Top News Headlines

1. October best month for stocks in four years.
2. Valeant (VRX) troubles continue.
3. Pfizer (PFE), Allergan (AGN) consider merger.
4. Earnings, earnings, earnings.
5. CNBC botches Republican debate.
6. Debt deal reached between President and Republicans.

Economic News

1. Fed leaves rates unchanged; statement points to December hike. Yeah, right.
2. BOJ leaves QE program as is.
3. GDP disappoints at 1.5% for 3rd quarter.
4. New and pending home sales both less than expected.
5. Dallas, Richmond Fed reports still negative; Chicago PMI bucks the trend.

Random Thought Of The Week

The FOMC statement this week said that “Household spending and business fixed investment have been increasing at solid rates in recent months” a statement almost completely at odds with, you know, reality. One can certainly make a better case for household spending since part of the recent “weakness” can be explained by lower gas prices but business fixed investment is harder to spin. The durable goods report this week continued the trend for core capital goods, down over 7% from last year. That isn’t solid or any other word that denotes positive.

Chart Of The Week

 

Broad Market Top 10 – 3 Month Returns

 

MOMENTUM ASSET ALLOCATION MODEL

SPDR Sector Returns – 3 Month Returns

 

SPDR SECTOR ROTATION MODEL

Country Returns Top 10 – 3 Month Returns

 

Commodity Returns Top 10 – 3 Month Returns

 

Bond Returns Top 10 – 3 Month Returns

 

Stock Valuation Update