Category: INO.com Contributors

Extraneous Events Providing Unique Buying Opportunity In The Biotechnology Cohort

Posted on by Noah Kiedrowski

Noah Kiedrowski - INO.com Contributor - Biotech


Introduction

The culmination of sustained lower oil prices, fear of an imminent rate hike and weakness in China have indiscriminately plummeted all indices over the past week. These exogenous forces are ostensibly unrelated to the biotechnology cohort yet this group has been taken along for the downhill ride with the broader indices in lock-step. The biotechnology sector has been on an unprecedented performance streak in both annual and cumulative performance over the past 10 years and accentuated during the latest 5 year timeframe however lately this streak has been tested. The biotechnology sector can be highly volatile, however I posit that this cohort has not only established itself as a secular growth sector but these latest events are unrelated to the biotech sector and thus this recent correction may provide a unique opportunity to add to a current position or initiate a position over time as this correction unfolds. Based on annual and cumulative performance throughout both bear and bull markets, IBB (iShares Nasdaq Biotechnology) may provide the opportunity investors have been waiting for in the face of our current market conditions. IBB is down 15% from its 52-week high, shares have plunged from $400 to $340 per share during the recent market weakness, presenting a potential buying opportunity. Continue reading "Extraneous Events Providing Unique Buying Opportunity In The Biotechnology Cohort" →

Gold Update: Major Reversal

Posted on by Aibek Burabayev

Aibek Burabayev - INO.com Contributor - Metals


Gold Has Already Started Its Hunt For Stocks

Chart 1: Gold/S&P500 Ratio Daily
XAUUSDO/SP500 Ratio Chart
Chart courtesy of TradingView.com

Two weeks ago in my special post about the Gold and stocks correlation, I was talking about the coming end of the Gold/S&P500 ratio collapse and I was really surprised by this immediate outcome shown in the chart above. My congratulations to those who luckily bought Gold and shorted the stock index, now you can enjoy a decent 17% gain on the trade and this just may be the beginning. Continue reading "Gold Update: Major Reversal" →

Find Winners On Down Days In The Market

Posted on by Daniel Cross

Daniel Cross - INO.com Contributor - Equities


When the broader stock averages all fall, savvy investors can find winning companies by watching for stocks that show a gain when all others show a loss.

Concern over the state of the global economy sent markets plunging on Friday with the S&P 500 shedding 3.19%, the Dow losing 3.12% and the NASDAQ dropping 3.52%. Stocks like Valero Energy and Ross Stores fell over 9% and further corrective activity is expected to follow next week.

But not all stocks are facing negative pressure. One company is the growing data storage field showed promise and lifted expectations following a surprise earnings beat that helped the stock gain 8.95% on a day where most others fell. Strength in a difficult market environment is a good sign of a solid company and could provide a safe haven for investors looking for bullish plays right now. Continue reading "Find Winners On Down Days In The Market" →

The Unconventional Way To Play Oil In FX

Posted on by Lior Alkalay

Lior Alkalay - INO.com Contributor - Forex


Will Oil continue to fall? That is still a question with no definitive answer. But as I emphasized in my latest article on Oil, there's a growing chance of an Oil rebound. And even if an Oil rebound doesn't eventually materialize it's prudent to have a strategy in place. In this article, we'll focus on a strategy that is slightly less common. Of course, you could just take a naked bet on an Oil-oriented currency, e.g. the Norwegian Krone or the Canadian Loonie. But those trades could easily and quickly tank if the signals for an Oil rebound turn out to be false. So what is this unconventional way? Don't short/buy a petro currency against a currency unrelated to oil (e.g. Dollar, Yen or Euro). Instead, buy or sell a petro currency vs. a peer that is deemed a commodity currency, but a non-petro one. That could prove to be a much safer play.

Trading Correlated Currencies Reduces Risk

When you trade correlated currencies against each other, such as the NOK and Aussie, you have a reduced upside. While that's a true statement, there are also big benefits. When there is a short-term gap in performance, there is a higher likelihood that this gap will close. And that provides an opportunity that is rather easy to spot. Then, too, the downside is also more limited, so while the profit might be reduced so are the risks. In fact, if you compare the potential of correlated trades vs. uncorrelated, those trends tend to be slower moving and generate fewer profits. However, it compensates the investor with more certainty (the gaps almost always close), making them less volatile and less risky. Continue reading "The Unconventional Way To Play Oil In FX" →

3 ETF's To Buy If You Think Oil Will Continue To Decline

Posted on by Matt Thalman

Matt Thalman - INO.com Contributor - ETFs


Oil hit a six-and-half-year low on Wednesday after inventories numbers came in much higher than Wall Street analysts and investors were expecting. While many arguments can be made for why oil will continue to decline or rise in the coming months, the reality is, we just don’t know what is going to happen.

But regardless of how you fell the commodity will perform in the coming months; there is no shortage of ways to make money in the oil market. You could go long or short the commodity itself, go long or short exploration and production giants like Exxon Mobile (XOM) or Chevron (CVX), make a play with smaller oil and gas producers, invest in oil and gas MLP's, the pipelines company's, or even just the equipment suppliers.

In most of these instances though, you will be stuck cherry picking individual company's and trying to figure out which ones are best positioned to benefit from higher oil prices or attempting to determine which ones will be hurt the greatest if oil prices continue to decline. But one way to make this process easier, is to simply buy an ETF that bundles a number of those companies together and either takes a bullish or bearish position on them.

And since oil has recently been falling, let's take a look at a few ETF's that are built to help make you money from declining oil prices. Continue reading "3 ETF's To Buy If You Think Oil Will Continue To Decline" →