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Showing posts with the label Zacks Profit From The Pros.

Zacks Profit From The Pros - April 1, 2014: Fireworks About to Begin?

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Fireworks About to Begin?  Stocks bounced nicely on Monday. Especially technology stocks and small caps that have been serious laggards of late. So here we stand a mere 11 points from the previous highs and only 28 points away from a juicy target in 1900. Standing in our way this week are some economic hurdles. In particular, these reports: Tuesday: ISM Mfg Wednesday: ADP Employment Thursday: ISM Services Friday: March Employment Situation After these announcements investors will be focused on Q1 earnings season. If we pass these vital tests, then stocks will break above 1900 for a while. If we fail, then we will drop back down to 1800. We'll keep tabs on these events and play our cards accordingly. Featured Commentaries:  •    Technology Stock Roundup  •    Hotels & Lodging Stock Outlook - April 2014  •    3 ETFs to Watch as Obamacare Hits Deadline Best, Steve Reitmeister (  aka Reity...pronounced "Righty"  ) Executive Vice President Zacks Investme

ZACKS Profit From The Pros March 4, 2014: Reity, You Were Wrong!.

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Reity, You Were Wrong!  In my last commentary I emphatically proclaimed that the breakout above 1850 was in full effect. Next thing you know Russia seems on the war path in the Ukraine and world markets get pummeled on Monday. At the darkest hour the S&P was down to 1834. Yet as the day progressed losses were trimmed and we are within quick striking distance of 1850. This is a much better showing the European markets like Germany who suffered a -3.4%+ haircut. This is the nature of investing...  things change.  In this case, I would not call it a permanent change in direction as the total economic impact of this event is low. Thus, I see this as nothing more than a detour with a move above 1850 to resume soon enough. Featured Commentaries:  •    Roundtable Top Picks for the Week of March 3rd  •    Steel Industry Stock Outlook - March 2014  •    Best and Worst ETFs of February  •    Technology Stock Roundup Best, Steve Reitmeister (  aka Reity...pronounced "Ri

Zacks Profit From The Pros February 13, 2014: Are Stocks Overvalued?.

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Are Stocks Overvalued? Every other Wednesday the investment commentators at Zacks get together for a lively debate. The goal is not to reach a consensus on our view of the market. Rather it fits under the heading: "None of us is as smart as all of us." This week battle lines were drawn between those claiming nothing but blue skies ahead versus those emphatically stating the market is overvalued by most historical measures. Yet even the valuation hawks had to admit that there is no other viable investment alternative right now for those who want a decent rate of return. Combine that with a lack of a negative catalyst (recession or Risk Off scare) and they reluctantly agreed that stocks will likely move higher before lower. I know that is not the most optimistic outlook y ou have ever heard. But it is still plenty reason enough to be long US stocks now. I would just say that you should have a little more eye towards stocks trading at reasonable valuations to increase

Zacks Profit From The Pros February 07, 2014: Was that Bottom?

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Was that Bottom? At the darkest hour on Wednesday stocks fell to 1738. And now at Thursday's close we are a good 2% higher at 1773. So does that mean the worst is behind us? Fundamentally speaking, there is no good case to head lower. But the future is a mystery. Any new scary headlines could add to the bearish pressure and back down we go in a hurry. Gladly the longer we go without something new to worry about, the more we float higher. As shared with you yesterday, now is the time to get more bullish. I took my own advice and got back to 100% long at the open on Thursday. I know the future could still be volatile, but I have little doubt that 3-4 weeks down the road, this will prove the right move. Hope you join me! Featured Commentaries: •   3 Auto Stocks Racing Toward Earnings Beats •   Video: This Week's Aggressive Growth Stocks •   Nadella's Niche: 3 Cloud Choices •   Can the Winter Olympics Give Russian ETFs a Boost Best, Steve Reitmeister ( aka Reity.

Zacks Profit From The Pros January 31, 2014: +3.2 GDP = Correction Over?

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+3.2 GDP = Correction Over? Good news was served up Thursday morning with a better than expected  +3.2% showing for Q4 GDP . It proves that the 4% growth experienced in Q3 was not a fluke. Indeed we are accelerating above the Muddle Through pace of the past. This adds to my firm conviction that there is absolutely no fundamental need for stocks to go lower right now. However, I do respect that a deeper correction is a plausible outcome after last year's massive gains. As such I think that 1800 is the key for what happens next. Meaning that if we crack above 1800, then likely the correction is over. Until that time it's better to assume the market is still in correction mode which allows us to buy more great stocks at discounted prices. Featured Commentaries: •   4 Big Winners from Q4 Earnings Season •   Video: This Week's Value Stock Picks •   One Little Secret for Big Results •   ETFs to Watch in the Chinese New Year Best, Steve Reitmeister ( aka Reity...pro

ZACKS Profit From The Pros January 23, 2014:What are the 2 Most Consistent Stock Picking Strategies?

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What are the 2 Most Consistent Stock Picking Strategies? Stocks rose again on Wednesday. Unfortunately for the 5th straight time they came up short of breaking out to new highs. It is becoming more and more evident that 2014 will not be as easy for investors as 2013. And that a slow grind higher or perhaps even sideways is in the cards. So that begs the question: What stock picking strategies will work best in 2014? Historically there are two proven methods for finding stocks that outpace the general market in virtually any conditions. 1) Insider Buying : Corporate executives are highly incentivized to boost the stock price of their firms because they are given massive amounts of shares as compensation. So it speaks VOLUMES when they reach into their own pocket s to buy even more of these shares. It means they are abundantly confident that the company will excel in the months ahead. Academic research has clearly proven the merits of following these insider buys. 2) Positive

ZACKS Profit From The Pros January 22, 2014: Breakout Foiled Again.

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Breakout Foiled Again For the fourth session in a row stocks flirted with a breakout to new highs and then wilted at the moment of truth. This leaves us in an odd place. No one wants to really sell as all recent corrections are quickly reversed. And no one really wants to buy as all potential breakouts come up short of the mark. My sense is that this state of limbo will be in place a while longer with the overall market trading in a narrow range (1800 to 1850). The individual winners will be those that topple earnings expectations. And the losers will be those who only meet or fall short of this quarterly task. That means it is important to stay on top of what happens this earnings season. Perhaps even look for stocks likely to beat and buy them  befor e  their earnings come out. The "Earnings HQ" section at the end of each issue of Profit from the Pros will point you in that right direction (especially the Best Earnings ESP Stocks section). So be su

ZACKS Profit From The Pros January 13, 2014: The Government is Wrong!

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The Government is Wrong! Let me simplify this for you. The Government's December Employment Report is wrong and ADP Employment is right. The key words in the last sentence are "Government" and "wrong". This should not be a shock to anyone who has watched our government in action since the day they were born. Obviously most other investors came to that conclusion as stocks had no problem rising on Friday. Yet they are still not happy enough to get stocks into positive territory on the year. Earnings season is the next test. Let's hope Corporate America impresses enough to finally provide some lift for stocks in 2014. Featured Commentaries: •   Mining Stock Outlook – January 2014 •   Anatomy of Success: National Retail Properties •   Homeowners Insurance Formula for Estimating Personal Property Value •   5 ETF Predictions for 2014 Best, Steve Reitmeister ( aka Reity...pronounced "Righty" ) Executive Vice President Zacks Investm

ZACKS Profit From The Pros January 10, 2014: AA Needs a 12 Step Program

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AA Needs a 12 Step Program Truly we need a better company to start earnings season than Alcoa. They stunk up the joint once again with an earnings miss Thursday after hours. This has AA shares sharply in the red. Gladly most investors know that Alcoa is pretty much an island unto itself. So not much read through to the rest of earnings season, which heats up a bit more next week. In the meantime, it is just more range bound trading for the broader market. The best part of that is seeing some recent winners enduring rounds of profit taking which makes them attractive targets for the next leg higher. So be sure to read the articles below to discover some of the best trading ideas for the days ahead. •   Roundtable Top Pick s for the Week of Jan. 6th •   Biotech Stock Roundup •   Getting High On Pot Stocks •   Zacks #1 Ranked China Funds •   Getting Ready for Earnings Season with Options Best, Steve Reitmeister ( aka Reity...pronounced "Righty" ) Executive Vice

ZACKS Profit From The Pros January 09,. 2013: What Are You Waiting For?

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What Are You Waiting For? The ADP Employment report on Wednesday was a  smashing  success. There we see new jobs added being 15% above already robust expectations. Plus November results were revised amply higher. So obviously stocks went higher on Wednesday given this great news...  not so fast.  The next logical question is;  What are investors waiting for?  It is likely one of these reasons. a) Confirmation from the Government's Employment Situation report on Friday b) Q4 earnings season results c) Government debt limit debate finale d) All the Above Right now I think "All the Above" is the correct answer. That's alright. After such tremendous gains in 2013 you can appreciate why an extended consolidation makes sense right now. So we will likely trade in a range of 1800 to 1850 before the bull market resumes. Here is the problem. Far too many investors will read the above and assume it's time to go to cash since the S&P will be going nowhere. L

ZACKS Profit From The Pros December 20, 2013: Beware Bond Rates

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Beware Bond Rates Thursday was a typical follow up session to a big rally. Stocks eased into a modest loss. Some profit was taken off recent winners and rotated to new favorites. Most everything points to a continuation of the bullish trend. However, beyond the obvious economic indicators we also need to be watchful of the movement of the 10 year Treasury. Why?  The biggest driver of share prices in 2013 was NOT earnings growth. It was that stocks were cheap relative to the artificially low Treasury bond rates (thank you Fed). Right now I think that stocks are still reasonably valued with the 10 year going up to as high as 3.5%. So we are fine now with a close at 2.92% today. If we start to see a move towards 3.5%, then don't be surprised if stocks stall out o r contract even if economic data looks robust. For now keep your bullish bias intact. Featured Commentaries: •   Should You Buy the Homebuilders in 2014? •   Gift Boxes: Profits in the Packaging Industry •   How

Zacks Profit From The Pros December 19, 2013: FINALLY Got it Right.

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FINALLY Got it Right After many false moves selling on taper rumors, traders finally got it right on Wednesday. They now understand that the QE taper is a sign of economic strength... not weakness. And that is good for stocks. In no time the S&P went from down -0.7% to up +1.7%. Stocks ended the session at 1810 with 1813 still being the high on the year. I suspect we will probe above that level before the year ends perhaps towards 1830 or even 1850. Unfortunately in January the debt limit circus will restart in DC. You can already hear the rhetoric and posturing on the rise. That will probably cause stocks to stall out or pullback for a while until it's cleared up. Time out your moves if you like. However, over the past year it has proven wisest to just stay long the market until there is a stronger economic reason to head for the hills. Speaking of wise moves, I have to give some praise to our team of portfolio managers at Zacks.com. They have been sharing their top