Greed can lead to overvaluing a stock, chasing gains. Once
the price reaches an unsustainable level, fear can kick in,
and traders begin selling. This is what creates the ebb and
flow of the stock market.

But sometimes, that fear can go too far, and spiral into a
panic. This is when the greatest opportunities arise — both
for “bottom fishers” who buy stocks at their post-panic
price floors; and for short-sellers, who can catch
overvalued stocks on their way down.

In this episode, you’ll learn:

All about panics: What causes them, how you can identify
them, and how you can use this knowledge to make big
profits.

The Exhausted Selling Model, or ESM: What it is, how you can
read it, and what it’s done in the past.

How to recognize when a stock is at its bottom… and how to
know when a stock that’s already suffered huge losses is
in fact poised to lose even more.

Happy Trading!

Manny Backus
CEO, Wealthpire Inc.

***Other Recommended Resources:

The Infamous "Ring of 15" Group, Their Secrets Revealed…
An unlikely group of retirees, teachers, and parents have unlocked this secret phenomenon banking a 7-digit annual income. There’s hope on the horizon unlike anything the modern world has ever seen.

Deciphering a 70 Year Old Japanese System
Developed in the 1940s (before computers existed) this system was considered an unbreakable code for over 70 years. One man has deciphered the system, and has modified it to use in today’s hectic markets – pulling in a cool $1,000 every 5 days.

Little Known Loophole in the Investment Advisor Act of 1941
How one former Financial Advisor found a loophole that generates pure profits. Makes you wonder exactly how the rich are getting richer when loopholes like this are kept undisclosed to the public.

profit from panic selling

What if I told you this was wrong?

And what if I told you that this wasn’t an opinion, but it was a documented, statistical fact?

Volatility is a proxy for risk. A study conducted in 2010 looked at the returns of the most volatile stocks versus those of the least volatile stocks. You’re going to be shocked by the findings.

In this episode, you’ll learn:

-How the least volatile stocks compared to the most volatile stocks over a 41-year period ending 2009. How much would $1 invested into each group net?

-How and why investors overvalue volatile stocks and undervalue stocks with low-volatility — and how you can use this knowledge to inform your trades in the future.

-The limitations of the “Low Volatility Anomaly” — it’s not as easy as just buying the most boring stocks and holding forever.

Happy Trading!

Manny Backus
CEO, Wealthpire Inc.

***Other Recommended Resources:

The Infamous "Ring of 15" Group, Their Secrets Revealed…
An unlikely group of retirees, teachers, and parents have unlocked this secret phenomenon banking a 7-digit annual income. There’s hope on the horizon unlike anything the modern world has ever seen.

Deciphering a 70 Year Old Japanese System
Developed in the 1940s (before computers existed) this system was considered an unbreakable code for over 70 years. One man has deciphered the system, and has modified it to use in today’s hectic markets – pulling in a cool $1,000 every 5 days.

Little Known Loophole in the Investment Advisor Act of 1941
How one former Financial Advisor found a loophole that generates pure profits. Makes you wonder exactly how the rich are getting richer when loopholes like this are kept undisclosed to the public.

High gains with Low risk

The VIX is the CBOE’s volatility index. It measures implied volatility. Starting in 2006, the CBOE began offering options on the VIX. Now you can use these VIX options in a number of ways: as a bet on volatility, as a bet against volatility, as an insurance policy against a market crash, as a tool to diversify your portfolio — all that and more.

VIX options are the topic of this TradingTips.com episode.

In this episode, you’ll learn:

- What the VIX is, how it can be measured, and how it can inform all of your stock-trading decisions.

- What ETFs you can buy to play the VIX — both bullishly and bearishly.

- Why buying options on the ultra-volatile VIX is actually safer, in some ways, than buying options on stocks.

Happy Trading!

Manny Backus
CEO, Wealthpire Inc.

VIX Options makes trading easier

But what if I told you that all of this information could be easily
distilled by one statistic alone? It’s the simplest statistic of all:
the stock’s price.

But you can’t just look at the stock’s current price. No, you need to
look at what the stock has done over a period of time; its opening,
high, low, and closing prices for each day. Luckily, all of this
information can be easily comprehended graphically with candlesticks
on charts — and these charts contain all of the information you’ll
ever need… All of the information fundamental analysts are looking
for is reflected in the stock’s price information — you just have to
know how to read it properly.

In this episode, you will learn:

- Three of the most important stock-chart patterns and how you can
recognize them, making big profits in the process.

- Which chart formation predicted 7,250% gains for Walmart back in
1979, and 152% gains for Microsoft in 1990.

- How to differentiate a bullish double bottom from a bearish double
top.

- How you can use bearish breakout symbols to make money in a down
market.

We also show you several graphical examples in this episode, with
real-life charts demonstrating the pattern formations. We include one
big winner from our Portfolio Crafter service that was selected on
the basis of its chart pattern.

Both fundamental and technical analysis are important, but to
chartists, fundamental analysis is redundant. If you can get all the
information you need to know about a stock — whether it’s going up
or down — from the chart, why bother spending hours and hours
analyzing an individual company to see if it’s a good buy? In that
same time, you could scan the charts of dozens, maybe even hundreds
of stocks. There are numerous chart patterns that predict breakouts,
but this episode will teach you the basics of three of the most
important ones.

Happy Trading!

Manny Backus
CEO, Wealthpire Inc.

Most important chart patterns to recognize

It starts with Thomas Edison who jump-started the global lighting industry 133 years ago. His brilliant invention was, of course, the first electric light bulb.

All these years later Edison’s design is still lighting homes around the world. We love the golden glow of Edison’s old incandescent light. But can we afford it?

The trouble is our old fashioned bulbs burn off most of their energy. They create much more heat than light.

With electricity prices rising and energy supplies under stress, Washington made the decision in 2007 to ban old-fashioned light bulbs. Billions of dollars were suddenly at stake in the race to create new, energy-efficient lights.

The company I’m talking about is going to claim a big slice of those billions!

The Gold Rush Begins

The story behind this company (and why it’s a bargain) is a humdinger. It’s an opportunity Washington could only create by accident.

When politicians decreed five years ago that America should start phasing out Edison’s old-style bulbs they imposed a waiting period.

As hoped, US companies invested billions as they rushed to create energy-efficient fluorescent lights. But consumers grumbled that some of the new lights shed a harsh light and flickered during start up.

Some bulbs also looked ugly — especially those squiggly-tipped fluorescent tubes. Even the environmentalists don’t like mini-fluorescents because they’re a source of serious mercury pollution.

A Brilliant Idea

Now let me take you to the cutting-edge of successful lighting technology, an idea that will illuminate the world!

The brightest and most efficient lights in the world are LEDs. We’ve all seen how bright LEDs are in new high-end flashlights. These tiny bulbs also seem to make batteries last forever.

Edison wouldn’t have understood the technology behind this new breed of light. But I think you can appreciate the general idea.

The heart of this tiny light bulb is a wafer-thin slice of semiconductor called a light-emitting diode or LED. These tiny diodes are just like transistors. The only difference is that transistors give off electricity.

Diodes give off tons of light.

Cool Consensus Pick

LEDs are so cool they last for years. They don’t even burn out. They just fade after a few decades.

How cool is that?

One problem. Consumers complained that the first generation of LED lights were very expensive and shed a strange blue light. Billions of dollars are at stake for companies that can create better, warmer-colored and cheaper versions of the LED. That is a very big technical challenge.

Luckily, Silicon Valley gave birth to one little-known company that is up to the job and then some.

Our Consensus Pick is the one company that is on the cutting edge of tackling these problems. You might call it the Intel of lighting.

This exciting company is Electro Scientific Industries (NASDAQ: ESIO). The company calls itself ESI nowadays.

Oops! Washington Creates a Stunning Buying Opportunity

ESI was going great guns last year, making better and cheaper LEDs as the incandescent bulb deadline approached. But a lot of consumers were complaining to their Congressmen and Senators that they didn’t want Washington telling them what kind of light bulb to buy.

While ESI was generating tens of millions in earnings by improving LEDs, voters fretted about losing their energy-gobbling Edison bulbs. Congress suddenly caved in. It temporarily defunded its own light bulb law.

As Congress backed down, many investors worried that ESI wouldn’t meet revenue expectations. Big customers delayed buying ESI’s sophisticated LED-producing machines.

The stock’s sharp decline has created a breathtaking buying opportunity.

Why an opportunity? Because Congress didn’t actually repeal the law. The politicians just delayed things a bit. What’s more, the ban on incandescent lights is a slow and timid measure. Currently it calls only for the elimination of 100 watt bulbs during 2012.

In fact old-fashioned bulb factories are still going out of business. The market for LEDs is set to roar back to life!

I’m saying investors overreacted and made ESI a real bargain at today’s prices.

I believe ESI will light up the stock market as LED demand rebounds. Already you can see share prices rising from the lows they tested last October.

Now’s time for politicians to get out of the way of America’s technology leaders, including companies like ESI.

Action to take:

Buy stock in ESI (NASDAQ: ESIO). Use a 20% trailing stop loss and don’t pay more than $15.35 for this stock. Hold for five years or a 100% gain, whichever comes first!

I wish you the best with this opportunity and don’t forget to write in to tell me about your success. To get more great picks, join the ranks of Consensus Picks right away.

Click here to learn how you can get more great picks like this one every week from Consensus Picks.

Happy Trading!

Manny Backus
CEO, Wealthpire Inc.

Look, I bet you think that having a written trading plan is good in theory, but not really necessary, right?

WRONG.

Even if you think you have a plan in your head, it’s not enough — and this episode will tell you why. That, and a whole lot more.

In this episode, you will learn:

- Why it’s so important to have a plan — and how to write your own.

- The five steps that go along with writing and then implementing your plan — all spelled out and made simple.

- What kind of prep work you need to do before you even develop your plan, and why.

- What you need to do to stay on track with your plan — on a daily, weekly, monthly, and quarterly basis.

You absolutely can make money as a career stock trader — literally almost anyone can. The only real question is, Do you want to? And secondarily, How badly do you want it? Not bad enough to make a written plan? Okay, then you don’t have what it takes. But if you’re willing to make a small investment of time in your success, you CAN do it.

Having a written plan promotes accountability and ensures consistency. It is what virtually all successful traders do. Maybe you don’t need a written plan to be a success — there are savants who can succeed no matter what — but having a plan virtually guarantees long-term prosperity. If your plan doesn’t work, you’ll know, and you’ll be able to adjust your personalized plan until it does work. From there, it’s cake!

Happy Trading!

Manny Backus
CEO, Wealthpire Inc.

A written plan for success

———–advertisement————-

The first time he did it, I called it “dumb luck”…
When he did it again 2 days later, I called it “freakish”…

But after he predicted 12 winners for a combined 130% gain in 7 days,
I knew this analyst had uncovered something INCREDIBLE…

A safe minutes-per-day system that could easily
bank you $1,000 a week or more – in pure profit!

Watch this special, time-sensitive presentation now
for full details on how you could start using this
trading system as early as tomorrow morning.

——————————————-

First of all, let’s look at the current rate picture. Last week, the 30-year Treasury bond yield broke through resistance and went from 3.2% to almost 3.5%– ia key level of resistance—then pulled back a bit. Still, that was a big move, and generally regarded as confirmation of the accelerating interest rate trend. That’s not to say that the 30-year won’t “back and fill” lower again, but across the board, interest rates have been trending up, including the key 10-year T-bill, which spiked from under 2% in early March, to a high of 2.4%, before pulling back.

For those steeped in the intricacies of how interest rates work, the rise in longer-term rates at a faster pace than the rise in shorter term rates is known as a steepening of the yield curve. While conventional wisdom tells us that this may be bad for equities, there are some equity sectors that should benefit from the trend—primarily insurance companies, banks and mortgage REITs.

Usually, because of the complex way many insurance companies handle the inflows and outflows of premiums, these companies tend to benefit under these conditions. That’s because a large percentage of insurance company assets are allocated to low-risk, fixed income instruments. As a result, when interest rates rise, those investments perform well, resulting in higher profit margins for insurance companies.

For that reason, I’ve had my eye on The Phoenix Companies (PNX) for quite some time. Currently trading at $2.40 per share, there’s a huge amount of headroom here if the interest rate trend continues. This company has been in business since 1944, is well-managed, and its share price has spent a relative eternity consolidating at these low levels. Be sure to put this one on your radar screen.

Another insurance play worth considering, if you’re interested in dividends, is United Fire and Casualty (UFCS). The stock, currently at $18.20 per share, trades in a tight range, so it’s not for the mo-mo crowd, but the company pays out a healthy 3.2% dividend to shareholders, and given the current interest rate situation, the underlying equity itself appears to be a low-risk proposition.

Banks also tend to do well when the yield curve steepens, as most banks are in the business of borrowing money at short-term rates and lending it at longer-term rates. In this environment, the beaten down shares of bank stocks like Bank of America (BAC) may continue in recovery mode. That holds true for mortgage REITS as well, so companies like Annaly Capital Management (NLY), which also pays a whopping dividend of 13.6%, look attractive for fixed income investors.

There are dozens of other companies out there that may be diamonds in the rough given current interest rate trends. Now’s the time to carefully monitor the movement of the 30-year Treasury bond and establish “watch lists” of stocks in the sectors that most stand to benefit from the steepening yield curve.

Happy Trading!

Manny Backus CEO,
Wealthpire Inc.

Given the popularity of caffeine, years ago I composed a watch-list of associated equities. Of course, there’s Starbucks (SBUX), but that well-known brand has long been a giant in the space, so I leave those shares to the “big boys”—institutional investors who control this big-cap behemoth.

———–advertisement————-

Turn $100 into as much as $517,931 in less than 5 months buying THESE penny stocks:

Click here for the complete list

Peter Lynch reveals the market’s best stocks with explosive growth potential:

Click here for the complete list

——————————————-

In the past, I’ve paid close attention to two mid-cap coffee plays—Coffee Holding Company, Inc. (JVA) and Caribou Coffee, Inc. (CBOU). Recently, JVA reported solid earnings and the company’s share price more than doubled on the news. That was partially because market participants had been pounding down the price of JVA shares for months, and partially because more than 20% of JVA’s razor-thin float of 4 million shares had been sold short. Right now, shares of JVA are trading at about $14 each, but given their 100% in the past week, they’re too rich and risky for my blood.

Caribou Coffee, Inc. has had similar success in the coffee marketplace, and it too has witnessed a significant appreciation in its share price. In less than a year CBOU has surged from around $9 per share to $18 per share, which, at least for the time being, is a key resistance point. The company’s float of 18 million shares is bigger than JVA’s, but it too has attracted the attention of short-sellers, with about 2.5 million CBOU shares sold short.

On a regular basis, both CBOU and JVA offer solid trading opportunities for traders who can tolerate the inherent volatility of such low-float specials, and should continue to do so in the months ahead. During good market times these two may offer some significant upside. They also provide good fodder for shorting when market conditions dictate.

Recently, two associated penny stocks have caught my attention—Barista’s Coffee (BCCI), now trading at a bit under .09 cents per share, and Healthy Coffee, Intl. (HCEI), now at .045 cents per share. Both issues are pink sheet plays, which are inherently dangerous, but both have a past history of rapid price runs when traders embrace stocks in the coffee sector. Right now, both stocks are being actively promoted, and are showing an uptick in trading volume.

In BCCI’s case, the company is opening new stores at a regular clip, and they announced last week that its female baristas would participate in a national reality t.v. show. That’s the kind of p.r. that often gets traders’ blood boiling (see the recent action in CBIS, based on similar news). HCEI is also expanding its reach, has an international footprint, and along with BCCI became a momentum favorite during the sectors’ last big run in September 2010. That mania for coffee stocks took BCCI to the .84 cent level, and HCEI to .50!

It’s anybody’s guess if these stocks can repeat history, but even a small run from here could prove to be a great way to percolate some significant trading profits. Make sure to keep an eye on all of these issues in the coming weeks.

Share your thoughts and opinions below.

Happy Trading!

Manny Backus CEO,
Wealthpire Inc.

———–advertisement————-

Turn $100 into as much as $517,931 in less than 5 months buying THESE penny stocks:

Click here for the complete list

Peter Lynch reveals the market’s best stocks with explosive growth potential:

Click here for the complete list

——————————————-

One small cap issue in this space that has recently garnered the attention of market participants is Complete Genomics, Inc. (GNOM), currently trading at around $4 per share, with a market cap of $129 million. Like so many other biotech plays, GNOM hit rock bottom in last year’s sell-off, sinking to as low as $2.21 per share, about a 90% haircut from its 52-week-high of $18.55 per share. GNOM’s claim to fame is that they have developed a proprietary DNA sequencing platform for use in analyzing gene composition.

GNOM is a money-loser, and is expected to show losses in the neighborhood of .60 cents a share in its upcoming March earnings report. However, the company just cut a significant deal to provide the Mayo Clinic with their services, and remains an issue to keep on watch as the personalized medicine movement gains steam.

A direct competitor of GNOM is Pacific Biosciences of California (PACB), whose stock performance is almost a mirror image of GNOM’s. During last year’s market carnage, PACB’s shares slid from the mid- $15 range to a 52-week-bottom of $2.25 per share. Currently trading at around $4.30 per share, with a market cap of about $240 million, PACB recently reported better-than-expected earnings, but lost $22.8 million last quarter. Still, as a charter member of the gene-sequencing sector, it too merits monitoring in the months ahead.

Finally, there’s Human Genome Sciences, Inc. (HGSI), which was one of the first companies in the space to garner widespread attention for gene-related therapies. The company has several promising products in its pipeline, and an ongoing clinical development relationship with GlaxoSmithKline. Like GNOM and PACB, HGSI stock has fallen on hard times, currently trading at about $8 per share, about 75% off of its 52-week-high.

Given the promise and proven value of personalized medicine, I’m guessing that it’s only a matter of time before stocks in the sector once again find favor with investors. If and when they do, this brave new world of science, which is already paying dividends for patients, could very easily translate into solid trading profits.

Share your thoughts and opinions below.

Happy Trading!

Manny Backus
CEO, Wealthpire Inc.

There are two possible answers to that question: (1) Yes, or (2) No, I’m a trader or growth investor. But even traders and growth investors like to buy stocks that are undervalued, right? It can’t hurt!

There are many measures for determining if a stock is undervalued. The most basic are P/E, PEG, price-to-book ratio, etc. You probably know all of these. But what about the Graham Number.

In this episode, you will learn:

- What the Graham Number is, and how it is calculated.
- How to interpret the Graham Number in terms of “buy, hold, and sell.”
- How stocks with good Graham Numbers have been performing compared to the S&P 500.

We also take an in-depth look at four, count ‘em FOUR, blue-chip stocks with good Graham Numbers right now. We’re not talking hypothetically — we will be showing you some undervalued stocks that you can further investigate on your own.

The Graham Number isn’t that well known — and you can use this to your advantage! When just a few traders have knowledge of a particular tool, they can typically use it for a while before the rest of the crowd catches on. That may be happening with the Graham Number right now.

Happy Trading!

Manny Backus
CEO, Wealthpire Inc.

Are you a value investor?