Good morning! Stock futures for Tuesday, March 17, forecasted a 52-point decrease from yesterday's close. The DJIA Index surged 228 points Monday, a day ahead of the Federal Open Market Committee's (FOMC) second meeting of the year. Notable pre-market movers are American Airlines Group Inc. (Nasdaq: AAL), Karyopharm Therapeutics Inc. (Nasdaq: KPTI), Foresight Energy LP (NYSE: FELP), Edwards Lifesciences Corp. (NYSE: EW), and Targa Energy LP (NYSE: ATLS).
The FOMC meeting today will focus on when the Federal Reserve will raise interest rates. [Investors: Note that our Chief Financial Strategist Keith Fitz-Gerald has outlined a strategy on how to profit regardless of when the Fed raises rates. You can find that here.]
Investors with an eye abroad will dig into the Bank of Japan's monthly policy statement and press conference by the central bank governor to discuss the impact of the nation's stimulus campaign on deflation. Meanwhile, inflation data in Europe will be released, while Germany will react to ZEW economic sentiment levels.
Here's why AAL is one of today's pre-market movers, what else is happening in stock market news, and your "Money Morning Tip of the Day":
Full U.S. Economic Calendar March 17, 2015 (NYSE: all times EST)
Money Morning Tip of the Day: Market volatility will continue in coming months, but you can survive and even profit from wild market swings with these tools...
Today's tip comes from Money Morning Tech Expert Michael A. Robinson:
Markets are extremely volatile right now. Last week the Dow Jones saw triple-digit gains or losses on four of five trading days.
This volatility will continue as investors grapple with economic data and try to gauge when the U.S. Federal Reserve will raise interest rates.
You can survive and even profit from market volatility using these five tools...
Market Volatility Tool No. 1: Make Lowball Offers: With stocks, it's easy to make lowball orders. These are called "limit" orders, meaning you only buy when the stock hits your chosen personal target price. Suppose a stock you want to buy and hold for the long haul had a recent high of $100 and then dropped to $75. A lowball limit order of, say, $60 (a 20% discount) will protect your risk of losses and greatly boost your long-term gains.
Market Volatility Tool No. 2: Buy "Test Shares": Buying a few test shares is a great way to establish a position. As the term implies, you would buy only about 5% to 10% of your usual position on a stock, using it as your initial entry point. That way if it tanks, you won't get killed. You've only devoted a small amount of your risk capital to this investment.
Market Volatility Tool No. 3: Limit Your Exposure: A good way to stay in the market and limit your risk of loss is simply to make smaller entries. You can even combine the test-share and exposure-limit strategies. Start by purchasing your test-share block, re-evaluate both the stock and the market, and then purchase the remaining shares required to establish the smaller than usual "exposure limit" position.
To get the last two tools and learn more about turning choppy markets to your advantage, go here: How to Profit from Market Volatility...
