The Trading Range is Finally Broken

We finally did it yesterday. The S&P 500 had closed between 1022.58 and 1127.79 for 86 straight days.

Thanks to a surge yesterday, the market not only broke though 1130 but finished at 1142.71.

I can’t tell if this bodes well for the market, but I do believe that the market continues to be underpriced, particularly the stock on our Buy List. AFLAC (AFL) broke through $53 per share. Reynolds American (RAI) is getting very close to $60 per share. (I thought dividend stocks were supposed to be boring!)

Although it’s not on the Buy List, I noticed that ConAgra (CAG) just upped its dividend by 15%. The quarterly dividend is now 23 cents per share which is up from 20 cents per share. The stock now yields 4.3% which is about 45 bips above the 30-year Treasury.

Posted by on September 21st, 2010 at 10:05 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.