Category: Investment News

You’d think it would be rather easy to pick winning stocks in a market that surged over 40% in about three months. But this coronavirus is sticking around a lot longer than we hoped, which has made the environment profitable but very uncertain. The best way to improve your odds for success is to find names with several characteristics moving in the right direction. Rising earnings estimates is great, but it’s even better if broker ratings and price momentum are trending upward as well. And a low price-to-sales ratio helps too. The Increasing Estimates, Ratings & Prices screen looks for[…]

I am starting to get straight-up bearish on the broader market. I know I have been skeptical of the stock market recovery since it began, but the recent surge in COVID cases and a flatlining in economic activity gives my current skepticism backing. The only thing holding up the equity markets at these seemingly unsustainable levels is the hope of another fiscal stimulus package, vaccine/treatment optimism, and a phrase that I’m sure we have all heard enough of: “don’t fight the Fed.” The market bulls and bears are fighting a battle between the S&P 500’s 3,150 and 3,000 levels, while[…]

S&P futures are trading moderately lower after the European session saw some selling after yesterday’s rally. The weakness has less to do with virus fears and more with the Hong Kong situation. The new National Security Law that China has imposed on the city is leading to unrest. Additionally, we saw a reaction from the U.K. criticizing China, saying that the law is a “clear violation” of the autonomy of Hong Kong. The world is very upset at China at the moment. If there is joint economic action against the country, it could harm global trade. For that reason, the[…]

The market continues to break as another COVID outbreak appears to be running rampant in the US. Investors are worried a second wave now could cause sizable economic impediments and push back the timeline to economic recovery. The S&P 500 has come from over 3,200 in the second week of June to fighting a battle around 3,000, which is being supported by the 200-day moving average at 3,020 (which we bounced off this morning) and a Fibonacci retracement level which I have indicated below. Above is the S&P 500 I charted out utilizing TradingView’s trading tools. The blue circles represent strong support[…]

There has been an enormous divergence between US indexes amid one of the most tumultuous years in stock market history. In 2020, the tech-driven Nasdaq 100 has rallied 16%, while the S&P 500 is down over 3%, and value-driven Dow Industrial Average has lost 9%. According to a recent WSJ article, this is the most substantial Nasdaq advantage since 1983 (when tracking year-to-date performance to late June). Below is a YTD chart I created with TradingView charting tool, comparing the Nasdaq 100 (candlesticks), S&P 500 (red), and the Dow 30 (orange). Now the question we need to be posing to ourselves as investors[…]

S&P futures saw aggressive selling last night after White House adviser Navarro made comments on a Fox interview. When asked a long a detailed question about the China trade deal, Navarro simply said “It’s over” and then when on to criticize China. Markets initially took these words as an indication that the trade deal was in jeopardy and sold off. Futures were down over 1%, but the comments were walked back quickly and futures eventually bounced all the way back into the green. Positive June PMI data out of Europe has helped futures accelerate higher, which will help stocks open[…]

Tech stocks around the world have been rallying from the depths of pandemic trade with a ferocity that hasn’t been seen since the 90s. US tech firms look to be running out of steam, and it may be time to look overseas for opportunities. China equities may still have sizable upside potential for some of the best-positioned enterprises. This pandemic has increased the world’s reliance on technology, accentuating the already rapidly digitalizing Chinese economy. Below are 2 stocks that have been given a sizable pandemic tailwind with rallies that still have legs. My Chinese Picks: Alibaba (BABA) The fact that[…]