Congress Can’t Be Good for Social Media Stocks

Congress Can’t Be Good for Social Media Stocks

Political junkies often spend a great deal of time on web sites like Politico, The Hill and Roll Call. These are sites that describe what’s going inside Congress, the White House and executive agencies. They dig deep into the legislative and rule making process. Sites like that are useful for many individuals, especially if Congress or executive agencies are interested in their business. Energy companies, for example, are often subjected to new rules and the rules can carry costs. It’s rare to see an article on political sites that is good for a company. Congressional oversight or new ru...
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This Popular Indicator Can Be Improved Upon

This Popular Indicator Can Be Improved Upon

Traders might disagree on whether a stock should be bought or sold. They might disagree on the name of the pattern they spot on the chart. But, one thing they do seem to agree on is that indicators should be added to charts because these tools are useful. The price chart depicts the price action and traders have been searching for patterns on the charts since at least the early 1900s. By the 1940s, many traders had added moving averages which were designed to highlight the trend. Then, they began adding indicators to charts as shown below. This is a chart of the SPDR S&P 500 ETF ...
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China Is Front and Center in the Trade War

China Is Front and Center in the Trade War

Trade war fears are now near the top of almost every investor’s list of fears. That’s at least partly because the possibility of a trade war appears to be unprecedented. Investors have become comfortable with the idea of globalization even knowing there are costs associated with free trade. The costs of free trade are often easy to overlook. One of the greatest costs of free trade, at least according to many pundits right now is lost jobs. But, job losses have always been an issue that is less concerning to those with jobs. Ronald Reagan recognized this in the 1980 Presidential election ...
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This Chart Pattern Could Be the End of the Bull Market

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 means traders are...
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The Overlooked FAANG Could Give You Big Gains

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 now an over the ...
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The Best Indicator You Might Not Know About

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 averages or popular...
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Elon Musk Is Driving Tesla for Good and Bad

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 reason many CEOs av...
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Technicals Point to These Markets as the Best Buys Right Now

Technicals Point to These Markets as the Best Buys Right Now

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, we find that there...
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What History Says Is In Store for Apple

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 share...
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Elon Musk Acts Like a CEO, and That’s Why Tesla’s a Buy

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 longer...
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