Tags: bill | spetrino | dividend

Dividend Stocks Should Do Well In This Market

By    |   Wednesday, 29 Jul 2009 04:23 PM

Last week the market hit its 2009 high. Who would have known?

Of course, back on July 7, I told my subscribers the market would bottom around 780 on July 14.

This week has two catalysts — options expirations and earnings. Many bears believe the market will drop under 800. My instincts say that earnings will surprise on the positive side.

On July 21 I said: “My guess is Altria’s earnings will exceed Wall Street’s expectations, and if we can break the 17.63 intraday level or close above 17.39, that will be bullish.”

I also said: “Between short-covering and this cash on the sidelines, S&P 975 is not out of the question.”

What your not-very-humble correspondent lacks in humility he makes up for in results. Our three largest holdings hit 2009 highs in the last two trading sessions and are up nine percent, 13 percent, and 21 percent, respectively.

They consist of more than two-thirds of the weighted portfolio and have performed admirably in this market.

All seven stocks in the portfolio are ahead and are solid steady dividend payers.

Well, nothing recedes faster than success, so let’s quit clapping. I’ll tell you what is going to happen this week

For the next three days, the Treasury is going to sell a $100 billion of two- to seven-year debt. As I have stated earlier, the Chinese will continue to buy our debt but will be trying to get the highest price possible, of course.

The earnings catalyst will continue to drive the market and a run towards S&P 1,000 is not of the question.

But my gut feeling tells me that we will see a sector rotation towards stocks that outperformed in the past few weeks to ones that did not.

This week, my guess is that between the profit taking and the higher yields on 10-year notes, we will see a S&P range between 960-990.

However look for the sector rotation to favor those stocks in our portfolio which have lagged the overall market.

The World's Greatest Dividend Stock on Sale Now — Click Here

© 2017 Newsmax. All rights reserved.

   
1Like our page
2Share
BillSpetrino
Last week the market hit its 2009 high. Who would have known? Of course, back on July 7, I told my subscribers the market would bottom around 780 on July 14. This week has two catalysts — options expirations and earnings. Many bears believe the market will drop under 800....
bill,spetrino,dividend
344
2009-23-29
Wednesday, 29 Jul 2009 04:23 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved