Go Long in Energy with RRC
Located a mere 2 hrs and 57 minutes north of All Star Investor, Range Resources Corporation (RRC) is poised for another big move. RRC has several things going for it. 1. BMO Capital Markets recently upgraded RRC from ‘Market Perform’ to ‘Outperform’ on 1/24. Since then, the stock...
So Many Analogies
Every time the U.S. employment rate has risen by at least 0.3% in a month, as it did in December, a recession has occurred. Prior to the onset of a recession, there’s typically at least a 25% one-year rise in weekly unemployment claims. The increase in claims in December was less than 7%. The average...
More Rate Cuts Ahead
We entered another FOMC watch week with a nice rally today. The S&P 500 closed up 1.75% today, with strong readings across all style categories. The Nasdaq 100 lagged, gaining only +0.89%. The market is anticipating a 50 basis point cut in the Federal Funds rate on Wednesday, as evidenced by the...
More Alphabet Soup
If ever there was need for an financial journalist to sort things out, it’s now. Market enthusiasts have received quite an education in the alphabet soup of the finanical markets of late – CDOs, SIVs, & CMOs have given the CFAs and the MBAs of the world something to worry about. And now...
Not Much Follow-Through
What a strange week this has been. Tuesday’s sharp sell-off continued on Wednesday but a late-day rally brought a dramatic reversal. The Dow swung from a 326 point loss to a 298 point gain, making the daily range a remarkable 625 points on very heavy volume. Bullish analysts were quick to pronounce...
Follow the Leader
For all the talk in recent years about global capital markets, the U.S. was still the biggest fish in the pond. On any given day the rest of the world’s exchanges could be counted on to at least move in the same direction as the NYSE. New York was the leader, and everyone else followed. So it may...
VIX Reaching Panic Levels
As noted last week, we’ve been watching for signs of capitulation; margin calls, bear market headlines, special one hour television programs dedicated to bear markets, magazine headlines, the whole shebang, and we are getting it and then some. If you are a long term investor, seeking to grow your...
Guns Could be Blazin’
We finally had some capitulation yesterday. The market rolled over, all ten S&P sectors were down greater than 1%. The VIX, our trusty measure of volatility, approached the 30% level. This is what we have been waiting for. If you get a big down open today, and then a monster rally, you need to buy...
The Devil’s Arcade
That’s how one trader described the stock market today. It was ugly any way you look at it. By the close, the Dow had shed 306 points and the S&P 500 was off -2.9%, closing well below its 2007 bottom. The day did not start off so badly – in fact the benchmarks were up slightly in the...
If You Sell Stocks, What Do You Do With The Money?
Ok, so the big question is: if you sell your equities, where do you go with the money? Think again in the big picture: stocks, bonds, or cash?? I think sooner or later, folks will realize the stock market offers the best long term value for your money. If your goal is to beat taxes and inflation, by...
