You are damned if you do and damned if you don't! In my opinion, we are about to...[witness] a mean reversion in corporate profitability regardless of outcome as we have most likely has reached its limits for the cycle. Now comes the painful part, which is usually jam-packed with earning disappointments and investor losses.... Words: 485
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S&P 500 Stocks Most Overbought & Most Undersold (+2K Views)
The average S&P 500 stock is currently 4.33% above its 50-day, which is a very high reading. The S&P 500 itself is trading 3.5% above its 50-day. Below is a list of the 35 S&P 500 stocks that are currently trading the farthest above their 50-days and a list of the 35 that are the farthest below.
Read More »Dow 30 and ALL 10 Sectors Are OVERbought!
The continuation of the rally has left the S&P 500 and all 10 sectors in overbought territory. All but 6 of the Dow 30 stocks are trading in overbought territory as well. Take a look at the details in the 2 tables below.
Read More »Economic Collapse: The U.S. Could Learn From Europe
When you get into too much debt, eventually really bad things start to happen. This is a very painful lesson that southern Europe is learning right now, and it is a lesson that the United States will soon learn as well. Words: 826
Read More »Unemployment is NOT Declining – Don’t Be Hoodwinked! (2K Views)
The mainstream media is absolutely giddy that the U.S. unemployment rate has hit a "four-year low" of 7.7% but is unemployment in the United States actually going down?...Headlines all over the nation boldly declared that "236,000 jobs" were added to the economy in February, but what they didn't tell you was that the number of Americans "not in the labor force" rose by 296,000. That is how they are getting the unemployment rate to go down - by pretending that huge numbers of unemployed Americans don't want jobs. Words: 596; Chart: 1; Table: 1
Read More »Commodities: How Big a Player Is Russia & How Best Can Its Strengths Be Played? (+2K Views)
Russia may be the ninth largest economy in the world by nominal gross domestic product, but its abundance of natural resources in the Ural Mountains, Siberia and the Russian Far East makes it much more important in the world of commodities. Below, we dissect Russia’s commodity industry to give investors an in-depth look...and some specific ideas on how investors might participate. Words: 935
Read More »No Stock Market Correction Coming – Yet (+2K Views)
While I remain cautious on stocks and the risk trade, the technical picture shows that the uptrend to be intact and the bulls should still be given the benefit of the doubt for now. At this point, any call for a correction is at best conjecture [as evidenced by the following 4 indicators]. Words: 399; Charts: 4
Read More »Stocks Should Have a Record-Breaking Year According to These 7 Bullish Fundamentals
"A sluggish economy, political gridlock, tepid earnings, the European debt crisis, high gasoline prices..." I can't really argue with Barron's depiction of the current market environment yet, against all these seemingly negative conditions, the stock market keeps surging higher. Can it possibly continue, though?
Read More »The Dow 30: How Relevant Is Its Height to Economic Health of U.S.?
"Do we really have a time machine and have reset to 2007 or have we in fact entered the uncharted territory of unsustainable, runaway trends the likes of which have never been observed in recorded history? Also, just how relevant is the Dow Industrials Index in all of this?"
Read More »Gold Miners Have Hit Rock Bottom! Now’s the Ultimate Buying Opportunity (+2K Views)
Looking at the recent Gold Miners price action and crash-like conditions, I cannot hide my excitement. As we judge the recent cyclical bear market within the longer term secular uptrend, we can see that Gold Miners are becoming very attractive. Whether it is the technically oversold levels that only occur a handful of times over a generation, the rock bottom valuations on nominal or relative basis, or the extreme sentiment that the overall sector is going through, all of these indicators point to one conclusion: we are fast approaching a major buying opportunity. [I support that contention below with the use of 8 charts and a full explanation of each.] Words: 1133; Charts: 8
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