Why You Must Avoid the Next Bear Market, and How You Can Do That: a look at the 10-month MA.

Stocks always go up, in the long run. At least that’s what every financial adviser seems to say. Because stocks always go up in the long run, many advisers tell us we should sit tight and never worry about a market decline. Patience will be rewarded. There are at least two problems with this line of reasoning. First is the fact that, as the economist John Maynard Keynes pithily noted, “in the long run, we are all dead.” Many will ignore Keynes wisdom here because it seems to be a hyperbole. But, it’s important. What Keynes was saying is that the long run should not concern us as m...
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Cheap Large Cap Income Stock Analysts Love

Each week, we screen for stocks that could be headed higher. This week, we focused on just four criteria. This demonstrates that stock screens can be relatively simple, although we are harnessing hours of Wall Street research to help us speed up our own search. To benefit from Wall Street’s research, we included analyst’s ratings in our screen. According to one study, more than 3,000 analysts work for more than 350 sell-side investment firms in the United States. They provide analysis, earnings forecasts, and buy and sell recommendations on individual companies. Analysts are biased a...
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What the Flattening Yield Curve Really Means for Investors

Analysts seem to move quickly from indicator to indicator. When markets are rising, analysts often claim there’s no need to consider extreme valuations or overbought technical indicators. When prices start falling, it seems like we need to worry about those indicators. However, no matter what the market is doing, analysts do tend to agree that we should consider the state of the economy. Economic growth is synonymous with bull markets and bear markets tend to unfold when the economy is contracting. There are hundreds, if not thousands, of economic indicators. Some are forward looking and...
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Bargain Hunting for Cheap Stocks

Source: FINVIZ.com With stocks down in the past few weeks, it could be reasonable to look for low priced stocks. These would be stocks that have little downside risk since they trade at low prices. These would also be the stocks that statistically have the highest probability of delivering a large gain in the next quarter. One study looked at how low priced, or cheap, stocks performed relative to more expensive stocks. The study found that cheap stocks delivered more than six times the average return of the more expensive stocks in a typical quarter. That’s why we started our search f...
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Anatomy of a Trading Range

In general, we like to see stocks going up and dread extended declines. Although individual investors will all have different time frames they consider, they tend to define an up trend as a series of rising prices in their preferred time frame. Likewise, a down trend will consist of a series of lower prices. Technical analysts generally define a down trend as a series of lower highs and lower lows. The chart pattern is generally clear when a down trend develops as the chart below demonstrates. Arrows demonstrate that for the majority of the time period shown, the stock has been makin...
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Four Stocks, Trading Under $5, To Buy on Pullbacks

In the recent market sell off, traders were reminded of a trading strategy that worked for many years. In the long bull market that began in 1982 and ran almost continuously until 2000, buying the dips became a popular strategy. The strategy involves buying stocks after prices dip. In other words, investors are looking at entering stocks that are in long term up trends when they are in short term down trends. Buying dips is a time tested strategy that excels in a bull market. The key is ensuring that the stock is in an up trend. There are a number of ways to define up trends includin...
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Intermarket Analysis of Stock

Traders are always looking for an edge. By an edge, we mean some bit of information that helps them make money. Smart traders understand their edge will most likely be found in information that other traders aren’t looking at. This article will provide you information about intermarket analysis of stock. The reason for this is found in the old saying that “to know what everyone knows is to know nothing.” This old saying drives a lot of trading decisions. Take, for example, a moving average crossover. There was a time when this strategy worked well. The idea is to buy when prices clos...
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Cheap Stocks With Rising Expectations

There are a number of ways to find stocks that could deliver potential gains. Many of those strategies include benefiting from the analysis of others. Wall Street is an unusual place in many ways. It is fiercely competitive since the very best fund managers, analysts and deal makers can generate billions of dollars a year in personal compensation. But, it is at the same time a place where sharing your best ideas can also be well rewarded. This is true for analysts, in particular. Wall Street analysts are well paid by the standards of most investors. According to a recent survey, at l...
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The Best Way to Preserve Capital in a Bear Market

It’s a natural concern that every successful investor must live with. The concern is whether or not a bear market is near. Or, after a market selloff the investor must decide if a bear market is underway. Some financial advisers like to tell clients not to worry, markets always come back in the long run. But, the truth is that bear markets destroy capital and change lives, sometimes. They should be a concern for every investor, especially if an investor has plans to retire one day or use their savings to send their children to college. In other words, if they will need money at a cer...
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The Best Technical Trading Strategies

Technical analysis is the study of prices. Proponents of the discipline argue that history has a tendency to repeat and a study of market action in the past can be a useful tool for forecasting the likely direction of price trends in the future. This article will provide you information about Best technical trading strategies. Technicians use price charts and various indicators to develop their forecasts. Price charts are studied to determine if there are any significant visual cues that can be used to identify potential trends. This is a subjective form of analysis because each analyst...
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