Significant Changes Since Last Week:

Over the last week the market has only moved 464 points from 17,990 to 17,526 representing a 2.6% move to the downside. It has been difficult for the market to move above 18,000 since the latter part of 2014. The reason for this stall in value has been created by moderate economic growth surprised by potential geo-political disruptions, from time-to-time.  These disruptions have a strong short downdraft impact on the market which requires a longer slow and steady climb back to within a few percentage points of fair value.

At the current level we are at 93.3% FV with the potential to reach 19,238 within the next 12 months. We still have four sectors above the 100% FV mark: Consumer Staples, Industrials, Telecommunication Services and Utilities. They have all retreated at some level with Utilities moving back closer to fair value at 105% FV. This is a large move because it was once at 108% FV.

We do not see the market continuing the slide downward and fully expect a move forward given the favorable report on the economy with good, not outstanding, but good news on GDP, industrial production and housing.

U.S. Largecap Stock Classification Changes:

Company Name and Ticker Classification Private TradingView Chart Link
Alcoa (AA) Buy Watch
American Airlines (AAL) Buy