Homebuilders are knocking on the door again

October 21, 2014

There are some groups of stocks that are the never-ending object of our attention for months and years on end, and then something happens and you gradually stop looking —... Continue Reading »

'Ebolatility' infects stocks, sparks bonds

October 16, 2014

Stocks keeled over on Wednesday like sawgrass in a stiff wind, bending and trembling but never actually breaking. There was a list of catalysts as long as your arm, even... Continue Reading »

Dollar surge puts Q4 earnings at risk and two-year stock uptrend in peril

October 8, 2014

Stocks opened this week with solid gains across the board, but sellers moved in on cat feet and began pawing at the highs until they unraveled like a ball of... Continue Reading »

Daily Issues

Trades Update

October 29, 2014

Stocks slid lower and bonds moved higher after today's release of the October FOMC meeting minutes, which stated that the Fed will move forward with its previous plans to end QE. The FOMC also reiterated that it will maintain zero interest rates for 'a considerable time,' but its language about the U.S. labor market was more hawkish than expected.

Nearly all S&P sectors took a hit on the news, particularly industrials, utilities and materials. Financials escaped unscathed, however, as did energy since crude oil has finally begun to trade higher above $80 per barrel. In today's Trader's Advantage, I'll recap the outcome of three trades that we closed and share my current recommendations for the remaining positions in our Buy List.

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Trades Update

October 28, 2014

At the closing bell, all of the major averages were ahead by more than 1%, as the market breathed a sigh of relief when the news that the European Central Bank announced further support for more quantitative easing hit the tape. Stateside, the Fed will forego a press conference tomorrow after the FOMC announces its rate decision. Traders took this to mean there's no change coming, which only boosted confidence to buy into a rebound.

Our cache of positions performed well overall today, with one stock netting us double-digit gains overnight. I'm adjusting a few trading perimeters in tonight's issue, and I also take a look at Facebook's (FB) earnings announcement and how that impacts our open position.

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In Synch with the Market

October 27, 2014

We appear to be in synch with the market's preference for larger companies with the most diverse and steady income streams and high-flying tech/media. Stocks may well consolidate for another week to digest recent gains, but should get fully back on track after the Fed meeting later this week and the midterm congressional elections next week.

For now, the energy sector remains a mess. The energy services companies always seem to blow up more than the producers, since the latter actually have assets in the ground while the former are left looking at idle equipment, and I've got a new put recommendation to profit from it.

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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