Wyatt Research Week-in-Review: April 21-25

Which way are stocks headed? It seems the market has been in a holding pattern for two months now.
The S&P 500 entered March at just a tick under 1,860. It closed this week at a couple ticks above 1,860.
Volatility has picked up a bit in April. After rising to yet another record high of 1,890 the first couple days of the month, the S&P subsequently declined 4% in little more than a week. Now it’s back up 2.8% in the past two weeks.
The net result of all that movement is a flat market. But it seems that stocks are becoming a tad less predictable on a day-to-day basis than they were in 2013, when the market basically rose in a straight line, aside from the occasional 5% pullback. Which direction stocks break from here is anybody’s guess … though this two-and-a-half-year bull rally suggests the move will again be upward.
Perhaps that upward pattern will change now that the traditional “Sell in May” period is right around the corner. But the supposed investor offseason didn’t slow stocks down much last year.
With the Fed continuing to pump money into the U.S. economy through its quantitative easing bond-buying program, there’s reason to believe this rally isn’t over. Seesawing share prices over the past few weeks may seem like a red flag to some. But we’ve seen this act before amidst this furious rally. Anytime analysts insist stocks are headed for a fall, the market repeatedly defies them.
Let’s hope it happens again. For now, the good vibes on Wall Street remain. As always, that gave us plenty to talk about this week at Wyatt Investment Research.
Here is a sampling of what was on our analysts’ minds:
The Best High-Yield Stock for the Housing Recovery – I like the idea of investing in an impending housing recovery, but I don’t like the idea of home-builder stocks. Home building is a volatile business due to bottlenecks created by weather, land prices, labor quality, and commodity prices. I prefer to take a step back and invest in companies that supply materials to the industry.
Do Stock Splits Matter? – Apple (Nasdaq: AAPL) is receiving a lot of attention for its 7-for-1 stock split. But do stock splits really matter? Even Apple’s own CEO doesn’t think so.
Four Exceptional Dividend Growers Hiding in Plain Sight -Paying attention goes a long way to improving your chance of success. And investing is no different.
Triple your dividends with one stock — starting Monday, April 28 – With so many investors grabbing up shares of blue chips, yield is getting hard to come by. In fact, the average yield of the Dow has sunk to 2.1%. But our group of investors isn’t worried. We’re collecting big monthly dividends… up to $550 every 30 days… from a little-known investment that yields a whopping 12%! If you’d like to tap into this income stream, and earn up to triple the dividends of even the best blue chip, click here for our full report on this opportunity.
Concrete Stocks: A Solid Way to Play the Construction Rebound – If you would like a little more exposure to the U.S. construction market before the busy season hits this summer, you may want to consider investing in concrete stocks.
What’s Ahead for Biotech Stocks? – I’ve been watching the biotech sector closely over the past few months. And like most investors, I’m wondering about the next move. Will the decline that has plagued the high-beta sector since late February continue? Or is now a good opportunity to “buy the dip”?
Why Weak Q1 Earnings Aren’t Affecting Stocks – First-quarter earnings aren’t exactly off to a rousing start. But so far, investors have barely noticed.
Top 3 High-Yield ETFs Every Investor Should Own – For most investors, “safety” means two things: 1) income, and 2) diversification. And one of the best investments for earning high yields and diversifying your portfolio are ETFs.
VIDEO: How to Trade Weekly Options – Options analyst Andy Crowder sheds light on the value of trading weekly options for reliable income.
Bill Ackman and the Great Botox Buyout – Pershing Square hedge fund manager Bill Ackman is in the news again, partnering with Valeant Pharmaceuticals International, Inc. (NYSE:VRX) to purchase Botox manufacturer Allergan Inc. (NYSE:AGN) for $45.7 billion. What’s behind this buyout for Ackman and Valeant, and is the latter now worth buying for your portfolio?
Daily Chart Analysis: Marathon Oil Stock (MRO) – Marathon Oil (NYSE: MRO) appeared on the daily bearish scan the other night and after a deeper look into the stock, I became more intrigued by the bearish signal.