Upsurge or Downturn - What’s coming next?

On one hand we have the U.S. GDP growing at its fastest rate in five years… upbeat factory data… a jump in consumer spending… and strong earnings reports from dozens of major players such as Pfizer, UPS, Archer Daniel Midlands, Cummins, and Alcoa.

On the other we’re facing soaring food, fuel, and commodity prices worldwide… a looming collapse of Portuguese and Spanish debt… a downgrade of Japan… protests in Egypt… and, some say, extreme over-confidence in U.S. stock markets – all of which hint at a MAJOR correction…

What does it all mean – are the markets poised to pick up a fresh leg of steam as the recovery continues… or are we on the verge of a painful, new downturn? As far as I’m concerned… Continue reading "Upsurge or Downturn - What’s coming next?"

Poll: Can the Super Bowl impact the market?

This Sunday, millions of eyes will be glued to their television sets to watch the Green Bay Packers and the Pittsburgh Steelers go head-to-head in the Super Bowl. Some will be watching for the game, some just to check out the commercials, but is there another side to the Super Bowl that affects us as traders?

Recently, I've read the remarks of several analysts who say that the Super Bowl could very well be a litmus test of retail sales for the year, but what do you think?

Will we see Super Bowl spending trickle down and affect the market?

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As always we invite you to leave your thoughts on the subject below, in our comments section.

Rare Earth Update

A few days ago we blogged about rare earth being more valuable than gold. If you missed that blog posting on January 27th, you can read it here if you wish.

The stock mentioned in this blog posting was a stock trading on the NYSE named MOLYCORP, symbol MCP. Since that posting, MOLYCORP has moved up over 8 dollars in very active trading. In fact, the stock was up over 9% yesterday and up over 18% since we mentioned it to five days ago.

Take a quick look at the chart below and you can compare what we said back on the 27th right here. Continue reading "Rare Earth Update"

The Fall of Egypt and the Future of Gold

Despite all the turmoil in Egypt and the Arab world, gold has stubbornly refused to rally. This probably causes great concern amongst the gold bugs and the folks who are bullish on gold.

As we have mentioned before many times on this blog, "perception is more powerful than fundamentals."

While the gold bugs argue that the market is being manipulated, I am more of a realist and respect what the market is actually doing. The big question on everyone's mind is: Why are food prices and other commodity markets soaring, while gold is dismally staying down in the $1,330 area?

NEW GOLD VIDEO

Continue reading "The Fall of Egypt and the Future of Gold"

The Stock Repair Strategy

Today's Guest Blogger is Dan Passarelli of Market Taker Mentoring. Dan is an options guru with more than 17 years experience in the options industry. He has worked as both a floor trader and an options instructor. Today Dan is going to share his insight on the "stock repair strategy." What are some tricks you use to leverage risk in trades? Be sure to comment below and visit Dan at Market Taker Mentoring.

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It’s been a rough ride for a lot of investors. Some investors are waiting (patiently) for the market to turn around. Some traders are buying at the new, cheaper prices. But as experienced investors know, the market can always go lower—sometimes fast and furiously. There is one more alternative that can make sense in some cases: the stock repair strategy.

Introduction to the Stock Repair Strategy: Continue reading "The Stock Repair Strategy"