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Wall Street’s Best Dividend Stocks 313

The leaves are rapidly falling here in Tennessee, but thankfully, the markets continue to hold their own, with the Dow Jones Industrial Average picking up about 500 points since our last issue. As you’ll see in our Market Views, our advisors are a bit cautious in the short-term, but overall, market sentiment remains very bullish.

Wall Street’s Best Dividend Stocks 313

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Market Views

Looking for a Sharp Pullback

Predicting exactly when the market will bottom is always a random guessing game at best. I offer no forecast as to when, or at what level, the major averages will hit their final lows. Based on the huge acceleration in new 52-week lows on the NYSE, however, my best guess is that selling pressure will climax before we reach mid-month. There could still be some additional residual selling pressure after mid-October, but whenever the new lows exceed 400 it’s usually only a matter of days before the market hits a significant low. Investors should be prepared for a short-lived, but potentially sharp, pullback in the major averages before this latest correction reaches its terminus.
Cliff Droke, Momentum Strategies Report, www.cliffdroke.com, 707-282-5594, October 6, 2018

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Cautious Right Now

Our Model Portfolio remains modestly long, but with Indices unwinding from recent highs, we become cautious for relative tops developing. We continue to note an elevated reading of Bullish Advisers which also counsels some caution. Our biggest long position remains Healthcare.
John Gray, Investors Intelligence, www.investorsintelligence.com, 914-632-0422, October 8, 2018

Emerging Weakness

The “Distribution” component of our Negative Leadership Composite (NLC) is designed to monitor downside leadership, and to warn of emerging internal weakness in the market. Over the past two weeks, the “Distribution” component of the NLC has declined decisively from -11 to -68 (bottom panel below), increasing the risk of a bearish market outlook.
James Stack, InvesTech Research, www.investech.com, 800-955-8500, October 5, 2018


To read the rest of this month’s issue, download the PDF.


The next Wall Street’s Best Dividend Stocks issue will be published on November 7, 2018
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