t.co/ytdwNne5J0 $NUGT $EWG $SMN $IWM #NUGT #stockmarket #stock
Investors Hangout
9 Oct 15 04:42:14
KBE SPDR KBW Bank Index ETF Ask Size http://t.co/orBdgJe75e $KBE $VTI $IWM $XLU #KBE #pennystocks #tradeideas
9 Oct 15 04:41:05
IWM Russell 2000 iShares Investor Opinions http://t.co/DFVIQiv0z2 $IWM $XIV $SBUX $XTLY #IWM #nasdaq #stockmarket
IH News Desk
9 Oct 15 04:40:08
$EA Stock Message Board Updated Friday, October 9, 2015 07:11:15 AM $WMT $EWG $IWM $UNH http://t.co/w63GuMDdOR
Ashley Senn
9 Oct 15 04:37:49
XLB Materials Select Sector SPDR Investor Opinions http://t.co/3pGnrbbfpC $XLB $LNCO $IWM $AMGN #XLB #tradeideas #invest
Scott Smith
9 Oct 15 04:37:40
How high do we go? Where is resistance? (not calling a top) Some key areas I'll be watching. $SPY $DIA $QQQ $IWM http://t.co/KuMG4AXaxN
Venky Srinivasan
9 Oct 15 04:35:07
$IWM Price above 115, can see 116 or even 116.5 if need be. Holding above 114 constructive.. http://t.co/DgCyqa4QUe
9 Oct 15 04:33:33
DHI DR Horton Inc. Prev Close http://t.co/dmoifbzFO0 $DHI $DUST $JNK $IWM #DHI #stockmarket #finance
9 Oct 15 04:28:59
$SPY $IWM $DIA $CELG $FB $AAPL $TWTR Earning report season is here , please watch market recap... http://t.co/eZOQpQ3rHi
9 Oct 15 04:23:23
$SPY $IWM $DIA $CELG $FB $AAPL $TWTR Earning report season is here , please watch market recap http://t.co/FNFmmAAa5B
a e  caffey
9 Oct 15 04:18:35
RT @nixon786: $SRPT LONGER the muscles MORE dystrophin it needs to absorb the shock $SPY $DIA $IWM $QQQ $IBB $XBI
a e  caffey
9 Oct 15 04:18:24
RT @nixon786: $SRPT as HEIGHT INCREASES, LENGTH of MUSCLE increases $SPY $DIA $IWM $QQQ $IBB $XBI http://t.co/ghbaXs3nKg
9 Oct 15 04:08:54
Good Morning Everyone!! Street digests Fed minutes http://t.co/6ONfEG5dI3 $SPY $QQQ $IWM #futures #premarket http://t.co/O8hkAPyufO
9 Oct 15 04:07:11
$DUST Short Sales Updated Friday, October 9, 2015 06:07:17 AM $VZ $GBSN $QLD $IWM http://t.co/PEKrtGmVSV
9 Oct 15 04:07:09
$GS Short Sales Updated Friday, October 9, 2015 06:07:17 AM $XLK $NFLX $IWM $TBEV http://t.co/SybrCqflRm
9 Oct 15 03:51:34
XLY Consumer Discretionary Select Sector SPDR Summary http://t.co/E4gD0w0U7P $XLY $HACK $NAT $IWM #XLY #finance #pennystocks
Rosner Stocks
9 Oct 15 03:51:24
XLI Industrials Select Sector SPDR Day Low http://t.co/han3lz2bsD $XLI $IWM $AMZN $HSBC #XLI #pennystocks #finance
9 Oct 15 03:51:12
XIV VelocityShares Daily Inverse VIX Short Term ETN Day Low http://t.co/iaw26AZqUk $XIV $IWM $XLK $OIL #XIV #stock #investing
9 Oct 15 03:49:36
WRB W. R. Berkley Corp. Shares http://t.co/2b5uM15K57 $WRB $IWM $GOOG $EQIX #WRB #nasdaq #investing
9 Oct 15 03:48:38
TTT ProShares UltraPro Short 20+ Year Treasury ETF Prev Close http://t.co/qZBxVkK6in $TTT $FIT $LQD $IWM #TTT #pennystocks #stocks
9 Oct 15 03:48:20
SSRI Silver Standard Resources, Inc. Last Trade http://t.co/UJGYPQkB70 $SSRI $IWM $SCTY $GOOGL #SSRI #nasdaq #investing
IH News Desk
9 Oct 15 03:48:12
SSL.TO Sandstorm Gold Ltd. Chart http://t.co/Rx9xTsvdCN $SSL.TO $IWM $EMBR $RAD #SSL.TO #share #nasdaq
Stock Forums
9 Oct 15 03:47:15
SLW Silver Wheaton Corp. Exchange http://t.co/R0cyY4KMZh $SLW $IWM $NWBO $GRCU #SLW #stocks #finance
9 Oct 15 03:46:35
RUSL Direxion Daily Russia Bull 3x Shares Ex-Div Date http://t.co/uX57j2h8Ud $RUSL $IWM $MT $FSLR #RUSL #invest #tradeideas
Stock Forums
9 Oct 15 03:45:13
PMCB PharmaCyte Biotech, Inc. Open http://t.co/fxC6M9ZYf5 $PMCB $UCO $IWM $TWTR #PMCB #stock #finance
9 Oct 15 03:45:12
ORCL Oracle Corp. Change http://t.co/osE2jKmwkC $ORCL $IWM $PIN $RUSL #ORCL #stock #pennystocks
9 Oct 15 03:45:05
PIN PowerShares India Portfolio Change http://t.co/sHfkfiaOI3 $PIN $QLD $C $IWM #PIN #finance #share
9 Oct 15 03:44:04
NATI National Instruments Corp. Short Sales http://t.co/EBHPDU1wAC $NATI $QTWW $IWM $VGTL #NATI #pennystocks #nasdaq
IH News Desk
9 Oct 15 03:43:34
NMBL Nimble Storage, Inc. EOD Data http://t.co/TwoRGWEm39 $NMBL $DD $IWM $ILMN #NMBL #stocks #nasdaq
9 Oct 15 03:43:04
MINED Minerco Inc. Ex-Div Date http://t.co/JItv4U5gUT $MINED $IWM $EBAY $BRK/B #MINED #tradeideas #stockmarket
Lucky Jimmy
9 Oct 15 03:42:36
LB L Brands, Inc. Day Low http://t.co/Shfe8otMH8 $LB $IWM $TLT $XLK #LB #stockmarket #tradeideas
9 Oct 15 03:42:34
IWM Russell 2000 iShares Stock Forum http://t.co/xq3I2ojDQf $IWM $DUG $MNST $GSG #IWM #pennystocks #nasdaq
9 Oct 15 03:42:32
IWM Russell 2000 iShares Ask Size http://t.co/x1uAID4xvx $IWM $MYEC $BUD $XLB #IWM #stocks #stocks
9 Oct 15 03:42:21
IWM Russell 2000 iShares Shares http://t.co/DqfxcRteRb $IWM $PIN $MRO $DUG #IWM #pennystocks #invest
9 Oct 15 03:42:18
KBE SPDR KBW Bank Index ETF P/E Ratio http://t.co/v8Tp28R5I6 $KBE $EUM $IWM $MINED #KBE #tradeideas #pennystocks
Investors Hangout
9 Oct 15 03:42:15
IWM Russell 2000 iShares Tick http://t.co/6T583FGas2 $IWM $HGU.TO $IEF $XLK #IWM #stocks #finance
Investors Hangout
9 Oct 15 03:42:15
IWM Russell 2000 iShares 52Wk High http://t.co/dnWX7xtRSm $IWM $MUX $MCK $MRO #IWM #finance #stockmarket
9 Oct 15 03:42:12
KOTAKBANK.IN Kotak Mahindra Bank Ltd. Ideas http://t.co/5bMbzyREle $KOTAKBANK.IN $IWM $FB $AAPL #KOTAKBANK.IN #stocks #tradeideas
IH News Desk
9 Oct 15 03:42:11
JNUG Direxion Daily Junior Gold Miners Index Bull 3X Shares Ask http://t.co/OXlrPeLR99 $JNUG $RAI $IWM $LB #JNUG #stocks #finance
9 Oct 15 03:42:10
IWM Russell 2000 iShares Stock Forum http://t.co/B0qoJDp7Xl $IWM $NUGT $PFE $RCPI #IWM #nasdaq #share
Rosner Stocks
9 Oct 15 03:42:05
IWM Russell 2000 iShares Dividend http://t.co/G1xbHbvMTT $IWM $NVCR $ILMN $HGM.L #IWM #share #stock
Stock Forums
9 Oct 15 03:41:08
IWM Russell 2000 iShares Volume http://t.co/oBElyNf0tq $IWM $PDS $PKD $NVCR #IWM #stocks #pennystocks
9 Oct 15 03:41:06
IWM Russell 2000 iShares Last Price http://t.co/e1rPhvjslw $IWM $UCO $MUX $PKD #IWM #stockmarket #investing
Stock Forums
9 Oct 15 03:41:06
INTC Intel Corp. P/E Ratio http://t.co/dFCLXUzabk $INTC $BABA $CHK $IWM #INTC #pennystocks #nasdaq
By  +Follow October 4, 2013 1:24PM



blog comments powered by Disqus

 Today's Must Reads

Market Got You Down?: Here Are Six Hot Stocks

Global Winners and Losers in the Oil Shakeout

This Bull Market is No Stranger to Big Fourth-Quarter Comebacks

When to Sell and When to Rent an Investment Property

Saving the Small-Cap Market


Small-cap stocks offer investors many benefits, ranging from higher growth potential to overlooked value opportuni... in Equities.com's Hangs on LockerDome

About us

Equities.com is an advanced financial data portal and social network designed to connect self-directed investors with the world’s most innovative startup and small cap companies. Through our in-depth coverage of small cap markets, comprehensive research and stock valuation reports, state of the art issuer products, and world class events, Equities.com provides the social tools and insight that drive tomorrow’s investment relationships and opportunities.

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

Login or Register