ETF’s are exploding, there are dozens being created every month. You can own an ETF that: -Owns every stock in a sector, or -Owns every stock in an index (like the Dow Jones, or the S&P Small Cap 600); or -That’s leveraged (called an “ultra” basket), where you get 150% or 200% of the move… [Read More] The Exchange Traded Funds (ETF) Explosion
In the late 90s, when Internet stocks were starting to run higher and higher, there was no logical (fundamental) explanation why. Those stocks were going up because they were going up. They had positive momentum. These very same stocks started to crash a few years later. Even though these companies were still growing like weeds,… [Read More] Why Positive Momentum Matters
Roughly 70% of all stock mutual funds invest in the exact same 500 stocks. These are the stocks in the S&P 500 Index. Seven years ago (Jan. 2000), the S&P 500 stood at 1400. Know where the S&P 500 is today? Go ahead, take a look. It’s 1422. The S&P 500 is a “weighted” index… [Read More] What stocks are working now?
Do you know what a “trend change” is? When a stock (or a mutual fund) has been above its’ support line, it’s in a positive (or upward) trend. When that stock breaks the support line and starts moving down, you really don’t want to own that anymore. Because the general trend has changed – from… [Read More] Is It “Lights Out” For Energy Stocks?
Dizzy From The Stock Market Roller Coaster? Here’s How To Get Off: I want to share with you the part of my playbook I use when the market starts falling. Although that is NOT falling now, it also wasn’t raining when Noah built his Ark. It’s just better to be prepared then to make decisions… [Read More] Dizzy From the Stock Market Roller Coaster? – January 2007
Should we just sell everything and raise cash when the market flips from offense to defense? The short answer is NO. Look, going to 100% cash is a very aggressive call. We’d have to be pretty certain there’s no hope at all for the market to make a decision like that. It’s the most aggressive… [Read More] How to Handle a Flip From Offense to Defense Correctly – January 2007