Smarter consumers are dragging down retail sales

August 19, 2014

Cornerstone Macro analysts were out with a fascinating report this week that tries to explain why retail sales growth is stagnating despite the improvements in hiring and the economy. The... Continue Reading »

AOL beats, guides up and crows, "You've got buybacks!"

August 7, 2014

Some good earnings news emerged Wednesday from fallen dot-com  star  AOL  (AOL), which reported a top- and bottom-line beat for Q2 as well as announced a $150 million buyback program... Continue Reading »

Big Brown is on the ground

July 30, 2014

Here are three charts to help understand the market action on Tuesday and in July overall. UPS is a consumer-oriented package delivery service. It tends to falter when consumer buying wanes.... Continue Reading »

Daily Issues

Trades Update

August 19, 2014

Tuesday was another very good day for equity markets following better-than-expected data from the home-building sector -- which is precisely why I recommended covering our short trades.

The Dow, S&P and Nasdaq were all ahead by at least 0.4% on the day, and those who were waiting for a pullback were sorely disappointed. Markets are funny like that; sometimes you have plenty of time to get into position and other times you just need to buy and sell at the market because things are moving so quickly. Speaking of moves, I've got a look at our open trades, along with some updated instructions, and two new ideas for you.

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Dow Jumps 175 Points as Wall Street Shrugs Off Problems Overseas

August 18, 2014

Stocks ripped higher on Monday after investors apparently decided that they had over-reacted to Ukraine-Russian hostilities on Friday. The first half of the session was a big 'never mind' for the action last week, and the second half was a measure of relief that nothing more happened over the weekend to upset the psychological balance.

Unless the geopolitical gremlins in the eurozone or Middle East rear their bratty heads again, most of the focus this week will be on the Friday confab of the globe's top government economists in Jackson Hole, Wyoming. It's Woodstock for the GDP set, minus the pot smoke and electric guitars. Also due this week are minutes from the July 29-30 Fed meeting.

In today's Trader's Advantage, I'll review the current market landscape, including where I expect stocks to go from here. I have two new buys to share, I'm letting go of two short positions, and I'm adjusting a few other trade parameters as well.

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Trades Update

August 15, 2014

Just as the market was getting warm fuzzies about the Russian humanitarian convoy overseen by the Red Cross that was moving into Ukraine, reports that part of the fleet was destroyed by Ukrainian forces hit the headlines and spoiled what was expected to be a strong finish for stocks this week.

Still, our trades held up quite well in the decline, and I am confident that our mix of long and short positions will serve us well whether we see further drops next week or the uptrend resumes.

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With the markets trading near all-time highs, where do you think the S&P 500 will be at the end of the year?

  • 2,100 or greater
  • 2,000 - 2,100
  • 1,900 - 2,000
  • 1,900 or lower