Value investors love finding a small cap stock that's outperforming while flying under the radar. Wall Street analysts tend to focus on larger companies which means their smaller counterparts can often be mispriced – a scenario that value hunters live for.
Finding an undervalued stock in an industry that's growing fast as well is like having your cake and eating it too.
The US hosts the largest medical supplies market in the world valued at around $110 billion and expected to reach $133 billion by next year. The US constituted 38% of the worldwide medical equipment market (as of 2012) and exports are expected to rise over the next several years even in the face of a challenging environment driven by the high relative value of the dollar. Continue reading "This Shooting Star Shows No Sign Of Slowing Down"→
Hello traders and MarketClub members everywhere! Just this morning I was thinking of an essay I had read many, many years ago. The intriguing feature to me was the headline which read, "They Do Ring A Bell At The Top Of The Market."
Well, I have to say it was an intriguing headline which got me to read the article, perhaps like you're reading this post now. The essence of the article was when interest rates go up, they usually signal a top in the market. As we all know, we have had unusually low interest rates for a prolonged length of time with one QE after another. All of which has boosted the stock market, but I believe the jury is still out on the economy.
With the end of quantitative easing, it's only going to be a matter of time before the Fed begins to raise interest rates. So the question is, how is that going to affect the markets? On one side of the coin, you can argue that it is only going to be good for people that have fixed incomes and rely on bonds and interest-bearing instruments. On the other side of the coin, will investors be willing to risk hanging in the market if they can get a return elsewhere with little or no risk? Continue reading "They Do Ring A Bell At The Top Of The Market"→
Today, I am going to be analyzing the stock of The Walt Disney Company (NYSE:DIS), who reports earnings after the bell today.
Like many of us, I grew up with Mickey and Donald and the rest of the Disney characters. Disney as a company is loved by folks around the world and has a strong brand. That said, the stock can and does have corrections and it may be set for another correction after the earnings come out tonight. The market itself seems to have a little bit of a negative tone, which is indicating to me to be on the sidelines in this stock at the moment.
The recent red weekly Trade Triangle for Disney is the first red flag that the stock may have put in a top. While not as significant a change as a monthly Trade Triangle, it should not be ignored. The second red flag for Disney is the glaring negative divergence between price action (number 6) and the MACD (number 8). This is not a good sign and the divergence could be a warning of an impending drop in this stock.
Technical analysis is a method of examining past market data to help forecast future price movements. Using different tools, indicators, and charts, traders can spot important price patterns and market trends, and then use that data to anticipate a market's future performance.
Technical analysis is based around a market's price history, rather than the fundamental data like earnings, dividends, news, and events. The belief is that price action tends to repeat itself and the patterns can be identified and used to define a market's trend.
Since MarketClub offers a variety of chart studies that can be helpful in your technical analysis, I'd like to highlight several of the most popular technical indicators and how you can use them.
The Moving Average Convergence/Divergence (MACD) Indicator