Tag: Moving Average Convergence Divergence (MACD)

This Specialty Retailer Has Been Quietly Beating The Market All Year

Posted on by Daniel Cross

Daniel Cross - INO.com Contributor - Equities


Much like actors and actresses in Hollywood, certain stocks seem to dominate the headlines regardless of whether it's good or bad news. Meanwhile, less known names are outperforming their superstar counterparts yet continue to operate in relative obscurity.

Value investors love finding these stealthy bullish stocks. The less known it is, the more likely it is that it's been undervalued.

A disruptor that's defying gravity

Outerwall (OUTR) is a $1.55 billion specialty retailer that has an interesting story to tell to investors. The company is known for its brand name Redbox and Coinstar machines and along with its competitor Netflix (NFLX), is responsible for revolutionizing the way consumers rent movies and watch television. Outerwall has more than 66,000 kiosks across the U.S., Canada, Ireland and the U.K.

In the past year, the stock has gained nearly 54% and has done well so far this year as well – up 12.5%.

NASDAQ:OUTR
Chart courtesy of StockCharts.com

Taking a closer look at the chart, we can see that the 50-day moving average has been above the 200-day all year long and now appears to be pulling away at a rapid rate. This momentum is evidenced by its MACD, which indicates a strong upward trend in the stock right now. Continue reading "This Specialty Retailer Has Been Quietly Beating The Market All Year" →

Don't Worry About Bulls or Bears, This 'Sin' Stock Is A Buy Regardless

Posted on by Daniel Cross

Daniel Cross - INO.com Contributor - Equities


Sin stocks are popular with most investors. These are the types of companies that peddle alcohol, cigarettes and gambling to consumers – products and services that appeal to vices. It's popularity is easy to understand though. These companies tend to do well regardless of the economic environment. Whether the economy is expanding or contracting, people will still consume alcohol, smoke cigarettes and gamble.

For long-term investors, these are good stocks to own. They might be subject to short-term volatility, but generally have high free cash flow, operating margins and growth expectations. Alcohol in particular right now has a lot of potential for future growth.

The expanding global middle class – especially in BRIC economies – are becoming more demanding of what they want. Name-brand liquor and beer have proliferated in these countries as consumers have developed disposable income. Continue reading "Don't Worry About Bulls or Bears, This 'Sin' Stock Is A Buy Regardless" →

How This One Indicator Could Make You Rich

Posted on by The INO.com Team

Let's face it, there are hundreds of technical indicators out there doing all kinds of mischief in the market. Some of them are good and some of them may be hyped a little too much.

For the moment I am excluding the Trade Triangle technology which I personally believe is one of the best methods to trade the markets.

I often hear that the markets are not the same and that they have changed, and I have to agree to a certain extent they have changed. However, the fundamental purpose of the market is to set the price, good or bad, for a market, a commodity or anything else that is freely traded and that principle has not changed. Continue reading "How This One Indicator Could Make You Rich" →

This Stock Is Best In Class In The High Growth Auto Parts Industry

Posted on by Daniel Cross

Daniel Cross - INO.com Contributor - Equities


The S&P 500 is expected to return around 10% for 2015 – year-to-date though, it's only up 2.35%. Yields on bonds are slowly tracking higher in advance of the Fed interest rate hike, but still remain far below historical averages. Commodities haven't fared well either with oil plunging in the past year and gold trading relatively flat. However, there's no such thing as a market without opportunity.

The auto parts industry is growing at a tremendous rate – for one company, the 5-year expected EPS growth rate is over 20%. In April, I wrote about the opportunities in the auto industry for manufacturers. The auto parts segment is a great way to play off of that angle.

A significant tailwind for the industry is the fall in gas prices that we've seen over the last few months. While prices have begun to rise again, consumers have already been logging more miles in their vehicles since they can travel further for the same cost. Increased wear and tear on motor vehicles translates into high demand for auto parts. Continue reading "This Stock Is Best In Class In The High Growth Auto Parts Industry" →

Growing Profits in Forex Trading By Using Indicators

Posted on by The INO.com Team

The guy sitting next to you at work making all that money trading currency does not have a special Forex crystal ball. What he is doing to ensure continued profits in his trades is reading indicators and then basing his currency trading moves on them. Once you adopt this practice, how to increase your Forex trading account will no longer seem like such a mystery.

What are Indicators?

Trading currency requires knowing when to buy and when to sell and the sooner the better. This requires studying charts to see how the pair you are trading moves under current circumstances. These movements are known as indicators, and once you master them you will become that same Forex fortune teller as the guy in the next cubicle.

Identifying the Type of Market

When looking at a chart, the first thing you are going to want to pick out is the type of market you are dealing with. This will help you in determining the type of indicator you are going to use. A trending market is when the price of the currency is moving steadily, either higher or lower. These can be seen by long lines heading in one direction. Ranging markets are noted by strong resistance and support levels, where even with sharp fluctuations the currency is not breaking through.

Moving Averages

Continue reading "Growing Profits in Forex Trading By Using Indicators" →