Stock Picking

Stocks are in rally mode, with the key stock indices battling back to above their respective 50-day moving averages. There is some euphoria surfacing, but I believe it is somewhat overdone. My investment advice is that, before you get too ambitious and chase stocks higher, you need to…

It’s funny how investor sentiment can change on a dime. An expectation gets created for a solution to a problem, the action occurs, then it’s okay for investors to buy stocks. Institutional investors—or traders more particularly—always do this. It’s the game of the equity speculation business and it’s…

There are very few stocks that are actually doing great in this market. If the main stock market averages go up, it’s mostly because of large-cap, dividend-paying stocks that are more heavily weighted. There is an opportunity in this kind of market, however, for momentum trading, particularly if…

Stock picking is much more difficult at this time, particularly among smaller, speculative issues, because there’s no wind at your back. Stocks are still in a major consolidation/correction phase, and if the S&P 500 Index breaks below 1,300 in a meaningful way, then I think we’re going to…

If there ever was a market for owning special situation stocks, now is certainly the time for it. There isn’t a lot of tailwind to be had and this is not a surprise considering how far share prices have come over the last 10 months. But even for…

Stock picking at this particular point in time is more difficult than it was at the beginning of the year. The tone of the marketplace is different and expectations have mostly been met. As companies reported first-quarter earnings that met or slightly exceeded consensus, the stocks sold off.…

Stock picking now is much more difficult than it was just a month ago, as commodity prices have somewhat deflated (particularly in precious metals) and investor attention has moved to economic news while earnings season winds down. Even though mining producers are experiencing extremely good margins for their…

Stocks surged last Wednesday and have edged higher in five of the last sessions. Yet, despite the upside break above the 50-day moving averages for the NASDAQ and S&P 500, I’m still concerned that this may be nothing but a dead cat bounce. So, before you get too…

One of the best benchmark companies to follow is Johnson & Johnson (NYSE/JNJ). This $175-billion pharmaceutical and consumer products giant sells all kinds of products that you probably have in your home right now. The technology sector is important in this economy and so are the financials, but…

It’s a tough market for equities right now because there’s no expectation for major growth. So far, big companies haven’t said enough on the subject and, with other less-than-enthusiastic news, the stock market is waffling. In fact, the main stock market indices could experience a total breakdown here…

Well, there’s only one way to say this—the numbers so far haven’t been that great. So far this earnings season, it’s been a mixed bag of mostly underperformance, and this isn’t a good sign for the future. It’s not that there hasn’t been decent growth in revenues and…

I feel so strongly about investing in gold and silver that I keep writing about the precious metal sector, even though it goes against my usual philosophy of trying to buy low and sell high. No doubt, the vast majority of the stocks worth owning within the industry…

The timing isn’t quite right yet, but, in the not-too-distant future, there should be a reacceleration of U.S.-listed Chinese stocks. If you’ve been a speculator in these stocks, you’ll know that it’s been tough going. The entire group has been suffering from a lack of investor confidence and…

Markets have been showing some negative to neutral bias after failing to break higher. And, without leadership, markets may stall. Should this happen, my investment advice would be to write some covered call options to generate some premium income and reduce the average cost base of your positions.…

Fourth-quarter earnings are about over for most large corporations. Now we’re getting into the heart of earnings reports from smaller companies that don’t have large accounting departments to get the numbers out quickly. I’m noticing quite a solid trend in small technology companies—business is getting better and it’s…