January 23, 2015
Earnings news continues to underwhelm with McDonald's (MCD) and UPS (UPS) disappointing analysts today. Copper got clocked and hit a five-year low, and oil oozed lower. Volatility remains in play, but remember that upward volatility exists, as well, and it helped us take final profits in our CVS calls.
Despite the major indices closing in the red, a lackluster day isn't likely to deter this market, and I want to stick with what we have going into the weekend. Next week holds some potential catalysts with the latest durable goods orders figures, an important housing report and an FOMC policy statement. But the way this market is moving, we may have booked a slew of profits before those news items even hit the tape.Continue Reading »
January 22, 2015
Stocks went full Mario today, ripping higher after the European Central Bank (ECB) announced its first round of American-style quantitative easing at a level and pace -- 60 billion euros a month -- that was stronger than expected.
This was the outcome that I had in mind by loading up our Buy List with call options and cyclical stocks, as there were plenty of hints amid the volatility of the past few weeks that ECB chief Mario Draghi would persuade the recalcitrant Germans to accept this plan.
In today's Trader's Advantage, I'll look at Draghi's statement and other market-moving headlines, then I'll share an interview with a banking expert who sees storm clouds on the horizon for the global economy. We entered two new trades today and enjoyed some profits from two current holdings.Continue Reading »
January 21, 2015
After gapping down at the open, stocks ultimately closed 0.5% higher on Wednesday in choppy trading. IBM Corp. (IBM) reported weaker-than-expected earnings, but Netflix (NFLX), American Express (AXP) and UnitedHealth Group (UNH) all posted positive Q4 numbers. U.S. housing data showed improvement, and the speculation continued about quantitative easing from the European Central Bank (ECB).
According to the Wall Street Journal, the ECB is looking to spend 50 billion euros in monthly sovereign-debt purchases to combat deflation. If so, the flood of money from Europe and Japan is expected to have a significant bullish effect on stocks. In today's Trader's Advantage, we took profits on a stock trade, and I have two new buys for you. I'll update you on our current holdings as well.Continue Reading »
Which of the following sectors of the market do you think will outperform for the balance of 2014?
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