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

Tech, Manufacturing Outperform in Thursday's Rally

October 23, 2014

Stocks ripped higher today as investors appeared mostly afraid to miss out on buying into the recent pullback. The indexes are now up as much as 5% over the past five sessions, even after accounting for the big divot on Wednesday.

The main flush of happiness came over investors when global Purchasing Manager Indexes were published overnight. October 'flash' (or first read) PMIs for the eurozone rose to 52.2, well ahead of the 51.5 consensus and up from 51.7 in September. The manufacturing PMI rose to 50.7 from 50.3, with expectations at 49.9.

In today's Trader's Advantage, I'll take a look at today's bullish headlines and recap the latest action among our trades, several of which did particularly well in today's session.

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Trades Update

October 22, 2014

Stocks started higher on Wednesday but ran into some technical resistance at the key level of 1,950 for the S&P, which ultimately slid back down to 1,927 for a loss of 0.7% on the day. Contributing factors included a shooting in the Canadian capital of Ottawa, the next round of corporate earnings and a rise in consumer inflation.

Comparing the 10 S&P sectors shows a strong flight to safety: only consumer staples and utilities traded higher, while energy and industrials underperformed. In today's Trader's Advantage, we took half profits on an option play, and the market pullback allowed us to enter four new positions. I'll recap all of those outcomes and share my latest recommendations for our current Buy List.

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Trades Update

October 21, 2014

While none of the issues that were giving traders anxiety attacks last week have been resolved, it's clear that perceptions are changing and fears are abating with cash moving off the sidelines and back into equities. We're in the midst of a relief rally with earnings season well underway. Results have been largely positive, but not without some serious misses from big names including IBM, Chipotle, Coca-Cola and McDonald's.

But, for now, the market is focusing on the positive, which means our lineup of longs is sitting pretty. We were able to enter three new positions today, and I've got a couple more new ideas for you, including a call options trade.

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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