*|MC:SUBJECT|*


Market Commentary
The market maintained its gains from the week before. Although the market held onto its gains all is not well. The market continues to exhibit signs of a speculative top. This can be seen in the market cap rankings as well as poor sector rotation in this advance. This week we may see additional advances, but we feel they will be short lived. This is not a rational advance and lacks real fundamentals. Yes, earnings recession appears to have ended , but the projected growth
of earnings doesn't support much more of an advance at this time. So for the time being we urge caution in taking any new positions. If you have profits consider taking some money off the table.
 

Featured Stock

Electronic Arts, Inc. – EA – $78.99
Other Consumer Discretionary

 
 
 
 

Electronic Arts Inc. operates in two principal business segments globally: EA Core business segment: creation, marketing and distribution of entertainment software and the EA.com business segment: creation, marketing and distribution of entertainment software which can be played or sold online.

 

Target Price is $86.79

FATI® Market Capitalization Rankings

 

Market Capitalization Ranking helps investors focus on which market cap stocks are exhibiting top performance characteristics. The ranking is calculated using market cap performance, relative strength and the concentration of stocks in each market cap sector over the past four weeks. This doesn't mean lower ranked stocks will not perform. They can and often do. As a best practice over time, it is wise to invest the
majority of your capital in the top two or three market cap sectors. Here is this week’s ranking.

 
Ranking Market Cap 1 Mth 3 Mth 6 Mth 9 Mth 12 Mth RSR % Stocks Up % Stocks Dwn YTD Return
1 Nano Cap 4.0% 7.0% 22.0% 38.0% 15.0% 5 28.0% 26.0% 15.91%
2 Small Cap 4.0% 4.0% 17.0% 32.0% 15.0% 4 24.0% 33.0% 17.81%
3 Mid Caps 3.0% 2.0% 11.0% 23.0% 10.0% 3 25.0% 31.0% 13.67%
4 Large Cap 0.0% 0.0% 6.0% 14.0% 5.0% 1 26.0% 27.0% 8.15%
5 Mega Cap -1.0% -2.0% 2.0% 6.0% -1.0% 0 22.0% 29.0% 0.68%
6 Micro Cap 5.0% 5.0% 17.0% 30.0% 9.0% -8 26.0% 31.0% 11.90%
  FATI® Index                 16.08%

FATI® Sector Rankings

 

Sector Ranking helps investors focus on which sectors are exhibiting top performance characteristics. The ranking is calculated using sector performance, relative strength and the concentration of stocks in each sector over the past four weeks. This doesn't mean lower ranked sectors will not perform. They can and often do. As a best practice over
time, it is best to invest the majority of your capital in the top four or six sectors. Here is this week’s ranking.

 
Ranking Sector 1 Mth 3 Mth 6 Mth 9 Mth 12 Mth RSR % Groups Up % Groups Dwn YTD Return
1 Transportation 6.0% 11.0% 18.0% 26.0% 11.0% 6 0.0% 66.0% 19.84%
2 Construction 9.0% 5.0% 17.0% 41.0% 15.0% 5 0.0% 0.0% 20.81%
3 Industrial Products 5.0% 7.0% 21.0% 40.0% 27.0% 5 0.0% 100.0% 33.03%
4 Basic Materials 4.0% 6.0% 18.0% 47.0% 35.0% 5 0.0% 0.0% 40.08%
5 Finance Sector 6.0% 7.0% 14.0% 27.0% 11.0% 4 40.0% 40.0% 10.92%
6 Business Services 8.0% 2.0% 10.0% 28.0% 9.0% 4 0.0% 100.0% 18.63%
7 Automotive/Tire/Truck 4.0% 5.0% 17.0% 28.0% 8.0% 4 14.0% 57.0% 14.43%
8 Aerospace 9.0% 6.0% 10.0% 24.0% 11.0% 4 0.0% 100.0% 13.43%
9 Multi-Conglomerates 9.0% 2.0% 6.0% 24.0% 16.0% 3 50.0% 0.0% 18.63%
10 Retail/Wholesale 5.0% 0.0% 8.0% 9.0% 6.0% 3 0.0% 0.0% 6.25%
11 Oil & Energy -2.0% 3.0% 12.0% 39.0% 10.0% 3 28.0% 0.0% 17.43%
12 Consumer Disc. 4.0% 0.0% 10.0% 17.0% 6.0% 2 66.0% 0.0% 9.01%
13 Medical 0.0% 0.0% 8.0% 16.0% -2.0% 1 50.0% 0.0% -5.31%
14 Utilities -2.0% -4.0% -1.0% 6.0% 11.0% -1 33.0% 33.0% 12.67%
15 Consumer Staples -4.0% -9.0% -1.0% 5.0% 2.0% -1 66.0% 0.0% 3.47%
16 Computer & Technology 4.0% 5.0% 20.0% 29.0% 17.0% -9 25.0% 0.0% 19.83%
  FATI® Index                 16.08%

Long Trades
 

Ticker %Chg EPS F1 EPS Grth % F1 EPS Grth % F2 # Anlst in F1 Con. Est. P/E using F1 Est Mkt Cap Millions FATI Score Next EPS Report Date
                 
SPX 0.91 17.32 27.14 4 18.51   0.91  
                 
WING 2.25 20.75 35.9 8 52.18 $851 1.82 20170302
SODA 47.37 64.71 75.74 4 21.34 $761 2.79 20170216
ALGN 4.95 35.08 66.92 11 39.67 $7,558 3.42 20170126
WCG 8.38 58.48 80.65 6 23.59 $5,696 0.36 20170214
CGNX 11.6 29.34 41.15 5 37.29 $5,041 0.83 20170208
NVDA 33.32 129.3 156.62 11 37.7 $49,948 6.63 20170215
NOC 5.92 27.46 30.1 9 20.91 $43,265 0.5 20170126
BUFF 3.75 27.42 42.86 6 28.34 $4,400 0.8 20170314
AMAT 3.12 33.62 39.1 12 13.15 $33,227 8.56 20170216
BRKR 9.52 23.18 24.38 8 21.06 $3,704 0.97 20170208
EA 1.71 18.15 45.56 7 24.76 $23,836 1.71 20170126
MTZ 8.87 197.22 265.04 8 22.12 $2,925 1.05 20170223
ITRI 4.62 233.56 297.6 4 26.63 $2,481 1.28 20170629
LRCX 8.16 20.54 24.98 9 13.81 $17,050 3.79 20170125
STX 7.69 66.13 66.15 13 10.46 $11,572 4.39 20170203
VNTV 1.18 20.16 36.81 14 23.07 $11,350 0.61 20170201
PLCE 8.15 41 54.17 5 19.59 $1,825 0.75 20170321
OCLR 34.17 532.5 640 5 19.47 $1,634 3.31 20170207
ALRM 12.72 242.67 288 5 57.18 $1,351 5.93 20170223

Short Trades
 

Ticker %Chg EPS F1 EPS Grth % F1 EPS Grth % F2 # Anlst in F1 Con. Est. P/E using F1 Est Mkt Cap Millions FATI Score Next EPS Report Date
                 
SPX 0.91 17.32 27.14 4 18.51   0.91  
                 
ANF -4.93 -60.84 -36.96 14 33.29 $988 29.82 20170301
EXPD -2.97 -1.2 5.89 8 21.72 $9,289 1.98 20170228
ZOES -8.64 -7.5 28.57 8 267.89 $482 22.93 20170223
HABT -3.94 -3.94 8.38 7 52.41 $280 2.48 20170301
DOV -1.17 -19.61 1.95 5 24.04 $10,899 0.29 20170124
WERN -4.05 -38.28 -28.54 11 25.68 $1,953 3.4 20170126
FWRD -3.22 -8.74 3.19 6 23.64 $1,482 0.96 20170214

GREEN – Favored Stock
RED – EPS Report ALERT

FATI Score – Measures the dispersion of earnings estimates of analysts. The lower the score the the lower the earnings uncertainty. Scores of 12 or lower are only considered for long trades.

 

Recent Featured Stock Performance
 

Rec. Date Ticker LONG / SHORT % G/L S&P 500 % +/- S&P 500 Current Price Target Price 8% Stop Price Next EPS Date
9/17/16 THO $79.11 9.35% 2.00% 7.36% $86.51 $87.02 $72.78 9/26/16
9/24/16 PGR $31.15 -5.75% 0.80% -6.54% $32.94 $28.04 $33.64 10/13/16
10/1/16 OC $53.39 -8.00% 0.63% -8.63% $49.12 $49.12 $49.12 10/19/16
10/8/16 PII $74.02 -8.00% 1.31% -9.31% $79.94 $66.62 $79.94 10/25/16
10/15/16 SPB $136.09 -8.00% 1.70% -9.71% $125.20 $149.70 $125.20 11/17/16
10/22/16 OII $27.31 17.72% 1.90% 15.82% $22.47 $24.58 $29.49 10/27/16
10/29/16 MKSI $49.65 13.80% 2.74% 11.06% $56.50 $54.62 $45.68 1/25/17
11/5/16 THR $17.95 -8.00% 4.64% -12.64% $19.39 $16.16 $19.39 2/1/17
11/12/16 LFUS $149.20 1.20% 0.94% 0.26% $150.99 $164.12 $138.56 3/6/17