Author: Tradezy

Fizz, Fizz, Oh What A Relief It Is? So, Great Ones … how do you spell “relief?” Bank of America apparently spells relief thusly: “S T I M U L U S.” Today, the big American bank’s research investment committee said that the $1.9 trillion in stimulus spending won’t overheat the U.S. economy. It even included a handy-dandy chart to explain where all that money would actually go: On one hand, I have to give Bank of America credit for getting this right — even if it spelled “relief” wrong. Make no mistake, this is a ­relief package — not[…]

Good trading ideas are often simple. Despite that reality, many investors believe they need to find complex strategies. Complexity brought about portfolio insurance in the 1980s. This idea led to the October 1987 crash, which is still the largest one-day market decline in history. Markets quickly recovered from that crash, and the lessons were quickly forgotten. There are many historical examples. In the 1600s, instead of simply trading tulips, speculators created futures contracts on tulip bulbs. That invention may have contributed to the first market crash in history. We’ve seen this more recently too. By 2007, some traders thought they[…]

Life By The Drop Hello there, my old friend — Wall Street’s calling for the bull market end! We traded outside in the tech gains. With 2021, the market started over again. We’re living a dream — oh, we’re on top. Portfolio’s aching, and Lord, it won’t stop. Great Ones … that’s how it happens living life by the drop. The market’s been crazy lately, and judging by our inbox, some of y’all are feeling more than a little pain. Maybe you’ve felt like Great One Carolyn C. did here last week: I’m somewhat new to investing; however, I do[…]

You may think that the company with the most advanced self-driving car is Tesla, Google’s Waymo or General Motors’ Cruise. That might be true. However, only one company currently sells semi-autonomous cars … and it isn’t in the U.S. Japanese automaker Honda Motor Co. Ltd. (NYSE: HMC) announced its self-driving Honda Legend on Thursday. It’s the first government-certified car to offer level 3 automation, which means the vehicle can fully operate without a driver — although only in certain situations. Honda’s Sensing Elite technology isn’t advanced enough yet to navigate busy city intersections. Instead, it’s designed to take over during[…]

Reddit’s Roaring Rocket Howdy, Great Ones! Are you ready for another foray into the great wide open? Today, we’re talking “meme” stocks again. Specifically, Rocket Companies (NYSE: RKT), the parent company of Rocket Mortgage, Rocket Loans and Quicken Loans. Now, as we all know, mortgages and loans are terribly exciting — emphasis on the terrible. If you could found a business on watching paint dry or grass grow, it’d be more exciting than investing in the mortgage and loan business. Case in point: RKT went public in September. Despite all the hype surrounding the Rocket Loans app and how easy[…]

Wall Street firms spend millions of dollars on research. They send analysts to visit companies, who then build complex models estimating sales, costs and profits. These models are the basis of the firms’ price estimates for a company’s stock. This process assumes that prices are based on fundamentals, and that investors are sensible enough to only buy stocks that are fundamentally undervalued. However, the chart below of Signal Advance Inc. (OTC: SIGL) argues against this idea. And it reveals that investors are certainly not rational. SIGL’s Unreasonable Spike in January I don’t know what Signal Advance does. And it’s likely[…]