The S&P rallied a jaw-dropping 60 points during Wednesday's session and left many traders wondering if the lows are in? Using eSignal software, I dive into the price action and outline the exact boundaries that should contain this "recovery."
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Plan Your Trade, and Trade Your Plan,
Todd Gordon
Perception, in my mind, is one of the most powerful forces in the market. Perception can help drive the market up or down and currently that direction is down.
Disillusionment happens when investors become so stressed out that they become disenchanted with the market, remember 2008? That is what I think is beginning to take place right now in the markets.
Let me give you an example with a well-known stock. Just two weeks ago Amazon was flirting with the $700 level and investors were falling over themselves to get into the stock that they thought was going to go much higher (perception). Now here we are 14 days later and Amazon has dropped over 20%. Did Amazon's business change dramatically overnight, are the prospects suddenly bad now for Amazon? The answer is no, what did change was perception. Almost overnight everybody who wanted to get into this stock became stressed and disillusioned and then wanted out. Continue reading "When Perception Meets Disillusionment"
Buy! Buy! Buy!
We have all heard the saying, buy low, sell high, which is an easier to understand saying than Warren Buffett's famous quote, "Be fearful when others are greedy and greedy when others are fearful."
With the major US indexes all down more than 8% to start 2016, it would appear this is the time to follow the above-mentioned advice. Stock prices in general, based on the major indexes are 8% cheaper than they were just half a month ago, hence, buying today is buying low. Buffett's advice follows that idea and tells us to be greedy when others are fearful. The market is moving lower, indicating that the majority of investors are fearful of where stock prices will be in the future. If we follow Buffett's advice, this is a good time to be greedy.
I know what you are thinking, can't prices go lower from where they are today, giving you an even better opportunity to 'buy low' in the future. Yes, that obviously could happen. Continue reading "Markets Down More Than 8% To Start 2016! What You Should Do Now"
What is a dead cat bounce? It is simply a rally from a very oversold condition. That's the case today as many of the markets have literally gone straight down in the first weeks of 2016 and contributed to the worst start of any year in the history of trading.
A dead cat bounce does not mean a trend change or that you have made a major bottom in the market. Technically, a dead cat bounce is really just a short covering rally from a market that is very oversold. If and when the major indices are going to reverse the trend and move back up, they are going to have to do quite a bit of repair work to change the negative technical picture that we are currently facing.
After the close today Netflix.com Inc. (NASDAQ:NFLX) will report earnings - the current technical picture for this stock is mixed. The longer-term trend for Netflix is positive with a green Trade Triangle in place. However, the intermediate-term trend is down with a red weekly Trade Triangle. I would suggest standing on the sidelines at the moment. Continue reading "Beware Of Dead Cat Bounces"
By: Andy Obermueller of Street Authority
Let me start off by saying that today's essay is not for everyone. But as Chief Investment Strategist for Game-Changing Stocks, it's my job to bring readers the best aggressive growth investing opportunities the market has to offer.
If it just so happens to come from an industry that some find morally objectionable, then so be it.
But I received a question from a subscriber the other day that I know many of our readers have been wondering about: Should I invest in marijuana stocks? If so, which ones should I be looking at? Continue reading "Should You Invest In Marijuana Stocks?"
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