Latest Posts

  • Finance 0

    The 20 Best Stocks For Value Investors This Week – 8/15/15

    We evaluated 41 different companies this week to determine whether they are suitable for Defensive Investors, those unwilling to do substantial research, or Enterprising Investors, those who are willing to do such research. We also put each company through the ModernGraham valuation model based on Benjamin Graham’s value investing formulas in order to determine an intrinsic value for each. Out of those 41 companies, only 20 were found to be undervalued or fairly valued and suitable for either Defensive or Enterprising Investors.  Here’s a summary of those 20 best stocks for value investors this week. The Elite The following companies ...
    On August 16, 2015 / By
  • Finance 0

    Goldman’s 4 Reasons Why The S&P Will Remain Unchanged For The Rest Of 2015

    Anyone expecting a surge in market volatility as Mario Draghi recently warned, will be disappointed to read Goldman’s latest forecast which not only does not budge on its year end S&P forecast of 2100, but predicts that the market will be flat as a pancake for the balance of the year. Here is Goldman’s assessment of why one may as well take the rest of the year off: The most likely path of the US stock market during the next six months is sideways. We forecast the S&P 500 index will end 2015 at 2100, roughly unchanged from the current level. S&P 500 delivered a compound annual price return of 18% during the past thr...
    On August 16, 2015 / By
  • Finance 0

    The Dumb Money Is Doing Something Smart

    At the peak of bull markets, when stock prices have been rising long enough for people who just recently started paying attention to conclude that they always go up — that’s when retail investors traditionally go all-in to snag some of that apparently easy Dow Jones money. That’s also when markets tend to peak and then roll over, once again transferring a sizable chunk of societal wealth from late-to-the-party “dumb money” investors to the pros who have been here before and recognize a peak when they see one. So it’s interesting to hear that retail investors are departing from the script in 2015. Instead of piling in at the very t...
    On August 16, 2015 / By
  • Finance 0

    Making Sense Of China’s Currency Devaluation

    Earlier this week, two massive explosions rocked the Chinese port city of Tianjin. It’s said that the larger explosion was equivalent to over 20 tons of TNT being detonated. The blasts were so large that seismic activity was registered around 100 miles away. The exact cause of the explosions is unknown, but other shocks emanating from China have clearer triggers. On August 11, 2015, China devalued its currency, the renminbi (yuan), by 1.9%. It was the currency’s biggest one-day drop since 1994. It didn’t stop there, either. At one point the following day, the yuan had cumulatively lost as much as 3.9% of its value against the dollar. Po...
    On August 16, 2015 / By
  • Finance 0

    Markets Coiling

    Markets staged a recovery after bears were unsuccessful in pushing follow through selling after a break of intraday support in morning trading. However, markets are approaching a decision point where declining resistance on the daily converges with rising support. The S&P offers the classic coiling play. Add to this the presence of the 20-day and 50-day MAs within the coil, with the 200-day MA just below, suggests the next break could set the tone into September. Technicals are mixed with momentum at bullish support, but ‘sell’ triggers in the MACD, On-Balance-Volume and +DI/-DI. The Nasdaq is holding 5,038 support, which I ...
    On August 16, 2015 / By
  • Finance 0

    GOLD: Looks To Build On Corrective Recovery

    GOLD: Having closed higher the past week, further bullishness is likely though hesitating on Friday.However, beware of a mild price pullback. Support comes in at the 1,110.00 level where a break will aim at the 1,200.00 level. A cut through here will open the door for move lower towards the 1,080.00 level. Below here if seen could trigger further downside pressure towards the 1,060.00 level. Conversely, resistance resides at the 1,235.08 level where a break will aim at the 1,250.000 followed by the 1,270.00 level. A violation of here will turn attention to the 1,290.00 level. All in all, GOLD remains biased to the upside on corrective recover...
    On August 16, 2015 / By
  • Finance 0

    Waiting For A Reason To Get Bullish

    Not a lot has changed from last week’s post on Twitter sentiment for the S&P 500 Index (SPX) Negative sentiment persists, but it’s slowly righting itself. The daily indicator bounced back and forth between mildly positive and mildly negative prints during the week. This caused 7 day momentum to drift slowly higher, but it still hasn’t been able to get above zero. It appears that market participants are waiting for a reason to get bullish.   The number of bearish stocks on Twitter rose to another three year high last week, but the number of bullish stocks rose as well. This caused breadth to drift sideways in the high thirties. ...
    On August 16, 2015 / By
  • Finance 0

    How ‘Simple Trading’ Can Save Your Trading Account

    Are you losing grip with your trading? Feeling lost in your own analysis and getting angry at the markets because your trading is going nowhere? You’re not alone. Many other Forex traders suffer from ‘analysis paralysis’ due to excessively complicated trading strategies. The problem is, everything we learn in life teaches us how to survive in the workforce – and how to make it in the ‘real world’. Forex trading is a different world that you are not prepared for, and naturally we apply what we know from the workforce to the Forex markets. FOREX TRADING REQUIRES A COMPLETELY DIFFERENT APPROACH – ONE OF MENTAL STRENGTH, ONE THA...
    On August 16, 2015 / By
  • Finance 0

    Yuan Devaluation Sparks Biggest Crash In US Corporate Bonds Since Lehman

    Just two days ago we warned of the dramatic disconnect between equity insurance and credit insurance markets – at levels last seen before Bear Stearns collapse. As the Yuan devaluation shuddered EUR/CNH carry traders and battered European assets, US equity markets stumbled onwards and upwards, impregnable in their fortitude with The Fed at their back no matter what. However, US corporate bond markets were a bloodbath… The Bank of America/Merrill Lynch High Yield CCC Yield got absolutely slammed this week, rising from 13.58% to 16.18%! The biggest spike in yields since the financial crisis. That would suggest, as all listed a...
    On August 16, 2015 / By
  • Finance 0

    Dubai & The Middle East

    The general perception that the countries in the Middle East are flush with cash and are deliberately keeping oil down to harm Iran when it begins to sell is rather childish. Budgets have risen and become bloated. Gasoline prices even rose in the United Arab Emirates (UAE). Dubai stocks fell to the lowest in more than two months, leading declines across most markets in the Middle East. The rout unfolded after the UAE’s biggest-listed property construction company reported a third straight quarterly loss. It appears that our real estate model calling for the more general high on a global scale in 2015 appears to be correct at this time from ...
    On August 16, 2015 / By