Big Nasdaq breakdowns tend to worsen before they heal, data shows

March 26, 2015

When stocks were hit with a hard left jab on Wednesday, techs and biotechs took the brunt of the impact. The Nasdaq Composite fell 2.4%, its first loss of  greater than 2%+ since October.If you have... Continue Reading »

Stocks show impatience is a virtue

March 19, 2015

Equities pulled out of a steep dive in the middle of the Wednesday session, then turned up and shot higher after the Federal Reserve announced it would stop being patient, but wouldn’t be... Continue Reading »

‘Black and blue’ chips pummeled by strengthening dollar

March 12, 2015

It’s a bird, it’s a plane — it’s Super-Dollar, soaring higher into the investment stratosphere and rattling the cages of U.S. multinationals with its sonic booms.The damage is getting serious:... Continue Reading »

Daily Issues

Trades Update

March 26, 2015

Stocks fell again on Thursday, gapping down at the open before staging a brief recovery in the mid-afternoon -- but ultimately slipping back below the flatline in the last stretch of trading.

Most of Wall Street's attention today focused on continued geopolitical tensions, better-than-expected U.S. jobless claims and more Fedspeak. Among the key S&P sectors, telecom and tech stocks outperformed, while utilities and consumer discretionary led the way lower.

In today's Trader's Advantage, we closed three more positions today; I'll review each of those results, then update you on the remaining holdings in our Buy List.

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Trades Update

March 25, 2015

Stocks were hit with a hard left jab on Wednesday, with the techs and biotechs of the Nasdaq Composite taking the brunt of the impact.

The Nasdaq fell 2.4%, its first loss of more than 2% since October of last year. Yet if you have been trading longer than nine months, then of course you know that it is not terribly uncommon for the four-letter index to suffer a big single-day wallop.

Bespoke Investment Group, which has some of the best data analysts in the business, took a look at all prior 2%-plus declines for the Nasdaq during the current bull market (which began in March 2009) to see if they could offer some insights on what to do next. And, as usual, they came up with some useful patterns and recommendations.

In today's Trader's Advantage, I'll take a closer look at the Bespoke findings and their implications. Then I'll recap two positions we closed today and share my latest recommendations for our remaining positions.

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Trades Update

March 24, 2015

Stocks were mostly lower in late afternoon trading following better than expected existing home sales and doubts about Greece's ability to stay financially afloat. All sectors traded lower, with utilities and energy leading the way down. Tech and materials were down but relatively outperforming. Crude oil, gold and Treasuries were all higher.

Our current positions fared well, with one of our names even advancing to its initial target, but I'm adjusting a few stops. We'll march forth with our bullish trades, including a new long recommendation, but stay ready to incorporate some short-side ideas as they come. Even in an up market, not all stocks advance, so there may be some profitable opportunities with a bearish bias.

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Which of the following sectors of the market do you think will outperform for the balance of 2014?

  • Utilities
  • Energy
  • Healthcare
  • Technology
  • Financials
  • Industrials