Investing Basics

Cryptocurrency bears have had a field day since the price plunge. Every social media platform and even mainstream news services have been overrun with negative commentary as cryptocurrencies gave back 50% or more of their gains over the last few months. #-ad_banner-#Even the mighty bitcoin nosedived from nearly $20,000 per coin to around $6,300 per coin in just a few weeks.  During the price crash, even avid crypto bulls started to question the wisdom of holding onto newly their minted wealth.   What’s Going On? Being such a young market, there is genuinely no history to determine what is… Read More

Cryptocurrency bears have had a field day since the price plunge. Every social media platform and even mainstream news services have been overrun with negative commentary as cryptocurrencies gave back 50% or more of their gains over the last few months. #-ad_banner-#Even the mighty bitcoin nosedived from nearly $20,000 per coin to around $6,300 per coin in just a few weeks.  During the price crash, even avid crypto bulls started to question the wisdom of holding onto newly their minted wealth.   What’s Going On? Being such a young market, there is genuinely no history to determine what is normal and what is abnormal price behavior. One thing is for sure:  volatility is the nature of the beast. The millions of new traders who entered the market during the massive uptrend loved the volatility when it was making 12-year-olds millionaires in a matter of months. However, once the volatility turned the tables on the bullish masses, all the noobs panicked, declaring that the bubble had burst. Fueled by the sensation-seeking media machines, the panic selling resulted in downside volatility soaring and prices plummeting. At the same time, those who understand how markets really work waited patiently for the ideal… Read More

I’m always baffled when I read an article that’s negative about the practice of technical analysis. I probably shouldn’t be surprised — not because I don’t think it works (it clearly does), but because it seems folks these days have strong opinions on the extreme ends of nearly every issue or topic. —Sponsored Link— Elites DON’T Collect Social Security — They Collect This Nixon: $2196/mo… Rep. Cunningham: $14,667/mo… Nearing or in retirement? This could be the most important message you’ll see in 2018. In the investing world, there are basically two… Read More

I’m always baffled when I read an article that’s negative about the practice of technical analysis. I probably shouldn’t be surprised — not because I don’t think it works (it clearly does), but because it seems folks these days have strong opinions on the extreme ends of nearly every issue or topic. —Sponsored Link— Elites DON’T Collect Social Security — They Collect This Nixon: $2196/mo… Rep. Cunningham: $14,667/mo… Nearing or in retirement? This could be the most important message you’ll see in 2018. In the investing world, there are basically two schools of thought: fundamental analysis and technical analysis. And to a vast majority of investors, there’s no middle ground. Here at my premium service, Maximum Profit, we disagree. We take what we believe is the best of both worlds and combine them to create our proprietary “MP Score.” But I digress. #-ad_banner-#When I come across an article that’s dismissing technical analysis, I usually read it — even though I usually know what it’s going to say, as most of the nay-sayers usually spout the same myths. That’s because, at one point in my career, I espoused the same beliefs. You… Read More

Many long-term investors are sitting on handsome winnings from the massive bull market of the last several years. Nearly everyone was riding high on bullish enthusiasm, and nothing seemed to go wrong. Investors were successfully buying dips as the stock market pushed to record high after record high. It was an actual golden age from the stock market to cryptocurrencies, as even beginners basked in sometimes steady and sometimes obscene profits. #-ad_banner-#Then the impossible happened — stocks started falling fast as investors scrambled to lock in profits by liquidating their holdings. While taking profits is always a smart move, it’s… Read More

Many long-term investors are sitting on handsome winnings from the massive bull market of the last several years. Nearly everyone was riding high on bullish enthusiasm, and nothing seemed to go wrong. Investors were successfully buying dips as the stock market pushed to record high after record high. It was an actual golden age from the stock market to cryptocurrencies, as even beginners basked in sometimes steady and sometimes obscene profits. #-ad_banner-#Then the impossible happened — stocks started falling fast as investors scrambled to lock in profits by liquidating their holdings. While taking profits is always a smart move, it’s hard to not think about what would have happened had you held your shares. The prevailing wisdom is that you can always buy back your stocks after taking profits. Of course, this makes sense, but it is tremendously challenging to execute. My hat is off to you should you not struggle to buy back at a lower price after selling. On the other hand, professional stock traders and investment firms often hedge their long positions rather than selling to protect their gains. A well-managed hedge can protect your profits while allowing for upside potential in the stock. Here are three… Read More

Learning to listen to the market is a crucial investment skill. The stock market will tell you what to do if you know what to listen for. The following five things are what the market is saying right now. 1. Volatility Is Here To Stay Short-term traders rejoice! After years of ultra-low VIX readings, volatility is finally back. Spiking into the 50 zone during the February stock market chaos, the VIX has stayed above its 200-week simple moving average (SMA). #-ad_banner-#The surging VIX has resulted in more than a few hedge funds and other money managers throwing in the… Read More

Learning to listen to the market is a crucial investment skill. The stock market will tell you what to do if you know what to listen for. The following five things are what the market is saying right now. 1. Volatility Is Here To Stay Short-term traders rejoice! After years of ultra-low VIX readings, volatility is finally back. Spiking into the 50 zone during the February stock market chaos, the VIX has stayed above its 200-week simple moving average (SMA). #-ad_banner-#The surging VIX has resulted in more than a few hedge funds and other money managers throwing in the towel as their “bread & butter” short-trade volatility blew up in their faces. At the same time, long-suffering bullish volatility players are being rewarded handsomely for their patience. In fact, one Denver-based hedge fund, Ibex Investors, managed to turn a $200,000 trade into over $17 million during the explosive move. Although the VIX has dropped since the 2018 highs, I have little doubt that we can expect additional spikes and continual relatively high volatility over the next few years. The reason for my long volatility thesis is the fact that politically, economically, and socially, the global structure is being thrown… Read More

I’d like to start off today’s issue by asking you a simple question… If you discovered the key to making a fortune trading stocks, would you share it with the world? —Sponsored Link— The 10 Best Dividend Paying Stocks Right Now Want market-beating yield in today’s zero-interest world? The right dividend stocks could boost your returns 345%. Our latest investor briefing gives you 10 of the very best. PLUS — a simple trick for adding to monthly income. Click here now to get your instant FREE copy. If history is any… Read More

I’d like to start off today’s issue by asking you a simple question… If you discovered the key to making a fortune trading stocks, would you share it with the world? —Sponsored Link— The 10 Best Dividend Paying Stocks Right Now Want market-beating yield in today’s zero-interest world? The right dividend stocks could boost your returns 345%. Our latest investor briefing gives you 10 of the very best. PLUS — a simple trick for adding to monthly income. Click here now to get your instant FREE copy. If history is any guide, you’d be a fool if you did. That’s because studies have shown the more well-known a market-beating strategy becomes, the less it becomes a market-beating strategy. Makes sense, doesn’t it? Why So-Called Market “Edges” Soon Disappear Back in 1981, an academic named Rolf Banz published a paper on something called the “small-firm effect.” It showed that buying small-cap stocks generated “abnormal returns,” even when adjusted for risk. #-ad_banner-#At around the same time, researchers uncovered the “value effect,” which showed that buying stocks with low P/E ratios earned market-beating returns. But when these two market-beating effects were widely… Read More

Goldfinger is my favorite James Bond movie. Best villain. Best majordomo. Best bad-girl-turns-good-girl. Best one-liners. All of it. Even funnier is the villain’s, the portly Aurelius Goldfinger, obsession with one of the world’s worst investments: gold. But, he was a Bond villain. And gold is the currency of Bond villains, pirates, and South African mercenaries. #-ad_banner-#It doesn’t belong in a portfolio. Now, before the goldbugs come after me with pitchforks and torches, let me share with you a few nuggets (ha!) from Warren Buffett, another guy who thinks gold is a lousy place to put one’s money. Here’s his most… Read More

Goldfinger is my favorite James Bond movie. Best villain. Best majordomo. Best bad-girl-turns-good-girl. Best one-liners. All of it. Even funnier is the villain’s, the portly Aurelius Goldfinger, obsession with one of the world’s worst investments: gold. But, he was a Bond villain. And gold is the currency of Bond villains, pirates, and South African mercenaries. #-ad_banner-#It doesn’t belong in a portfolio. Now, before the goldbugs come after me with pitchforks and torches, let me share with you a few nuggets (ha!) from Warren Buffett, another guy who thinks gold is a lousy place to put one’s money. Here’s his most succinct quote regarding that belief: “…If you took all of the gold in the world, it would roughly make a cube 67 feet on a side… it would be worth at today’s market prices about $7 trillion, that’s probably about a third of the value of all the stocks in the United States… For $7 trillion, you could have all the farmland in the United States, you could have about seven Exxon Mobils (NYSE: XOM) and you could still have $1 trillion of walking around money…” So, let’s put that to a test. Here’s a five-year chart of the SPDR… Read More

It might feel worse than it really is… Granted, the near daily whipsaws we’ve witnessed recently could cause motion sickness, but the fact of the matter is, despite all the red splattered across the markets, the S&P 500 is still down less than 10% from its January high. —Sponsored Link— These Seven Penny Blockchain Stocks Could Explode In 2018 Forget about Bitcoin, Ethereum or any of the 1,400+ penny cryptocurrencies. They’re yesterday’s stories, with the biggest gains ALREADY made. We’re at the beginning of a major digital revolution — a technological advancement called BLOCKCHAIN. If… Read More

It might feel worse than it really is… Granted, the near daily whipsaws we’ve witnessed recently could cause motion sickness, but the fact of the matter is, despite all the red splattered across the markets, the S&P 500 is still down less than 10% from its January high. —Sponsored Link— These Seven Penny Blockchain Stocks Could Explode In 2018 Forget about Bitcoin, Ethereum or any of the 1,400+ penny cryptocurrencies. They’re yesterday’s stories, with the biggest gains ALREADY made. We’re at the beginning of a major digital revolution — a technological advancement called BLOCKCHAIN. If you don’t know what it is yet, or want to get in early on this emerging trend, I strongly urge you to click here. This could be your last chance to turn a small $50 investment into a sizeable fortune. Right now, the entire industry is controlled by a handful of penny stocks. And any one of these seven opportunities could explode by May 30. Click here for the full story. Now before I dive into some technical analysis — and what my premium Maximum Profit system is telling my subscribers and… Read More

There are very few edges left in the stock market. The tremendous amount of money, talent, and strategies combined to create a nearly efficient market that is exceedingly difficult to beat consistently. Add in structural changes like tightening spreads, decimalization, and high-frequency trading machines, and the stock market becomes a formidable foe for even the most sophisticated investor. The good news is that there are several edges still available for the retail investor. Yes, the market can still be beat! #-ad_banner-#Choosing and holding the right stocks for the long term is the primary way to beat the market. All the… Read More

There are very few edges left in the stock market. The tremendous amount of money, talent, and strategies combined to create a nearly efficient market that is exceedingly difficult to beat consistently. Add in structural changes like tightening spreads, decimalization, and high-frequency trading machines, and the stock market becomes a formidable foe for even the most sophisticated investor. The good news is that there are several edges still available for the retail investor. Yes, the market can still be beat! #-ad_banner-#Choosing and holding the right stocks for the long term is the primary way to beat the market. All the short-term gaming and manipulation do not affect long-term stock market investors. The trick is choosing the right stocks. Skill in stock picking remains a potent edge in the very efficient stock market of the 21st century. One of my favorite ways to pick stocks for my account is by following the insiders. Insiders are anyone who has access to non-public, stock-moving information about a company. They can be corporate directors, officers, or even lawyers and accountants who are working with the company. It’s just not my experience that supports an edge in following insider buys. Several academic studies support the… Read More

The U.S. economy seems to be humming along, with 2017 growth touching 2.3%, well above the 1.5% in the year before. The Bureau of Economic Analysis upgraded its estimate for fourth quarter growth to 2.9% from the advance estimate of 2.6% in January. The picture on the earnings front is just as rosy. Companies in the S&P 500 reported growth of 11.7% in earnings last year and analysts see that number growing by 18.4% in 2018, according to FactSet Research. #-ad_banner-#While market volatility has jumped lately on fears of a trade war, solid economic growth, and hope that the tax… Read More

The U.S. economy seems to be humming along, with 2017 growth touching 2.3%, well above the 1.5% in the year before. The Bureau of Economic Analysis upgraded its estimate for fourth quarter growth to 2.9% from the advance estimate of 2.6% in January. The picture on the earnings front is just as rosy. Companies in the S&P 500 reported growth of 11.7% in earnings last year and analysts see that number growing by 18.4% in 2018, according to FactSet Research. #-ad_banner-#While market volatility has jumped lately on fears of a trade war, solid economic growth, and hope that the tax cuts will drive earnings have supported stocks near highs. But it seems investors may be looking at the wrong metrics. Against good numbers at the broadest level, a recent release points to a new front of economic weakness lurking just under the surface. This factor has an overwhelming effect on the economy and could soon turn investor sentiment. Looking deeper into the data may show the only place for safety in what could become the end of the bull market. Are Retail Sales Hiding A Disturbing Trend? Retail sales in the United States fell for… Read More

I’ll admit I am getting apprehensive about the stock market. I’ve long been a super-bull, but the last several weeks have started to change my long-term bias. I do not like what I am witnessing on a day-to-day basis in the stock market. Stocks are definitely showing signs of topping out. Surging volatility — fueled by trade war fears and surprise interest rate spike jitters — has investors very concerned about the future. #-ad_banner-#Despite stocks not being in an official bear market (defined as a 20% drop from the highs), price action is indicating greater bearishness may be right around… Read More

I’ll admit I am getting apprehensive about the stock market. I’ve long been a super-bull, but the last several weeks have started to change my long-term bias. I do not like what I am witnessing on a day-to-day basis in the stock market. Stocks are definitely showing signs of topping out. Surging volatility — fueled by trade war fears and surprise interest rate spike jitters — has investors very concerned about the future. #-ad_banner-#Despite stocks not being in an official bear market (defined as a 20% drop from the highs), price action is indicating greater bearishness may be right around the corner. I know it may sound like an oxymoron, but during bearish periods, bullish price spikes are more common than during bull markets. The market uses these spikes to attract the last vestiges of long-only capital before a precipitous plunge. Recent price moves are indicative of this time-proven warning. Another apparent bearish cue is the daily price range of the Dow Jones Industrial Average. The best way to illustrate the phenomenon is to take a look at the daily price chart for the DJIA. Note the tight daily range during the move higher. The steady uptrend exhibits… Read More