Lombardi: Stock Market Commentary & Forecasts, Financial & Economic Analysis Since 1986

Posts Tagged ‘Market Veiw’

Stocks in Trouble…and It’s Not Over

By for Profit Confidential

The signs point to more troubles ahead. The stock market is in bear market territory for small-caps with the collapse on Thursday. There were several technical breaks materializing on the broad-based heavy selling. The small-cap Russell 2000 is a mess, down 17.89% this year and 25.46% from its 52-week high. The S&P appears to be heading towards support at 1,100. The downside risk is extremely high given the death cross on the stock index charts. When stocks traded at this level before, we saw buying support surface. Watch to see if it happens this time around.

Apple Is Shining Bright…
RIM, Not So Much

By for Profit Confidential

Apple Inc. (NASDAQ/AAPL) is to the technology world what Microsoft Corporation (NASDAQ/MSFT) was in the 90s. The stock traded at a record $415.00 on Tuesday and, in my view, could be heading for $500.00 within a year. The market capitalization of $382 billion makes Apple the biggest company in the world. And not only is Apple the biggest, but it also leading the technology pack with innovation and a desire to be the world’s dominant company.

Spending Remains an Issue;
My Advice on Retail Investing

By for Profit Confidential

The fact that consumer spending has not tanked in spite of unemployment being at over nine percent and expected to stay around this level through 2012, and continued weakness in housing is encouraging.

The Stocks That Are Bigger Moneymakers Than the Internet Craze

By for Profit Confidential

Again, I want to reiterate how impressive the current strength is in the broader stock market. We continue to get lackluster news on employment, housing and consumer prices, but the stock market seems to be moving beyond the bad news. Institutional investors are focused on stability with the sovereign debt issue in Europe and the upcoming third-quarter earnings season.

Stock Market’s Forming a New
Base, in Spite of Volatility

By for Profit Confidential

Investor sentiment is fragile and the stock market’s been volatile, but the trading action over the last little while has revealed one big consolidation, not a breakdown in the main stock market indices. What’s holding the market around 1,200 on the S&P 500 Index is the expectation for decent corporate earnings. From my perspective, third-quarter earnings results can’t come soon enough.

Tonight: The Biggest Speech of His Life; What Investors Can Expect

By for Profit Confidential

Most Americans will be glued to the television tonight to see what the leader of the most powerful country in the world has to stay about his plan to get the economy going; in specific, to create jobs. There is no doubt in my mind: President Barack Obama will be a one-term president unless he delivers on the promises he will make tonight.

Precious Metals Sector Deal-making Padding Investor Wallets

By for Profit Confidential

There have been a lot of mergers and acquisitions in the mining industry lately and the consolidation is only going to increase with gold over $1,800 an ounce and silver over $40.00. The buying and selling of entire companies adds to the attractiveness of the mining sector, with the bonus of a potential takeover of one of your holdings at a premium price.

What Economic Crisis?
This Is a Confidence Crisis

By for Profit Confidential

Let’s call a spade a spade. In the aftermath of our economic crisis, the U.S. government and Federal Reserve pulled out all the stops. God bless our politicians and our government. Not knowing what to do, most having never been in the situation before, once the U.S. economy collapsed in 2008 our government threw all kinds of money at the economy.

Putting the Japan to U.S. Economic Comparison to Rest

By for Profit Confidential

One of the most common questions I hear these days: “Is the U.S. headed in the same direction of the Japan economy of 1990s?” The big fear is that we are headed to 10 years of deflation, as Japan experienced in its “lost decade.” Yes, there many similarities between the Japan of the 1990s and the U.S. of the 2000s. Japan’s real estate market and stock market both peaked in euphoria and collapsed, just like they’ve done here.

An Investment Strategy for
When Markets Are Tanking

By for Profit Confidential

The market panic is rising, as there is more speculation of another recession in Europe and perhaps in the U.S. Stocks plummeted over four percent on Thursday morning. The current market bias is negative and my concern is that failure to edge higher could drive the index back lower or stall the trading. Without leadership, markets are likely to stall or move lower to bear market status.

The Stocks That Will Make
Money as Inflation Takes Hold

By for Profit Confidential

There are two schools of thought existing today in respect to where prices for goods are headed. There is the group that believes theU.S.is following the same path asJapanin the 1990s and is headed to a decade of deflation. Then there’s the second group that believes that rapid inflation is more likely. I’m in the second group, and I’m getting some confirmation.

Stock Market Leaders Under Pressure—Dividends to Become the Market’s New
Best Friend

By for Profit Confidential

Smaller companies are the backbone of the economy, but they are also the ones that struggle the most when the domestic economy isn’t growing. Accordingly, domestic small-cap stocks should have a more difficult time than larger companies that can “pad” their earnings from international operations and a weaker dollar. This is why I expect the Dow Jones Industrial Average (DJIA) to outperform all other major home indices going forward.

How Can You Be Confident
When the Fed Is Not?

By for Profit Confidential

The Federal Reserve just met for its Federal Open Market Committee meeting and I can tell you I was more nervous after reading the Fed statement than before. It became clearer the Fed is quite nervous about the condition of the economy and where it is heading. The Fed admitted that the U.S. economy is growing at a slower pace than they had hoped it would. Hey, no surprise here. We realized it. So did the Fed, but they needed evidence.

First Real Stock Market Correction
of 2011—an Opportunity?

By for Profit Confidential

I know this might sound a bit off the wall, but it’s my opinion…The recent correction in the market has little to do with Standard & Poor’s downgrading of the U.S.credit rating. After all, if we look at it, after the downgrade, U.S. Treasury bills rallied—more investors flocked to them instead of away from them!

Guess Which Industry Is Reporting Outstanding Financial Results?

By for Profit Confidential

The industry that's reporting outstanding financial results and a look at a benchmark company that's in it.Gold miners are reporting their second-quarter earnings right now and, for the most part, they are awesome. If it’s one thing that gold-producing businesses have learned over the last few years, it’s that there’s no need to hedge the price at which they sell their gold. The outlook for the spot price of gold has been so uniformly strong that virtually no mining company engages in a major hedging program to protect their profits. There hasn’t been any need, especially with the spot price hitting new records all the time.

One benchmark company that’s a good indicator as to the health of the gold mining industry is Yamana Gold Inc. (NYSE/AUY). The company is currently worth about $10.0 billion in stock market capitalization and I refer to as one of the top mid-cap gold miners within the industry. The stock is highly liquid and is well followed by the Street.

Yamana is a Canadian gold mining company with significant gold production and development properties in Brazil, Argentina, Chile, Mexico, and Central America. The company is producing gold and other precious metals at intermediate-company production levels, in addition to a significant amount of copper. Recently, the company reported record financial results for its second quarter. New records were achieved in revenues, cash flow, and earnings.

According to the company, its revenues grew to $573.3 million in the second quarter on the sale of 220,376 ounces of gold (excluding its Alumbrera operations), 2.1 million ounces of silver, and 41.6 million pounds of copper. This compares with revenues of $351.4 million generated in the same quarter last year on the sale of 186,921 … Read More

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