After a couple of weeks of steady losses, the stock market is now in all-out frenzy mode. Massive drops or eye-popping gains are the norm these days, creating havoc for anyone trying to establish a foothold with long or short-oriented investments. In fact, short sellers are the most exposed in this current era of high volatility, even with their potential of reaping huge gains, as they have recently. Short sellers need to watch out for sudden rallies. If they are targeting a heavily-shorted stock, then a short squeeze could push up… Read More

After a couple of weeks of steady losses, the stock market is now in all-out frenzy mode. Massive drops or eye-popping gains are the norm these days, creating havoc for anyone trying to establish a foothold with long or short-oriented investments. In fact, short sellers are the most exposed in this current era of high volatility, even with their potential of reaping huge gains, as they have recently. Short sellers need to watch out for sudden rallies. If they are targeting a heavily-shorted stock, then a short squeeze could push up the stock up faster than the broader market, creating potentially huge losses for shorts — yet equally large gains for investors who went long. With this in mind, I’ve been looking at the just-released short-interest data, which tallies the short-interest levels in stocks as of July 28. The size of these short positions may have changed since then, but almost all of the most heavily-shorted stocks are likely to remain near or atop the leader board when we get the next round of data that tracks short levels through Aug. 15. Make no mistake,… Read More

As many companies prepared to disclose second-quarter earnings, they noted a fundamental disconnect between their outlooks, their balance sheets and their lagging share price. In search of a remedy, these companies announced major stock buyback programs. Little did they know the stock market plunge of the past two weeks… Read More

For equity investors with a long time horizon, this summer’s big pullbacks in stocks have created some very exciting investment opportunities. A savvy stock picker should know the best opportunities arise when things are scariest and everyone else is scurrying for the exits. Now is one of… Read More

A sharp plunge on Monday, Aug.8, a stunning rebound on Tuesday, another pullback on Wednesday. When will it all end? It’s increasingly clear that very low price-to-earnings (P/E) ratios aren’t grounds enough to bring out value investors. Read More

Even with the real-estate market mired in a slump, investors still clamored for shares of Zillow (NYSE: Z). On July 20, the real estate-focused website went public at an initial offering price of $20, opened in the low $30s and briefly spiked to $60 that same day, as more… Read More

Amid the drumbeat of weak U.S. economic data and continuing European debt worries, global stock markets sold off in the week of Aug.1. Then came the U.S. credit downgrade from Standard & Poor’s. The U.S. stock market dropped between 4-5% on… Read More

In stressful times like these, it’s important to distinguish between investors’ appetite for stocks in general and the actual outlook of each company. The market plunge is related to top-down concerns about the U.S. economy, but a bottom-up approach is still warranted. This is because — despite the weak… Read More

If investing were always a walk in the park, we would all be Warren Buffett. Truth is, there are always tough times. And after more than two years of one of the strongest bull markets we’ve ever seen, the market is… Read More

Here we go again. This week is starting off where last week ended — on a dismal note. Since hitting an intra-day peak of 1,346 back on July 22, the S&P 500 Index is on track (as of Aug. 8) to mark its 10th losing session in the last… Read More

We watched the market implode last week. Some were scared, some were exhilarated. Some could only watch. When the market closed flat Friday after a tough Thursday, in which more than a trillion dollars of investor wealth was wiped away, I think pretty much everyone was pretty… Read More