Tag: Moving Average Convergence Divergence (MACD)

Commodities: Sell In May And Go Away?

Posted on by Aibek Burabayev

Aibek Burabayev - INO.com Contributor - Metals - Sell In May And Go Away


Last August I posted a chart analysis of one particular commodity market index as I spotted an interesting pattern. As time goes by, we can see how my outlook emerged and after almost a year the market reached another crucial milestone or better yet a decision point.

This index is called The Thomson Reuters/CoreCommodity CRB Index (CRB). It is the gauge of the commodities market, which is comprised of 19 commodities: Aluminum, Cocoa, Coffee, Copper, Corn, Cotton, Crude Oil, Gold, Heating Oil, Lean Hogs, Live Cattle, Natural Gas, Nickel, Orange Juice, Silver, Soybeans, Sugar, Unleaded Gas, and Wheat.

So, if you watch commodities market, then the two charts below could be of strong interest to you.

Chart 1. Thomson Reuters/Jefferies CRB Index Monthly: Failed At Resistance

Sell In May And Go Away
Chart courtesy of tradingview.com

Above is an update of the earlier chart. The risk/reward that time ($182) favored a long position as the upside target at the major top ($474) promised to cover risk extensively amid oversold market conditions. Continue reading "Commodities: Sell In May And Go Away?" →

Have You Caught 'Em All?

Posted on by The INO.com Team

If you haven't noticed it around you in public or the news, Pokémon Go is the craze that is sweeping the nation. Now you may be saying to yourself, why is he talking about Pokémon? Well, I have two reasons that I'll lay out below.

The first reason is social interaction and getting outside. My wife and I were out in downtown Annapolis last night enjoying a beautiful evening by the water when my wife said, "what are all these people doing walking around looking at their phones? It's like the zombie apocalypse." This statement cracked me up as I looked around. She was right, there were a bunch of people walking around. I then explained to her the new Pokémon Go craze and how the game had just been released. We decided to sit back and watch as this was going on and a few things stood out to me.

1. At least 90% of the people at city dock were playing this game. And a lot of them were clearly down there to specifically play the game. This has a couple of effects on people and the economy of the area. People are outside getting exercise whereas they may normally be inside watching tv or so on and the local businesses are undoubtedly making more money than normal with the larger than average crowds. Continue reading "Have You Caught 'Em All?" →

Investors Should Watch Out For This Breakout Stock

Posted on by Daniel Cross

Daniel Cross - INO.com Contributor - Equities


If you're an advocate of EMH (Efficient Market Hypothesis), then you likely assume that markets are rational and bargain pickups are hard to come by. Stocks that take off without notice shouldn't happen since investors, whether institutional or everyday, have access to the same information. However, there are some cases that simply defy the rules.

Stealthy stocks that are relatively unknown can surprise investors. These types of companies might have few or no analysts covering its stock letting it easily slip through investors sights. But once it starts hitting new highs, it makes waves.

Many have immortalized investors like Benjamin Graham and Warren Buffett. The value investor style of stock trading has been a winner for decades, but a look back at recent history tells a different story. It's growth stocks that have outperformed value stocks over the past decade. Advances in technology and a the globalization of the world's financial markets have led to an aggressive bull market that undervalued stocks just haven't been able to keep up with. Continue reading "Investors Should Watch Out For This Breakout Stock" →

This Company Is Making Moves That Investors Might Want To Pay Attention To

Posted on by Daniel Cross

Daniel Cross - INO.com Contributor - Equities


Companies aren't static entities that hit maturity and simply stop growing. No successful business model calls for a reduction in innovation or a strategy that consists of “just keep doing what we're doing.” Great companies find ways to keep growing and keep building. They challenge themselves to develop new products or services and are never satisfied with the status quo.

Merger and acquisition activity is back on Wall Street – a good sign that the bull is coming back. Companies that are looking to expand look to M&A's as a long play for success. The initial cost can often have a short term temporary negative impact on earnings, but once its complete and overlaps are eliminated, the company can greatly increase its profits.

Some sectors are known for more of this kind of activity than others like technology and healthcare. These industries change so rapidly that a constant turnover is just part of the business model. But when sectors like industrials or retailers start to see that kind of activity, it's a sign that those companies see opportunities for growth on the horizon. Continue reading "This Company Is Making Moves That Investors Might Want To Pay Attention To" →

Ride The Prevailing Winds With This Utility Play

Posted on by Daniel Cross

Daniel Cross - INO.com Contributor - Equities


Almost two months into 2016 and the stock market isn't sending investors much news to cheer about. The S&P 500 is down roughly 6% year-to-date and global economic concerns regarding a lack of growth and record low oil prices means that volatility is high and investors are skittish.

While high growth sectors like energy and industrials are suffering, defensive sectors finally have their moment to shine. But not all defensive sectors are performing as well as expected in the current environment. Consumer staples, generally a sector that does well when the broader averages are doing poorly, doesn't have much to offer investors. The Consumer Staples Select Sector SPDR ETF (PACF:XLP) is up marginally at only 1%. However, there's another defensive sector is enjoying the performance spotlight. Continue reading "Ride The Prevailing Winds With This Utility Play" →