Conclusion: Technicals Lead, Fundamentals Lag. The following two case studies illustrate a very important point: The market and individual stocks (i.e. technicals) move months BEFORE the fundamentals move (up or down). The reasons “why” are lengthy and outside the scope of this article. Instead of discussing the “why” we shall focus on the “what.” The reason is…
This Week’s Trading Lesson I have often said that making money trading stocks is simple, but not easy. Once you learn basic technical analysis techniques, have good tools to identify opportunities and gain some experience at identifying good trading opportunities, the actual job of picking stocks is relatively straightforward. Where most traders fail is in…
Fri Apr 19, 2013 6:21pm EDT * Managed money net longs in gold up nearly 6 pct * Crude oil, gasoline see big drops; natgas record high By Barani Krishnan April 19 (Reuters) – Hedge funds and other big speculators plowed new money into gold even after the precious metal posted a record loss in dollar terms…
ByTomi Kilgore 4:18 pm Apr 19, 2013 SPDR S&P Homebuilders ETF FactSet For a year and a half, home-building stocks led the broader stock market higher. But in recent weeks that rally in home builders has run out of steam and now technicians say the charts are pointing still lower. The housing market has continued…
Friday, April 19, 2013 Stock Market Commentary The market rally is under pressure as we are beginning to see elevated levels of distribution across the board. We are also entering the “Sell in May” time-frame which has worked almost perfectly over the past three years. Since 2010, the DJIA has fallen 800 points in the latter of…
Conclusion: The Most Valuable Information is Price Action: In theory, information should make the stock market’s world go round. Information about companies and their ability to make money in the future is what should determine share price. As the market learns of new information, price is adjusted up and down to reflect the value of…
UPDATE 1-INSTANT VIEW-GE profit jumps 16 percent in first quarter Published: Friday, 19 Apr 2013 | 7:06 AM ET April 18 (Reuters) – General Electric Co reported a 16 percent rise in first-quarter earnings on Friday as it sold more equipment for oil and gas drilling and shed its stake in NBC Universal. The world’s…
Conclusion: Not healthy for the global economy or The US stock market or other “risk on” markets. Unless it forces U/Ben to print more. Remember he doubled down in December when $45B/month (QE 3 announced in Sep) didn’t send stocks higher. Russell 2000: Down >400 Dow Points Transports: Down…
Friday, April 12, 2013 Stock Market Commentary: The market remains in a confirmed rally as the bulls showed up and quickly quelled the bearish pressure from the first week of April. So far, we have seen two very mild pullbacks in the S&P 500, both very shallow in size (<3%) and scope (less than 2…
Our longstanding readers and clients know that we are big fans of removing your emotions from the decision making process, in life and in the market. This is yet another lesson of what it is paramount for investors to remain objective, analyze the facts and always listen to what the market is saying (not someone’s…