Browsing: The Rude Awakening
These suckers have dragged down the entire market for months. It’s been a tale of two Dows. The Dow Jones Transportation Average has dropped more than 8% on the year. But the Dow Jones Industrial Average has just about broken even over the same period. That shows you just how bad the trannies have been.
First, we’re dealing with the tightest real estate market in a very long time. Homebuilders haven’t been building for the past decade. And the rental market? Crazy. Rents are sky-high and the rental market these days is tight as a snare drum. I reminded you back in June that the average rates for rental houses have risen by more than 13%.
To a trader, a hammer is an important candlestick formation. Here’s your down and dirty description: A hammer occurs when a stock takes a huge dive at the open, then recovers and plows higher towards the close. What results is a hammer-like shape with a long lower “wick” on the candle. And guess what? That’s bullish.
The Chinese stock market tanked again yesterday, down 8% on the day. And the damage spread to U.S. stocks, as well – 75% of them were down Monday. But as Greg Guenthner explains, you can avoid the carnage. He shows you exactly how.
Greg Guenthner explains why most investors fail to beat the market over time, and how you can...
At the beginning of this month, I tuned you onto this group of stocks with a silly little name: consumer cyclicals. At the time, this sector was up nearly 7% on the year (it’s now up 10%). And it's made up of companies you spend your disposable income on – Comcast, Home Depot and Nike are all major components.
Apple puked up some weak earnings Tuesday night—and that kicked the stock into free-fall on Wednesday. In fact, Apple, Microsoft, and Yahoo! all took hits on less-than-stellar earnings reports. Not a good sign.
And so the loser list grows thanks to earnings season. Earnings can kill trends. It's as simple as that. One minute you're riding high. The next, a crappy number or two sends your stock plummeting.
Since 1998, the S&P 500 has never been up on a day when only 137 of its 500 components were in the green like we saw on Friday. Not one. This crazy divergence doesn’t mean you should cut and run, but it does illustrate one thing: when dealing with a bull that’s getting a little long in the tooth, being selective is vital.
As I've been saying, the market's longer-term trends remain intact. Stocks are a whisker off their highs. And that's the only piece of information you should concern yourself with right now. Everything else is just noise. Focus on that noise and you'll lose the perspective you need to make informed trading decisions.