The Stock Market inched down starting Monday

The stock market has been moving sideways/higher since November 2014. It’s been more sideways than higher. It has advanced further into very high nosebleed territory via small steps. This is the opposite of that seen when a market trends. Trends, whether bullish or bearish, are made up of big steps some of the time. The average price to earnings per share is 26. The historical average is roughly 13. Stocks are detached from the fundamental earnings and are moving up as if the Federal Reserve was a grand magical wizard. The Federal Reserve has, for years, made it extremely difficult for poor old people to live as they have created a war against savers.

My table of stock market relative-strength sectors shows the Finance Group as the only one expanding while all the others shrank. The Basic Materials sector (i.e., contains mining stocks) finally broke its bullish trend line and plunged over 5% in August (i.e., 3% is a big move). Used huge dump trucks, used for mining, are selling for less than $60,000. The Semiconductor sector zoomed higher in August by 3.4%. Here are the individual stocks that make up the sector and their earnings growth.
SYMBOL EPS % Change Last 3 qtrs EPS growth
intc -5% 6%
mu -115% n/a
amat 52% 21%
nvda 56% 38%
qcom 17% -12%
mrvl -92% -75%
asml -3% -21%
swks -7% 9%
tsm -14% -15%

The last time I published a table like this I showed sales number; these earnings figures are just as terrible. Only AMAT and NVDA had figures above the basement. Yet, the semiconductor sector gained market share in August.

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