Who will win the battle between the bulls and the bears that is raging in the equity markets?
This morning when woke up I did what I usually do - check the pre-market prices. I saw that all three indices were down over 1% for the day. It would appear that 1-2% swings are rapidly becoming the norm in the month of December.
I will be watching the RSI indicator closely today. If you are not familiar with this indicator we have a short video that explains how it works and how you can best benefit from it. I will also show you in today's video why I'm watching this indicator and where the trigger point will come in on the major indices. Continue reading "The Battle Continues - Who Will Win?"
Now that the Thanksgiving holiday is over and we're entering December, traders should take extra care. Historically markets can move rather dramatically in December as trading volume thins out when traders start closing down their trading mindset and move out of the markets and into holiday mode. You do not want to start swinging for the fences to try to make your year in December, the odds are against you.
In addition to looking at the markets in general today, I'm going to take an in-depth look at the gold market. Everyone seems to be bearish on gold and what I have noticed over my trading career is that when everyone feels the same way about a market and is on one side of the trade, watch out!
That is the way the mood is right now for gold and there could be a sharp reversal as the shorts, that is the folks who sold gold short hoping to buy it back at a lower price, scramble to cover (buy back) their short positions. Continue reading "Big Moves Can Start When You Least Expect Them"
Judging a company by its stock price can often lead investors astray. Sometimes a single bad event can drag down a stock's price while leaving its long-term growth potential fully intact. It's these types of opportunities that value investors love to pounce on.
As we head into the holiday season, investor sentiment is mixed when it comes to how consumers will spend. On the positive side, US GDP growth for the 3rd quarter was revised higher to 2.1% while unemployment fell to just 5%. However, consumer spending inched just 0.1% higher in October – less than expected.
Sales expectations for the holiday season appear to be optimistic. FedEx released an estimate earlier this week that it is on track to handle over 317 million packages between Black Friday and Christmas – record numbers and an increase of 12.4% from last year. Online sales are also expected to rise this year between 6% and 8% according to a recent National Retail Federation (NRF) survey. Continue reading "Give Your Portfolio A Holiday Treat With This Value Stock"
While the rally yesterday was dramatic and to the upside, I don't believe that it was enough to reverse the decline set by the previous weeks drop. Yesterday, The Trade Triangle's indicated that a move to the sidelines was in order and a neutral stance should be adopted. I feel that is the optimum position to have at the moment.
Many of the indices are now back to an area that should provide some resistance to yesterday's rally. One of the things I will be watching closely this week is how the markets close on Friday. Especially with next being be a short and abbreviated trading week because of Thanksgiving.
Overall, 2015 was not a good year for hedge funds. I made that statement before, but several major hedge funds have dramatically reduced their exposure to stocks, I think this is a smart move as I still feel as though this market is undecided as to which direction it wants to go. Continue reading "Did Yesterday's Rally Cause A Reversal In The Market?"
The holidays are right around the corner, and that means retailers are gearing up for their biggest sales and marketing campaigns of the year. While the broader averages haven't given investors much to cheer about this year, one stock could still deliver gains and brighten up any portfolio.
Unemployment is down to just 5.1% with a healthy job market, and consumer spending is up over 3% and could be headed higher for the fourth quarter. Inflation, which began this year as a negative figure, has finally begun to pick up a little in the past few months as well and currently stands at 0.2%. Retail sales this year have been choppy with growth of 0.6% in July but only 0.2% and 0.1% in August and September. However, retail sales are still up 2.4% year-on-year.
A strong US dollar has been hurting stocks, but could be a positive factor for retailers going into the holiday season. A high dollar relative to other currencies make imported goods cheaper and could help out consumers. Continue reading "Bet On This Retailer For The Holidays"