Author Archives: Rick Pendergraft

Fed Hint of More Dovish Stance Enough for Investors

The Federal Open Market Committee concluded its two-day meeting on Wednesday afternoon with the announcement that there would be no change to the target rate at the present time. That was what pretty much what everyone expected—no rate change in January. The stock market reacted in a positive manner despite the Fed doing what was expected, but it was more ...

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Early Results From Chip Sector Earnings Encouraging

Earnings reports are ratcheting up this week and the semiconductor industry is in the spotlight more than any other. By the end of next week, we will have gotten results from six of the top 10 holdings in the VanEck Vectors Semiconductor ETF (NYSE: SMH). The earliest results are already in with Lam Research (Nasdaq: LRCX), Texas Instruments (Nasdaq: TXN), ...

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Why Do Investors Get Emotional About Stocks?

Don't get emotional about stocks!

In the 1987 classic movie Wall Street, the iconic character Gordon Gekko advised Bud Fox, “Don’t get emotional about stock. It clouds the judgment.” Of course, the table was turned later in the movie and it was Gekko that was getting emotional over the roller coaster ride Blue Star Airlines was on. I am bringing this subject up due to something ...

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Peak Earnings Growth Vs. Peak Earnings

How many times have you heard investment experts talk about how the market is always looking forward? And it’s true, investors are always looking ahead and buy stocks based on what they think is going to happen in the future. I thought about this axiom again this morning when a guest on Bloomberg said he thought we had seen peak ...

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Shutdown Adds to Uncertainty in Numerous Ways

The government shutdown in the United States is now at 25 days and we aren’t seeing any signs that it’s going to end any time soon. President Trump refuses to sign any bill that doesn’t provide funding for a wall along the southern border and Democrats refuse to go along with any bill that includes funding for such a wall. ...

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Mixed Signals from Manufacturing Index and Employment Report

There have been various entities putting pressure on the Fed to back off on its rate increases in recent months as the stock market has come under pressure. The most vocal critic has been President Trump himself. The president even tweeted on Christmas Eve, “The only problem our economy has is the Fed.” The Fed has stated that they intend ...

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An Interesting Observation About High Short Interest Stocks

I am a creature of habit. At the beginning of each month, I comb through the thousands of stocks in Investor’s Business Daily’s database. I look for stocks that meet three criteria: an EPS rating over 80, an SMR rating of an A, and average daily trading volume of 500K or more. The EPS rating measures how the company has ...

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