More To Economic Slowdown Than Weather [SPDR S&P 500 ETF Trust, PowerShares QQQ Trust, Series 1 (ETF), SPDR Dow Jones Industrial Average ETF] - Seeking Alpha
This is a great article by Sy Harding about how the economy appears to be slowing down. While Federal Reserve regional business reports are mixed, housing starts are going down. As Sy mentioned, the housing industry usually leads the economy and the stock market in boom and bust times. The decline in housing starts as well as permits is a bad sign. This may be one reason the stock market has become more volatile. We need to keep our eyes on the exit doors in case the stock market takes a serious downturn.
Friday, April 18, 2014
The Return Of Energy ETF Dominance? [Energy Select Sector SPDR (ETF), First Trust ISE Revere Natural Gas (ETF), SPDR S&P Oil & Gas Explore & Prod. (ETF), Market Vectors ETF Trust, iShares Dow Jones US Oil Equip. (ETF)] - Seeking Alpha
The Return Of Energy ETF Dominance? [Energy Select Sector SPDR (ETF), First Trust ISE Revere Natural Gas (ETF), SPDR S&P Oil & Gas Explore & Prod. (ETF), Market Vectors ETF Trust, iShares Dow Jones US Oil Equip. (ETF)] - Seeking Alpha
Here is a good article about how energy ETFs are once again in favor. Gary Gordon is very good at analyzing ETFs. I remember how he recommended XIV, the inverse volatility index, a few years ago when it was selling for $6 per share, and it became a multi-bagger stock. Now, Gary is recommending energy ETFs like FCG-- involving natural gas, XOP--the Spiders energy and exploration fund, and FRAK--the fracking industry companies. All of these ETFs are recently up double-digits, and they may keep climbing.
Here is a good article about how energy ETFs are once again in favor. Gary Gordon is very good at analyzing ETFs. I remember how he recommended XIV, the inverse volatility index, a few years ago when it was selling for $6 per share, and it became a multi-bagger stock. Now, Gary is recommending energy ETFs like FCG-- involving natural gas, XOP--the Spiders energy and exploration fund, and FRAK--the fracking industry companies. All of these ETFs are recently up double-digits, and they may keep climbing.
Ballard Power Systems Inc. (USA) (BLDP) news: Ballard Power Systems: This 140% Gainer Is Set To Fly Higher - Seeking Alpha
Ballard Power Systems Inc. (USA) (BLDP) news: Ballard Power Systems: This 140% Gainer Is Set To Fly Higher - Seeking Alpha
This is a great article about Ballard Power (BLDP) and why the fuel cell market is going to rapidly expand over the next several years. The industry will reportedly grow 22% each year until 2020. Fuel cell cars are now a reality just like electric vehicles, and Ballard has a partnership with Volkswagen. Ballard is also a partner with Plug Power and makes the fuel cell stacks for them. So, Ballard and Plug Power will be growing perhaps exponentially together.
Ballard is expected to grow earnings more than 50% each year for the next two years, and it has plenty of cash on hand. I own Plug Power and I am planning to buy Ballard also in the near future. Fuel cells are here to stay, and there is a good chance that these companies will outperform the S&P 500.
This is a great article about Ballard Power (BLDP) and why the fuel cell market is going to rapidly expand over the next several years. The industry will reportedly grow 22% each year until 2020. Fuel cell cars are now a reality just like electric vehicles, and Ballard has a partnership with Volkswagen. Ballard is also a partner with Plug Power and makes the fuel cell stacks for them. So, Ballard and Plug Power will be growing perhaps exponentially together.
Ballard is expected to grow earnings more than 50% each year for the next two years, and it has plenty of cash on hand. I own Plug Power and I am planning to buy Ballard also in the near future. Fuel cells are here to stay, and there is a good chance that these companies will outperform the S&P 500.
Thursday, April 17, 2014
Tesla Motors Inc (TSLA) news: Tesla In China: Cleaning Up The Smoggy Skies - Seeking Alpha
Tesla Motors Inc (TSLA) news: Tesla In China: Cleaning Up The Smoggy Skies - Seeking Alpha
This is an excellent article about Tesla's (TSLA) chances of increasing its electric vehicle auto sales in China. As the author mentioned, China sales could equal U.S. sales of cars as early as next year. I am a believer of the long-term story of Tesla as a good buy at the $200 or less level. As the company's sales begin to accelerate, Tesla's price will also move toward $500 or more in the coming years.
This is an excellent article about Tesla's (TSLA) chances of increasing its electric vehicle auto sales in China. As the author mentioned, China sales could equal U.S. sales of cars as early as next year. I am a believer of the long-term story of Tesla as a good buy at the $200 or less level. As the company's sales begin to accelerate, Tesla's price will also move toward $500 or more in the coming years.
Wednesday, April 16, 2014
Spotting a market bottom is no easy affair- MSN Money
Spotting a market bottom is no easy affair- MSN Money
Here is an interesting article by Jim Cramer about when the bottom of the mid-April market correction occurred and possible reasons why the stock market immediately reversed from that point. Jim is one of the best people I know for understanding the stock market as a whole. He was a hedge fund manager at one time. People often criticize Cramer when he misses on individual stock forecasts, but I would never want to bet against Jim on the general stock market direction. In this article, he goes into detail about how bonds with TLT as the proxy are in a see-saw battle with stocks. He also brings up a good point about how margins were being forced against sellers. So, the stock market has several undercurrents where you need good advice from a savvy experienced analyst like Jim in order to understand what will happen next so that you can adjust your portfolio accordingly.
Here is an interesting article by Jim Cramer about when the bottom of the mid-April market correction occurred and possible reasons why the stock market immediately reversed from that point. Jim is one of the best people I know for understanding the stock market as a whole. He was a hedge fund manager at one time. People often criticize Cramer when he misses on individual stock forecasts, but I would never want to bet against Jim on the general stock market direction. In this article, he goes into detail about how bonds with TLT as the proxy are in a see-saw battle with stocks. He also brings up a good point about how margins were being forced against sellers. So, the stock market has several undercurrents where you need good advice from a savvy experienced analyst like Jim in order to understand what will happen next so that you can adjust your portfolio accordingly.
Saturday, April 12, 2014
The End Of The Correction-Less Fantasy Land [JPMorgan Chase & Co.] - Seeking Alpha
The End Of The Correction-Less Fantasy Land [JPMorgan Chase & Co.] - Seeking Alpha
Chris Ciovacco has written another outstanding article about what severe corrections look like and how long they will last. It is too early to say where the bottom of this correction is. We must be prepared for the worst while there is a good chance we are close to a rebound. If the worst case takes place, the stock market could be down for months.
My guess is that we might have another 6% correction like we had earlier this year. But volatility will continue in 2014. There may be several 6-7% corrections. If we rebound from the current downturn, I would be willing to bet we will have another correction in May or June. Good stocks to buy at the bottom might be SOXL, the 3X semiconductor ETF, and TQQQ, the leveraged Nasdaq ETF. Then, when the stock market gets near its all-time highs again, that is the time to buy TVIX, the leveraged volatility index because earnings are not that good. 2014 will primarily be a range-bound market.
Chris Ciovacco has written another outstanding article about what severe corrections look like and how long they will last. It is too early to say where the bottom of this correction is. We must be prepared for the worst while there is a good chance we are close to a rebound. If the worst case takes place, the stock market could be down for months.
My guess is that we might have another 6% correction like we had earlier this year. But volatility will continue in 2014. There may be several 6-7% corrections. If we rebound from the current downturn, I would be willing to bet we will have another correction in May or June. Good stocks to buy at the bottom might be SOXL, the 3X semiconductor ETF, and TQQQ, the leveraged Nasdaq ETF. Then, when the stock market gets near its all-time highs again, that is the time to buy TVIX, the leveraged volatility index because earnings are not that good. 2014 will primarily be a range-bound market.
Assessing The Recent Stock Market Damage [McDonald's Corporation, Utilities SPDR (ETF), iShares MSCI Japan Index (ETF), iShares MSCI EAFE Index Fund (ETF)] - Seeking Alpha
Assessing The Recent Stock Market Damage [McDonald's Corporation, Utilities SPDR (ETF), iShares MSCI Japan Index (ETF), iShares MSCI EAFE Index Fund (ETF)] - Seeking Alpha
Eric Parnell has written a very good article about why the recent stock market decline is most likely just a correction. He mentioned that the S&P 500 bounced off the 150-day moving average line when we had our 6% correction earlier this year in January to the first part of February. So, if the S&P falls to 1793, that could be the turn-around point for stocks.
Eric also mentioned that LQD, the corporate bond ETF, is doing just fine. If we were headed for a bear market, it would be dropping along with the rest of the stock market. The credit markets are okay. PFF, the preferred stocks ETF, is also doing well. XLU, the utilities ETF, is also showing no signs of stress. An all-out bear market would send XLU down with most other stocks.
Another point that Eric made was that VIX, the volatility index, was behaving normally. Highs of recent years are only around 21, and we are currently in the 16 range. If perchance VIX goes above 18, it might keep going to 21 while the S&P 500 moving average might break its 200-day line. This would probably signal a reversal, though, because the economy is nowhere near a bear market scenario.
Eric Parnell has written a very good article about why the recent stock market decline is most likely just a correction. He mentioned that the S&P 500 bounced off the 150-day moving average line when we had our 6% correction earlier this year in January to the first part of February. So, if the S&P falls to 1793, that could be the turn-around point for stocks.
Eric also mentioned that LQD, the corporate bond ETF, is doing just fine. If we were headed for a bear market, it would be dropping along with the rest of the stock market. The credit markets are okay. PFF, the preferred stocks ETF, is also doing well. XLU, the utilities ETF, is also showing no signs of stress. An all-out bear market would send XLU down with most other stocks.
Another point that Eric made was that VIX, the volatility index, was behaving normally. Highs of recent years are only around 21, and we are currently in the 16 range. If perchance VIX goes above 18, it might keep going to 21 while the S&P 500 moving average might break its 200-day line. This would probably signal a reversal, though, because the economy is nowhere near a bear market scenario.
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