Earlier this week, I told you that the market is poised to take a bearish turn and cited three main reasons:  1. Weak fundamentals 2. Lofty market valuation 3. Investor complacency But I also told traders that when I say the market is likely to pull back, that doesn’t mean they need to sell everything or stop trading. #-ad_banner-#There’s a common saying on Wall Street: “There’s always a bull market somewhere.” In my experience, that’s definitely true. Read More

Earlier this week, I told you that the market is poised to take a bearish turn and cited three main reasons:  1. Weak fundamentals 2. Lofty market valuation 3. Investor complacency But I also told traders that when I say the market is likely to pull back, that doesn’t mean they need to sell everything or stop trading. #-ad_banner-#There’s a common saying on Wall Street: “There’s always a bull market somewhere.” In my experience, that’s definitely true. And to expand on that, I want to share some research from Tom Vician, Chief Investment Strategist of Alpha Trader, for a look at what stocks are most likely to go up in today’s market.  For those who aren’t familiar with Tom, he’s a 20-year veteran of the financial industry. He’s done everything from managing hedge funds to private wealth accounts and more. And as the man behind our successful Alpha Trader system — which delivered 16 double-digit winners last year — he’s the perfect choice to identify what’s working in today’s market. According to Tom’s… Read More

A couple months ago, I had an interesting phone call with Frank Bermea, publisher of our sister company, Profitable Trading. I could tell he was excited. “We’re changing the way we do business,” he said. I perked up and asked him to tell me more. It only took 90 seconds for me to realize that what he was talking about was an absolute game-changer. But I was afraid it would never happen. #-ad_banner-#Yet after weeks of planning — and countless late nights at the office — his vision has finally become a reality. If… Read More

A couple months ago, I had an interesting phone call with Frank Bermea, publisher of our sister company, Profitable Trading. I could tell he was excited. “We’re changing the way we do business,” he said. I perked up and asked him to tell me more. It only took 90 seconds for me to realize that what he was talking about was an absolute game-changer. But I was afraid it would never happen. #-ad_banner-#Yet after weeks of planning — and countless late nights at the office — his vision has finally become a reality. If you’ll excuse me for departing from the usual fare we cover here in StreetAuthority Daily, I’d like to tell you all about it today. I guarantee it’ll be worth it. First, let me start off by telling you a little bit about how our business works. If you’re getting this newsletter, then it means you’re a subscriber to one of StreetAuthority’s free newsletters. We offer a range of newsletters with different investment strategies in mind (income, buy-and-hold, momentum, options, etc.) written by some of the top experts in their field. When… Read More

It’s been said that trading is the hardest way to make easy money. And after more than two decades in the markets, I wholeheartedly agree. The vast majority of investment advisors, brokers and portfolio managers concentrate nearly all of their efforts on what to buy. They do extensive research and create compelling narratives describing why this or that stock is an excellent choice to own.  Picking the right investment vehicle is certainly an important part of the process. What goes into your portfolio is absolutely critical for success; poor prospects lead to poor results.  #-ad_banner-#Personally, I rely on a proprietary… Read More

It’s been said that trading is the hardest way to make easy money. And after more than two decades in the markets, I wholeheartedly agree. The vast majority of investment advisors, brokers and portfolio managers concentrate nearly all of their efforts on what to buy. They do extensive research and create compelling narratives describing why this or that stock is an excellent choice to own.  Picking the right investment vehicle is certainly an important part of the process. What goes into your portfolio is absolutely critical for success; poor prospects lead to poor results.  #-ad_banner-#Personally, I rely on a proprietary indicator called the Alpha Score to find the best stocks to own. It delivered 16 double-digit winners last year — despite the deteriorating market in the second half of 2015. (You can learn how it did that here.) But picking the right time to buy is only part of the process. You also have to know the right time to sell.  I’m not the only one who thinks this, either. While very few newsletters or investing services discuss the importance of selling, it’s a popular topic among many of the best investors and traders on the… Read More

In April, the technology sector looked like it was about to break down in a big way. However, it turned out to be a false alarm that merely let bulls buy at better prices.  Within the sector, there was also something bullish going on just below the surface: Semiconductor stocks, which were the tech standard in the 1990s, were finally participating… and in a good way.  #-ad_banner-# Some semi stocks soared in May after releasing earnings, and that should have been a tip… Read More

In April, the technology sector looked like it was about to break down in a big way. However, it turned out to be a false alarm that merely let bulls buy at better prices.  Within the sector, there was also something bullish going on just below the surface: Semiconductor stocks, which were the tech standard in the 1990s, were finally participating… and in a good way.  #-ad_banner-# Some semi stocks soared in May after releasing earnings, and that should have been a tip off that things were improving for most of the group. After all, if there is enough business for some companies to thrive, chances are there is enough to go around, even in a sector that is as diverse as this one.  So now I’m on the lookout for laggards in the sector that are on the move, and the one I like is Maxim Integrated Products (Nasdaq: MXIM), a manufacturer of linear and mixed-signal integrated circuits.  Although the stock now trades in the middle of its 52-week range and is still only a shadow of its pre-2000 tech bubble self,… Read More

It is amazing how a stock can be a rock star one day and a pariah the next. Whereas the rock star shrugs off bits of bad news, the pariah can’t seem to get out of its own way. But when everyone seems to be shunning a stock, good things can start to happen. And that’s exactly what looks to be the case with Apple (Nasdaq: AAPL) following its fall from grace. #-ad_banner-# After years of cranking out new products and… Read More

It is amazing how a stock can be a rock star one day and a pariah the next. Whereas the rock star shrugs off bits of bad news, the pariah can’t seem to get out of its own way. But when everyone seems to be shunning a stock, good things can start to happen. And that’s exactly what looks to be the case with Apple (Nasdaq: AAPL) following its fall from grace. #-ad_banner-# After years of cranking out new products and disrupting different consumer markets, the tech giant’s stock peaked early last year — long before it reported its first quarterly revenue decline in 13 years — and it has been falling ever since.  What happened to the company that was seemingly on track to become the first with a trillion-dollar market capitalization? Just over a year ago, it was valued at $775 billion, but it now “languishes” at $536 billion and has seen Alphabet (Nasdaq: GOOGL) eclipse it as market cap champ more than once this year.  At its lows earlier this month, Apple was down by more than a… Read More

The transportation sector has been lagging the broader market for the better part of the past year and a half. But truckers enjoyed a resurgence this year until mid-April, when the entire group suddenly slammed on the brakes.  While not technically a trucking stock, Ryder System (NYSE: R), which provides truck rentals, fleet management and other transportation services, just suffered a breakdown and looks ready to follow its cousins lower.  Ryder started 2016 off strong, retracing almost 50% of last year’s sharp decline, running from a January low just above $45 to an April high just below $72. A nearly… Read More

The transportation sector has been lagging the broader market for the better part of the past year and a half. But truckers enjoyed a resurgence this year until mid-April, when the entire group suddenly slammed on the brakes.  While not technically a trucking stock, Ryder System (NYSE: R), which provides truck rentals, fleet management and other transportation services, just suffered a breakdown and looks ready to follow its cousins lower.  Ryder started 2016 off strong, retracing almost 50% of last year’s sharp decline, running from a January low just above $45 to an April high just below $72. A nearly 60% gain in less than three months handily beat the market’s 16% advance during that time.  Unfortunately, last week, the stock moved below the very solid trendline that had been guiding prices higher.   For anyone watching closely, this breakdown was telegraphed by the technicals. #-ad_banner-# Momentum indicators such as Moving Average Convergence/Divergence (MACD) scored a bearish divergence and a downside crossover.  The price highs made in April and May, while not exactly the same, were close enough to… Read More

Trading countertrend moves can be profitable but risky, so it pays to line up as many factors as possible in our favor before putting money to work.  When a stock sports a price-to-earnings (P/E) ratio that even a technical analyst such as me thinks is low, it’s worth a look. When it is oversold at support, I’ll get interested. And when the price of its main input commodity starts to fall, I’ll consider a quick snapback trade. This is the case with American Airlines (Nasdaq: AAL). Read More

Trading countertrend moves can be profitable but risky, so it pays to line up as many factors as possible in our favor before putting money to work.  When a stock sports a price-to-earnings (P/E) ratio that even a technical analyst such as me thinks is low, it’s worth a look. When it is oversold at support, I’ll get interested. And when the price of its main input commodity starts to fall, I’ll consider a quick snapback trade. This is the case with American Airlines (Nasdaq: AAL). #-ad_banner-# I will admit that as a chartist, looking at fundamentals gives me the willies, but AAL has a trailing P/E ratio of just 3.1. That’s not only insanely low compared to the S&P 500, which has a P/E ratio of 19.1, but it’s less than half of the industry average of 6.3. Even based on next year’s earnings, AAL trades at just 5.7 times estimates. The stock has fallen more than 20% in the past month and a half, but the recent drop in oil prices following a multimonth rally could result in a… Read More

Natural resource stocks were the worst-performing group in 2015, with the sector plummeting nearly 27%. But since its January lows, this group has been on a tear, more than doubling the return of the benchmark S&P 500.  That’s right, the long-dormant sector finally looks like it’s back from the dead.  Up until a few weeks ago, natural resource stocks had been mauled by a multiyear bear market. At its 2016 low, the sector was down nearly 50% from its June 2014 high. Adding insult to injury, the decline lasted twice as long as the 2008 bear market.  The… Read More

Natural resource stocks were the worst-performing group in 2015, with the sector plummeting nearly 27%. But since its January lows, this group has been on a tear, more than doubling the return of the benchmark S&P 500.  That’s right, the long-dormant sector finally looks like it’s back from the dead.  Up until a few weeks ago, natural resource stocks had been mauled by a multiyear bear market. At its 2016 low, the sector was down nearly 50% from its June 2014 high. Adding insult to injury, the decline lasted twice as long as the 2008 bear market.  The sector’s poor performance was due to a trifecta of bearish factors that slammed precious metals and industrial commodities. #-ad_banner-#For starters, both rising interest rates and a rally in the U.S. dollar weighed heavily on precious metals, resulting in a four-year secular bear market in gold. The dollar has been rising on improving U.S. economic conditions and declining prospects in Europe. Economic weakness in Europe has the European Central Bank working to weaken the value of the euro, which makes the greenback stronger by comparison. Since gold is priced in U.S. dollars, when the value of the dollar goes up, the… Read More

While following a rising trend is usually the best way to make money in the stock market, chart reading can tell us where that trend is likely to run out of steam. And when we have a big stock like home improvement retailer Lowe’s (NYSE: LOW) soaring more than 20% in two and a half months, we really should see what the chart has to say about selling. Let’s start with the big picture. A weekly chart shows LOW tracing out a pattern that is rather similar to that of the S&P 500 — a big rally after the 2011… Read More

While following a rising trend is usually the best way to make money in the stock market, chart reading can tell us where that trend is likely to run out of steam. And when we have a big stock like home improvement retailer Lowe’s (NYSE: LOW) soaring more than 20% in two and a half months, we really should see what the chart has to say about selling. Let’s start with the big picture. A weekly chart shows LOW tracing out a pattern that is rather similar to that of the S&P 500 — a big rally after the 2011 correction followed by a wide, two-year trading range that is still in place. With trading ranges, I like to apply stochastics as a momentum indicator, and right now it says the stock is overbought. The near-term rally off the February lows was fast and furious, but now the stock looks tired. In fact, according to this indicator, it is more overbought now than it was at any other price peak since it first moved into the range in 2014 following a multimonth rally. Read More

The biotech sector scored a short-term breakout last week, and the bullishness spread to its larger, more established cousins, the big pharmaceutical stocks.  While most of these drugmakers have been strong of late, they have not broken out on their charts. However, one lagging stock in the group, GlaxoSmithKline (NYSE: GSK), has started to make its move. And given how much it lost over the past several months, its potential for gains is rather large. The sector only recently started to outperform, so it’s still early in the market’s possible rotation into this group. However, in absolute terms, the NYSE… Read More

The biotech sector scored a short-term breakout last week, and the bullishness spread to its larger, more established cousins, the big pharmaceutical stocks.  While most of these drugmakers have been strong of late, they have not broken out on their charts. However, one lagging stock in the group, GlaxoSmithKline (NYSE: GSK), has started to make its move. And given how much it lost over the past several months, its potential for gains is rather large. The sector only recently started to outperform, so it’s still early in the market’s possible rotation into this group. However, in absolute terms, the NYSE Arca Pharmaceutical Index, known by its option root DRG, is on the verge of a long-term breakout best seen on the weekly charts. Since peaking in August, the index lost more than 20% through its February low. In the process, it formed a nice declining trend channel, but on the chart shown, it also looks very much like a bullish flag. #-ad_banner-# DRG has traded at the upper border of this pattern for the past week, and any further strength will… Read More