Positive Macro Announcements Old News to Company-Focused Investors

Model Portfolio Daily Update:  November 24, 2010

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Of Note:
Theflyonthewall.com reported today that Avery Dennison (AVY) is “…expanding capacity and production of pressure-sensitive materials for labeling and packaging at its state-of-the-art plant in Pune.  This is the third time the company has expanded capacity at Pune since it opened in 2008.”

Separately, the S&P 500 finished up 1.49% today after finishing down 1.43% yesterday.  In contrast our Core and Opportunistic Long models finished up 2.60% today after finishing down 1.54% yesterday.

The market was driven by a positive employment report, a positive consumer sentiment report, and a strong reading from a German business sentiment index.  Airlines and luxury retailers were especially strong today.  Remind us to keep an eye on Limited Brands (LTD), Fossil Inc. (FOSL) and Guess (GES).  These three seem to have a similarly correlated product line and customer base, and are reporting similarly positive financial results.  If we had been more attentive, traders would have had a confident trading idea in the form of GES, similar to the LTD trade we suggested on November 14.

About this report
This daily update is a supplement to a monthly report dated October 31, 2010 that details the model portfolio strategies of Ascendere Associates LLC (“Ascendere”).  For more information, please see our list of frequently asked questions, suggested tips on using our newsletter or an interview with us on Covestor Live.  Please see our disclosures and disclaimers at the back of this report.  See also our long-only model based on actual trade data.