It has been a great week with some strong trades happening. One of those stocks has to be LinkedIn Corporation (NYSE:LNKD), the professional social media site that recently updated its website with a redesign. After the bell yesterday, LinkedIn announced its earnings and future outlook. Upon seeing the numbers, investors bolted to the escape doors as LinkedIn clearly missed its target and future outlook.
Did this come as a big surprise to us at MarketClub? The answer, in all honesty, is no as all of the Trade Triangles were negative indicating a lower trend for LinkedIn.
Even before the announcement of non farm payrolls, which is one of the most significant data releases of the summer, the markets were on the decline. One of the reasons for that has to be yesterday's market action, all the indices fell from their best levels of the day and closed at or close to the lows.
Yesterday's close in both the Dow and the S&P 500 was on target to be the lowest Friday close if nothing happened today. The fact that we are down sharply this morning is a huge negative in my book, but is not one that is surprising.
As we go into the long Labor Day weekend look for the markets to be very thinly traded and volatile. I'm looking for a new low Friday close today. The lowest most recent Friday close was 16,559.75 on the Dow and 1,970.89 on the S&P 500. The NASDAQ was the only index to remain above its lowest Friday close yesterday by just a few points. The level to watch in the NASDAQ is 4,717.16, that level represents the lowest most recent close on a Friday. Continue reading "It's Friday And Things Could Get Ugly"→
Hello traders and MarketClub members everywhere. Yesterday certainly was a rout to the downside, decimating many stocks across the board. The Trade Triangles gave a major trend change sell signal on the NASDAQ index. Now with all three indexes in a negative mode and confidence and perception dramatically waning, I expect to see further downside price action in the markets.
So what are those three ways to trade the market?
Well, simply put you have three options when it comes to trading (I am not talking about options trading) you can be long a stock, short a stock or out of the market, which in and of itself is a position. Continue reading "Three Ways To Trade This Market"→
Certain stock sectors tend to underperform others as part of the business cycle. Investors have known about this phenomenon for decades and cyclical industries like industrial goods have a well-established track record of ups and downs. Occasionally, these stocks find themselves at the bottom of their cyclical curve and suddenly have nothing but bad news priced into the stock. That can leave them deeply undervalued with a lot more upside potential than downside.
Industrial manufacturing production has fallen this year with projected growth of just 2.5%, partially due to the slow start in the first quarter thanks to adverse winter weather conditions. However, with the economy posting improving data, those figures could be revised upwards as the year progresses. With the lower expectations already priced into the manufacturing industry, stocks look to be at tremendously discounted prices. Continue reading "Pick Up This Metal Fabricator Now That It's Bottomed"→
Hello traders and MarketClub members everywhere! Every December it's the same tune, the "Santa Claus Rally." That happens when the market rallies and closes close to or at its best levels for the year. I for one am not sure that is going to take place this year, and here's the reason why.
Late last night, I think it was about 12:30AM, I posted on our member blog that Friday could turn real ugly! I came to that conclusion based on yesterday's market action which had to disappoint the bulls with the weak market close. Couple yesterday's market action with the action we saw on Wednesday and you can put together a composite picture of just how this market is beginning to fall on its own weight. Should the S&P 500 close lower today, it will be the biggest weekly loss in over two months, not a good sign.
One of the key areas I'm are watching today on the NASDAQ is 4,653. Should this level be broken and I expect it will be, that will put all three of the indices in a trading range indicating that intermediate-term traders should be on the sidelines. This analysis dovetails very well with my December view of the markets. Continue reading "There Will Be No Santa Claus Rally This Year"→