Market Direction Mid Week Update©

Market Direction: BULLISH alert issued 11/10/2016

Moody’s expects issuance in the primary market to accelerate in the second half of 2017 as companies begin to address their longer-term maturities. Speculative-grade maturities are comprised of $633 billion of bank credit facilities and $430 billion of high-yield bonds, with the former up 9% and the latter up 17% over last year’s numbers.

Close to 60% of speculative-grade companies with debt due in the 2017-21 time frame are in sectors with stable outlooks, while 24% have positive industry outlooks and 16% have negative outlooks, Moody’s says. Among sectors with a stable outlook, the telecommunications industry has the highest amount of debt maturing before 2021, $81 billion, and among those with a negative outlook, manufacturing has the highest amount with $59 billion.

U.S. investment-grade non-financial companies have approximately $944 billion of bonds due in 2017-21, also a record amount, with maturities roughly evenly distributed over the period. The telecommunications, technology and media sectors continue to dominate investment-grade maturities, with 31% of the total, up from 29% from last year.

The energy sector accounts for about $117 billion of the investment-grade debt maturing in 2017-21, with about $70 billion held by companies in Moody’s lowest broad investment-grade rating category, which could present challenges. While commodity prices have improved, Moody’s said, the operating environment for energy and mining companies remains somewhat difficult.

Read: How falling oil can sully bonds outside of the energy sector

$tockMarketDirection proprietary model is currently BULLISH. We strongly encourage you to monitor positions closely, exercise proper money management strategies and follow us at $tockMarketDirection for ALERTS we may issue advising a change in the current market direction. Stay tuned and follow us. If you have a testimonial or comment of how this website has helped you we would like to know, email us. Share with a friend.

The all-time highs since our initial recommendation to go LONG this market. Here is how the markets have performed:

Stock Market Direction Recommendation (11/10/2016)
Dow	up 1,347.47 points a 7.16% gain	2/7/17
Nasdaq	up 480.80 points a 9.23% gain	2/7/17
S&P 500	up 133.517 points a 6.16% gain	1/26/17

Related Link: http://www.stockmarket-direction.com/