Business
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“Death zone” stocks are about to crater the bull rally
Below is a headline I saw the other day on Market Watch… For those who are unaware, Mike Wilson is the chief investment officer for Morgan Stanley. He would be considered an expert, to say the least. And he has been outspokenly bearish on the state of the market, repeatedly beating his drum – just…
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Brace Yourself for Week 9’s Devastating Impact on the Market
I’ve been hinting at this topic since the beginning of the year, and it’s time we cover it more in-depth. You see, this one little piece of seasonality data can serve the market with a devastating blow. And worse yet, there is a catalyst coming up that could exacerbate the results of this data. I…
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Your 3-Step Approach to Profit from Earnings
Dear Reader, The majority of S&P 500 member companies have released earnings from Q2, 2022 – and although most companies reported EPS above estimates, they lag behind both 5 year and 10-year averages. And looking forward, analysts expect S&P 500 earnings to get worse before improving. The vice president and senior earnings analyst at FactSet,…
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The Best Way to Profit from the Auto Industry’s Slowdown
Shah Gilani Feb 21, 2023 In last week’s Flip the Chart column, I recommended buying-to-open a MPWR March 17, 2023 $490/$480 Put Spread – and I’m sure glad I did. As I write this, the stock looks like its rolling over, and we could hit our profit target in the next few days. This week’s…
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BuY tHe DiP!!! | Midday Momentum
Dear Reader, Another day, another short selloff in the morning. Then, the Buy the Dip crowd reemerged to force out the shorts. I don’t understand this behavior because hedge funds and other institutions are using ANY short-term pop to reduce their exposure to the equity markets. But it’s been effective. And if you’re trading reversions…
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Cash Is King Again – Here’s Where to Park It for Steady Gains
Shah Gilani Feb 23, 2023 Some of you old Steve Miller fans may remember his seminal 1973 album The Joker and one of its brilliant tracks, “Your Cash Ain’t Nothin’ But Trash.” (For the rest of you who don’t know the song, check it out; you’re going to love it.) Like, I love cash now.…
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Rejection. Abjection. Trade Action. | Pump Up the Close
Chinese tech stocks were in a world of pain on Monday, October 24th. Smart electric car maker, NIO, saw its stock price dive below $10. It was down 18.6% as I was writing this that morning. Alibaba was down 16.69%. It was plumbing its 6.5-year lows. Tencent was down 15.11%. And it was all thanks…
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Equity and Bond Markets are at Odds
Dear Reader. The equity market rallied nearly 10% in January alone, and this is despite Fed Chair, Powell, not easing up on his hawkish stance on interest rates. And at the same time the market has rallied with some momentum, the yield curve has inverted. The Federal Reserve Bank of Boston has indicated that the…
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Implied Volatility Is Getting a Lift
Our president visited Ukraine over the long weekend and Russian President, Vladimir Putin is ruffling feather as he talks of suspending his country’s participation in the nuclear arms reduction treaty with the United States. And, to kickstart the week of earnings, Walmart (WMT) shares took a tumble after its year-ahead outlook was lowered – inflation…
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Here’s the Big Problem with This “Trillion-Dollar” Buyback Binge
Shah Gilani Mar 02, 2023 According to the American Prospect, a progressive policy journal, U.S. companies in the S&P 500 spent $5.3 trillion on buybacks between 2010 and 2020. Some analysts believe corporate buying power was responsible for 40% of the rise in stocks over that period, a huge contributing factor to the Great Bull…