Apple reported earnings after the bell today, and as is their custom, blew away analyst expectations. At last check, at about 9:30 eastern time, Apple was trading up about $30.
I posted a video on youtube about when to sell a stock, giving the example of Google, which had a poor earnings report last week. As a result, it opened down about 9%, and has traded modestly lower since. Some people will want to buy that stock now. Bad idea. Look for winners, not losers. Apple is a winner. As long as it continues to produce earnings like this, you should stay in the stock, as it continues higher.
The bottom line is if you want to make money in the stock market, you need to get on board stocks that are rising in price, not falling in price. A trend in motion tends to stay in motion, so get on board an uptrend, and you will put the odds in your favor.
www.whentobuyandsellstocks.com
Tuesday, January 24, 2012
Wednesday, January 18, 2012
Stock Market Commentary - January 18, 2012
Check out this video about today's stock market action and what it means for the market going forward.
www.whentobuyandsellstocks.com
www.whentobuyandsellstocks.com
Thursday, January 12, 2012
Stock Market Comments - Morning, January 12, 2012
The U.S. stock market is poised to open relatively flat this morning, after trading higher over night. The first bit of economic news for the New Year has come out on the weak side today, as retail sales numbers for December came out flat, and weekly jobless claims jumped up to 399,000. Williams Sonoma also scaled back earnings expectations for the 4th quarter, indicating that margins were hit due to significant discounting over the holidays.
This data flies in the face of what we have seen and heard in the media over the last month. It will be interesting to see if this becomes a trend.
It should be pointed out that the Dollar has rallied sharply in recent weeks. This will hurt the earnings of the multi-nationals, and those have been the best performing stocks for some time. At the same time, gas prices have slowly ticked up, moving closer to that $3.50 per gallon level, and there are forecasts of $4.00 or more per gallon by Spring. That will kill off any economic growth.
Keep an eye on the major averages. They have been slowly moving upward with low volatility. It will only take one lousy trading day to change the overall character of this market from modestly bullish back to bearish.
Scott Cole
www.whentobuyandsellstocks.com
This data flies in the face of what we have seen and heard in the media over the last month. It will be interesting to see if this becomes a trend.
It should be pointed out that the Dollar has rallied sharply in recent weeks. This will hurt the earnings of the multi-nationals, and those have been the best performing stocks for some time. At the same time, gas prices have slowly ticked up, moving closer to that $3.50 per gallon level, and there are forecasts of $4.00 or more per gallon by Spring. That will kill off any economic growth.
Keep an eye on the major averages. They have been slowly moving upward with low volatility. It will only take one lousy trading day to change the overall character of this market from modestly bullish back to bearish.
Scott Cole
www.whentobuyandsellstocks.com
Monday, January 9, 2012
Stock Market Comments - January 9, 2012
U.S. stocks closed with marginal gains once again on Monday, continuing the pattern in place since last Wednesday. The overall trading pattern during the day has been repeated for a few days now...weakness in the morning due to ongoing European issues, and a very modest rally beginning after the European close.
The trading patterns are somewhat mixed...the Dow and S&P 500 look like they are ready to explode upward, while the Nasdaq and small cap averages are more mixed.
One stock I definitely do not like now is Google. Google had broken out recently to 52 week highs, with a nice basing pattern going back about one year. Today, it closed down over 4%, and formed an island reversal pattern in the process, due to the gap down. It closed below its 34 day EMA for the first time since late November. If there is follow through, expect some weakness in the NASDAQ.
Biotechs lead the way upward today, lead by Inhibitex, which is being bought out. It was up 140% today...yes, 140%!
We had a couple stocks on our watchlist that resulted in new buy signals. SPPI and MDVN both broke through their buy points today.
Scott Cole
www.whentobuyandsellstocks.com
The trading patterns are somewhat mixed...the Dow and S&P 500 look like they are ready to explode upward, while the Nasdaq and small cap averages are more mixed.
One stock I definitely do not like now is Google. Google had broken out recently to 52 week highs, with a nice basing pattern going back about one year. Today, it closed down over 4%, and formed an island reversal pattern in the process, due to the gap down. It closed below its 34 day EMA for the first time since late November. If there is follow through, expect some weakness in the NASDAQ.
Biotechs lead the way upward today, lead by Inhibitex, which is being bought out. It was up 140% today...yes, 140%!
We had a couple stocks on our watchlist that resulted in new buy signals. SPPI and MDVN both broke through their buy points today.
Scott Cole
www.whentobuyandsellstocks.com
Thursday, January 5, 2012
Stock Market Commentary - Morning, January 5, 2012
There is a major tug of war going on with U.S. stocks this morning. Early before the open, U.S. Stocks were looking at a pretty negative open due to weakness in the Euro versus the dollar. As I write, this, the Euro was trading close to 1.28 against the Dollar, off about .0120, which is a sizable move. Normally, this would have led to a big sell-off, as it is expected that a European recession will adversely affect the U.S. However, employment figures coming out starting at 8:15 with the ADP report were quite bullish, with a gain in private sector employment of 325,000. Jobless claims also fell to 372,000 this week, down 10,000 from a revised 382,000 last week. This resulted in some gains in stock futures, but these remain muted by the European issues.
Rick Santelli pointed out on CNBC that the high numbers in the ADP report over the last three years were in December, so it remains to be seen whether there are seasonal factors at play.
Stay tuned!
www.whentobuyandsellstocks.com
Rick Santelli pointed out on CNBC that the high numbers in the ADP report over the last three years were in December, so it remains to be seen whether there are seasonal factors at play.
Stay tuned!
www.whentobuyandsellstocks.com
Tuesday, January 3, 2012
Stock Market Commentary, January 3, 2012
U.S. Stocks posted solid gains on the first trading day of 2012 after being called to open sharply higher due to some stronger than expected economic data out of Europe. However, stocks were unable to build on their games for the rest of the day, and the averages essentially closed about where they were trading in the first few minutes of trading, and off their highs.
Strength was seen mostly in the energies and precious metals. One thing I've noticed is that there is a lack of leadership in stocks making new highs. I perform a stock screen of the days biggest movers, and there were just a handful of today's big movers (gains of over 3.5%) that were making new 52 week highs. Instead, the biggest movers were in stocks that have been beaten down. This is not characteristic of a market that is a bull market. Instead, this is simply professional trading as funds rotate from one sector to another, hoping to catch a pop, then exit. This is not the sign of confidence in a market and economy.
With that in mind, it is a good idea to remain cautious.
www.whentobuyandsellstocks.com
Strength was seen mostly in the energies and precious metals. One thing I've noticed is that there is a lack of leadership in stocks making new highs. I perform a stock screen of the days biggest movers, and there were just a handful of today's big movers (gains of over 3.5%) that were making new 52 week highs. Instead, the biggest movers were in stocks that have been beaten down. This is not characteristic of a market that is a bull market. Instead, this is simply professional trading as funds rotate from one sector to another, hoping to catch a pop, then exit. This is not the sign of confidence in a market and economy.
With that in mind, it is a good idea to remain cautious.
www.whentobuyandsellstocks.com
Monday, January 2, 2012
Stock Market Commentary - January 3, 2012
Stock market commentary heading into the first trading day of 2012. For more great information, visit www.whentobuyandsellstocks.com
Sunday, January 1, 2012
Google Makes 52 Week High
Don't look now, but Google (GOOG) posted a new 52 week high close on Friday. I am not sure if there was any fanfare attached to this, as I did not watch much of CNBC Friday, but I believe this is an important development. Google is a tech leader, and its leadership is required now that Amazon is breaking down.
What I really like about this breakout is that it is coming from a huge base dating back to 2009. The overall pattern has that shape of a cup that William O'Neil loves, and I suspect that a high handle will come in the next few months if you don't hop on now.
Scott Cole
www.whentobuyandsellstocks.com
What I really like about this breakout is that it is coming from a huge base dating back to 2009. The overall pattern has that shape of a cup that William O'Neil loves, and I suspect that a high handle will come in the next few months if you don't hop on now.
Scott Cole
www.whentobuyandsellstocks.com
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