If you’re not familiar, OPEC is group of 13 oil-producing countries that collude (in the most legal of ways) to help control oil prices (i.e. keep prices at levels where they can make the most money by selling the most product the market will bear). Love them or hate them, they do control more than 80% of the world’s oil reserves. But their influence is becoming less powerful, as they only account for less than half of global oil production. #-ad_banner-#There’s been a lot of whoop-dee-doo about OPEC’s recent decision to cut oil output, and even non-OPEC members are supposedly… Read More

If you’re not familiar, OPEC is group of 13 oil-producing countries that collude (in the most legal of ways) to help control oil prices (i.e. keep prices at levels where they can make the most money by selling the most product the market will bear). Love them or hate them, they do control more than 80% of the world’s oil reserves. But their influence is becoming less powerful, as they only account for less than half of global oil production. #-ad_banner-#There’s been a lot of whoop-dee-doo about OPEC’s recent decision to cut oil output, and even non-OPEC members are supposedly getting in on the action to scare oil prices higher. Fortunately for us, these scare tactics are mostly baseless. The deceptive headlines seem ominous, but the data reveal the truth. These “massive cuts” really only bring production down slightly from record levels and are only temporary. Even excluding U.S. production, oil is still being pumped at near record amounts. OPEC’s “cuts” still leave production higher than it has been in all of history. OPEC sneakily boosted production leading up to the cut to make it look like they were really doing something drastic — but it was all a shell… Read More

If you’re like the typical American, you’ve probably got a closet full of stuff you simply don’t wear anymore. And if you’re female, statistics show you may have a few more “unwearables” than men. According to ClosetMaid, the average woman has more than 100 items in her closet, yet finds 21% of those items unwearable. That means clothing and footwear designers have to work extra hard at keeping our attention, especially if their lines cater to women, as today’s target does. If you’re a company that produces “unwearables,” chances are your customers aren’t coming back to… Read More

If you’re like the typical American, you’ve probably got a closet full of stuff you simply don’t wear anymore. And if you’re female, statistics show you may have a few more “unwearables” than men. According to ClosetMaid, the average woman has more than 100 items in her closet, yet finds 21% of those items unwearable. That means clothing and footwear designers have to work extra hard at keeping our attention, especially if their lines cater to women, as today’s target does. If you’re a company that produces “unwearables,” chances are your customers aren’t coming back to add more. But before we go pointing fingers at either sex or even at the fast-changing, mega-consumer society we live in, let’s remember one key element that’s always influenced our lives and the clothes we wear: style. From the flapper dresses of the early 20th century to the bell-bottoms of the ’70s, clothing styles can change dramatically from year to year. And some, (thankfully) never come back. Clothing styles can shift dramatically from year to year, and these shifts can bankrupt a clothing company. Changes in style helped steal the mojo from hip companies like Urban Outfitters (Nasdaq: URBN) and… Read More

Rockwell-Collins (NYSE: COL) might not be as popular as Boeing (NYSE: BA) or Lockheed Martin (NYSE: LMT), but the company’s roots can be traced back to WWII and the venerable P-51 Mustang. In the ’60s, it produced the Apollo spacecraft that put Neil Armstrong on the moon. By the late ’70s, it was commissioned to spearhead NASA’s Space Shuttle program, starting with “Challenger,” and eventually building four other orbiters that made hundreds of trips into outer space. #-ad_banner-#The GPS systems used by so many of our electronic, automotive and aviation products might not even exist without Rockwell-Collins. Its “Navstar” GPS… Read More

Rockwell-Collins (NYSE: COL) might not be as popular as Boeing (NYSE: BA) or Lockheed Martin (NYSE: LMT), but the company’s roots can be traced back to WWII and the venerable P-51 Mustang. In the ’60s, it produced the Apollo spacecraft that put Neil Armstrong on the moon. By the late ’70s, it was commissioned to spearhead NASA’s Space Shuttle program, starting with “Challenger,” and eventually building four other orbiters that made hundreds of trips into outer space. #-ad_banner-#The GPS systems used by so many of our electronic, automotive and aviation products might not even exist without Rockwell-Collins. Its “Navstar” GPS satellites were among the first commissioned by the Pentagon. By many measures, it has produced some of the most impressive and influential aerospace and communications technology of the 20th century. And even after several mergers and acquisitions, and an eventual spinoff in 2001, Rockwell-Collins is still an aviation, defense and technological force to be reckoned with. But this is more than just a company with an impressive lineage. It is the “best-in-breed” for its sector, heavily integrated into aerospace, defense, infrastructure and even rail. Growth in these sectors equals earnings growth for COL. Given President Trump’s effect on consumer and… Read More

Dramatic headlines, mostly related to our new president, have driven the market’s erratic undulations since Election Day. From my perspective, many investors are reading the headlines and reacting immediately to hyperbole without understanding the details. Making matters worse is social media’s amplification of this hyperbole into viral movements that further distort the truth. As frustrating as it seems, these factors create opportunity when opinion strays too far from fact. One area where I see massive distortion is in the headlines surrounding Trump’s proposed border wall, the methods in which he intends on paying for it and how it all will… Read More

Dramatic headlines, mostly related to our new president, have driven the market’s erratic undulations since Election Day. From my perspective, many investors are reading the headlines and reacting immediately to hyperbole without understanding the details. Making matters worse is social media’s amplification of this hyperbole into viral movements that further distort the truth. As frustrating as it seems, these factors create opportunity when opinion strays too far from fact. One area where I see massive distortion is in the headlines surrounding Trump’s proposed border wall, the methods in which he intends on paying for it and how it all will affect American companies and consumers. The topic has sparked tremendous opportunity as sheep-like investors flock to companies they think are the obvious beneficiaries and flee the apparent donors of potential legislation. The problem is that they’ve got the story all wrong… And my subscribers and I at Profit Amplifier have a plan to profit from this confusion. —Sponsored Link— Motley Fool Issues Rare Triple-Buy Alert His triple recommendations are averaging an astounding 1,024% gain each. Learn more now. Border Tax Rumblings If you haven’t been keeping… Read More

In the fall of 2016, I warned readers of my premium advisory, Profit Amplifier, of continued weakness in China and the subsequent fallout in its fragile stock market. The Chinese market is ruled by twitchy individual investors. By late December, the iShares China Large-Cap ETF (NYSE: FXI) had fallen 12% to a key retracement level around $34. But the New Year has brought buyers back into the Asian markets and back to FXI. Shares have rallied nearly 8% from their recent lows, likely due to a massive short squeeze (which I will detail later). Yet despite… Read More

In the fall of 2016, I warned readers of my premium advisory, Profit Amplifier, of continued weakness in China and the subsequent fallout in its fragile stock market. The Chinese market is ruled by twitchy individual investors. By late December, the iShares China Large-Cap ETF (NYSE: FXI) had fallen 12% to a key retracement level around $34. But the New Year has brought buyers back into the Asian markets and back to FXI. Shares have rallied nearly 8% from their recent lows, likely due to a massive short squeeze (which I will detail later). Yet despite the apparent bullishness, there have been no fundamental improvements. In fact, I’m seeing quite the opposite. China is a conundrum because deception reigns supreme. This is a country where a major construction company that defaulted on its bonds has delayed releasing its earnings for more than two years. It would be like Enron “hiding” its balance sheet manipulation for 26 months while it continued to scam the public. —Recommended Link— Big Kahuna Profits In Energy Storage Tesla CEO Elon Musk is building a large battery farm in Hawaii to store energy from island sunshine. It’s just his latest move… Read More

While 2016 may have been the year for the FANG stocks, (Facebook, Amazon, Netflix and Google), a new year and new president mean there’s now a new group to focus on. According to researcher Tom Lee over at Fundstrat Global Advisors, 2017 is going to be the year of CRAP stocks. Although the term conjures a gross image, Lee and his team may actually be on to something in their latest research. Unlike the specific stocks called out in FANG, CRAP stocks are sector-oriented. The term stands for computers, resources, American banks and phone carriers. While I agree with his… Read More

While 2016 may have been the year for the FANG stocks, (Facebook, Amazon, Netflix and Google), a new year and new president mean there’s now a new group to focus on. According to researcher Tom Lee over at Fundstrat Global Advisors, 2017 is going to be the year of CRAP stocks. Although the term conjures a gross image, Lee and his team may actually be on to something in their latest research. Unlike the specific stocks called out in FANG, CRAP stocks are sector-oriented. The term stands for computers, resources, American banks and phone carriers. While I agree with his bullish logic on these sectors, it’s the American banking system that interests me most, and that’s where I’ve selected as the next target for my Profit Amplifier readers and I to trade. Unlike the other sectors, banking stocks can win in several different scenarios, where the others will most likely need a consumer or economic boom to succeed. If all the Trump rally hype turns out to be true, then banks are sure to benefit as consumers spend and borrow more. But even without a full-blown, Trump-fueled economic turnaround, there are still two very strong catalysts… Read More

A rising interest rate environment also supports a bearish case for some stocks, and I’ve found a trade to capitalize on this scenario.  Janet Yellen and the FOMC increased interest rates another quarter point last Wednesday, and Yellen made it very clear that she intends on being more aggressive with hikes than previously expected. Some are calling this new, market restrictive policy the “Yellen Collar.” Her promise for higher rates will slow down the flow of money in the economy, and will also trigger investors to move out of certain income-oriented sectors and into other assets.  This is where my… Read More

A rising interest rate environment also supports a bearish case for some stocks, and I’ve found a trade to capitalize on this scenario.  Janet Yellen and the FOMC increased interest rates another quarter point last Wednesday, and Yellen made it very clear that she intends on being more aggressive with hikes than previously expected. Some are calling this new, market restrictive policy the “Yellen Collar.” Her promise for higher rates will slow down the flow of money in the economy, and will also trigger investors to move out of certain income-oriented sectors and into other assets.  This is where my Profit Amplifier readers and I will position our next trade. —Recommended Link— How This Small Group Will Make MILLIONS On The Greatest Tech Innovation Of 2017 In the last few years they’ve seen gains of 296%… 545%… even as much as 696%! But a single new technology is poised to make 2017 their biggest year yet… Full story… How Rising Rate Environments Hurt Real Estate  One of the most rate sensitive investments is real estate. When interest rates rise, the higher loan costs squeeze profit margins and diminish investors’ returns. The affordability of real… Read More

In June 2014, I made a very successful bearish bet that Olive Garden’s parent company (a restaurant conglomerate) would falter under the weight of its aging brands and mounting competition.  While the initial trade worked well, things are much different 27 months later.  My idea for returning to this trade (albeit on the other side) came to me when a commercial pilot friend of mine (and fantastic chef) asked me to join him at Olive Garden a few weeks back.  I thought, “OK, this guy flies a Boeing 777, dines around the world weekly and wants to eat at Olive… Read More

In June 2014, I made a very successful bearish bet that Olive Garden’s parent company (a restaurant conglomerate) would falter under the weight of its aging brands and mounting competition.  While the initial trade worked well, things are much different 27 months later.  My idea for returning to this trade (albeit on the other side) came to me when a commercial pilot friend of mine (and fantastic chef) asked me to join him at Olive Garden a few weeks back.  I thought, “OK, this guy flies a Boeing 777, dines around the world weekly and wants to eat at Olive Garden?” I’m no restaurant snob, but the last time I frequented Olive Garden was the early ’90s when I was in school and could only afford the never-ending pasta bowl. But I humored him. —Sponsored Link— 32 Central Banks Scrambling To Prepare For December Announcement A new global law in effect this December could deliver an unexpected shock to the markets. No less than 32 major central banks are scrambling to prepare for the inevitable fallout. They’re shifting their money into one single asset that could explode in value, even as everything else plummets. $3… Read More

 Knowing that you timed a trade perfectly is one of the best feelings an investor can experience. Even if you’ve had scores of winning trades over the course of your trading career, the rush of making a great call never goes away. Today, I want to talk about a recent victory of mine — not to brag, but because there is something more I want to share with you. If you’re ready to take your trading to the next level, this could be a game changer. #-ad_banner-#Earlier this month, I warned traders to stay away from former market darling Chipotle Mexican Grill… Read More

 Knowing that you timed a trade perfectly is one of the best feelings an investor can experience. Even if you’ve had scores of winning trades over the course of your trading career, the rush of making a great call never goes away. Today, I want to talk about a recent victory of mine — not to brag, but because there is something more I want to share with you. If you’re ready to take your trading to the next level, this could be a game changer. #-ad_banner-#Earlier this month, I warned traders to stay away from former market darling Chipotle Mexican Grill (NYSE: CMG). The company has been desperately spending to restore its reputation and sales after outbreaks of E. coli and other food-borne illnesses at several locations sickened hundreds of people across the country. But a look at the company’s fundamentals (and its empty restaurants) made it clear that a turnaround had so far eluded the company. Despite this, shares were trading at an astronomical 115 times estimated earnings, the highest in the stock’s history. And with the company scheduled to report Q3 earnings on Oct. 25, my models were showing a high likelihood of an earnings miss. Sure enough, when… Read More

When I first noticed a bearish triangle formation on the chart of the S&P 500, I had a strong sense that a sell-off was coming. This is one of the more powerful bearish signals, and sure enough, the dramatic drop on October 11 and lack of an immediate bounce demonstrated underlying weakness. With market fundamentals still shaky, this could very well be the start of a larger correction. An Earnings Downturn To Rival The Great Recession Even though earnings growth is expected to turn positive in the fourth quarter, it’s much too soon to break out the champagne. Analysts expect Q3… Read More

When I first noticed a bearish triangle formation on the chart of the S&P 500, I had a strong sense that a sell-off was coming. This is one of the more powerful bearish signals, and sure enough, the dramatic drop on October 11 and lack of an immediate bounce demonstrated underlying weakness. With market fundamentals still shaky, this could very well be the start of a larger correction. An Earnings Downturn To Rival The Great Recession Even though earnings growth is expected to turn positive in the fourth quarter, it’s much too soon to break out the champagne. Analysts expect Q3 to be the sixth straight quarter of declining earnings growth, tying the Great Recession for the longest earnings recession on record, according to data compiled by Bloomberg. #-ad_banner-# Goldman Sachs (NYSE: GS) Chief U.S. Equity Strategist David Kostin wrote in a note to clients that they should expect a below-average number of companies to report positive earnings surprises.  What’s more, he said: “We see a weak third-quarter reporting season coupled with negative fourth-quarter EPS revisions pushing stocks 2 percent lower to our year-end target of 2,100.”  Earnings growth has been negative… Read More