Readers of my blog know that I have liked Netflix $NFLX for a long time. I continue to feel it will move higher over the next 6-12 months for the following reasons: 1) Fundamentals - The company has posted triple-digit earnings growth for the past 6 quarters. Their revenues have accelerated to a 25% growth [...]
For the past 2-3 years, a similar pattern has repeated itself in the financial markets. The major indexes start to break down towards their 50-day moving averages, the overall market starts to weaken (usually sparked by a geopolitical event), and then sentiment turns EXTREMELY BEARISH in a short period of time. It happened again over [...]
It’s important to keep an open mind when evaluating the stock market. It doesn’t make sense to always be Bullish or Bearish because the market is not always in an uptrend or a downtrend. It's simply best to do your homework, look objectively at both the positive and negative signs, and invest accordingly. That being [...]
I was very pleased to see the stock market make new highs today, but I still can't believe the misery I keep hearing. Instead of finding people encouraged by this rally, this seems to be the most depressing celebration of new highs I have ever seen in my 18 years of trading. I have a [...]
Jesse Livermore was one of the greatest traders who ever lived. You can read more about him here. Here are his trading rules written in 1940. You will find that many of them still apply today, proving that very little changes in the market over time. 1. Nothing new ever occurs in the business of [...]
Carl Icahn is affecting the stock market in ways he might not realize. Let me explain. Icahn is an activist investor. The basic premise behind activist investing is that the shareholder takes an equity stake in a company and uses it to put pressure on its management. The objective is to get management to increase [...]
I continue to like $TSLA for the following reasons: 1) Fundamentals - The company has strong sales growth and its earnings are projected to grow +53% in 2014 and +166% in 2015. I wouldn't be surprised to see these estimates raised as they continue to expand internationally and add new models. 2) Technicals - The [...]
In early May, the monthly Jobs report came out strong. Paul Tudor Jones said you had all the data you wanted for fixed income to get killed. In other words, a strong jobs report means the economy is improving, thus higher rates down the road. Instead, the opposite happened! Bonds closed up that day and [...]
Last week, I had the pleasure of attending the 6th Annual SALT Conference. Thanks to the leadership and vision of Anthony Scaramucci, this event has evolved "from a financial conference to one of the world's leading thought leadership forums." There were many phenomenal speakers who presented during the week, but as a trader, I was most [...]
I got a text today from a trader friend who is short the market saying: "This market is NEVER going down!" About 10 minutes later, I got a text from a different friend who is long the market saying: "I HATE this market!" It got me thinking about a few things. Many traders and professional [...]