Category

Chris Johnson

Stocks

Volatility Is Coming Back This Week; Here's How to Profitably Prepare

By , Quantitative Specialist, Money Morning - • Print | Email

At this rate, it's starting to look like the calendar may be your best tool to time the markets.

That's right, a simple paper calendar…

January kicked off 2020 with a bang as the S&P 500 jumped more than 4% to follow up a December rally of more than 2%.

The steady rally lured investors and traders into a trancelike state where all they appeared to be seeing was green.

That's a dangerous state that often marks a good time to be selling stocks.

So far, this earnings season has helped to maintain that bullish outlook, but as I said, I think you only need the calendar to beat the market here.

Here's what I mean...

Earnings

The 3 Stocks to Buy Before Earnings Season to Boost Your Portfolio

By , Quantitative Specialist, Money Morning - • Print | Email

This week, we're going to see hundreds of companies announce their quarterly results.

We've already seen some interesting trends in how the market has reacted to earnings reports already.

That's creating an opportunity for traders who know where to look.

I'll show you three stocks to buy before earnings reports come out that will maximize your upside potential.

Read more...

Trading Strategies

How "FOMO" Is Driving This Market Higher

By , Quantitative Specialist, Money Morning - • Print | Email

When you hear the expression "fear of missing out," better known as FOMO, aside from images of jumping out of planes or bungee jumping (if that's still a thing), do you ever think of investing?

Well, that's exactly what's going on with the market right now – FOMO. However, only a month ago, professionals like me were hedging against this market. And for good reason.

It really was the smart money move to make at the time. Not only had the yield curve inverted, but earnings reports were getting ready to hit the wires, and geopolitical tensions like the trade war were making headlines right and left.

The risks were stacking up.

Then, within a week or so, things changed faster than a set of tires at the Indianapolis Speedway on Memorial Day weekend. The bond market gave forgiveness with higher rates. Earnings beat lowered expectations, but nonetheless still beat them. The trade war… well, it's still hanging in the balances, but moving towards something that resembles a deal.

We're now ratcheting to new highs daily.

Getting back to the professionals, it looks like hedge funds and active managers are now moving from the sidelines back into stocks, which is fueling the current rally. The chart I'm going to be showing you in a minute is one representation of this activity.

Overall, the continued feeling of FOMO should be considered a new catalyst for the market to move higher, which is one of the reasons that I've been repeating one of my Ten Commandments of Trading, "Don't fight the tape!"

Let's look at exactly how we can play this market and avoid getting left behind… Full Story

Let's look at exactly how we can play this market and avoid getting left behind...

Trading Strategies

Cash In on the Falling Market with This Easy, "Ultra" Profitable Move

By , Quantitative Specialist, Money Morning - • Print | Email

Well, it looks like Trump’s latest tariff tweet has sent global markets reeling, with all three major indexes falling fast.

Folks, we’ve got an all-out trade war on our hands and the markets are naturally taking the heat.

That’s why Chris is keeping it simple with his moneymaking stock chart of the day and showing you an easy, “ultra” profitable strategy perfect for falling markets and for putting some serious bucks in your pocket…

Trading Strategies

"Groupthink" Could Lead This Market Much Lower

By , Quantitative Specialist, Money Morning - • Print | Email

In his more than 30 years of experience as a financial professional, our Chris Johnson’s never seen a market anticipate an interest rate cut the way this one has.

Now, the “group think” in question is that this market “deserves” a cut, not that it needs it. This can be a dangerous perspective to have.

In fact, one of Chris’ 10 Commandments states: “Never run with the crowd.”

Here’s what we can learn from Wall Street analysts and investors in this situation…

Trading Strategies

Here's How to Profit in a "Down for the Count" Market

By , Quantitative Specialist, Money Morning - • Print | Email

With everything that's going on, it's really no wonder that the current markets are on a tailspin.

There's a lot driving this market, from new tariffs to escalating geopolitical tensions, but our Chris Johnson's not worried.

In fact, he's keeping a close eye on a significant risk out there so you won't be taken by surprise.

Plus, if you follow his recommendations, you'll come out comfortably ahead...

Trading Strategies

The S&P 500’s Achilles Heel Could Put Serious Cash in Your Pocket

By , Quantitative Specialist, Money Morning - • Print | Email

With the S&P 500 hitting fresh resistance levels and giving back a fraction of the gains of the past day, odds are excellent that the market's going to punch through the ceiling.

That means rooting out what weakness there is – like this one stock that's ripe for the fall.

This is the perfect opportunity for making money with Chris' easy, cheap options trade...

Earnings

Here's a Profit Play for a Shaky Earnings Season Kickoff

By , Quantitative Specialist, Money Morning - • Print | Email

This week, it's all about "TBTF" banks – as in, "too big to fizzle."

There's a lot riding on the financials, but I'm looking at pharma and healthcare, too, and I'll tell you why in a minute.

Fact is, this is one of the most important earnings seasons in recent memory, and investors are flat-out worried that it'll be one of the worst earnings seasons in recent memory.

JPMorgan Chase & Co. officially kicked off Q1 earnings season on Friday with a welcome revenue beat that nudged stocks gently upward for the day.

On the other hand, Bank of America Corp. reported a bumper crop of profits on Monday, but the shares slumped anyway because CFO Paul Donofrio voiced concerns about the slowing pace of interest rates – a big driver of bank profits.

Same deal with Goldman Sachs: It had a convincing earnings beat and a tasty dividend hike, but a drop in trading revenue sent the shares lower.

That shares didn't necessarily take off is a pretty good indicator of the worry out there in the streets. Freaked-out investors are punishing stocks for "sins" they might've forgiven two or three quarters back.

Me? I'm not sure it'll be the worst earnings season in years, but it's certainly going to be the one of most eventful.

Because, remember, it doesn't matter if a stock goes up or down on good or bad earnings. It just has to move...