Stock Market Analysis

A month ago, I expressed my concerns with the S&P chart and thought stocks were set for additional weakness. My investment advice was to be careful and not to chase stocks. Even after the one-day surge last Tuesday, I thought it was largely due to an extreme oversold…

It’s always wonderful when the stock market is going up. The vast majority of equity investors are making money. But I always look at the stock market in terms of risk, not potential return. When you have a market that’s been going virtually straight up for the last…

— by Mitchell Clark, B. Comm. More reality is creeping back into the stock market and the bear market rally looks vulnerable. With so much money sitting on the sidelines, a lot of institutional investors took the opportunity early this earnings season to nibble away at some long-term…

With the current bias to the downside, you need to have some risk management in place to avoid watching your trading capital disappear. This could be via mental or physical stop-loss orders. Or, if you want to avoid selling into a negative market, you could write call options…

Price stability has always been an important goal of Western central banks around the world. Only until very recently have most central banks been quite hawkish on inflation and rightly so. Now, however, the threat of inflation remains, but there is the added risk of asset deflation, which…

Black Monday appeared again, as the DOW fell as much as 800 points but recovered, and closed down 370 points or 3.58% on the day, breaking below key psychological support at 10,000. Across the board, selling was panicked, as investors flocked to the exits, dumping stocks. The focus…

If there is one thing I have learned from years of investing and obsessing with stocks, it is that no investment goes up or down in a straight line. After days of going down, the stock market is entering a severely oversold condition, from which we can expect…

Markets continue to maintain a negative bias, as stocks trade at multi-year lows, with 2008 potentially the worst showing since the bear market in 2000. We are awaiting a second vote on a revised $700-billion bailout program that will give the markets some confidence. However, we feel it…

The people that I speak with who are really worried about the current state of things are those who are retired or are just about to retire. Even if you look at the most conservative of stocks that yield dividends, the vast majority of blue-chip stocks have been…

A key variable in the success of the economy will be the labor market going forward. As business slows, companies will cut production and send workers home. This will translate into lost wages and a decline in consumer spending that will ultimately impact the economy negatively. In the…

How odd is it that the day the $700-billion Wall Street bailout package was voted down, only one stock trading on the entire NASDAQ hit a new high? With the financials getting hit the hardest, it was ironic that small regional bank Penns Woods Bancorp, Inc. (NASDAQ/PWOD) hit…

Given the recent turmoil in stocks, investors have been facing a climate of volatile trading, as key market indices retested recent lows on Tuesday. So, it is time again to review ways of minimizing major downside risk. By using options, you can create a protective hedge against potential…

A company I really like just reported solid financial results thatbeat Wall Street expectations. The company I'm talking about is PetMed Express, Inc. (NASDAQ/PETS). This innovator, founded in 1996, is one of America's largest direct-to-consumer pet pharmacies. Forget the overpriced pet medications at veterinary hospitals, this company delivers…

After declining below some key multi-year lows, markets saw some renewed buying that was driven by a combination of oversold buying and good earnings reports. The question is: does the current mini rally have any legs to sustain any of the gains? I continue to see a volatile…

With the price of oil and natural gas so high these days, more and more homeowners are looking for alternative ways to heat and cool their homes. Residents in the Northeast have particularly felt the pain of high oil prices, because a lot of homes still heat with…

Here is a bizarre story out of Flint, Michigan. Apparently, city officials reported that about 400 cast iron covers and grates had to be replaced over the past year due to theft. According to the article in "The Flint Journal," iron covers fetch $20.00 from a scrap yard.…

Long-time readers of this column know of my affinity for following bellwether stocks. When a company gets to such a large critical mass, it really becomes representative of what's happening in an industry. It's also a great way to read the "corporate economy." The corporate economy isn't really…

About a month ago, I wrote about DeVry, Inc. (NYSE/DV) as a stock that might outperform in a weakening economy. This company has a long-term track record of success, growing its education business and creating a lot of wealth for stockholders. It's likely you've already heard about this…

A couple of days of rallies in North American markets have not exactly renewed faith among investors, but at least some are more open to the idea of searching for what still may work out there. The basic premise is that just as the markets have dragged down…

Watching yesterday's trouncing of Ohio State by LSU in the BCS Bowl game (my son still thinks Missouri should have been fighting for the national championship) reminded me a bit of what is currently happening in the stock markets to start the year. Markets are currently feeling the…