Prepare for the rare "deflationary boom"

November 26, 2014

"Deflation" and "boom" are not two words that normally go together. They are almost like "sad happiness," "lo-cal donut." But in their very unlikely pairing they appear to do a... Continue Reading »

S&P 500 headed to 2,500, courtesy of Japan?

November 12, 2014

Stocks finished a smidge higher Tuesday in a session so quiet that you felt compelled to check your Internet connection because it seemed like prices just were not moving. Knock,... Continue Reading »

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 »

Daily Issues

Trades Update

November 26, 2014

Ahead of the U.S. Thanksgiving holiday, stocks were slightly higher on lighter-than-average volume. Investors seemed to pay no mind to a mixed bag of U.S. economic data, and telecom and tech were the biggest gainers, while energy, industrials and materials lagged.

Clearly, many traders are taking a break this holiday week, but it's a good moment to have money at work. Q4 earnings tend to be positive, and as I've mentioned before it's one of the best times of year for the market, across all sectors. In today's Trader's Advantage, we closed two positions and entered one new one; I'll review those trades and share my latest recommendations for each item on our Buy List.

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Trades Update

November 25, 2014

The positive revision to the third-quarter GDP reading gave the bulls another boost, and they continued pushing the market higher today. There was more news on the economic front, though it was mixed: The Case Shiller 20-City Index reading of 4.9% was also ahead of the 4.6% forecast, while Consumer Confidence for November backed off to 88.7 versus the consensus forecast of 96.

Still, it was plenty to fuel the bulls, and the transports were out in front today. However, no reprieve for oil ahead of the upcoming OPEC meeting that is scheduled for Thursday, which is also a U.S. market holiday to observe Thanksgiving. The energy patch might not be offering investors any solid prospects at the moment, but our cache of bullish positions is looking good, and we were able to get positioned in my latest defense contractor call option.

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Stocks Likely to Move Higher with Holiday Spirit

November 24, 2014

Weeks that contain holidays tend to be positive for stocks, and this one comes near the start of one of the best six-month stretches for stocks in the year. So the natural tendency is going to be for shares to rise unless there is a very compelling reason for them to back off.

One of the best stocks overall in the two week stretch coming up has been our financial conglomerate, with a 4.9% median gain. Last year, it was down 2% in the stretch, but in the prior two years it was up 10% each time. History is not destiny, but it always helps when you have some kind of tailwind, like we do at present. You should be more willing to take action. We have a lot of good positions on right now, and I expect to recommend more in the coming couple of days.

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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