March 12, 2014
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The S&P 500 looks to be pulling back to the 1850 area, which is a nice base of support. The market will probably consolidate at this level before moving higher. We feel confident that the direction the market moves after that will be up. So far, the markets are about breakeven for the year, with the Nasdaq up a few points, the S&P up just a fraction and the Dow slightly down year-to-date.
See S&P Chart
Look at the 20+ year Treasury Bond ETF (TLT), which recently made a double top. The bond market is so far posting a positive year after a drop last year, which was its first losing year in a long time. This rally in bonds is probably a “dead cat” bounce or a traders rally. We have been saying for quite a while now that the bond bull market is over. If the chart plays out like it looks like it will, bonds are headed lower. We made a lot of money in the bonds last year even with the bond market in general being down. Again this year we are putting up nice returns in bonds, even surpassing the S&P 500. Does a bear market in bonds bother us? No, we believe we have a good trading strategy that will work well even in a bond bear market and feel comfortable that we will be able to capitalize on the movements in different sectors of the bond market that will come.
See Bond Chart
We have made a lot of money this year trading the Biotech sector. Both Biotech and Healthcare have been very nice winners for us so far and I’m confident we will be trading these two sectors more throughout the year as the trends present opportunities.
The OTI stock of the week is Skyworks Solutions, Inc. (SWKS) which had a nice break to the upside back in June 2012 and continues its move higher.
Talk to you soon!
Vance
Would you like advice on how to invest your company-sponsored retirement plan? Ask your advisor how the HCM 401(k) Optimizer® can help.
All programs offered by Howard CM are developed and run using Spartacus. It is a disciplined, systematic approach that removes guesswork from our trading. The power and strength of Spartacus are derived from three major components: the process is mechanical, non-emotional, and repeatable.
HCM-BuyLine®
Howard Capital Management’s investment strategies are designed to protect capital in market downturns and to outperform the major indexes during market upswings. To help accomplish this goal, we developed the HCM-BuyLine®, a proprietary indicator used to identify the trend of the market.
The HCM-BuyLine® signals when and how much to invest in equities. Although its design is technical, its interpretation is straightforward. It produces a measurement of the number of buyers and sellers, and gives us a non-emotional indicator of the intermediate-term trend of the market.
This newsletter is a publication of Howard Capital Management, Inc. It should not be regarded as a complete analysis of the subjects discussed nor should the newsletter be construed as personalized investment advice. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. It should not be viewed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation.
Disclaimer. This communication is issued by Howard Capital Management, Inc. It is for informational purposes and is not an official confirmation of terms. It is not guaranteed as to accuracy, nor is it a complete statement of the financial products or markets referred to. Opinions expressed are subject to change without notice. Howard Capital Management, Inc. may maintain long or short positions in the financial instruments referred to and may transact in them as principal or agent. Unless stated specifically otherwise, this is not a recommendation, offer or solicitation to buy or sell and any prices or quotations contained herein are indicative only. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a client’s portfolio. Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that the future performance of any specific investment or investment strategy will be equal to past performance level or that it will match or outperform any particular benchmark. To the extent permitted by law, Howard Capital Management, Inc. does not accept any liability arising from the use of this communication.
Past performance is no guarantee of future returns.
IMPORTANT DISCLOSURE INFORMATION
LIMITATIONS OF HCM OPTIMIZED TREND INDICATOR (OTI)
Please Note: The HCM Optimized Trend Indicator (“OTI”) is a tool developed by Howard Capital Management, Inc. (“Howard”) to help assist a subscriber to determine what portion, if any, of the subscriber’s company stock should be bought, sold or held in the subscriber’s retirement portfolio as of a particular date. Subscriber maintains absolute discretion as to whether or not to follow the OTI. It remains the subscriber’s exclusive responsibility to review and evaluate the OTI and his/her company stock and to determine whether to accept or reject any recommendation and to correspondingly determine whether any OTI recommendation is appropriate for his/her financial situation, or investment objective (for which Howard has and expresses no knowledge or opinion).
Howard does not offer or provide investment implementation services, nor does it offer or provide initial or ongoing individual personalized OTI advice (neither in person nor via the Internet) to Optimizer subscribers.. Howard will not have and will not accept any trading authority for the subscriber’s retirement account. Thus, it shall always remain the subscriber’s exclusive responsibility to review and evaluate the OTI and to determine whether to accept or reject any OTI recommendation, and if accepted, to then subsequently implement such recommendation on his/her own without assistance from Howard.
The subscriber acknowledges and understands that the OTI is an opinion only, based upon Howard’s judgment as of a particular date. The OTI opinion could be wrong. No current or prospective subscriber should assume that investment in, or purchase and sale of, his/her company stock based upon the OTI will be profitable for his/her retirement portfolio. Unlike the mutual funds that are available for investment in the subscriber’s retirement portfolio, individual equities such as the subscriber’s company stock are not diversified positions, and may be subject to greater volatility and principal risk. Subscribers should be guided accordingly.
Subscribers do not receive investment supervisory or investment management services from Howard. The OTI is not tailored to any particular subscriber’s individual’s risk parameters, financial situation, or investment objective(s). It is the subscriber’s exclusive responsibility to determine what portion of company stock, if any, is suitable for his/her financial situation and/or investment objectives, both initially and on an ongoing basis. No subscriber should assume that his/her subscription serves as a substitute for individual personalized investment supervisory and/or management services from an investment professional of the subscriber’s choosing regarding the ownership of the subscriber’s company stock in the subscriber’s retirement portfolio.
Please Remember: Past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a subscriber or prospective subscriber’s investment portfolio. Therefore, no current or prospective subscriber should assume that investment in his company stock is appropriate for his/her financial situation or investment objective, or that the future performance of his/her company stock will be profitable or equal any specific performance level(s).
RELEASE: Each subscriber or prospective subscriber acknowledges and accepts the limitations of the OTI and agrees, as a condition precedent to his/her access to the OTI, to release and hold harmless Howard, its members, officers, directors, owners, employees, affiliates, and agents from any and all adverse consequences resulting from his/her/its use of OTI, including, but not limited to, investment losses resulting from the subscriber’s implementation of any of OTI recommendations.
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Vance Howard President, CEO [email protected]
Vance Howard began his professional money management career in 1992 with the formation of Chartered Financial Services, Inc., before founding Howard Capital Management, Inc., a fee-only Registered Investment Advisor, in 1999. Vance specializes in research, development, and implementation of various types of trading systems.Previously, in 1988, he formed Delta Waste Services, a waste management firm which he sold in 1992.Before that, Vance was the co-publisher of The Savvy Investor and the SI Intermediate-term Trader newsletter with subscribers in over 25 countries from 1992-1999.Vance was elected four times to the Huntsville, Texas city council, and twice as mayor pro-tem. He has served in various capacities over the years, including City Finance Chairman of Huntsville, Texas, Chairman of the 911 Emergency Service for Huntsville/Walker County, board member of Houston/Galveston Economic Development Council, board member of the District 910 Legal Grievance Committee. Vance is a past President of the Huntsville Rotary Club and is still an active member.
Together with members of his family, he owns and operates the Bar C Ranch in Madisonville, Texas, specializing in registered longhorn cattle.
Vance enjoys traveling with his wife and children, biking, kayaking, scuba diving and hiking.
Tatyana is Lithuanian born graduate of Vilnius University Law School where she successfully practiced law, and created a widely read European Fashion Magazine. In the United States, since becoming a citizen, Tatyana has been a successful Commercial and Mortgage Lender at Bank of America, a licensed Financial Advisor, and the founder of The Georgia Commerce Club which is the largest privately owned chamber in the Nation. As a Real Estate Agent she brings her marketing and networking skills and some European Style and Fashion to help her clients find their perfect home.
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