By Chris Johnson, Quantitative Specialist, Money Morning - • Print | Email
While fundamentals are important when it comes to investing, it's technical analysis (the study of stock prices) that means the difference between success or failure.
And today, our Chris Johnson wants to show you one dead simple technical indicator you can use to take your decision-making, and thereby your success, to the next level…
By Chris Johnson, Quantitative Specialist, Money Morning - • Print | Email
Ever heard the term "bandwagon fan"? Take the Pittsburgh Steelers, for example. They're the best football team in the NFL from where I'm standing.
But the Steelers were a steamrolling, unstoppable NFL "dynasty" in the 1970s. The Pro Football Hall of fame notes (and I can confirm), "Eight consecutive playoff berths, seven AFC Central titles, and four AFC championships from 1972 to 1979. The Steelers became the first team to win four Super Bowls and the only team to win back-to-back Super Bowls twice."
But the wheels fell off in 1980. The team went through a 26-year championship drought, until 2006's Super Bowl XL when – don't you forget it – the Steelers became the first wildcard team in the NFL to win three playoff road games and the championship. I stuck with 'em for those long years, but who knows how many fans went elsewhere.
Of course, those bandwagon fans came running back after the 2006 championship. You never want to be called a bandwagon fan because, let me tell you, Super Bowl XL felt a whole lot better for people like me, who'd stood by the team for those 26 dark years.
No wonder one of my 10 Commandments of Trading is: "Avoid running with the crowd." In other words, stay off the bandwagon unless you're actually in the driver's seat.
That's an approach that's made me one satisfied sports fan, but, more importantly, a really successful (read: "really wealthy") trader… Full Story
By Money Morning Staff, Money Morning - • Print | Email
The surge of new buyers in the housing market continues.
But despite the impressive numbers, there's trouble on the horizon in the form of rising lumber costs and overly high demand.
So instead of buying into the home buying hype, our Andrew Keene is looking at playing another much more profitable home sector…
By Money Morning Staff, Money Morning - • Print | Email
One of the best things about my trading is that it gives me the freedom to work an hour or so per day, doing what I have to do so I can do what I want do to the rest of the time.
Plenty of my 1450 Club Members following along are getting the chance to do the same thing.
Don't get me wrong: It's great when you can work at doing what you love… but it's also great when you can draw a big, fat line between "work" and "life."
Big surprise, but a lot of my "work time" is dedicated to looking at stocks.
If you've been with me for a while, you'll know I trade the same seven well-known big-cap stocks just about every day, but there's a lot more: I'm looking for any "optionable" shares that meet my special criteria for making recommendations.
To help me do that, I develop a kind of "watch list" every week, so I can narrow it down; I don't have to track 1,000 companies, but only between six and eight. Much more manageable.
And I'm not sacrificing a nickel of profit potential by narrowing it down, either.
I can point to just five stock trades that gave my readers a crack at a combined 1,091% in gains. Put another way, not a single one of these five trades was closed out for less than 200% in profits.
So you see, targeting your moves carefully beats throwing darts at a huge list of stocks.
Right now, I've got my eye on six… Full Story
By Money Morning Staff, Money Morning - • Print | Email
As the pandemic continues to surge, a new way to visit your doctor is becoming increasingly popular: Telehealth.
And the newest merger between these two companies looks to not only expand telehealth services, but also presents us with a nice profit opportunity…
By Chris Johnson, Quantitative Specialist, Money Morning - • Print | Email
These stocks to trade let you bet on their earnings reports and collect fast profits in just weeks.
Based on these stocks' recent performance, our trading expert Chris Johnson has detailed how they're likely to move going into next week's earnings.
Then he picked three trades that let you profit on that move.
By Money Morning Staff, Money Morning - • Print | Email
Despite poor earnings performance, investors reacted positively to BP's recent announcement of a new green initiative, causing BP shares to rise nearly 8%.
But our Andrew Keene isn't seeing eye-to-eye with those rushing to purchase some shares of BP right now.
So here's what to buy instead if you want to profit...
By Chris Johnson, Quantitative Specialist, Money Morning - • Print | Email
It's the most important earnings season of the year – actually, in 10 years.
Companies need to show they're worth their soaring stock prices.
Some will succeed and see shares go higher, while others will take a hit.
By Chris Johnson, Quantitative Specialist, Money Morning - • Print | Email
Until Barry ("Asterisk") Bonds leapfrogged him 13 years ago, Henry Aaron had been Major League Baseball's all-time homerun king for more than three decades.
Yet, in one of those cool ironies of life, "Hammerin' Hank" always said that the "triple was the most exciting play in baseball."
Let me tell you: I get what "Oh Henry" was saying – the triple is edge-of-your-bleacher-seat exciting. A player drives the ball into the outfield, and it skitters past the fielders and rolls to the wall. Then the player sprints around the bases and slides into third in a cloud of dust – hoping to beat the throw that's intended to gun him down.
With MLB's return last week, I caught a couple of Cincinnati Reds games. And I realized that there's a stock-market equivalent to the baseball triple.
You see, the most exciting play in investing is the "short squeeze."
That's what happens when an investing pro tries to beat the bullish "shift" in today's market by betting against a particular stock. And because the loss on that kind of a bearish bet during a bullish rally is potentially unlimited, the pro has to "cover" by purchasing the shares in the open market.
When a whole bunch of bearish pros on a particular stock have to cover all at once – meaning they're elbowing one another and stampeding through the narrowest of doorways and grabbing shares at every and any price – that stock goes vertical like a ballistic missile.
That's the "short squeeze."
And there's nothing more exciting than having that happen to a stock you already own.
Well, almost nothing.
You see, we're on the verge of the absolute-most-exciting play in all of investing: It's something I refer to as an entire "short-squeeze market."
We're talking about a nearly vertical ascent to the bull market's peak.
It's in the on-deck circle. It's about to happen.
And here today, in the spirit of that excitement, we've created a "triple opportunity" – three "short-squeeze market" stocks that will let you cash in… Full Story
By Chris Johnson, Quantitative Specialist, Money Morning - • Print | Email
These two silver trades let you turn a bounce in silver prices into fast profits.
Silver is rising as the dollar falls and as governments keep pumping stimulus money into economies.
That all means it's time for you to make money, with these silver stock options...
