Saturday, September 27, 2014

Is The Stock Market Finally Ready To Fall? | Seeking Alpha

Is The Stock Market Finally Ready To Fall? | Seeking Alpha



This is a very good article about why we must be cautious in today's stock market.  While large cap stocks like Apple have been able to send the market higher at times, most of the NYSE stocks are below their 200-day averages according to the $NYA200R chart.  If the economy was doing poorly, we would probably be headed for an outright bear market.



However, the economy is doing well, and stocks have a chance to move higher for at least the next year.  Since the S&P 500 is only up around 6% this year, you can expect continued meager gains unfortunately.  You should also enter stop-loss orders for your most volatile stocks so that you can sleep better at night and to protect yourself if things suddenly turn very bad.


Thursday, September 25, 2014

The market finally snaps- MSN Money

The market finally snaps- MSN Money



Here is an excellent article about why the market had a huge sell-off on Thursday, September 25.  The Dow was down 264 points, and the Nasdaq was down even more percentage-wise.  Apple has major problems with the iPhone 6 and more Russian trouble appeared possible.  It will be interesting to see if buy-the-dip investors step in now.  You don't want to be in triple long ETFs anymore like TQQQ and SPXL.  You'll be down 6% for every 2% drop in the market.


Wednesday, September 24, 2014

FV: An Undiscovered ETF Which Has Outperformed The S&P 500 For The Last 3 Months - First Trust Dorsey Wright Focus 5 ETF (NASDAQ:FV) | Seeking Alpha

FV: An Undiscovered ETF Which Has Outperformed The S&P 500 For The Last 3 Months - First Trust Dorsey Wright Focus 5 ETF (NASDAQ:FV) | Seeking Alpha



This is a great article on a new sector rotation fund called FV.  It has outperformed the S&P 500 in the past 3 months by a wide margin.  The top five sectors currently are biotech, healthcare, internet, staples, and discretionary.  This is a super fund which will keep you invested in the best sectors through momentum and technical analysis.  There is no need for you to figure it out yourself while these guys are outperforming the market in a diversified fashion.


When Will Interest Rates Rise And What Will Cause Them To Rise? | Seeking Alpha

When Will Interest Rates Rise And What Will Cause Them To Rise? | Seeking Alpha



Here is an outstanding article on why inflation will stay low along with interest rates.  As the old saying goes, "when interest is low, stocks will grow."  Everyone knows that stocks are overbought, but bonds and savings accounts are paying a lot less than stocks.  Therefore, stocks will continue to rise in spite of everything because there is no better alternative.



Banks are holding their money and they are not making loans to individuals.  Credit is a whole lot tighter since the Great Recession of 2008-2009.  Moreover, banks are not loaning to corporations either because they don't have much confidence in the economy.  So, there is no pressure on interest rates to rise.

Tuesday, September 23, 2014

A Rational Look At Stock Market Risk | Seeking Alpha

A Rational Look At Stock Market Risk | Seeking Alpha



Chris Ciovacco has written a very good article about how charts show that we are still in an uptrend even after two days of heavy losses.  SPY (S&P 500) was compared to AGG (bonds) in both risk-on and risk-off scenarios. We are still clearly safe.  A lot of extra cash is sitting on the sidelines, too. So, the buy-the-dip people will eventually run the market up again.  Stocks are paying more than bonds, and the economy is okay.


Sunday, September 21, 2014

The Birth Of 3 New Bull Markets | Seeking Alpha

The Birth Of 3 New Bull Markets | Seeking Alpha



Here is an excellent article about three new bull markets:  India, China, and Brazil.  The author is investing in the new bull markets through an ETF called ADRE.  In this way, you have good diversification in emerging markets.  India is the strongest of the new bull markets.  IFN, the India Fund, is up almost 50% in the last 12 months.  I am buying ADRE and IFN on Monday morning to take part in the new emerging market bull trends.


Diversification At Its Best - SPDR S&P 500 Trust ETF (NYSEARCA:SPY) | Seeking Alpha

Diversification At Its Best - SPDR S&P 500 Trust ETF (NYSEARCA:SPY) | Seeking Alpha



This is an outstanding article about the value of holding bonds through TLT while also being in the stock market through the S&P 500 (SPY). Since 1992, holding 100% of either TLT or SPY resulted in almost the same return with less volatility in TLT.  Wynn Capital believes that stocks have a greater possibility of decline than bonds even though some people say the bond bull run is over.  In other words, as interest rates rise, the capital gain loss in TLT will probably be minimal compared to a greater possible loss in stocks.



The author presented data that showed an 80/20 SPY/TLT allocation resulted in an annual gain of 9.8%, which was more gain than SPY alone with a lot less volatility.  The portfolio was balanced each January.  For example, using 2013-2014, the higher gain SPY was reduced from 2013 while TLT was increased in 2014, and this re-balancing was spot-on for this year since TLT is up significantly.  Each year one asset is bought at a discount while the other asset is sold at a premium.



Next, the author ran the numbers on a 60/40 SPY/TLT allocation, and the annual gain was still 9.8% while the volatility was reduced to almost as much as TLT alone!  Then, the author did a 40/60 SPY/TLT ratio to cap things off, and the annual gain was only slightly lower at 9.5% while the maximum draw-down dropped all the way to 16% which was lower than TLT alone.  So, this article shows the great importance of always holding a significant portion of bonds through TLT.


Thursday, September 18, 2014

September 2014 Philly Fed Business Outlook Index Declines But Still Shows Strong Growth

September 2014 Philly Fed Business Outlook Index Declines But Still Shows Strong Growth



Here is a very important article about the Philly Fed business outlook along with other economic statistics.  The Philly Fed number for September was +22.5 which shows a strong economy.  The article also included statistics from other regions of the country along with a Federal Reserve chart called NAICS, Industrial Production: Manufacturing.



The NAICS chart in particular illustrated that we are nowhere near a recession.  This is why I remain bullish on the stock market while other uncertainties exist such as being overbought.  We may indeed have shallow corrections, but I doubt we would enter a bear market while the economy is doing well.

 

Wednesday, September 17, 2014

Analyzing Tesla's Demand And How It Will Drive The Stock - Tesla Motors (NASDAQ:TSLA) | Seeking Alpha

Analyzing Tesla's Demand And How It Will Drive The Stock - Tesla Motors (NASDAQ:TSLA) | Seeking Alpha



This is a bullish article about Tesla.  The author gave many facts to back up his position.  I am bullish on Tesla, too.  I especially liked the author's bullish target of $366.  This is basically in line with other analysts who have price targets ranging from $320 to $400.


Why You Should Shift From Profits To Protection | Seeking Alpha

Why You Should Shift From Profits To Protection | Seeking Alpha



Here is an interesting and controversial bearish article.  Both the author and the people who made comments were worth listening to.  I agree with the author that the real estate market is shaky.  However, I agree with some of the people who commented that the Baltic Dry index is actually pointing up.  So, I believe we should be buying the dips on quality stocks.

In addition, the author's table on 10% pullbacks was very informative. Since the economy is doing okay, and pullbacks should be less than 10% statistically, we should not be afraid to stay with stocks.  I think the worst decline this year was only 6% back around the first part of February.




Is A Big Move In Stocks Coming Soon? | Seeking Alpha

Is A Big Move In Stocks Coming Soon? | Seeking Alpha



Chris Ciovacco has written an amazing article about how to make sense of stock market moves.  We should not be guessing about the stock market direction.  As Chris has often said, we need to keep an open mind.



The author used a great example of looking at the 50-day line of various charts to see if the trend is flat or something else.  Usually stocks will go either up or down after an indecisive period.  We also need to consider the fundamentals for the probability of where stocks will go next.



Chris used the Dow and the NYSE Composite ($NYA) to illustrate the danger that could be lurking since they are both flat.  We are making new highs once in a while due to strong stocks in major indexes.  How long can the large caps carry everyone else, though?  On the flip side, the economy is doing well, and the Federal Reserve is still on our side.  So, I am slightly bullish on stocks, and the best place to be is with the large caps until conditions change.

 

Millennials: Bonds Aren't Just For Old People | Seeking Alpha

Millennials: Bonds Aren't Just For Old People | Seeking Alpha



This is a very good article explaining how bonds should be a part of each investor's portfolio.  If a reasonable allocation of bonds is chosen, the result will not be much different from a person who is successful with stocks only.  The balanced investor will also be able to sleep better at night, and he will not have to worry as much when bear markets come around.  A properly allocated portfolio will keep a person interested in the stock market.  This will also keep people from sitting on the sidelines in cash for years because they are afraid of stocks.  They will actually be making money from their investments instead of losing it by being in cash.




Is A Stealth Liquidation In Stocks Underway? | Seeking Alpha

Is A Stealth Liquidation In Stocks Underway? | Seeking Alpha



Eric Parnell has written an outstanding article on why we need to be cautious in the stock market.  While it is true that large caps seem to be making new highs quite often, Eric believes that trouble is brewing under the surface.  For example, different asset classes are going down along with weak stock sectors.  Government bonds (TLT) usually are bought when stocks go down.  However, Eric pointed out that it looks like we have a liquidation scenario where investors are hoarding cash instead.  So, we need to be cautious about the stock market.  I own mostly large cap stocks and dividend stocks myself, but I am constantly monitoring charts and fundamentals in case I need to exit stocks.


Facebook Inc. To Benefit Most From Ad Dollars Shift, Twitter Second - Facebook (NASDAQ:FB) | Seeking Alpha

Facebook Inc. To Benefit Most From Ad Dollars Shift, Twitter Second - Facebook (NASDAQ:FB) | Seeking Alpha



Here is an excellent article highlighting Facebook and Twitter.  Both companies will continue to grow, especially by making money through mobile ads.  I own stock in FB and TWTR, and I will continue to hold.  If we have a big pullback, I will probably buy more shares.


Tuesday, September 16, 2014

U.S. Sector Momentum ETN Jumps 200% in One Month - Yahoo Finance

U.S. Sector Momentum ETN Jumps 200% in One Month - Yahoo Finance



This is a link to the hottest stock in the market, EEH.  It is a large cap momentum ETN.  It has a low volume, but it has been making great returns for the few investors who jumped on it in the past month.  Of course, it is overvalued now, but no one knows where the top is for EEH. The momentum sector tracking and trading that EEH is supposed to be doing is incredible.  It is probably worth at least a little of your portfolio money.


Monday, September 15, 2014

Kandi Technologies: Accelerating Growth Ahead! - Kandi Technologies, Corp (NASDAQ:KNDI) | Seeking Alpha

Kandi Technologies: Accelerating Growth Ahead! - Kandi Technologies, Corp (NASDAQ:KNDI) | Seeking Alpha



Here is a very good article about Kandi, the Chinese electric car company. The author presented numerous facts that point to a sizable gain in the stock price sometime in the future.  I don't really know why the price is so depressed currently, but patient investors will probably be rewarded.  I own shares of KNDI myself although it is very frustrating at times.  When you look at the general stock market lately, it has not been doing too well either.  A diversified portfolio is the best protection, and I am making money on dividend stocks like ROYT while I wait to see what the market will do next.


Markets Will Stagnate as the Fed Exits

Markets Will Stagnate as the Fed Exits



Lance Roberts had written a sobering article about the dangers of today's stock market.  Since no one knows where the top will be, the decline on the other side will take a lot of people by surprise.  The best possible picture is that we can expect smaller and smaller annual returns before the market collapses.  TLT, the long-term treasury bond ETF, is probably one of the safest stocks to own nowadays.  TNDQ, the Nasdaq TrendPilot ETF, is another good one.  Whenever the market starts to fall, TNDQ will switch over to treasury bills at around the 100-day loss line.  We need to be more careful than ever in today's stock market.


Sunday, September 14, 2014

Profitable Thoughts On Market Breadth And Market Timing | Seeking Alpha

Profitable Thoughts On Market Breadth And Market Timing | Seeking Alpha



Fred Piard has written an outstanding article about how to make the best of the stock market based on what the S&P 500 (SPY) is doing.  For example, if you are coming off a stock market bottom, you should buy when 25% of the S&P 500 stocks are above the 200-day line.  You continue to hold stocks until 25% of the S&P stocks decline from wherever they were.  Then, you buy stocks again when 80% of the S&P 500 stocks are above the 200-day line.  Fred also showed a chart of how your money is protected while you are sitting on the sidelines during times when everybody else is losing money.



 

Countdown To Another Market Peak Has Begun: Update | Seeking Alpha

Countdown To Another Market Peak Has Begun: Update | Seeking Alpha



Chris Puplava has written an excellent article article how we are not yet at a stock market top.  Inflation is low, and we are nowhere near a recession according to another indicator.  Thirdly, the ISM is at 59.0 which means we are not having any manufacturing problems.  Thus, the bull will probably keep running into 2015 at least, although we could have pullbacks.




Weekend Market Commentary: Saturday Edition

Weekend Market Commentary: Saturday Edition



This is a very interesting article about still being bullish on the stock market.  I believe it will be necessary to pick the right stocks, though. Everything will not go up like the past five years.  As I mentioned in another blog article, I believe the U.S. dollar will be a good bet, and I am planning to buy the 3x U.S. dollar ETF, UUPT, this next week.


Tell-Tale Signs Of A Market Top | Seeking Alpha

Tell-Tale Signs Of A Market Top | Seeking Alpha



This is a good article about various signs that occur at a stock market top. No one can pick the exact moment of the peak, but I agree with the author that we are approaching the top.  Retail sales are not in trouble yet. However, the real estate market is getting shaky.  When the Federal Reserve starts to raise interest rates, that will kill the housing market because people will no longer be able to buy.  It is already hard even now because of the required large down-payments.  We certainly need to be cautious about stocks now.

Saturday, September 13, 2014

How To Use Money Supply Statistics For Market Predictions | Seeking Alpha

How To Use Money Supply Statistics For Market Predictions | Seeking Alpha



Here is a very good article about the importance of paying attention to the money supply as measured by Federal Reserve M2 statistics.  If the money supply is growing, that is bullish for stocks.  If the money supply is flat or falling, that is bearish.  I have been watching a Federal Reserve graph of the money supply for quite some time, and I have noticed that the chart of the money supply has gone flat like the author mentioned.  This is definitely a time to be defensive about stocks.  Moreover, I am planning to buy the 3x dollar long ETF called UUPT this next week.  The U.S. dollar will actually go up in a time of crisis, and UUPT will become my biggest holding when I buy it next week.



Real Estate Shorts Are In Play | Seeking Alpha

Real Estate Shorts Are In Play | Seeking Alpha



This is an excellent article about how to protect yourself when real estate stocks fall.  The author recommended a double short real estate ETF called SRS.  If you are like me, you love the high-paying dividend REIT stocks. The danger in holding them is the loss of your principal money.  I plan to buy SRS this next week to offset any loss of principal on my REIT stocks. In this way, the capital gains and losses will offset each other while I continue to collect my double-digit dividends.


Friday, September 12, 2014

This could be the trade of the decade

This could be the trade of the decade



Here is an very good article on why the U.S. dollar is the buy of the decade. You can enter this investment through UUP, the U.S. dollar ETF, or through UUPT, a 3x dollar long ETF.  I plan to buy UUPT this next week to maximize my profits.



The dollar is strong now for a number of reasons.  First, the Federal Reserve is planning on tightening the money supply, and this alone is good for the dollar.  Secondly, Japan is easing its money policies, and this will weaken the yen.  Thirdly, the euro is getting weaker because Europe is keeping rates very low, and there is no sign for an end to European economic problems.






10 Nasdaq stocks with returns of at least 240% in 2014 - MarketWatch

10 Nasdaq stocks with returns of at least 240% in 2014 - MarketWatch



This is an outstanding article about how the Nasdaq is back as the best stock index to own.  It has outperformed the S&P 500 this year.  The article lists 10 stocks that have gained more than 200% in a low gain year for stocks.  BIOF is the top gainer, and it is over 49% owned by Greenlight Capital which is a very good sign.



Another big gainer was SCOK, Sino Coking.  This company turns coal into synthetic gas.  CBMG has an osteoarthritis knee drug.  ICPT has a fast track liver treatment drug.  I am thinking about buying all four of these stocks in the near future.  Currently, I am invested in the Nasdaq through TNQT, a Nasdaq 100 trend following stock that also protects on the downside.  Another idea is to buy the Nasdaq on pullbacks through TQQQ, a 3x Nasdaq ETF.


Wednesday, September 10, 2014

Why Penn Virginia (PVA) Has Huge Upside Potential

Why Penn Virginia (PVA) Has Huge Upside Potential



Here is an excellent article on two oil companies operating in the Eagle Ford section of Texas.  I like both of the companies, Pioneer Natural Resources (PXD) and Penn Virginia (PVA).  However, now is probably not a good time to buy them.  Wait for a big pullback where it looks like they will not go any lower.  Then, you should be rewarded as long as the fundamentals are still good.


How to Invest in America's Largest Oil-Producing Region

How to Invest in America's Largest Oil-Producing Region



This is a good article on oil production in the Permian Basin of Texas. According to the author, it is now the biggest source of oil in America, topping the Bakken and Eagle Ford.  Three companies were mentioned in the article that are the area's largest producers.  I like Apache (APA) and Pioneer Natural Resources (PXD).




Tuesday, September 9, 2014

Market Commentary: SP500 down -0.65%, largest Drop In Five Weeks

Market Commentary: SP500 down -0.65%, largest Drop In Five Weeks



Gary at www.econintersect.com  has written a very good commentary on the stock market after we just finished the biggest drop in five weeks.  The major indicators are not yet bearish, but it could be somewhat scary if the market continues to fall.  Chris Ciovacco said that one of his indicators, XLY, was still bullish.  As long as this consumer discretionary ETF holds above 67.06, we are okay according to Chris.  I also agree with Gary and Chris because the recent ISM number was 59.0, and that means we are not anywhere near any economic trouble.


Monday, September 8, 2014

A Prudent Portfolio For A Melt Up Or Melt Down | Seeking Alpha

A Prudent Portfolio For A Melt Up Or Melt Down | Seeking Alpha



Here is an excellent article to make the most of a stock market that melts up as well as providing downside protection.  I especially like the 40% concentration in the Nasdaq 100 Trendpilot ETN (TNDQ).  If the Nasdaq goes up, you keep making money.  If the Nasdaq goes below its 100 day line for more than five days, the fund switches over to 3-month treasuries.

The author also presented a back-tested chart going back to 1999 where TNDQ protected during two major bear markets, and it soundly beat the Nasdaq and the S&P 500 during upside trends.  The stock has also risen around 29% in the past year.  I am so convinced about TNDQ that I am buying it tomorrow.


Sunday, September 7, 2014

MeetMe: Speculative Play On Social Media And Mobile App Growth - MeetMe, Inc. (NASDAQ:MEET) | Seeking Alpha

MeetMe: Speculative Play On Social Media And Mobile App Growth - MeetMe, Inc. (NASDAQ:MEET) | Seeking Alpha



This is a comprehensive article about MeetMe, (MEET), another social network company.  It has a unique way of introducing you to people.  I own shares of the company for the speculative part of my portfolio.  As the author stated, the stock price base appears to be around the low $2 range. Be aware that no one knows yet how much MEET can grow.  Revenues are growing, but questions remain as to whether or not it can beat the S&P 500.


Friday, September 5, 2014

Rising Risks In The Quest For Yield | Seeking Alpha

Rising Risks In The Quest For Yield | Seeking Alpha



Eric Parnell has written an interesting article that warns about the danger of reaching for yield.  I respect Eric a lot, but one of the dividend stocks that he mentioned has done very well in the past year.  DVY has gained around 20% in addition to paying a 3% dividend.  I agree with Eric that we need to be safe around stock market tops, but DVY is too good to pass up. Since the latest ISM economic report was at a safe 59.0, I plan to buy DVY for the gain although I will be keeping an eye open for the exits, too.




Another Bond Market Conundrum? | Seeking Alpha

Another Bond Market Conundrum? | Seeking Alpha



This is an excellent article on why long-term treasury bonds have low yields.  One reason given was the deflation in Europe due to economic and security issues there since the Russia-Ukraine conflict is far from being resolved although the author did not actually mention the conflict.  He just talked about economic issues.



Secondly, another reason that investors are buying long-term bonds is that many people think that the stock market is at a top here in the U.S. Therefore, they are buying bonds for protection.  The author seemed to think U.S. conditions were improving, but Europeans were attracted to U.S. treasuries.  His discussions of economic issues and bond basics were very good.  In view of these fundamentals, it would be a good idea to own some bonds now as part of a diversified portfolio.  I own TLT and TMF for some protection while I am long on high-paying dividend stocks like ARR and MORL.


Thursday, September 4, 2014

How Twitter And Facebook Survive - Facebook (NASDAQ:FB) | Seeking Alpha

How Twitter And Facebook Survive - Facebook (NASDAQ:FB) | Seeking Alpha



Here is a very good article on why Facebook (FB) and Twitter (TWTR) are worth holding.  I own both stocks myself.  The author talked about how Facebook and Twitter keep reinventing themselves to stay ahead of the curve and to increase profits.  Both companies are also expected to get into E-commerce soon with a Buy button.  This will really increase sales.  I am holding onto FB and TWTR because there is no telling how far they can go.


4 Monthly Pay Dividend Dogs Do 20% To 25% Late August Upsides | Seeking Alpha

4 Monthly Pay Dividend Dogs Do 20% To 25% Late August Upsides | Seeking Alpha



This is a very valuable update for high-dividend monthly-paying stocks.  I own three of the author's top ten picks:  ARR, ROYT, and LNCO.  PSEC is another good dividend stock on the list, and I may buy it again in the future.  Capital gain upside is also predicted for these stocks in addition to huge dividends paid on a monthly basis.


Wednesday, September 3, 2014

Pump Profits with These Alpha-Generating ETFs - Yahoo Finance

Pump Profits with These Alpha-Generating ETFs - Yahoo Finance



Here is a very good article about three ETFs that have a high alpha rating.  This rating is a percentage of how much the ETF has outperformed the major benchmark index for its area.  For example, FXG, a consumer staples ETF has an alpha of 5% meaning it has beaten its benchmark index by that much so far this year.  FXG is up 12% year-to-date.  This is probably a good ETF to own since general market returns will probably be lower this year compared to 2013.


First Trust Cons. Staples Alpha ETF Chart - Yahoo! Finance

First Trust Cons. Staples Alpha ETF Chart - Yahoo! Finance



Here is an interesting Yahoo chart about a consumer staples ETF that has gained 23% in the past 12 months.  FXG may continue to do well regardless of how the economy performs.  Notice in the chart below that FXG had a huge volume buying spike in August.  When these skyscraper volume spikes occur in a fairly flat volume environment, it usually means a big price gain is coming soon.  Consumer staples are also safe most of the time, and they do better than most stocks in recessions.  Click on the chart below to expand it.




Bonds Begin A Downtrend

TLT fell hard on Tuesday, September 2, losing almost $3 per share, and the downturn was still happening on Wednesday morning at the market open.  It currently looks like bond prices peak when the interest rate on the ten-year treasury bond falls to 2.34%.  I have not seen it go any lower than that recently, and the interest rate is now going up.

Moreover, the economy is continuing to improve dramatically.  The ISM Manufacturing Report came in at 59.0 on Tuesday, September 2, and it has not been that high in a long time.  So, there is a near zero chance for a recession.  This is positive for stocks even while they are overbought.  Therefore, I have reduced my long term bond stocks, TLT and TMF, by around half.

What did I do with that money?  I bought GoPro (GPRO) stock for one selection because small cameras are a big deal nowadays, especially since police officers will probably have to start wearing body cameras.  Secondly, I bought more Armour Residential (ARR) because this REIT stock pays 14% annually in monthly installments.  I believe both of these stocks will beat the S&P 500 during the next 12 months.

Tuesday, September 2, 2014

Ukraine military routed as Russia talks tough

Ukraine military routed as Russia talks tough



This is one of the latest stories about the Ukraine-Russia conflict. There is no sign of an end to the fighting.  The simplest solution would probably be to let the Russian separatists towns unite with Russia just like Crimea was allowed to do.  That may be the only way to avoid a wider and longer conflict.


Monday, September 1, 2014

Why Interest Rates Won't Rise - Continued - iShares 20+ Year Treasury Bond ETF (NYSEARCA:TLT) | Seeking Alpha

Why Interest Rates Won't Rise - Continued - iShares 20+ Year Treasury Bond ETF (NYSEARCA:TLT) | Seeking Alpha



Here is an outstanding article about why interest rates will remain low.  I agree with the author that TLT, the long-term bond ETF, will continue to be a good investment.  23% of my portfolio is invested in TLT and TMF, a 3x long-term bond ETF.  Most of the rest of my money is invested in high-paying dividend stocks like CEFL, MORL, ARR, and EHI.  All of these dividend stocks pay monthly as well as TLT.