Now for today’s button. Remember, you can always view all of the buttons by clicking here. If You’ve Always Done it that Way, It’s Probably Wrong Attributed to Charles F. Kettering, head of research for General Motors from 1920 to 1947. This quote reminds us that the only constant is change, and that any process that isn’t being constantly improved probably should be.
In this week’s Stock Market Analysis Video, Cabot China & Emerging Markets Report Editor Paul Goodwin says if he could only use one word to describe this week in the market, he would simply say it was bad. Paul discussed Cabot’s market timing indicators and why we recommend getting out of the market when things turn sour. Stocks discussed: ATA Inc. (ATAI), Yanzhou Coal Mining (YZC), Illumina (ILUM) and Priceline.com (PCLN). Click below to watch the video!
For the first four weeks or so of this market correction, which began on May 1, the environment wasn’t too bad. The major indexes were down 2% or 3% from their highs, and while many leading stocks were faring worse, it wasn’t a horror show … more of a consolidation than a huge retreat. However, since June 1, there’s no doubt that the market’s character has changed, with sellers starting to unload–all indexes have hit new correction lows, and many stocks (even those that had been holding up well) have been hit very hard. And, as usually happens a...
For my stock pick today, I’m turning toward the biotech sector, which has held up well during the market’s maelstrom. Granted, most of the time in the biotech world, all you can find is a lot of pipe dreams with stocks that are knee deep in clinical trials and only hope to launch a new drug candidate. I generally stay away from such firms, because they can fall apart in a hurry if the trials go awry or if a competitor jumps into the fray. So my stock pick today is … a small company with no sales and...
The sheer preponderance of technical analysis tools can generate enough information to overwhelm an investor. An old colleague of mine habitually perused so many different indicators before making a trade that he would get analysis paralysis. He looked at too much information and wanted everything to line up perfectly. If it didn’t, he would not make the trade. Sometimes, he had so much information that he just froze. Contrarily, I try to rely on a few indicators that I’m comfortable with and that produce good results for me. One particular pattern that I use are trend channels. Trend channels...
