This Chart Pattern Could Be the End of the Bull Market

  As the S&P 500 index reached a new all time high, analysts went to work determining the likelihood of future gains. Some analysts are reviewing fundamental data including earnings and economic growth. Here, the picture is generally bullish. Standard & Poor’s estimates that earnings per share (EPS) for the S&P 500 index will be $170.52 next year and $193.36 in 2020. Using an average price to earnings (P/E) ratio of 17, the index could move significantly higher in the next two years. Now, the market price today is based on expectations for the future. That mea...
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The Overlooked FAANG Could Give You Big Gains

  FAANG stocks have been popular in recent years. But most of the media attention seems to be focused on just two of the five companies. Facebook (Nasdaq: FB) and Apple (Nasdaq: AAPL) seem to enjoy a disproportionate amount of news coverage. There’s also quite a bit of news about Amazon (Nasdaq: AMZN) and Alphabet (Nasdaq: GOOGL), the parent company of Google. But, there seems to be less news about Netflix (Nasdaq: NFLX). That’s perhaps because Netflix has quietly become a part of everyday life for millions of subscribers. A Company That Has Constantly Evolved Netflix is no...
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The Best Indicator You Might Not Know About

  Traders have spent a great deal of time searching for indicators. Their goal is to find a market beating indicator that will allow them to outperform the stock market. It’s an effort that could well be worth the time but it often results in frustration. Some of the frustration comes from the fact that traders stay on the same path as those who went before them. They study the popular indicators and may try to profit from tools that millions of other traders have read about. Some may even try to follow the more popular indicators. They might try trading based on moving avera...
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Elon Musk Is Driving Tesla for Good and Bad

  CEOs know a lot about their companies. That’s true for good or bad CEOs and it is the reason the Securities and Exchange Commission (SEC) requires CEOs and other corporate insiders to follow special rules. For example, you or I could send a tweet saying we expect a company to be taken private at $420 a share. Taking a company private means the company or other investors buy the shares of existing share holders and remove the company from the stock exchange. But, if the CEO makes that same tweet, it becomes a public statement that could move the stock price. That’s one reaso...
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Technicals Point to These Markets as the Best Buys Right Now

Source: CNBC.com Jim Cramer is a popular CNBC host. He’s famous for his large personality and underneath that he is a successful investor. He’s confident, and confidence is important to investors. Cramer is confident that he can find winning trades in any market environment. In his words, “I like to end every television and radio show I have with this signoff: "There is always a bull market somewhere, and I will try to find it for you." I say that because it's true.” One way to spot the bull market that is tradable is with technical analysis, the use of charts and indicators. Doing so...
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What History Says Is In Store for Apple

Apple (Nasdaq: AAPL) became a trillion dollar company. Many reports indicated that Apple was the first company to be worth at least $1 trillion but that’s not true. Apple is the first U. S. company to reach that milestone. Over time, Apple’s stock has climbed consistently higher towards that milestone. Chinese oil giant PetroChina, which reached the milestone more than a decade ago. Did not fare too well after that. PetroChina's market cap hit $1 trillion in 2007 following a successful debut on the Shanghai Stock Exchange on Nov. 5 of that year. The company's Shanghai-listed s...
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Elon Musk Acts Like a CEO, and That’s Why Tesla’s a Buy

Tesla recently delivered its quarterly earnings report and the news was pretty much in line with what many analysts had expected. The Wall Street Journal reported, “Tesla more than doubled its loss from last year’s second quarter to $717.5 million, its seventh consecutive quarterly loss during an period intensely focused on ramping up production of the Model 3. Tesla reached the long-delayed goal of making 5,000 Model 3 sedans in a single week during the final days of June. Now the test is whether it can sustain that production to generate necessary cash and eventually prove it is no lo...
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Here’s the Ideal Combination of Technical Indicators to Chart

Technical analysis can benefit or harm an investor. The benefit results from a careful analysis that can help with the buy and sell decision. The harm can come from too much or too little thought about the process. Too much thinking about technical analysis is a problem that is easy to overlook. The problem is that many indicators use the exact same data. For example, the default parameters for both the relative strength indicator (RSI) and the stochastic indicator are both 14 days. Calculations are different, but both use the same time frame to provide trade signals. This is not an ...
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Get Ready Now for the Worst Month of the Year

October is the month many investors fear. That’s the month of market crashes in 1987 and 1989. It’s the month in 1929 when stocks crashed, and the Great Depression began in the mind of many. But, there’s another month to fear more, the only month when stocks are down more often than up. That month is also in the autumn. And, there is a good reason the market crashed so often in the autumn. A Historically Weak Time of the Year Until the modern era, dating to the end of World War II, farmers and monetary policy were the leading cause of autumn crashes. Money was, for many years, stri...
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