The third-quarter earnings season kicked off Tuesday, with Alcoa (NYSE: AA) announcing before the bell. According to FactSet, Q3 earnings for companies in the S&P 500 are expected to drop 2.1%, which would mark the sixth consecutive quarter of year-over-year declines. #-ad_banner-#This would be an improvement from the 3.5% drop in earnings in the second quarter, though. And while I have voiced my concerns about what the current earnings recession means for the broader market going forward, there’s no denying that the upcoming earnings season will present plenty of opportunity for traders to make quick, outsized profits. FactSet notes that… Read More

The third-quarter earnings season kicked off Tuesday, with Alcoa (NYSE: AA) announcing before the bell. According to FactSet, Q3 earnings for companies in the S&P 500 are expected to drop 2.1%, which would mark the sixth consecutive quarter of year-over-year declines. #-ad_banner-#This would be an improvement from the 3.5% drop in earnings in the second quarter, though. And while I have voiced my concerns about what the current earnings recession means for the broader market going forward, there’s no denying that the upcoming earnings season will present plenty of opportunity for traders to make quick, outsized profits. FactSet notes that 72% of S&P 500 companies beat Q2 earnings estimates, while 19% missed expectations. This means only 9% of companies reported results that were in line with analysts’ estimates. Given the high number of surprises, both bullish and bearish, it’s no wonder we see increased volatility (i.e., big stock moves) during earning season. Yet, despite the opportunity for quick gains from post-earnings moves, many investors shy away from trading around earnings reports. Their reason is simple: It’s risky. Sure, you may see gains of 5% or even 10% in a single day if you call it right. But if you’re wrong,… Read More

If there’s one lesson that stands out among all those I’ve learned in my 20 years of trading, it’s that even the best research, resources and skills can’t guarantee success. When I was coming up as a pit trader, I was fortunate enough to work alongside and learn from some of the best traders that have every played the market. Many generously revealed their favorite metrics and secret tips to finding market trends and picking the best stocks.  #-ad_banner-#But the thing we never talked about was how often or how badly they lost on trades. Unbeknownst to me, this was… Read More

If there’s one lesson that stands out among all those I’ve learned in my 20 years of trading, it’s that even the best research, resources and skills can’t guarantee success. When I was coming up as a pit trader, I was fortunate enough to work alongside and learn from some of the best traders that have every played the market. Many generously revealed their favorite metrics and secret tips to finding market trends and picking the best stocks.  #-ad_banner-#But the thing we never talked about was how often or how badly they lost on trades. Unbeknownst to me, this was a critical part of the equation, and one that most market gurus never address. I remember feeling inadequate because, as hard as I tried, I still couldn’t pick winners 100% of the time. It wasn’t until I became an options market maker that I learned how to add real odds to my trading. As a market marker, I was required to trade hundreds of contracts on a daily basis. For every trade I took, I was trying desperately to time the market so I could gain a sliver of an advantage. One of my competitors, a trader named Brett, noticed… Read More

If you’ve traded for some time, you know just how powerful and accurate chart patterns can be.  Technical patters are similar to the scarecrow in the “Wizard of Oz.” They may not “know” where the stock is supposed to be going, but they lead the way successfully because so many people trust in them, just as Dorothy trusted in the brainless-but-loveable character. Like the scarecrow, chart patterns are constructs of human actions. And while the scarecrow couldn’t make up his mind when it came to which path to take, certain chart patterns are very conclusive. They act almost like a… Read More

If you’ve traded for some time, you know just how powerful and accurate chart patterns can be.  Technical patters are similar to the scarecrow in the “Wizard of Oz.” They may not “know” where the stock is supposed to be going, but they lead the way successfully because so many people trust in them, just as Dorothy trusted in the brainless-but-loveable character. Like the scarecrow, chart patterns are constructs of human actions. And while the scarecrow couldn’t make up his mind when it came to which path to take, certain chart patterns are very conclusive. They act almost like a GPS leading you to a stock’s next move.  #-ad_banner-#Golden crosses and death crosses, in particular, are two very influential trend-changing technical formations. Both can cause big, intermediate-term moves in a stock. For those who may not be aware, golden crosses are a bullish formation in which the 50-day moving average crosses above the 200-day, with the stock above both. The death cross is when the 50-day drops below the 200-day, with the stock below both.  These are generally powerful signals. For instance, a recent golden cross in Apple (Nasdaq: AAPL) led to a rally in the stock (my Profit Amplifier subscribers were… Read More

I consider myself an early adopter of technology, and when it comes to Apple (Nasdaq: AAPL), I’d say I’m borderline obsessive. In fact, my obsession goes back to the early 1980s, when I first laid my hands on my Apple II home computer.  But it isn’t just about having the latest and greatest. Owning and testing Apple’s newest products helps me to keep tabs on the world’s largest company. This obsession with Apple and its stock is shared by millions of consumers and investors. At the start of 2016, there were more than 1 billion Apple devices in active use… Read More

I consider myself an early adopter of technology, and when it comes to Apple (Nasdaq: AAPL), I’d say I’m borderline obsessive. In fact, my obsession goes back to the early 1980s, when I first laid my hands on my Apple II home computer.  But it isn’t just about having the latest and greatest. Owning and testing Apple’s newest products helps me to keep tabs on the world’s largest company. This obsession with Apple and its stock is shared by millions of consumers and investors. At the start of 2016, there were more than 1 billion Apple devices in active use around the world, and AAPL is one of the most heavily traded stocks in the world. #-ad_banner-#Apple’s cult-like popularity, unique products and sheer size make it a target for pundits, fanatics and haters alike. For the past year or so, it’s been the haters who’ve controlled the stock. The bears’ major argument is that Apple will struggle to grow in the future because it is a one-trick pony that lacks innovation now that Steve Jobs is gone. And it’s true that two-thirds of Apple’s revenue came solely from the iPhone in 2015, while new products have been slow to develop. … Read More

I recently found myself sitting in the warm Texas sun with a few beers, some of the best barbecue in Dallas and friends visiting from all over — Australia, Zimbabwe, South Africa and a few from the States. Two topics kept coming up in our conversation: travel and the global economy. All of these friends travel the world regularly, and nearly all happen to be in finance or the travel industry, so they’ve got a bird’s-eye view of the international tourism climate. #-ad_banner-# They’re also all Millennials. We all agreed that while much of the world’s economies are… Read More

I recently found myself sitting in the warm Texas sun with a few beers, some of the best barbecue in Dallas and friends visiting from all over — Australia, Zimbabwe, South Africa and a few from the States. Two topics kept coming up in our conversation: travel and the global economy. All of these friends travel the world regularly, and nearly all happen to be in finance or the travel industry, so they’ve got a bird’s-eye view of the international tourism climate. #-ad_banner-# They’re also all Millennials. We all agreed that while much of the world’s economies are just skirting along, with central banks leading the tortoise-style growth race, people still have the means (and desire) to travel. And now, more than ever, access to travel is easier and cheaper.  Socially, the under 35 crowd is less eager to work or settle down and more compelled to explore.  To verify our thesis, we started scrolling through our Facebook, Instagram and Twitter feeds. It looked like we were on the right track. The vast majority of posts had to do with travel. Most of our peers seemed to be more concerned with showing off their selfies taken in foreign… Read More

Most investors have been trained to think that earning 6% or 8% a year on their trades is admirable. And the old saying is true: No one ever went broke taking a profit. But that doesn’t mean they got rich that way. You can bet Wall Street traders don’t settle for such meager returns, and your average trader doesn’t have to either. The same methods used by Wall Street’s elite are available to average traders. It’s just that they often don’t know about them or are too scared to try them. #-ad_banner-# For instance, there is a way to potentially… Read More

Most investors have been trained to think that earning 6% or 8% a year on their trades is admirable. And the old saying is true: No one ever went broke taking a profit. But that doesn’t mean they got rich that way. You can bet Wall Street traders don’t settle for such meager returns, and your average trader doesn’t have to either. The same methods used by Wall Street’s elite are available to average traders. It’s just that they often don’t know about them or are too scared to try them. #-ad_banner-# For instance, there is a way to potentially amplify those 6% to 8% gains into 30%, 50%, even 65% windfalls or more in a matter of months, weeks or even days. And I’m not talking about buying micro-cap stocks that no one has ever heard of. You can make these returns from some of America’s biggest and most well-known companies.  Wall Street’s ‘Backdoor’ Trading Method Some of the most famous and richest investors in history (including Warren Buffett) use a backdoor trading method to amass much of their wealth. I say “backdoor” because, while it’s certainly not a secret, you won’t hear it talked about by 99% of… Read More

I think it’s safe to say market sentiment is not particularly positive these days. Billionaire investor Ken Fisher says this is the “most joyless” bull market ever seen, while my research has been warning for some time that we are headed for a market correction… or worse. When investors are worried about a sell-off, and even when stocks begin to correct, they flock to defensive sectors such as consumer staples and utilities. The companies in these sectors provide the goods and services people need whether we are in an economic boom or a recession. — Sponsored Link —… Read More

I think it’s safe to say market sentiment is not particularly positive these days. Billionaire investor Ken Fisher says this is the “most joyless” bull market ever seen, while my research has been warning for some time that we are headed for a market correction… or worse. When investors are worried about a sell-off, and even when stocks begin to correct, they flock to defensive sectors such as consumer staples and utilities. The companies in these sectors provide the goods and services people need whether we are in an economic boom or a recession. — Sponsored Link — This Shocking ‘September Surprise’ Could End Hillary’s Chances There’s evidence from an ex-advisor to the CIA that an event in September could derail any chance Hillary ever had of beating Donald Trump. It’s not another ISIS attack. It’s not another scandal. This is a planned financial announcement that could turn millions of Americans against the Obama legacy… and against Hillary, the one candidate who clings to it. Click here to get a sneak peek. Most defensive names also distribute dividends, allowing investors to park money in shares and collect a check even though… Read More

Just before I started trading on the floor of the Philadelphia Stock Exchange, I spent some time at an old Philadelphia boutique investment firm. The firm was small, but handled some of Philly’s wealthiest and most respected clients.  The experts at the firm were some of the best in America, and I learned a great deal from all of them. But it was our in-house technical expert, Andy, who I really bonded with.  Andy taught me the importance of charts and demonstrated just how powerful technical analysis could be. As an “options guy” who loved numbers and fundamentals, this was… Read More

Just before I started trading on the floor of the Philadelphia Stock Exchange, I spent some time at an old Philadelphia boutique investment firm. The firm was small, but handled some of Philly’s wealthiest and most respected clients.  The experts at the firm were some of the best in America, and I learned a great deal from all of them. But it was our in-house technical expert, Andy, who I really bonded with.  Andy taught me the importance of charts and demonstrated just how powerful technical analysis could be. As an “options guy” who loved numbers and fundamentals, this was a bit of a stretch for me at first. I couldn’t believe that some lines on a screen could dictate how a stock behaves. Boy, was I wrong. — Recommended Link — 24-Hour Labor Day Sale: Grab These 7 ‘Forever Stocks,’ Enjoy The Market’s Biggest Profit Machines, And Save 70%… Warren Buffet once said, “If you wouldn’t hold a stock for 10 years, you shouldn’t hold it for 10 minutes.”  But is the old buy & hold strategy still true in today’s turbulent markets?  It is if you know exactly which stocks to get.  Here are 7 that would fit… Read More

There’s been a trend emerging in the U.S. dollar (USD) for the past few weeks that makes little sense. At a time when the dollar should be gaining momentum, its value has been drained quicker than a keg of cheap beer at a frat party. According to several sources, the recent drop can be at least partially attributed to technical and algorithmic trading.  When you strip out the commotion and look only at the real data, though, it seems there could be a fair amount of upside in the USD over the next few months. But before I tell you… Read More

There’s been a trend emerging in the U.S. dollar (USD) for the past few weeks that makes little sense. At a time when the dollar should be gaining momentum, its value has been drained quicker than a keg of cheap beer at a frat party. According to several sources, the recent drop can be at least partially attributed to technical and algorithmic trading.  When you strip out the commotion and look only at the real data, though, it seems there could be a fair amount of upside in the USD over the next few months. But before I tell you about how to profit from this situation, let’s break down the basics of my thesis… — Recommended Link — It Won’t Matter Who Wins In November… The right thinks Democrats will sink this country’s economy. The left thinks Republicans will bring economic destruction. Truth is: They’re both right. It doesn’t matter who takes office in January, because history says the market could drop up to 58%. But these three investments are a shoo-in for double and triple-digit returns no matter what happens. The U.S. dollar can have dramatic effects on basically everything in our economy, including the value of other… Read More

Oil prices are dragging down the market this morning as we got news that China is ramping up exports of refined products and the U.S. rig count increased again. But lately, I’ve been hearing a saying again and again in regard to oil prices: “Low prices are a cure for low prices.” Pithy “truths” like this make for a good quip, but they tend to overlook a number of important factors, like the forces responsible for the price slump and whether those forces are actually changing direction. For example, even though oil prices have been low for nearly two years… Read More

Oil prices are dragging down the market this morning as we got news that China is ramping up exports of refined products and the U.S. rig count increased again. But lately, I’ve been hearing a saying again and again in regard to oil prices: “Low prices are a cure for low prices.” Pithy “truths” like this make for a good quip, but they tend to overlook a number of important factors, like the forces responsible for the price slump and whether those forces are actually changing direction. For example, even though oil prices have been low for nearly two years now, we still haven’t seen a transition to a recovery for energy companies. If low prices aren’t triggering increased consumption, then the problem doesn’t lie with prices, but with the economy itself. —Sponsored Link— Protect Yourself From ‘Market Shaking’ Events Get your free email alerts containing breaking market headlines, political and world news, sudden movements of stocks, bonds, metals, commodities and more that can have a positive or negative impact on your portfolio. Politics and My Portfolio’s mission is to provide investors with timely and reliable information to protect themselves. Subscribe… Read More