Market Playground

How to Keep Your Cool Investing in Europe: TEF, IBDRY, STD, TOT, VOD

Covestor — Sun, 27 May 2012 17:32:48 +0000

By Charles Sizemore It’s a little early for Christmas in July, but now is the time for investors to be putting together their “Christmas lists” of sorts. Recently, I wrote a piece that described an old investment strategy of Sir John Templeton (see “An Anniversary We’d Prefer to Forget”). Sir John would make a list of companies [...]

Robert Reich: Memorial Day Thoughts on National Defense

Robert Reich — Sun, 27 May 2012 01:08:45 +0000

By Robert Reich We can best honor those who have given their lives for this nation in combat by making sure our military might is proportional to what America needs. The United States spends more on our military than do China, Russia, Britain, France, Japan, and Germany put together. With the withdrawal of troops from [...]

Watch Out: Another Big Bernie Madoff-like Scam is Possible (Video)

Covestor — Fri, 25 May 2012 20:35:06 +0000

By Michael Tarsala You would think someone’s BS detector should have triggered a lot sooner. The SEC this week charged a California investment adviser with operating a $60 million Ponzi scheme under the name GLR Growth Fund. The adviser’s marketing materials claimed the fund was returning between 17% and 25% a year since 2003 by investing in common stock [...]

The Markets Are Stuck In A Stalemate

Christopher Ebert — Fri, 25 May 2012 19:17:38 +0000

By Christopher Ebert The Long Straddle/Strangle Index (LSSI) is within normal limits, so no surprises are expected. The Covered Call/Naked Put Index (CCNPI) is weak, but still mildly bullish while the Long Call/Married Put Index (LCMPI) is non-bullish. The markets are stuck in a stalemate, waiting for Europe to make the next move. With the approaching U.S. holiday weekend, the [...]

Here’s How AOL, Inc. (NYSE:AOL) Ruined The Huffington Post’s Business Model

Covestor — Fri, 25 May 2012 18:42:08 +0000

By Mick Weinstein Activist hedge fund Starboard Value owns a little over 5% of AOL, Inc. (NYSE:AOL), and has been agitating since December for board changes and a refocused strategy. From a just-released 96-slide deck outlining its position, here’s Starboard’s problem with how AOL has handled The Huffington Post since acquiring it in February, 2011 for $315 million. [...]

10 Reasons Why Buying Individual Stocks is a Risky Business

Covestor — Fri, 25 May 2012 17:25:37 +0000

By John Gerard Lewis It’s a seldom heard and even more seldom heeded maxim: In general, people should not buy individual stocks. Of course, you’d never know it today as an abiding investing principle, what with the paucity of personal finance acumen – exacerbated by frenetic financial TV shows. There rarely appears a story about, [...]

Robert Reich: Mitt Romney’s Regressivism

Robert Reich — Fri, 25 May 2012 14:34:13 +0000

By Robert Reich Fine to nail Romney with Bain Capitalism. But let’s not forget Romney’s budget proposal, which mimics Paul Ryan’s. Take a moment to make yourself aware of both, because they’re eye-opening and scary. Both would restore the military budget, slash Medicare (turning it into vouchers that shift costs to the elderly) and Medicaid [...]

How to Survive a Whipsaw Market

Covestor — Fri, 25 May 2012 14:19:20 +0000

By Michael Tarsala Robert Sinn, “The Stock Sage”, is making the case for whipsaw market action in the weeks ahead. His expectation is for generally sideways trading within the big picture. Yet within that range, head-spinning volatility is possible, amid news and rumor-based market moves emanating from Europe. This is what it might look like: SPDR S&P 500 ETF (NYSEARCA:SPY) – [...]

If Greece Weren’t Enough, Check Out The Problems In China

Covestor — Fri, 25 May 2012 13:55:44 +0000

By Xavier Bremner Global investors are anxious about a possible messy Greek exit from the Euro Zone and what that might mean for regional banks and economies. Yet there is another big area of concern for the world economy in 2012: China. The world’s second biggest economy behind the U.S. is decelerating and that has big implications for [...]

Why I Don’t Believe Silver Has Bottomed (Video)

Jeff Pierce — Fri, 25 May 2012 13:42:00 +0000

By Jeff Pierce $SILVER (Silver – Spot Price) CME – Weekly Video: Technical Analysis with Jeff Pierce of Zentrader Jeff Pierce is a momentum trader that specializes in market timing. He utilizes a proprietary timing system that helps minimize emotions and trading biases within his trading plan. He offers a free newsletter at zentrader.ca that alerts you to trend changes [...]

Insider Sellers Capitulate — Now Let’s See More Buying

Covestor — Thu, 24 May 2012 16:03:44 +0000

By Michael Tarsala Insiders are selling a lot less stock than they were just a few weeks ago — a far less negative sign for markets. As Mark Hulbert at the Hulbert Financial Digest writes, the usual ratio of insider selling to buying over the last four decades is between 2-to-1 and 2.5-to-1. Citing data [...]

Past Performance Eventually Guarantees Future Results

Christopher Ebert — Thu, 24 May 2012 12:50:05 +0000

By Christopher Ebert I could not help chuckling a little when I opened my mailbox last week to find a large envelope containing a prospectus for one of my mutual fund investments. It was amusing because I am a trader, not an investor. I would gladly sell all my shares in the fund if the [...]

A Big, Fat Greek Mess Still Hangs Over The Markets

Covestor — Thu, 24 May 2012 12:28:52 +0000

By Gregg Giboney The issue of a Greek exit from the Euro has gained further altitude with hints that plans and expectations are being made for such an outcome. Rumors that Greek officials have discussed an exit plan have been denied, but the German Bundesbank has outwardly stated that a Greek exit is manageable. Greece has [...]

President Obama Has to Explain Why Fairness is Essential to Growth (and Why Some Democrats Have to Stop Believing Otherwise)

Robert Reich — Thu, 24 May 2012 12:05:50 +0000

By Robert Reich The Cory Booker imbroglio has ignited a silly but potentially pernicious debate in the Democratic Party between so-called “pro-growth centrists” who want the President to focus on how well he’s done getting the economy back on its feet after the Bush administration almost knocked it out, and “pro-fairness populists” who want him [...]

When to Get Aggressive with Investments Again

Covestor — Thu, 24 May 2012 11:37:26 +0000

By Michael Tarsala One of the best posts on market timing I have seen in a long time comes from Michael Arold, manager of the Technical Swing model. The upshot: Volatility helps you time big and meaningful changes in market direction. And as it relates to the markets as they stand right now, it may be better to wait for the [...]

CytoSorbents (CTSO): A Quick Rebound Indicates Belief in Progress and Potential

VFC's Stock House — Wed, 23 May 2012 21:04:52 +0000

By VFC’s Stock House Barely a week ago shares of CytoSorbents Corporation (OTC:CTSO) looked to be in the midst of collapse after an earnings report indicated that the company was still working at a methodical pace to advance CytoSorb onto the European market — a pace, as we’ve seen, that the more impatient investors do not feel is quick [...]

Why Portfolio Manager Bill DeShurko is Lovin’ McDonald’s (NYSE:MCD)

Covestor — Wed, 23 May 2012 20:39:56 +0000

By Michael Tarsala Bill DeShurko, manager of Covestor’s Dividend and Income Plus model, calls McDonald’s Corporation (NYSE:MCD) a low-volatility, high quality value play — precisely why he’s Lovin’ it, and plans to add it to his model. Low volatility investments have been DeShurko’s MO since early April. Since turning defensive ahead of the market decline, there is not a stock [...]

Facebook (NASDAQ:FB) ‘UnFriends’ Its Fan Base

VFC's Stock House — Wed, 23 May 2012 19:35:23 +0000

By VFC’s Stock House What should have turned into an historic day for the post-recession IPO market has turned into a calamity. Facebook, Inc. (NASDAQ:FB) is a business based on leaving its users “feeling good.” Feeling good about interacting with family, friends and colleagues, and feeling good about finding products, services and stories that may [...]

Portfolio Manager Michael Arold Calls Toll Brothers (NYSE:TOL) One Of His Best New Ideas

Covestor — Wed, 23 May 2012 19:08:14 +0000

By Michael Tarsala Michael Arold, manager of the Technical Swing model, says Toll Brothers, Inc. (NYSE:TOL) is one of his best new ideas, and one of the only long plays in his trading portfolio, which is 79% in cash and taking on few new bets. Arold bought shares of the homebuilder on May 21 at $26.04 a share; they now [...]

Facebook (NASDAQ:FB) Confronts the Law of Large Numbers

Covestor — Wed, 23 May 2012 16:28:09 +0000

By Patrick McFadden Beware of a Facebook, Inc. (NASDAQ:FB) top! Ahead of the social network’s initial public offering (IPO) on May 18th, there were competing news reports about the level of investor interest and outlook for Facebook. It is refreshing that we can see exactly where people stand on Covestor.com. Facebook’s IPO price was set at $38 per share on [...]

The Pain in Spain is a Buying Opportunity

Covestor — Wed, 23 May 2012 14:18:00 +0000

By Charles Sizemore The first time I set foot on Spanish soil was the spring of 2000, and what a fantastic time it was to visit. The dollar was near its all-time high versus the Euro, and an American could live like a king on a pauper’s budget. My, how times have changed. I most recently [...]

Barron’s Highlights Covestor Manager Robert Gay’s Technology and Process

Covestor — Wed, 23 May 2012 13:53:27 +0000

By Michael Tarsala Last weekend’s Barron’s story featuring Robert Gay, manager of several Covestor investment models, provides some insight into the technology behind his stock picks. As Barron’s reports, Gay, the former Director of Quantitative Research at DLJ, and the current head of GEARS, has created a sophisticated technology to extract financial statement data and create fundamentals on the 1,500 largest U.S. companies over the past 17 [...]

Why President Obama Should Be Attacking Casino Capitalism — Both Mitt Romney’s Bain Capital and JPMorgan Chase

Robert Reich — Tue, 22 May 2012 23:52:30 +0000

By Robert Reich I wish President Obama would draw the obvious connection between Bain Capital and JPMorgan Chase (NYSE:JPM). That way his so-called “attack” on private equity is neither a personal attack on Mitt Romney nor a generalized attack on American business. It’s an attack on a particular kind of capitalism that Romney and JPMorgan [...]

Peter Schiff: The Real Crash

Peter Schiff — Tue, 22 May 2012 19:14:57 +0000

By Peter Schiff I first came to national attention back in 2008 and 2009 when the housing and credit markets imploded. I became known as the guy that other market “experts” laughed at when I warned of trouble brewing in the seemingly indestructible American economy. After the wheels ground to a halt in mid-2008, people [...]

Jeffrey Saut Recommends a Gradual Re-Accumulation of Investments

Covestor — Tue, 22 May 2012 16:25:51 +0000

By Michael Tarsala One of my weekly reads is always the research commentary from Jeffrey Saut, investment strategist at Raymond James. He has a great sense of market history, and often takes a contrarian point of view. You can read his entire commentary here. This week, his commentary had four key takeaways: – The AAII investment sentiment survey is at its [...]