Last week, I read a paper called “How the Wealth Was Won: Factor Shares as Market Fundamentals.” For a slightly wonky student of the markets like me, this paper is the equivalent of a horror movie.  It’s a rather technical paper, and I won’t bore you with all the details. But for those who’d like to really dive in to all the math and details, the paper can be found here. This paper explained why the profit margin contraction I wrote about last week is a long-term problem for investors. Data in the paper confirmed my view… Read More

Last week, I read a paper called “How the Wealth Was Won: Factor Shares as Market Fundamentals.” For a slightly wonky student of the markets like me, this paper is the equivalent of a horror movie.  It’s a rather technical paper, and I won’t bore you with all the details. But for those who’d like to really dive in to all the math and details, the paper can be found here. This paper explained why the profit margin contraction I wrote about last week is a long-term problem for investors. Data in the paper confirmed my view that the future for investors is much different than what investors have come to believe is normal based on their experience of the past few decades.  —Recommended Link— [Free Webinar] The Secret to Making $125,000 In a Year On May 9th at 1 p.m. investing legend Jim Fink is going to share four ways to tap the market for gains of 114%, 211%, 246% and 433%. Sometimes in as little as 36 hours. His new system is so powerful, we’re promising anyone who uses it will have the opportunity to make $125,000 in the next… Read More

After taking a quick hiatus from the bullish trend that ended in September 2018 — and the near 20% plunge in December — the market, as measured by the S&P 500, has resumed its upward course. The index took out its late September 2018 highs this past Friday, April 26. Since then, it has gone on to hit record heights. To be sure, as the market hits new highs, there will always be the crowd of folks shouting that “this” is the top. Of course, nobody knows what the market will do tomorrow, the next day, next week or a… Read More

After taking a quick hiatus from the bullish trend that ended in September 2018 — and the near 20% plunge in December — the market, as measured by the S&P 500, has resumed its upward course. The index took out its late September 2018 highs this past Friday, April 26. Since then, it has gone on to hit record heights. To be sure, as the market hits new highs, there will always be the crowd of folks shouting that “this” is the top. Of course, nobody knows what the market will do tomorrow, the next day, next week or a month from now. But for us, we can lean on some technical indicators that will help tell us if this is a strong market rally or simply a head fake. The main one that we will look at is the Advance-Decline (A-D) Line. I talked about this indicator in this article, where I warned that a bear market could be looming (a month later the S&P 500 bottomed, dropping 19% from its September high). I also touched on it in this article, showing it rebounding, a signal that near-term momentum was strong. The market has ripped off a double-digit return… Read More

If you’ve been following along with me lately, then you know I’m concerned about the market right now for a number of reasons. Nevertheless, the bull market remains intact. For now.  In the meantime, while I’m watching the market, I don’t see any reason to avoid making new trades rights now, especially if they’re the kind of conservative income trades my readers and I make over at Maximum Income. Case in point: I recently recommended a trade in The Coca-Cola Company (NYSE: KO).  And today, I’m going to share the details with you… —Recommended Link— Register for Secret Cash Payouts… Read More

If you’ve been following along with me lately, then you know I’m concerned about the market right now for a number of reasons. Nevertheless, the bull market remains intact. For now.  In the meantime, while I’m watching the market, I don’t see any reason to avoid making new trades rights now, especially if they’re the kind of conservative income trades my readers and I make over at Maximum Income. Case in point: I recently recommended a trade in The Coca-Cola Company (NYSE: KO).  And today, I’m going to share the details with you… —Recommended Link— Register for Secret Cash Payouts by Vodafone, Whole Foods and Microsoft Officially, American corporations pay out $1 billion in dividends a day. But the true payout is much higher, because so many “special” dividends go unreported. And they can be 10 times larger than a regular dividend. It’s time to lift the lid on this secret world. For 12 of the biggest secret dividends you’ll ever see, go here. For starters, you should know that this is a covered call trade. That’s a trade involving options, but don’t let that scare you. In fact, covered calls are one of the most conservative options trading… Read More

Let’s get one thing straight…  Stock prices continue moving higher — and that is bullish. I’m not going to suggest anyone fight the trend. As long as stocks are rising, we should be aggressive.  This week, I want to consider why stocks are rising. In general terms, uptrends are driven by economic data, fundamentals, sentiment, or a combination of those three factors. Understanding the primary factor behind a move can help us prepare for the inevitable reversal.  —Recommended Link— 3 Minutes to Collect 12 Times More Money Than… Read More

Let’s get one thing straight…  Stock prices continue moving higher — and that is bullish. I’m not going to suggest anyone fight the trend. As long as stocks are rising, we should be aggressive.  This week, I want to consider why stocks are rising. In general terms, uptrends are driven by economic data, fundamentals, sentiment, or a combination of those three factors. Understanding the primary factor behind a move can help us prepare for the inevitable reversal.  —Recommended Link— 3 Minutes to Collect 12 Times More Money Than Social Security Just make this simple little 3-minute call and you can get set up to start collecting your checks. All told, your checks can add up to $225,326 over the next 25 years. Imagine that! And these checks are supported by $1.75 billion in new money every year. But you must act right now… because the next wave of checks will be sent out in just a few days. Click here for the details. First, uptrends driven by economic or fundamental data tend to be the strongest. That’s… Read More

While reviewing some major indexes recently, I saw an important signal in the Baltic Dry Index.  The Baltic Dry Index (BDI) is an index of shipping costs that shows the cost of moving materials in large ships. These are the ships used to move coal and steel, and changes in the index can offer insights into the state of the global economy.  A recent jump in the value of my Profit Amplifier Momentum (PAM) indicator caught my attention.  The recent increase is a surprise because many economists are warning of an economic slowdown. For example, just recently, the International Monetary… Read More

While reviewing some major indexes recently, I saw an important signal in the Baltic Dry Index.  The Baltic Dry Index (BDI) is an index of shipping costs that shows the cost of moving materials in large ships. These are the ships used to move coal and steel, and changes in the index can offer insights into the state of the global economy.  A recent jump in the value of my Profit Amplifier Momentum (PAM) indicator caught my attention.  The recent increase is a surprise because many economists are warning of an economic slowdown. For example, just recently, the International Monetary Fund reduced its estimate for growth in global GDP to 3.3% from estimates of 3.5% in January and 3.7% in October.  To explain the cut, the IMF noted increased “trade tensions and tariff hikes between the United States and China, a decline in business confidence, a tightening of financial conditions, and higher policy uncertainty across many economies.”  Still, after this estimate was released, we have since seen reports of decreased tension with China and a delay in Brexit that could reduce global uncertainty.  How I Got In The Aircraft Business The rapid changes in economic news contributed to the… Read More

This week, I want to address two important points that I’ve been hearing a lot about lately — IPOs and earnings.  First, I want to note that the initial public offering (IPO) market is operating exactly as it’s designed to. It’s shifting money to a group of investors that can be considered the “smart” money.  In the past few weeks, we have seen large offerings from Lyft (Nasdaq: LYFT), Pinterest (NYSE: PINS) and Zoom Video Communications (Nasdaq: ZM). All three have transferred wealth from individual investors to some of Wall Street’s largest players.  —Recommended Link— The… Read More

This week, I want to address two important points that I’ve been hearing a lot about lately — IPOs and earnings.  First, I want to note that the initial public offering (IPO) market is operating exactly as it’s designed to. It’s shifting money to a group of investors that can be considered the “smart” money.  In the past few weeks, we have seen large offerings from Lyft (Nasdaq: LYFT), Pinterest (NYSE: PINS) and Zoom Video Communications (Nasdaq: ZM). All three have transferred wealth from individual investors to some of Wall Street’s largest players.  —Recommended Link— The Only Pot Company Of Its Kind Pot stocks are dominating the headlines. But I’m not biting. Because I’ve found a safer, smarter way to make money from the legal marijuana market. It’s a unique profit-sharing plan that’s allowing everyday Americans to earn up to $55,563 a year. And the payouts are 100% backed by a U.S. Federal Law. The next check run is just days away. Get the full details here now. I wrote about Lyft in this recent article. The stock ended last week about 22% below the level where it opened on its… Read More

Two and twenty… that’s the typical fees that hedge funds charge. With this fee structure, it means that they charge a flat 2% of total assets as a management fee and an additional 20% of any profits earned. There’s a good reason that hedge funds can charge this much, and that’s because they usually earn outsized returns for their investors. Of course, that’s not always the case. Just as with us regular investors, hedge funds go through rough patches.  For instance, Bill Ackman’s Pershing Square Holdings has lost money in the previous three years (he’s since turned that around and… Read More

Two and twenty… that’s the typical fees that hedge funds charge. With this fee structure, it means that they charge a flat 2% of total assets as a management fee and an additional 20% of any profits earned. There’s a good reason that hedge funds can charge this much, and that’s because they usually earn outsized returns for their investors. Of course, that’s not always the case. Just as with us regular investors, hedge funds go through rough patches.  For instance, Bill Ackman’s Pershing Square Holdings has lost money in the previous three years (he’s since turned that around and is doing quite well so far this year). And David Einhorn’s Greenlight Capital (Nasdaq: GLRE) has greatly underperformed over the last three years. The investing environment hasn’t been easy on hedge funds over the last couple of years. Since 2017, more than 16 hedge funds have returned money to investors and closed their doors. One such hedge funder, Whitney Tilson, who folded his fund in September 2017, talked about the biggest mistakes that lead him to close his doors.  And I was shocked by what he said… #-ad_banner-#First, you must understand that Tilson ran a long/short hedge fund, with an… Read More

In the most recent issue of my premium trading service, Income Trader, I didn’t make a trade recommendation.  Not a single one. I’ll admit, it’s a little strange. I’ve rarely done this since beginning the newsletter more than six years ago. It’s not what my premium subscribers are used to. At all. They’re used to getting at least one trade every week, along with a host of “bonus” trades sprinkled in throughout. Add that up over the years and, well, you get the idea. (And through it all, thanks to our system, we’ve been successful on over 90% of our trades.) So why… Read More

In the most recent issue of my premium trading service, Income Trader, I didn’t make a trade recommendation.  Not a single one. I’ll admit, it’s a little strange. I’ve rarely done this since beginning the newsletter more than six years ago. It’s not what my premium subscribers are used to. At all. They’re used to getting at least one trade every week, along with a host of “bonus” trades sprinkled in throughout. Add that up over the years and, well, you get the idea. (And through it all, thanks to our system, we’ve been successful on over 90% of our trades.) So why no trade last week? The problem in this market is safety.  —Recommended Link— Would you let yourself be injected with MiracleBlood? It cures 12 types of cancer… eradicates heart disease… diabetes… arthritis… Alzheimer’s… and extends your life by another 50 vibrant years… without side effects. Click here for the full details. It’s earnings season, and by this past Friday less than 10% of the companies in the S&P 500 have delivered quarterly results. So far, some reports were better than expected while others were worse than expected. It’s been almost random, and I want to see a trend in… Read More

Today, I want to share one of the most important charts I reviewed this weekend.  It’s a daily chart of Lyft (NASDAQ: LYFT). And yes, it includes relatively little information. But the story that small amount of information tells is big.  That’s because, just 10 days after the first trade, the stock fell as much as 20% below its offering price. Take a look… As Lyft was falling, its rival Uber announced plans to begin trading at a valuation of $90 billion to $100 billion. That seems steep for a company that’s yet to earn a profit on operations, but… Read More

Today, I want to share one of the most important charts I reviewed this weekend.  It’s a daily chart of Lyft (NASDAQ: LYFT). And yes, it includes relatively little information. But the story that small amount of information tells is big.  That’s because, just 10 days after the first trade, the stock fell as much as 20% below its offering price. Take a look… As Lyft was falling, its rival Uber announced plans to begin trading at a valuation of $90 billion to $100 billion. That seems steep for a company that’s yet to earn a profit on operations, but it’s well below the $120 billion the company expected to be valued at as recently as November.  These two stories indicate that investors are wary about the rush of initial public offerings (IPOs), which can be a sign of a market top, as I wrote about a few weeks ago.  #-ad_banner-#You might remember that I shared research from the paper “Using IPOs to Identify Sector Opportunities” by Kevin Lapham that showed IPOs can point to tops in sectors. Lyft, Uber, and other IPOs are being classified as “tech stocks,” and that indicates it’s time to closely follow the NASADQ 100… Read More

On a chart of the S&P 500 Index, the 2,800 level is becoming increasingly important. This level served as resistance for months — and now it’s support.  For those who are unfamiliar, resistance is a price level where selling pressure is expected to increase.  —Recommended Link— I’ve Never Been More Excited About An Opportunity Pot stocks are dominating the headlines. But I’m not biting. Because I’ve found a safer, smarter way to make money from the legal marijuana market. It’s a unique profit-sharing plan that’s allowing everyday Americans to earn up to $55,563 a year. Read More

On a chart of the S&P 500 Index, the 2,800 level is becoming increasingly important. This level served as resistance for months — and now it’s support.  For those who are unfamiliar, resistance is a price level where selling pressure is expected to increase.  —Recommended Link— I’ve Never Been More Excited About An Opportunity Pot stocks are dominating the headlines. But I’m not biting. Because I’ve found a safer, smarter way to make money from the legal marijuana market. It’s a unique profit-sharing plan that’s allowing everyday Americans to earn up to $55,563 a year. And the payouts are 100% backed by a U.S. Federal Law. The next check run is just days away. Get the full details here now.   As an example, we can look at how traders could have been thinking about the market in December 2018.  Back in December, as prices moved toward 2,800, nervous traders would have noticed that rallies had stopped at that level twice in the weeks prior. They may have decided that, if prices reached that level again, they would sell. Aggressive traders might have decided they would open short positions at that… Read More