Investing and Analysis

Halfway Through Earnings Season and This is What We Have Learned

As of February 5, there had been 258 members of the S&P 500 report earnings with 242 still to come. So far the earnings have mostly been above estimates and so have the revenue numbers. If we break it down and compare it to previous quarters, we get a better idea of what is going on. The stats were loaded ...

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January Bounce Exceeded Expectations, Now What?

I wrote an article for Seeking Alpha back on December 28, and it was about what I expected to see happen in the first quarter. At the time there were 479 S&P members in oversold territory based on the daily stochastic readings. I commented that, “Stocks are tremendously oversold at this time, and I expect the indices to bounce in ...

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Cars that Fly will help lead the next Technology Revolution

In 1940, Henry Ford said: “Mark my words, a combination aeroplane and motor car is coming.” The first time in film I believe I saw flying cars was in the Tom Cruise thriller, “Minority Report.” The way that traffic moved in layers above the ground at break-neck speeds was inconceivable. That was in 2002 depicting life in the middle of ...

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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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Santa Claus Rally Gets First Test at 2,600 Level and Long-Term Moving Average

After reaching an extreme oversold level on Christmas Eve, the market has been trending higher for the last few weeks. Yes, there have been sharp declines on a few days, but the overall trend has been to the upside. Now that stocks have rallied back, the S&P 500 is set to face its first real test. Stocks were due for ...

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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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Don’t Count on an Immediate Big Bounce After Historic Fall in Oil Prices

Oil prices have fallen dramatically in the last few months. From the high close of $76.41 on October 3 through the close on Monday, December 24, West Texas Crude fell 44.34%. There have all kinds of issues with oil. President Trump has been pressuring OPEC members not to cut output, the fiasco surrounding the murder of Jamal Keshoggi and possible/probable ...

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