Over the last few weeks we’ve discussed several technical patterns that can tell you when a stock may be beginning a new uptrend, so today I wanted to talk about a pattern that can help you spot the beginning of a new downtrend.
In most minds, this weekend marks the beginning of summer.
The temperatures are rising, flowers have bloomed, outdoor grilling increasingly seems like the only reasonable option for cooking your dinner, and many of us are itching to travel to somewhere where we can sit by a pool and sip on a cool beverage for a few days.
Admittedly, I’d rather grill a burger than hang out by the pool. However, thinking about my travel plans for this summer got me thinking about stocks related to one of the destinations I may very well travel to in the coming months. More →
There was a story this week that was largely overshadowed by all the noise in Washington.
An unprecedented cyber attack, the WannaCry ransomware attack, began infecting tens of thousands of computers all over the world on Friday, May 12.
By Monday morning, there were reports that the attack had hit targets like Britain’s National Health Service, the Russian Interior Ministry, FedEx, French carmaker Renault, and Spanish telecommunications firm Telefónica. More →
Coach (NYSE: COH) isn’t the brand I remember from a few years ago.
The Coach I remember sold boring handbags that felt overpriced even when they were on sale at my local department store or outlet mall. I rarely gave them a second look.
If I told my 22 year old self that I’d now even, gasp, buy and regularly carry a Coach handbag, I think she’d be shocked and confused. But as a self-professed “fashion girl,” the Coach I have been seeing for the last couple of years has had me excited. More →
A few weeks ago I wrote an article for our sister publication Direction Alerts about a technical pattern I had spotted on semiconductor company AMD.
What I had found at the time was a head and shoulders formation that I determined would see the stock price falling and giving investors an opportunity to buy this growth stock at a discount. More →
Sven wrote an interesting article a couple of weeks ago on Ferrari (NYSE: RACE), and how investing in it is dangerous as doing so is investing purely in sentiment. If you didn’t have a chance to read it at the time, you’ll find the article here.
I agree wholeheartedly with Sven on Ferrari. The brand is synonymous with exclusivity, and when a brand’s market is meant to remain small—Ferrari produces only about 8,000 vehicles per year—it’s hard to imagine how the company intends to grow sales, and if sales and revenue won’t grow significantly over time, I have to wonder what the real point is in investing in the company.
Not only that, but the instant sentiment for the company changes or the market begins to decline, Ferrari’s stock price will undoubtedly fall significantly and any gains made will be wiped out.
However, I also believe that there are ways to invest in luxury that do make sense. More →
Have you ever read about or seen a new technology in action and thought to yourself “I’ve arrived in the future”?
With the explosive rate at which technology has been moving in this century alone, I imagine the answer is a resounding “yes!”
A few years ago, much of the hype about the future today was focused on 3D printers. Personal 3D printers were suddenly on the market for $1,000, and then $500, and then $300, and buyers of these printers imagined themselves not only designing and developing products of their own, but also printing and replacing broken parts, all in the comfort of their own homes. More →
When a market is as overvalued as the S&P 500, it’s best to be defensive, rather than being 100% invested, trying to eek out every last drop of potential gain.
I don’t care if the market moves another 10% or even 15% higher based on momentum. When you compare the potential for another 5% to 15% upside against the risk of a 50% or greater crash, it seems like a foolish move to me.
At the top of a business cycle (we are there now), the most successful investors will typically hold much larger than normal cash balances and only commit new money to sectors which are truly undervalued – and trading at a point of maximum pessimism with a nice margin of safety. More →