"Death cross" for small-caps gets new life

September 23, 2014

Stocks plotzed on Monday without any specific catalyst other than some random comments out of China that maybe economic stimulus there would be muted, and some random home sales data... Continue Reading »

LUV is in the air

September 11, 2014

The investment research firm Bespoke has gotten into the business of consumer surveys, and last month they asked a representative sample of Americans to rank their most used and favorite... Continue Reading »

And now, the Scotland Scare

September 10, 2014

Investors have a new chunk of rock and nationality to worry about this week. Not Ukraine, not Syria, not Iraq, not Liberia … Look north, turn left, and zero in on... Continue Reading »

Daily Issues

All Signs Point to a Fourth-Quarter Rally

September 29, 2014

Stocks sloshed around in the red today after their super-strong advance on Friday, but ended well off their lows with a faint but distinct hint of optimism shining through in the last half hour. There was no single catalyst for the early decline of more than 100 points for the Dow Jones Industrials Average, but there was some geopolitical unease that ranged from protests in Hong Kong to a sell-off in Brazil and new fears that Spain might split up.

The most obvious pain point for global equities was escalating riots in Hong Kong. Police used tear gas on student-led pro-democracy protests. The protests have been cited by many as a headwind for markets, but for the moment remain a limited and local issue.

In today's Trader's Advantage, I'll share a little-known historical trend that suggests a significant reversal higher is in the cards, despite the gloomy sentiment seen recently. We were able to take profits on our short position today; I'll review that outcome and share my latest recommendations for our remaining trades.

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Trades Update

September 26, 2014

Stocks had a volatile week, gapping down on Monday and continuing lower on Tuesday before staging a significant recovery on Wednesday -- then sliding back down with a vengeance on Thursday.

Friday's session saw somewhat of a comeback, but ultimately the S&P was down 1.4% for the week. In today's Trader's Advantage, I have one new buy in the industrial sector, and I'm canceling our unfilled trade recommendation. I'll also update you on the balance of our trades; on the whole, our Buy List did quite well in Friday's session.

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Wall Street Left with Rumors, Few Answers After Waterfall Sell-Off

September 25, 2014

Stocks pulled a big 'never mind' in regards to their advance on Wednesday, starting the session with fat losses that pooled and then cascaded later in the session. There were no major headlines from economic or geopolitical events that could be directly blamed for the losses, so investors were left to speculate on their own.

One rumor that sounded interesting but probably was not true was speculation that a large hedge fund was suffering such a catastrophic loss on a short position in extreme-sports camera maker GoPro (GPRO) that it was forced to sell other holdings to have enough funds to cover.

This is one of the apocryphal stories you will often see on a day like today, but it's very unlikely. In today's Trader's Advantage, I'll review the more plausible causes of the broad decline, as well as my latest recommendations for our trades, one of which we closed this afternoon.

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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