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    20141009-big-profits

    It's been 14 trading sessions since the financial media was abuzz with the fact that the Russell 2000 Index experienced a Death Cross. That is to say its 50-day simple moving average (SMA) trended below its 200-day SMA. The coverage was all about why the Death Cross spelled impending doom for small-cap stocks and, by extension, the entire stock market.

    In fact, in all of the Death Cross commentary I saw on television and read on the Internet there was no mention of historical performance after a Death Cross. None! Just a lot of hyperbole about why we should be concerned.

    Indeed, instead of even the most basic statistics, all the well-spoken analysts, well-dressed pundits, and market commentators just kept showing chart screenshots of the current market condition as a reason why we should all hunker down for a correction.

    Basically, a sample set of one.

    And as you remember from Statistics 101, a sample set of one means absolutely nothing! It's not's even really a set because a set implies at least two data points.

    The lack of statistical support raised quite a few questions about the actual performance of stocks following instances of a Death Cross the Golden Cross - when the 50-day SMA trends above the 200-day SMA.

    So, I took it upon myself to do myth-busting, and what I found has startling lucrative implications for every savvy investor.

    Indeed, my test results suggest some actions that will set us up for a profitable ride ahead... Full Story

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This New Apple Stock Strategy Is a Tweak to the Carl Icahn Playbook

Apple stock

It's one thing to be optimistic about a stock, but activist investor Carl Icahn's letter to Apple Inc. (Nasdaq: AAPL) CEO Tim Cook tries to make the case that Apple stock is worth double its current price today.

The letter, released today (Thursday) following a teaser tweet the night before, is Icahn's second push to get Apple to use a major portion of its $133 billion in cash for stock buybacks.

But there's more to Icahn's game this time than simply increasing stock buybacks.

This veteran activist investor is as cunning as ever...

Yesterday's Fed News Will Trigger Great Stock Buys… Just Not How It Intended

20141008-dow-jones

I have long said that the Fed has never met a printing press it didn't like nor a dove that it didn't want to set free in the name of higher stock prices. And, yesterday, yet again, Yellen proved it.

Within minutes of releasing its latest set of notes hinting that the Fed will keep rates near zero, the S&P 500 took off on a 34-point gain that is the biggest so far this year. Moving first 45 points from its low of 1,925 to its peak of 1,970 in less than five hours (it later settled slightly lower), the index shrugged off the prior day's losses amidst global growth concerns and weaker European economic data.

This is manipulation of the highest order. It's also proof positive we NEED a correction. Now, more than ever.

A lot of investors will take issue with me on this and I don't blame them one bit - corrections are scary. But, they are also essential when it comes to big returns.

The Real Reason Price Fixing Is Coming to an End

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"Price fixing" or "fix" are Wall Street terms used to describe how benchmarks are priced on hundreds of instruments, from the Libor and other foreign currency exchange rates to gold, silver, and swaps.

While the methodologies used to determine fixes are different, in all cases where benchmarks are fixed by panels, the input of the bankers is what results in the output.

But here’s where things get a little… funny.

Global Crackdown on Corporate Taxes Will Hurt U.S. Stocks

20141008-corporate-taxes

As governments get more aggressive about curbing sweetheart deals that allow many U.S. companies to drastically lower their corporate taxes, it will take a big bite out of their profits - and that's bad news for stocks.

The European Commission is currently investigating the corporate tax avoidance strategies of Amazon.com Inc. (Nasdaq: AMZN), Apple Inc. (Nasdaq: AAPL), and Starbucks Corp. (Nasdaq: SBUX). But those three companies are only the trickle before the flood.

Make no mistake: this train is headed straight for Wall Street…

The European Crisis Is Going Global – and We're Along for the Ride

Currency euro paper

After printing $4 trillion since 2008, we've little to show for it.

Endless debates about the effectiveness of QE, or its lack thereof, haven't spawned better decisions, especially in Europe. Think periphery nations like Greece, Spain, Portugal, and Italy.

Better yet, take a look at the stock market, where worries about Europe's economy rattled investors. It's certainly not a pretty picture....

Recently one European national leader offered a somewhat unique response for dealing with the financial crisis and debt bubble.

It appears an unorthodox, yet sound, approach on the surface. But when you scratch beneath, it turns out just the opposite is true.

Developed economies would do well to consider the true state of this country's example of a "model" recovery before an even more catastrophic, debt-ridden future arrives, and erupts... Full Story

The Profit Opportunity in Hong Kong's Unrest 

profit opportunity

Most investors haven't got a clue about what Hong Kong's riots represent, let alone the investment potential that's being unleashed there. As a result, they're going to miss out on some really terrific profit opportunities.

Hong Kong is like an onion. Returned from a century of British rule to Beijing on June 30, 1997, there are layers and layers of subtleties. For most westerners, the place is a complete enigma.

For me, though, it's an economic playground. I've been very fortunate to have spent almost my entire career in global markets including a lot of time on the ground in Asia, so I am intimately familiar with both the culture and the perspective that can't be obtained by watching only Western news feeds.

It's this background that provides the ability to peer through the government and market filters, and find what I believe are solid niches for profit, even in the midst... and dangers... of the turmoil.

Indeed, understanding what's driving the unrest is our key...

Even Steve Jobs Got It Wrong Sometimes

Steve Jobs

Few today would question that the late Steve Jobs was a genius, but those many mega successes have obscured the fact that from time to time he got it wrong.

But Steve Jobs' failures can reveal as much about how he was able to re-invent entire industries as can his amazing achievements.

Like many tech geniuses, the late Apple Inc. (Nasdaq: AAPL) CEO was known for his willingness to be bold, take risks and defy conventional thinking. That philosophy necessarily resulted in both breakthroughs and belly flops.

Here's a look at nine of the biggest mistakes of his career...

Where September's Job Gains Came From

where September's job gains came from

The unemployment rate dipped below 6% for the first time in six years, as the U.S. Department of Labor reported today (Friday) that employers added 248,000 new jobs in September. The gains took the unemployment rate down to 5.9% from August's 6.1% and beat consensus estimates of 215,000.

Here's where September's job gains came from - plus a look at the trouble still lurking beneath the numbers...

October Stock Market Crash Talk: Why the Month Has a Bad Rap

stock market crash

Stock market crash talk often picks up in October – the month has a reputation of having the worst performance of the year.

October has an ominous reputation on Wall Street for delivering a stock market crash for good reason; six of the top 11 worst market declines have happened during the month.

Here’s an overview of notable October market declines – and a glimpse of what to expect this year…

The Keryx (Nasdaq: KERX) Media Blunder Will Add to Our 700% Gain

Money

On August 29, 2012, shares of Keryx Biopharmaceuticals - a company focused on pharmaceutical products for patients with renal disease - closed for the day's session at $2.06. Exactly two years later, on August 29, 2014, the same stock closed at $18.19./

That's right: Investors made a 780% profit over their original position, and it looked like the price per share (PPS) was destined to climb considerably higher.

In fact, analysts had set their average first-year target for the stock at about $23. And there was every reason to believe Keryx would reach and break through that target after the FDA approved it for marketing in the United States on its PDUFA date, set for September 7.

But then something odd happened...

The FDA rendered its decision early, on September 5, and although the news was good - KERX's drug had been approved - the stock fell more than 11% by the session opening the following Monday and continued falling over the next few weeks - giving traders today an opportunity to take advantage of the situation and make huge profits.

Here's why...

U.S. Stock Market Rebounds from Morning Sell-Off – Here's What Happened

20141002-us-stock-market

The U.S. stock market bounced back from a morning downswing to end the day flat, while investors remained cool about European Central Bank President Mario Draghi's intentions to define a specific stimulus program to help stave off recession in the Eurozone.

U.S. crude oil prices rebounded this afternoon after falling to as low as $88.18, the lowest price in nearly 18 months.

Here are the top stories from the stock market today…