This Week on Wall Street - Week of April 10th

We are seeing a retreat in our model readings in mid and small-cap areas.

Market Commentary

We are seeing a retreat in our model readings in mid and small-cap areas. Foreign Developed is showing relative strength while growth still has a slight edge over value. Fixed Income sectors are showing much stronger readings as interest rates retreat on fears of a slowdown and disinflation.

Bulls and bears are in a tug of war near the key 4,100 level on the index. This week, investors should be keyed into the inflation reading on Wednesday as well as the FOMC meeting minutes.

Among sectors, we are starting to see a rotation into defensive sectors like Healthcare, Utilities, and Consumer Staples. Picking names with relative strength within sectors has remained the dominant and most effective strategy.


What is Newton?

r Newton model attempts to determine the highest probability of future price direction by using advanced algorithmic and high-order mathematical techniques on the current market environment to identify trends in underlying security prices. The Newton model scores securities over multiple time periods on a scale of 0-20 with 0 being the worst and 20 being the best possible score. Trend & level both matter.


Economic Releases This Week

Monday: Wholesale Inventories

Tuesday: NFIB Optimism Index, Chicago/Philly/Minneapolis Fed President's Speak

Wednesday: Consumer Price Index, Minutes of the FOMC Meeting, Richmond/San Francisco Fed President's Speak

Thursday: Initial & Continuing Jobless Claims,

Friday: US Retail Sales, Import Price Index, Consumer Sentiment, Business Inventories


Technical trading models are mathematically driven based upon historical data and trends of domestic and foreign market trading activity, including various industry and sector trading statistics within such markets. Technical trading models, through mathematical algorithms, attempt to identify when markets are likely to increase or decrease and identify appropriate entry and exit points. The primary risk of technical trading models is that historical trends and past performance cannot predict future trends and there is no assurance that the mathematical algorithms employed are designed properly, updated with new data, and can accurately predict future market, industry and sector performance.