Articles
Daily market commentary and analysis.
Benefiting From the Dow Theory Buy Signal
In a recent article, we highlighted the latest Dow Theory buy signal. Rather than repeat the details of Dow Theory and explain the signal here, we recommend reading the original article. In this…
Dec 15, 2016
Reading a Cloud Chart
In a recent post, we introduced Cloud Charts, formally known as Ichimoku Clouds. We received several questions about how to interpret the charts. While we generally like to provide answers to…
Nov 29, 2016
Ben Graham's Rules for Cheap Stocks: Four Cheap Stocks Warren Buffett’s Teacher Might Buy
Ben Graham is considered to be the founder of the value investing philosophy. He began investing in the 1920s, just in time to suffer large losses in the 1929 stock market crash. Graham decided to…
Nov 1, 2016
High Income Utility Stocks to Ease Election Jitters
Under normal circumstances, elections are often followed by selloffs in the stock market. Two examples many investors may remember are the selloffs that occurred in 2000 and 2008. Stocks were already…
Oct 27, 2016
The Whole Truth About Moving Averages:
We’ve all seen the analyst on CNBC explain with a sense of authority that the S&P 500 index has just crossed above or below an important moving average (MA). We are led to believe this foretells…
Oct 25, 2016
Big Cap Stocks in Distress Right Now
Academic research is an often-overlooked treasure trove of information for investors. Some investors ignore the research journals because they know the academic community believes markets are…
Oct 18, 2016
Generate Immediate Income Selling Puts Like Warren Buffett
Almost every investor wants to be like Warren Buffett in some way. While there is unlikely to ever be another Buffett, we can certainly learn from studying his investments. Many analysts point to his…
Sep 13, 2016
Intermarket Trading Strategies: An Overview of How Other Markets Impact Stocks
It seems obvious to state that markets are connected and moves in one market are often related to moves in other markets. But in 1991, this was a new idea. In that year, John Murphy published…
Aug 25, 2016
What Risk Means
Risk is part of investing. It is unavoidable and it’s even sought after. Risk is clearly related to potential rewards. To achieve the largest possible returns, investors have to accept higher than…
Aug 18, 2016
A Sector Rotation Trading Strategy You Can Follow
If you watch any one of the business news channels for more than an hour a week, you are likely to hear an expert proclaim that investors are moving money in or out of particular sectors. They might…
Jul 21, 2016
The Correct Way to Add Indicators to Your Charts
I saw an interesting chart over the weekend and want to share it with you so I recreated it. There are Bollinger Bands, moving averages, trend lines, stochastics, RSI and MACD. I think the chart is…
Jul 12, 2016
Managing Risk in Volatile Markets
A little more than 17 million voters in Great Britain created turmoil in global markets when they voted to leave the European Union. According to analysts at Standard & Poor’s, the vote led to $2…
Jun 28, 2016
Moving Averages Offer Valuable Information But They Don’t Do What Some Traders Believe They Do
Traders are usually focused on maximizing profits and moving averages (MAs) are one of the tools some traders use to meet that goal. An MA is applied to smooth price data and help to identify the…
Jun 14, 2016
Top Five Income Stock Market Trading Under $2
Income investing is often thought of as conservative. Because they are focused on income, income investors might try to minimize risk. Some do this by limiting their investments to blue chip stocks…
May 26, 2016
The Three Best Large Cap Stocks for Income Investors
Income investors face two challenges in the current environment – they need to combine high income with safety. Neither challenge is easy in the current environment. With the Federal Reserve holding…
May 19, 2016
How You Can Design Your Own Relative Strength Trading Strategy
Relative strength (RS) is widely followed by professional investors. Their interest in RS is simple to understand – their job is to beat the market and the stocks with the highest RS are the ones…
May 17, 2016
How to Really Read Chart Patterns
Last week, I wrote about how CNBC’s guests love to talk about divergences. This week, I want to look into another one of their favorite talking points – chart patterns. After this article I will move…
May 10, 2016
How To Use The World's Most Accurate Relative Strength Indicator
How does it feel be wealthy? While you may just be average or even on a lower rung of the economic ladder when compared to your neighbors, truth is, you are wealthy. In fact, the typical person in…
Apr 27, 2016
Here Are 4 Candlesticks You Need To Know
Let me let you in on a secret. There is a key to long-term investing success. It is nothing complicated and is actually quite simple. In fact, it is so simple that many investors disregard or ignore…
Apr 21, 2016
Everything You Need To Know About Stop Loss Orders
I have a major complaint with most trading and investing education services. My issue extends beyond just online courses and web sites, it goes deep into the very core of how stock market investing…
Apr 14, 2016