Are You Prepared For a Market Drop?

The stock market has experienced the perfect storm of bullishness in 2013.

The Dow Jones Industrial Average is making new all-time highs, surging more than 9% within the first three months of the year. Meanwhile, the broad market barometer known as the SP 500 has pushed within 20 points of the all-time high of 1,565 reached back on Oct. 9, 2007.

The market rally is being fueled by an ideal combination of the Federal Reserve's quantitative easing measures mixed with improved housing numbers and employment data. Continue reading "Are You Prepared For a Market Drop?"

Malcolm Shaw Likes Under-Covered, Unloved Energy Stocks

The Energy Report: As a retired sell-side analyst and hedge fund VP, what do you look for in selecting and analyzing investment situations?

Malcolm Shaw: My background is actually geology, but over time I got pulled into finance. There was an advantage to having geological or technical knowledge, particularly in evaluating small- and mid-cap companies. Technical knowledge aside, the key for me is good management, and I've met hundreds of management teams over the years. Good management with sector expertise is always my first screening tool. After that I like companies that are under covered or generally unloved by the street because they tend to be where the market is less efficient. I'm not really going to add any value talking about names like Exxon Mobil Corp. (XOM:NYSE) or Encana Corp. (ECA:TSX; ECA:NYSE) simply because the information is so well distributed and the market is more efficient in larger caps, but not in smaller caps. Continue reading "Malcolm Shaw Likes Under-Covered, Unloved Energy Stocks"

Today's Video Newsletter: On the seventh day, He rested

Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Tuesday, the 12th of March.

EVEN THE MARKET NEEDS TO TAKE A REST AFTER SEVEN DAYS OF GAINS
Not only in the Bible is the number seven significant, but the number seven also plays an important role in the market as an important Fibonacci number in the Fibonacci sequence.

We expect we will see a mixed, resting market. We are not looking for a big down or big up day, but rather a mixed day as the markets rest and consolidate their recent gains. However unlike the general indices, some stocks will do well and others will fall. Continue reading "Today's Video Newsletter: On the seventh day, He rested"

Yin & Yang, Dow Jones & Gold

As human beings we try to intellectualize and get to the bottom of things.  We seek to find meaning in everything.  There must be a reason for what is happening at any given time.

Take for example the Dow’s stellar performance and gold’s lousy performance even as monetary policy has gone reckless on a global scale.  This goes against everything that humans who deal with the financial markets think they know.  But what if we are just getting back into symmetry? Continue reading "Yin & Yang, Dow Jones & Gold"

Forget Ford and GM, Buy These 6 Stocks Instead

Americans still have a healthy obsession with cars. That was on display last week, with February car sales beating the most optimistic projections for the second month in a row, while rising to their best level in more than four years. According to research firm Autodata, annual sales, a closely followed industry benchmark, rose to 15 million units in 2012, the best pace since 2008, before the financial crisis crushed demand and threw the industry into turmoil.

Clearly, in spite of rising gasoline prices and the payroll tax increase from the "fiscal cliff," cars are still quite popular, taking priority over debt payment or vacation for most Americans.

And this passion for cars is creating an opportunity for investors to profit in a big way. Continue reading "Forget Ford and GM, Buy These 6 Stocks Instead"