In early July, I mentioned a stock on my blog called Acacia Communications (Symbol: ACIA). I bought it for my clients and the stock has more than doubled since then. I received many emails asking me what I saw in the stock, so here is the anatomy of my trade: 1) (see chart) ACIA came [...]
Jesse Livermore was one of the greatest traders who ever lived. You can read more about him here. He has so many great quotes, but here are a few of my favorites: 1) The stock market is never obvious. It is designed to fool most of the people, most of the time. 2) Play the market [...]
Last Friday afternoon, Reuters ran a story about Jeffrey Gundlach, the chief executive of DoubleLine Capital. He is advising people to "sell everything" because "nothing here looks good." While I have tremendous respect for Mr. Gundlach, I completely disagree with this statement for the following reasons: 1) For a guy who is nicknamed the "Bond [...]
At the beginning of the month, I posted my 2016 Second Half Outlook. I know it is VERY early, but so far the blueprint is working out well: 1) The Brexit decline at the end of June may have been the last shakeout before the market finally breaks out of its two-years range. Many times before big [...]
I keep reading that we are in the 7th year of a Bull Market. I don't buy it! Why? Because we have been in a Bear Market for the past year. Although the S&P 500 didn't correct by the popular "Bear Market definition" of -20%, the majority of stocks got decimated beneath the surface. Energy [...]
In the past two years, the S&P 500 has essentially gone nowhere, frustrating the majority of investors. We have seen three "V bottoms" (shown in the chart below) where the market shoots down about -10% (resulting in losses), only to grind right back up as if nothing happened. Also, beneath the surface, many sectors corrected [...]
The market has bounced nicely the past two days after the Brexit selloff. Now, here's the biggest question on traders' minds: Is this just a normal oversold bounce before the market heads lower? Or was the Brexit selloff just an overreaction and a non-event before we go higher? Of course, no one knows the answer [...]
I always keep an open mind when it comes to the stock market. I look at the positive and negative signs and adjust my client's investment levels accordingly. I was fairly constructive on the market coming into last week, mainly because the price action was very strong. Unfortunately, the Brexit vote caught many people off [...]
Back in December 2012, there was non-stop talk about the Fiscal Cliff. Everyone was on edge and the market would experience sudden movements on any headline or politician commenting about the year-end vote. When the vote passed, the market gapped up +2.5% on January 2, 2013 and didn't look back. So many fund managers were [...]
I stick to my call that the Dow will reach 20,000 by year-end. Do I think it will be a straight line up? Of course not. Will we see shakeouts, pullbacks and quick corrections along the way? Absolutely. However, since I made the call (around Dow 17,500), the market has been very resilient, especially considering [...]