What To Make Of Today's Surprising Market Move

Wall Street clearly made up for the shortened trading week by popping at today’s open. Money that was previously on the sidelines has been pouring in and refuses to ebb. What has investors so bullish?

Well, the seemingly endless money pumping by several central banks has certainly helped. Many central banks are operating like a conductor of a runaway train and seemingly don’t know how to hit the brakes on their stimulus policies. As for the Fed, it recently stated that it plans to continue unabated with its $85 billion per month in Quantitative Easing. The fear is that a premature tightening of monetary policy could halt the economic recovery and cause a deflationary spiral.

The way things are shaping up, the Fed’s money pump will remain on until there is conclusive evidence of robust economic growth. I expect that the earliest this would occur would be four to five months from now. So Chairman Bernanke has no immediate plans of curtailing bond buying—which is great news for investors.

So this summer, we may in fact see smoother sailing than normal. It’s too soon to tell whether this will carry over into the typically volatile month of August, but I’m keeping a close eye on market barometers. Regardless of how the market swings this summer, you can prepare by continuously screening your stocks through my Portfolio Grader tool. A good place to start is by reviewing the 60 big blue chips that were just upgraded and downgraded this week. If you hold any of the stocks below, you may want to take note because they are making big moves.

Upgrades

Last Week’s Holds, Now Buys

Symbol Company Name Quantitative Grade Fundamental Grade
ABT Abbott Laboratories B B
AXP American Express Co. B B
BAC Bank of America Corp. B C
BMO Bank of Montreal B C
BNS Bank of Nova Scotia B B
ENB Enbridge Inc. B C
RY Royal Bank of Canada B B
SLF Sun Life Financial Inc B C
STX Seagate Technology Inc. B C
TRI Thomson Reuters Corporation B C
WLP WellPoint Inc. C B

Last Week’s Sells, Now Holds

Symbol Company Name Quantitative Grade Fundamental Grade
ESRX Express Scripts Holding Co D B
FRX Forest Laboratories Inc. C D
HOT Starwood Hotels & Resorts Worldwide Inc. D C
MJN Mead Johnson Nutrition Co. D C
SHPG Shire PLC ADR C C
XLNX Xilinx Inc. D C
XRX Xerox Corp. D B

Downgrades

Last Week’s Buys, Now Holds

Symbol Company Name Quantitative Grade Fundamental Grade
ADBE Adobe Systems Inc. C C
AME Ametek Inc. C B
BEAM Beam Inc. C B
CNI Canadian National Railway Co. B C
D Dominion Resources Inc. (Virginia) C D
DUK Duke Energy Corp. C C
EBAY eBay Inc. C C
EMN Eastman Chemical Co. C B
KYO Kyocera Corp. ADS B C
MA MasterCard Inc. Cl A C B
MUR Murphy Oil Corp. C C
ORLY O’Reilly Automotive Inc. C B
PLD Prologis Inc. C C
PPL PPL Corp. B D
ROP Roper Industries Inc. C B
SAP SAP AG ADS C C
SPG Simon Property Group Inc. C C
SYK Stryker Corp. C C
SYMC Symantec Corp. B C
TGT Target Corp. B C
TJX TJX Cos. C B
UTX United Technologies Corp. C B
VZ Verizon Communications Inc. B C

Last Week’s Holds, Now Sells

Symbol Company Name Quantitative Grade Fundamental Grade
AGN Allergan Inc. D B
AGU Agrium Inc. D C
ALXN Alexion Pharmaceuticals Inc. D B
AV Aviva PLC ADS D C
CF CF Industries Holdings Inc. D C
CHA China Telecom Corp. Ltd. ADS D C
DHR Danaher Corp. D C
ED Consolidated Edison Inc. D C
ERIC Ericsson ADR C D
HAL Halliburton Co. D C
INFY Infosys Ltd. ADR D C
KSS Kohl’s Corp. D C
LVS Las Vegas Sands Corp. D B
NUE Nucor Corp. D D
QCOM QUALCOMM Inc. D B
RL Ralph Lauren Corporation D B
TTM Tata Motors Ltd. ADS D C
UPS United Parcel Service Inc. Cl B D C
VOD Vodafone Group PLC ADS D D

 

Sincerely,

Louis Navellier

Louis Navellier

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