Press Esc to close

Welcome to Money Morning - Only the News You Can Profit From.

Close

How to Profit From Wall Street's Biggest Gaffe in Decades

I was perusing the newswires a few weeks ago when the following Reuters news story headline all but physically grabbed my attention.

It stated: “Exclusive: Morgan Stanley Rebuilds in Commodities Trading.”

Most folks probably looked at this and tossed it off as just another of the endless machinations of Wall Street.

But I knew better…

  • Featured Story

    Stock Market Today: With Dow at Record High, Will the Climb Last?

    Chart up exponential

    The Dow Jones Industrial Average was at a record high after nearly six years, as the stock market today (Tuesday) rallied enough to push the index up nearly 70 points at the open.

    Just minutes after the opening bell, the Dow sailed passed its all-time high of 14,165 hit on Oct. 9, 2007. Less than a half-hour into the trading session the Dow roared higher by triple digits propelling benchmark to yet another record.

    By 1 p.m. the Dow was up 146.99, or 1.04%, at 14,274.81. The Standard & Poor's 500 Index added 17.32 or 1.14%, to 1,542.52, leaving it in striking distance if its record close of 1,565 hit in 2007. The Nasdaq climbed 43.39 or 1.37% to 3,225.42.

    Money has poured into stocks over the last several months as individuals have begun to feel more comfortable about the health of the economy - but can it last?

    "The question is, can the Dow maintain these levels? The market is interested in risk-that's why the Dow is higher, why the riskier currencies are higher," Matthew Lifson, currency trader at Cambridge Mercantile Group in Princeton told Reuters.

    To continue reading, please click here...


    Read More...
  • stock market rules

  • Does the Heinz Deal Mean Warren Buffett Has Become a Doomsday Prepper? At $28 billion, the famed ketchup maker is valued at a rich 23x earnings. And Buffett won't even control management. Given Warren's long and storied history of value investing and a hands-on style, this purchase is bizarre. Unless... Read More...
  • As Insiders Head For the Exits, Do They Know Something "We" Don't Know? According to the latest Vickers Weekly Insider Report, in the past week, there have been nine insider sales for every one buyer among NYSE stocks.
    The last time insiders sold this aggressively was in early 2012 - right before the S&P 500 took a 10% header.
    Does that mean there’s a correction in the works?
    There are all kinds of legitimate reasons insiders sell their shares. But what concerns me is that insiders, particularly when you're talking about senior management types, typically know a lot more than the average investor. Further, they tend to have a consistent view of very specific longer term market conditions and, more importantly, its earnings potential.
    Here’s what insiders know that you probably don’t Read More...
  • Nine Lessons From The Greatest Trader Who Ever Lived Chess battle The stock market has certainly produced its share of heroes and villains over the years. And while villains have been many, the heroes have been few.

    One of the good guys (for me, at least) has always been Jesse L. Livermore. He's considered by many of today's top Wall Street traders to be the greatest trader who ever lived.

    Leaving home at age 14 with no more than five bucks in his pocket, Livermore went on to earn millions on Wall Street back in the days when they still literally read the tape.

    Long or short, it didn't matter to Jesse.

    Instead, he was happy to take whatever the markets gave him because he knew what every good trader knows: Markets never go straight up or straight down.

    In one of Livermore's more famous moves, he made a massive fortune betting against the markets in 1929, earning $100 million in short-selling profits during the crash. In today's dollars, that would be a cool $12.6 billion.

    That's part of the reason why an earlier biography of his life, entitled Reminiscences of a Stock Operator, has been a must-read for experienced traders and beginners alike.

    A gambler and speculator to the core, his insights into human nature and the markets have been widely quoted ever since.

    Here are just a few of his market beating lessons:

    To continue reading, please click here...

    Read More...