The "Heat Map"

April 30th, 2013

Most of the time, the U.S. stock market looks to 3 factors to support its upward trend – let’s grade each of the
factors:

CONSUMER SPENDING:  I grade this factor a C (neutral).

THE FED AND ITS POLICIES:  I grade this factor an A+ (extremely favorable) because the FED cannot do much more than it is doing to support the stock market and asset prices.

BUSINESS PROFITABILITY:  I grade this factor a B+ (favorable).  This grade is in danger of being reduced.  During the last 10 days, several of the largest U.S. companies reported disappointing earnings, a trend the stock market has overlooked.

NOTE:  the above grades remain unchanged from last week.

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