Monday, August 31, 2015

Oil ETFs Rally into Bull Market on Supply Concerns | ETF Trends

Oil ETFs Rally into Bull Market on Supply Concerns | ETF Trends



Here is an outstanding article which explains the recent rally in oil stocks.  OPEC has finally come to its senses and thinks $80 per barrel is a reasonable oil price.  Therefore, they will be cutting production to raise the price of oil.  Moreover, the U.S. oil production has finally started to decline which will help prices also.  I am buying UWTI, a triple long oil ETF, tomorrow morning.  Oil will probably continue to rise while the rest of the stock market languishes.

Thursday, August 27, 2015

How “Silent Calls” Lead To Identity Theft

How “Silent Calls” Lead To Identity Theft



Here is a great article on how phone calls lead to ID theft.  As the author pointed out, the phone calls often simulate real calls from your bank, and this is how some people get seduced.  My person response is not answering the phone at all if I don't know who the person is.  Also, you can check your bank accounts on-line periodically to look for suspicious activity.


Wednesday, August 26, 2015

The party is over for junk bond investors

The party is over for junk bond investors



This is a good article explaining why junk bonds like the ETF, JNK, are not reliable anymore.  A lot of the dividend money comes from oil and mining companies which are not doing well.  While the dividend rate of JNK is around 6% and distributed on a monthly basis, the price of the stock has been slowly declining.  So, the loss of capital may be about equal to your dividends now.  



A better alternative is PFF, the preferred stock ETF.  It pays around 6% annually in monthly installments also, but the price of PFF is more stable although it has fallen slightly.  I own PFF myself, and I think it is good idea for part of your portfolio to be designated for income money especially in a volatile stock market.


Saturday, August 22, 2015

Cheniere Energy: Time To Buy The Drop - Cheniere Energy, Inc (NYSEMKT:LNG) | Seeking Alpha

Cheniere Energy: Time To Buy The Drop - Cheniere Energy, Inc (NYSEMKT:LNG) | Seeking Alpha



Here is an interesting article on Cheniere Energy.  I own the stock, and I plan to buy more on dips below $60 per share.  Cheniere has done well to line up future contracts for LNG.  The demand for natural gas will not be going away either.  I wish I had bought and held Cheniere when it was selling at single digits.



The mystery of multi-bagger stocks is that they are always overpriced.  You just have to believe in the future story.  As for another multi-bagger, I can remember when Priceline (PCLN) was selling for just $5 per share, and it is now over $1200 per share with a PE of just 27.






Friday, August 21, 2015

Dow plunges on worries about slowing global growth

Dow plunges on worries about slowing global growth



This is an important article about the Dow falling more than 500 points.  This downturn scenario has not happened since August of 2011 when Congress had its unprecedented impasse over the budget ceiling.  Kinahan of TD Ameritrade said that people are pulling their money out of the market because they can't tell who will be the future winners or losers.  I agree.  My best stock is PFF, the preferred stock ETF.  It pays 6% annually in monthly installments, and it has been a safe haven so far.  Moreover, nobody knows when the selling will stop.


Thursday, August 20, 2015

Dow plunges 358, S&P erases 2015 gains as traders fear oil, Fed

Dow plunges 358, S&P erases 2015 gains as traders fear oil, Fed



Here is a good article which explains why the stock market is down so much.  The market hates uncertainty, and we have plenty of that right now with China going down and with the Federal Reserve still keeping the future clouded on some things.  On the positive side, we are doing well with employment and housing.  If these two were tanking, we would probably be entering a bear market.



The NYSE McClellan Oscillator ($NYMO) is around -46, and this means we will probably have a rebound soon.  Another stock upturn indicator is that the ten-year bond interest is approaching 2%, and this usually means stocks are more attractive.  Whenever the rebound occurs, you probably ought to sell under-performing stocks while you have the chance because we will probably get another downturn soon enough.


Tuesday, August 18, 2015

This Market Shape Is More Telling than a "Death Cross" | Power Profit Trades

This Market Shape Is More Telling than a "Death Cross" | Power Profit Trades



This is a good article by Tom Gentile about how to interpret the current Dow and S&P 500 charts.  The death cross on the Dow has been much talked about as a negative stock market indicator.  However, Tom brought up a chart of a "symmetrical triangle" signal on the S&P 500 which is more positive than the Dow.  The triangle will eventually come to a point and market direction will break hard in one way or the other.  Tom seems to think stocks will rally higher because the ascending support line is longer than the lowering resistance line.

Monday, August 17, 2015

4 reasons stocks will move sideways until the end of 2015

4 reasons stocks will move sideways until the end of 2015



This is a great article about how Goldman Sachs believes we are in a sideways market, and it will remain that way for the next 5 to 12 months with not much improvement even going out to 2017.  The most dependable money will be made in good dividend stocks.   My favorite pick for dividends is PFF which pays around 6% annually in monthly installments.



However, a sideways market does not mean a down market.  Goldman Sachs does not see any economic trouble for the U.S. and the stock expansion could go on for several more years although at a slower pace.  I agree with them since interest rates are still low, and we are not anywhere close to a recession.


Saturday, August 15, 2015

Beware The Death Cross? | Seeking Alpha

Beware The Death Cross? | Seeking Alpha



Eric Parnell has written a very good article on the history of the Death Cross on stock indexes where the 50 day line falls below the 200 day line.  Eric believes that a lot of the decline has already happened by the time the death cross is triggered.  He also mentioned that this scenario is often a short term bottom for a stock market correction.



I think Eric is right that the current death cross is probably just a correction rather than the beginning of a bear market.  The economy is still doing okay and interest remains low.  Until interest on the 10-year bond gets to around 4% or the economy tanks, we should be invested in stocks.  Some of my favorite picks are PFF, AMBA, and REXX.

  

Level 2 Energy Fundamentals - inside perspectives on energy equities

Level 2 Energy Fundamentals - inside perspectives on energy equities



This is an excellent website to bookmark for the straight story on oil and gas.  As the old saying goes "the devil is in the details", and Level2Energy is able to uncover the bad details.  My previous blog provided a link to a great article from Level2Energy which explained why we cannot expect a near boom in the price of natural gas.



The situation in natural gas and oil is currently just a trade, and you must take your profit while you have it.  One stock that is worthwhile to buy and sell is Rex Energy (REXX).  The stock gained 14% alone on Friday going from $2.93 to $3.35, and I previously saw a $2 to $5 pattern earlier this year.  I own REXX, and I plan to buy it every time I see it in the $2 range.  Then, I will sell the stock when it goes over $5 because the volatility in oil and natural gas will probably be around for quite a while.

 

Midstream Energy MLPs and the Lack-of-Commodity-Price-Exposure Myth - Level 2 Energy Fundamentals

Midstream Energy MLPs and the Lack-of-Commodity-Price-Exposure Myth - Level 2 Energy Fundamentals



Here is an outstanding article about why MLPs are not as good as some people say and why the price of natural gas will remain low far longer than you can ever imagine.  As the author mentioned, pipeline oil and gas prices are not directly tied to commodity prices, but the "flow volumes" effect the income of pipeline companies.  So, if oil and gas companies cannot afford to pump from their wells, their transfer volumes will fall and hurt MLPs.



Secondly, the much hyped exporting of natural gas is taking way too long to unfold.  We need to apply "Murphy's Law" here that other things will go wrong.  In addition, the changeover of power plants from coal to natural gas is also taking a long time.  Hence, the demand and price for natural gas may remain low for quite some time.





Wednesday, August 12, 2015

A 10-Bagger Emerges | Seeking Alpha

A 10-Bagger Emerges | Seeking Alpha



Here is a great article on 10-baggers that are hard to find during a stock market top.  The author raves about Netflix and how the company has plenty of room to grow in foreign countries.  I own NFLX myself, and I wish I had gotten in sooner.



Secondly, the article talks about the great prospects of Tesla, and the home batteries that are coming may be greater than the electric cars.  I own TSLA and plan to buy more.  Even if these stocks only grow 100% from the current prices, you will have market-beating stock picks.  I think these stocks are good investments along with a diversified portfolio which has dividend stocks like PFF, the preferred stock ETF which pays around 6% with a relatively stable stock price.




Stocks Mixed as 2008-Style Volatility Returns

Stocks Mixed as 2008-Style Volatility Returns



This is a very good article which discusses the fact that we appear to be at a stock market top.  However, the author summarized by implying it could be two years before stocks lose a third or more of the current value.  So, people can still make money for a while, but you need to have a quick exit plan when things turn really bad.  You can also hedge by owning long-term government bond stocks like TLT which is well-known and TMF which is a 3x long ETF for bonds.


Tuesday, August 11, 2015

Your Expert Guide To Beta-Alanine - Bodybuilding.com

Your Expert Guide To Beta-Alanine - Bodybuilding.com



As I occasionally do, I will talk about subjects other than the stock market.  The link above involves an article about beta-alanine, a muscle builder.  Having strong muscles is important to everyone, and it is even more important for older people who have bodies that are breaking down due to old age.  It will take time for beta-alanine to increase muscles, though, but the muscle gain will last for a while even if you stop supplementing.



Moreover, you actually need to take beta-alanine if you take taurine to offset any negative effects from taurine.  The latter primarily energizes muscles while beta-alanine actually builds muscles.  Many people may not realize that taurine is an ingredient in almost all energy drinks.  This is one reason why energy drinks work, but you must also be certain to rebuild muscles that can be overstrained by taurine alone.


Sunday, August 9, 2015

Is It Time To Buy Energy CEFs? | Seeking Alpha

Is It Time To Buy Energy CEFs? | Seeking Alpha



This is an excellent article about dividend paying energy CEFs that are worth buying during the energy downturn.  I especially like IRR, TTP, and FIF for the great dividends that are being paid.  We can make money while we wait for the energy sector to recover.  The general market is also in a downturn now that may continue.  Even if the Dow recovers, it will probably be locked in a narrow trading range for the next few months.

Dividend Calendar: List of Upcoming Dividend Dates

Dividend Calendar: List of Upcoming Dividend Dates



Here is an interesting page about dividend dates on the Nasdaq website.  You can see when companies are at their ex-dividend dates and what the expected dividend amount will be.  There is also an input box at the top of the page where you can enter a ticker symbol like TTP to see what that stock's dividend history looks like.  You can also look ahead to future ex-dividend dates of companies.

 

What Happens When the ITC Expires? : Greentech Media

What Happens When the ITC Expires? : Greentech Media



This is a very important article about the effect that the Investment Tax Credit reduction will have on solar installations.  Basically, the solar industry will survive the expected reduction in ITC, especially on the commercial side.  Currently, solar stock prices are in a big slump probably because of exaggerated worries over the income tax credit as well as very low oil prices.



Eventually, the price slump will end for solar stocks because people will see that solar companies are still making money and that solar power is here to stay.  I will be looking at stock price charts to determine when the stocks have bottomed out and when the rally has resumed again.  My favorite stocks are SCTY, SUNE, SEDJ, and TAN.

 

Saturday, August 8, 2015

The Next Energy Sector Collapse — Coming SOON…

The Next Energy Sector Collapse — Coming SOON…



Here is a bearish article on utilities and XLU, the utilities ETF.  There is some truth that solar installations have hurt traditional utilities, but I'm not sure that it is significant.  First, some utilities have embraced solar themselves, and they can pay for the solar installations a lot easier than homeowners.  One example is Sun Edison (SUNE).



A second point is that oil and natural gas are very cheap now.  Utilities can actually make a lot of money under these circumstances, and this situation is not going away anytime soon.  Some solar stocks like TAN, the solar ETF, have actually fallen more than XLU.  This is due to the current glut of oil and natural gas.  Even though solar is getting inexpensive, people are unlikely to invest in solar installations unless oil and natural gas greatly increase in price again.





Shaken, Not Stirred: Is The 'Biotech Bubble' Beginning To Burst? - Intercept Pharmaceuticals (NASDAQ:ICPT) | Seeking Alpha

Shaken, Not Stirred: Is The 'Biotech Bubble' Beginning To Burst? - Intercept Pharmaceuticals (NASDAQ:ICPT) | Seeking Alpha



This is an outstanding article on the pros and cons of owning biotech stocks at a time when the general stock market looks like it is rolling over.  The author believes that biotech stocks will quickly rebound like tech stocks did during a slump in 1998.  He also mentioned some individual biotech stocks worth buying.  Moreover, he brought up the fact that we have few alternatives for making money in the market right now.





Stocks Came Within a Hair of Melting Down on Friday. Here's Why. : Newsletter Archives

Stocks Came Within a Hair of Melting Down on Friday. Here's Why. : Newsletter Archives



Here is an excellent article which talks about the current stock market conditions.  We are living in perilous unpredictable times for sure.  I also recommend the Smallcap Network website for locating worthwhile stocks.  For example, one hot stock that is shown on the Home page is REXX, Rex Energy.



Thursday, August 6, 2015

Plan To Survive: Be Systematic! - SPDR S&P 500 Trust ETF (NYSEARCA:SPY) | Seeking Alpha

Plan To Survive: Be Systematic! - SPDR S&P 500 Trust ETF (NYSEARCA:SPY) | Seeking Alpha



Harry Long has written another great article on how to beat the market with selected ETFs.  UPRO is a bet that the market will keep going up while TMF protects if it goes down.  I recently bought TMF when it crossed over its 50 day moving average line.  August and September are scary months to be long on stocks, and bad news could pop up at anytime.



Harry brought up the fact that TMF and EUO, the euro short ETF, balance each other out also.  The strength of the dollar causes the euro to fall while long term bonds (TMF) are hurt by the prospect of rising interest rates.  I'm planning to buy EUO in the next few days because I believe the euro short could be very profitable as the Federal Reserve strengthens the dollar by raising interest rates.

 

Tuesday, August 4, 2015

Short seller who called financial crisis sees calamity ahead

Short seller who called financial crisis sees calamity ahead



Here is a very good bearish article on stocks.  Bill Fleckenstein is a highly respected short seller who thinks the stock market is about to fall.  He was right between 2007 and 2009.  However, one big difference at the last market top was that interest rates were much higher than they are today.  I think we still have room to run until the 10-year bond gets to around 4% interest.  At that point, both businesses and individuals will lose borrowing power, and that will lead to a recession which will also bring down stocks.



Fleckenstein is probably right about a significant correction, though.  Moreover, it will also be hard to tell where the bottom is once the decline begins in earnest.  One way to play a pullback is to buy something like TQQQ once $NYMO is -65 or more negative.  There will probably be a tradeable bounce then before the next leg down.  Be sure you sell when $NYMO goes positive, and wait in cash until the next tradeable bottom.  The chart below shows what I am talking about.  Click on the picture to expand it.





  

Sunday, August 2, 2015

Clayton's Health Facts: L-Leucine. - Bodybuilding.com

Clayton's Health Facts: L-Leucine. - Bodybuilding.com



Here is another good article about the health benefits of leucine.  It helps to heal bones, skin, and muscles.  This can be very important for someone with weak bones.  Leucine also reportedly increases HGH which is the human growth hormone.  This in turn helps to repair joints and slows down the aging process.  Moreover, leucine is used to treat a nerve and muscle disease called Lou Gehrig's disease where the person gradually gets to the point of needing help for basic body movements. 


Leucine Supplement Side Effects | LIVESTRONG.COM

Leucine Supplement Side Effects | LIVESTRONG.COM



As I occasionally do, I will talk about subjects other than the stock market.  Leucine is a muscle-building nutrient that can help body builders as well as old people who are not getting enough protein.  This article talks about the good and bad aspects of leucine.  It appears to be safe as long as you don't overdo supplements.  As a person gets older, the body breaks down and cannot easily repair itself compared to young people.  This is why leucine can be helpful for some people.

Is It Time To Sell Skyworks Solutions? - Skyworks Solutions, Inc. (NASDAQ:SWKS) | Seeking Alpha

Is It Time To Sell Skyworks Solutions? - Skyworks Solutions, Inc. (NASDAQ:SWKS) | Seeking Alpha



This is an excellent article about Skyworks along with very good comments after the article.  I own SWKS myself, and I plan to buy more.  The author pointed out that Skyworks advanced 350% since January 2014 while Apple did not come anywhere near that kind of advance although it is certainly up.  In other words, Apple support stocks can gain a lot more than Apple itself.



I also like the fact that SWKS is involved in a lot more than just iPhones.  For example, Skyworks is involved in the automotive field, and cars will become increasingly connected to the world.  Admittedly, the stock is volatile, though.  Currently, the stock is below the 89 day moving average line.  I plan to buy more when the downtrend is reversed.

Saturday, August 1, 2015

After A Stunning Quarter, Starbucks Is Still A Buy - Starbucks Corporation (NASDAQ:SBUX) | Seeking Alpha

After A Stunning Quarter, Starbucks Is Still A Buy - Starbucks Corporation (NASDAQ:SBUX) | Seeking Alpha



This is a great article about Starbucks.  I own the stock myself and I plan to buy more in the future.  SBUX has grown more than 16,000% since the 1990's.  It is in rare multi-bagger territory along with Apple with a gain of over 19,000% since the 90s.



Starbucks has plenty of room to grow in China, and their acquisition of Teavana will also help in eastern countries where tea is popular.  Certainly, the company has a high PE, but that has always been true of growing companies.  Amazon has a much higher PE, but it is still growing like wildfire also.

Fed Stands Pat, Stocks And Income In The FTG Retiree Portfolio Soar To Record Heights | Seeking Alpha

Fed Stands Pat, Stocks And Income In The FTG Retiree Portfolio Soar To Record Heights | Seeking Alpha



Here is an outstanding article on making money with a stable dividend stock portfolio.  The author is using a $400,000 portfolio to gain over $20,000 in capital appreciation along with over $20,000 in dividend income.  This is a great American dream although a bear market would force changes in the portfolio so that money would not be lost.  I own Realty Income and plan to buy more.  I also want to own W. P. Carey.  The current portfolio is a very good plan to supplement Social Security as well as to advance at any time in a person's life.