Drought could drain California of its power

April 9, 2015

You may have heard that California is experiencing an historic drought – the worst in  200 years by some measures. While this might seem like a problem isolated to lawns... Continue Reading »

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 »

Daily Issues

Stocks Rip, Then Dip

April 27, 2015

Stocks ripped out of the opening bell today to new record levels but apparently became scared of heights as they turned lower midday and ended in the red to finish at their worst levels. The dollar was mostly lower, precious metals were the upside stars of the session and crude oil took a break by finishing flat.

I would love to say there was something amazing driving the action but, in fact, there was very little on the news wires and nothing special among the earnings reports. The rally in Chinese equities was kind of interesting, however, and there were renewed fears that Greece would disappear, financially at least, into the Adriatic Sea.

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Trades Update

April 24, 2015

Volatility has vanished this week just as quickly as it emerged last week, with the S&P gaining 1.8% on the week as the market settles back into a sense of complacency.

Investors are increasingly converging on the notion that the Federal Reserve is not likely to raise interest rates at either its June or December meetings due to signs that the U.S. economy is weakening. However, there are clues that the consensus view is wrong -- and that the Fed may stand its ground and raise rates as soon as June, with follow-up rate hikes to come in September and December. If that occurs, you can expect the current low-volatility environment to evaporate and for a sharp round of volatility ramps to take its place.

In the meantime, we'll continue to look for profits with short-term long trades. In today's Trader's Advantage, I'll update you on the latest happenings in our Buy List, including two new trade entries.

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Trades Update

April 23, 2015

The rally continued on Thursday amid a heavy round of earnings reports and some additional weak economic data. One of the day's biggest winners was IBM (IBM), which gained another 2.9% as it continues to ride the wave higher after reporting earnings on Monday. Apple (AAPL) was up 0.8%, which played a big part in bringing the Nasdaq to a new closing high.

Among key S&P sectors, telecom and energy outperformed, while consumer staples was the only major sector to trade lower. Crude oil and gold were both higher, and Treasurys were flat. In today's Trader's Advantage, I'll provide my latest recommendations for our trades, one of which we just entered today.

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Which of the following sectors of the market do you think will outperform for the balance of 2015?

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