Will Ebola Have A Lasting Effect On The Markets?

Everywhere you turn, you see stories and videos about another Ebola outbreak. Major epidemics like the Ebola virus often create trends in healthcare, which can lead to major opportunities for investors.

Here is one stock that has been off the radar for most Wall Street firms, but is my favorite Ebola-related stock right now.

On July 30th of this year, this stock flashed a buy signal based on our Trade Triangle Technology - that was two and a half months ago! Do you remember seeing or reading about Ebola two and a half months ago? I expect not, as the Ebola virus was not front page news like it is now.

Chimerix To The Rescue

The chart below perfectly illustrates the upward trend of this stock. The green monthly Trade Triangle on the chart is where we were first alerted to the beginning of a bull trend for Chimerix, Inc. (NASDAQ:CMRX) on July 30th at $27.32.

Chimerix, Inc. (NASDAQ:CMRX) could have a great deal more room to go on the upside as a result of the Ebola pandemic. I do expect to see volatility in CMRX increase as it climbs a "wall of worry" from current levels. The more news that comes out about the spread or containment of the Ebola virus, the more volatility we could see. Overall, I do believe the trend for CMRX is on the upside and will remain that way for quite sometime. Always protect your capital with solid money management stops. Continue reading "Will Ebola Have A Lasting Effect On The Markets?"

How To Be Positioned In A Volatile Market

The last few weeks have been very volatile in the markets, with triple digit swings seeming to be the norm in the Dow. The question is, how can you position your portfolio and reduce your risk in a market like this?

Well in some ways, it's easier than you can imagine. Here at MarketClub, we always advocate diversification and spreading the risk. An example of that would be MarketClub's Internet portfolio that we make available to all members on a daily basis.

Presently, this portfolio has only a one position in the market. This means that we have 80% of our capital safely on the sidelines. With 20% of our capital working in the marketplace, it is easy to sleep at night and not have to worry about these giant up and down swings. Using the Trade Triangles, much of the guess work is taken out of the equation.

Here are the 5 stocks in the Internet portfolio: Continue reading "How To Be Positioned In A Volatile Market"

Catalyst Check: Natural Resources Watchlist at Three Months

The Gold Report: Joe, some of your picks from the Natural Resources Watch list have performed quite well. Do you want to give us some updates?

Joe Mazumdar: Junior mining sector equities in the gold space, as proxied for by the Market Vectors Junior Gold Miners ETF (GDXJ:NYSE.MKT), have outperformed gold since the June Cambridge House conference. The inter-period high for gold was $1,3351,340/ounce ($1,3351.340/oz), about a 7% return. Gold is down about 3% since the conference, on the back of a strong U.S. dollar.

The benchmark Market Vectors Junior Gold Miners ETF experienced an inter-period high of about $45/share, generating a 30%+ return since the conference. But it is currently flat again. On both metrics, the ETF has outperformed the gold price. Our selections averaged an inter-period high of 50%, which included under-performers (+1826%) and some significant outperformers (+70115%). Currently, the average return for our selection since the conference is a more modest 1415%. [NOTE: Figures cited were current 9/30/14.]

TGR: During that panel discussion, you called explorers a lottery ticket and Cayden Resources Inc. (CYD:TSX.V; CDKNF:OTCQX) was a lottery ticket that paid off. What was your other "lottery ticket" pick? Continue reading "Catalyst Check: Natural Resources Watchlist at Three Months"

The Bottom May Be Falling Out -- Here's What To Do

By: David Sterman of Street Authority

Just a few months ago, all was quiet on the investing front, as most market indices continually broke new all-time highs. But in early August, the quiet was broken by a sudden surge by the dollar against the euro, the yen, Australian dollar and other currencies. At the time, the rallying dollar was merely seen as the beneficiary of a relatively robust U.S. economic growth rate in 2015, at least compared to Europe and Japan.

In hindsight, the currency shifts now appear to be the result of something more concerning: European economic activity has slowed to a crawl, the Chinese government is leaning towards a policy of reform over stimulus -- compounded by brewing political troubles in Hong Kong -- and U.S. investors are finally waking up to the reality that global economic growth will likely be subpar in 2015.

That dim view may also explain why West Texas Intermediate Crude Oil has now slipped below $90 a barrel for the first time in 17 months. Then again, oil prices may be slumping because the dollar is rallying, which always hurts the price of commodities such as oil. Or perhaps it's the fact that too much oil is being produced at a time when global demand is slackening.

In other words, there are now a number of moving parts in play, and the factors behind these recent shifts are likely to persist. How you position your portfolio for the changing market can spell the difference between capital preservation and capital erosion. Continue reading "The Bottom May Be Falling Out -- Here's What To Do"

Don't Get Ruined by These 10 Popular Investment Myths (Part II)

Interest rates, oil prices, earnings, GDP, wars, terrorist attacks, inflation, monetary policy, etc. -- NONE have a reliable effect on the stock market

By: Elliott Wave International

You may remember that during the 2008-2009 financial crisis, many called into question traditional economic models. Why did the traditional financial models fail?

And more importantly, will they warn us of a new approaching doomsday, should there be one?

That's a crucial question to your financial well-being. This series gives you a well-researched answer.

Here is Part II; come back soon for Part III. Continue reading "Don't Get Ruined by These 10 Popular Investment Myths (Part II)"