With each passing day, it seems like the market continues to stumble towards
the double-dip recession (and accompanying double-dip bear market) that was
merely an academic talking point a few weeks ago. While the nastiest and most
severe wave of the recession phase is - we believe - behind us, another round
of weakness is nothing you’ll want to just wait out.
So what’s a ‘long-only’ investor to do, if he/she doesn’t want to
tiptoe into the dangerous world of inverse ETFs or the tricky world of
options and futures? There is some good news now that we couldn’t have
talked about in 2008…. pockets of strength, where stocks seem poised to not
only resist a bearish tide, but ready to keep climbing that wall of
adversity.
While it will still take laser-precise navigation to work around the
market’s land mines, here are few defensive picks that may just save your
portfoli... (more)
Wealth Management on Ulitzer
New option traders often struggle with unpredictable pricing - the
mathematical value of an option may or may not be the actual or perceived
value at any given time. The reason for the disparity? The 'Greeks'.
Fortunately, understanding how the Greeks can impact option pricing is pretty
simple to learn.
There are four primary option Greeks all option traders should become
familiar with. Two of them generally need to be considered before choosing an
option to trade. The other two may not be of great value for newcomers in
terms of selecting an option... (more)
Despite Friday's late gains, it still wasn't enough to push expiration week
back into the black for the market. The S&P 500 closed 4.0 points lower
(-0.36%) than the prior Friday's close. It was the fifth straight week of the
bull/bear stalemate, and as we've mentioned before, the longer the bulls
don't make progress, the greater the pullback risk becomes.
Needless to day, none of the indices hurdled their key ceilings last week. We
standing pat on the stance that stocks will need to go significantly lower
again before going higher. More details are below.
On the economic front w... (more)
Economics for Investors on Ulitzer
He gets zero points for creativity, but a few points for being bold enough to
be boring. Tom Forester - portfolio manager of the Forester Value Fund has
recommended Microsoft Inc. (NASDAQ: MSFT) and Hewlett-Packard Company (NYSE:
HPQ) as his top tech picks right now…. a sector he’s keen on as a way of
avoiding the looming problems that could be stirred up again by the lingering
real estate crisis, which would infect banking.
He mentioned Microsoft was trading below the market’s average price
multiple, and that Hewlett-Packard is prices at about ... (more)
The economy may well be in recovery mode, but it isn’t taking all stocks
along for the ride. Earnings results are going to remain erratic simply
because we’re still shaking of a recession. For a few companies though, the
problems may be bigger than mere lingering economic weakness.
U.S. Steel Corp. (X) – During the first half of 2009 a loss may have been
acceptable - low steel prices and weak demand made it tough for U.S. Steel
and its peers to make a buck. Between a major infrastructure stimulus in
China and a 40% increase in steel prices though, the per-share loss of $2.11
lik... (more)
James Brumley is a freelance writer and registered investment advisor. He began his career as a broker with a major Wall Street firm, where fundamentals and long-term holding periods were core strategies. After that, he switched gears completely, becoming an analyst at a short-term trading newsletter that focused on technical analysis. He now manages client money using the best of both philosophies. His company, Bluegrass Portfolio Management, offers investors an opportunity to reap superior returns with minimized risk. 
Sue Poremba
Scott Sellers
Anthony Franco
Daniel Morris
Wayne Walls
Niki Acosta
Jereme Hancock
Oren Michels
Marvin Wheeler
Douglas Kim
