Stocks & Equities
I valued Amazon for the first time in 1998 as an online book retailer, and much of what I know about valuing young companies today came from the struggles I went through, modifying what I knew in conventional valuation, for the special challenges of valuing a company with no history, no financials and no peer group. Out of that experience was born a paper on valuing young companies… CLICK for complete article
Gary Neilson once wrote in a Harvard Business Review paper that “a brilliant strategy, blockbuster product or breakthrough technology can put you on the competitive map, but only solid execution can keep you there.”
Nano One Materials Corp. (TSXV: NNO) has captured the imagination of investors with a disruptive technology that can short-cut the traditional way of making cathode material used in lithium-ion batteries and ultimately improve their performance. The stock more than doubled last year to above C$2.00 a share as the company built a pilot plant in British Columbia… CLICK for complete article
Restaurant Brands International Inc and its franchisees will spend C$700 million ($546 million) over four years to revamp coffee chain Tim Hortons, following a round of bad publicity over its management of the Canadian chain.
The revamp, unveiled by managers on a conference call with analysts on Tuesday, followed first-quarter results which suggested initiatives including… CLICK HERE
During the recent wild volatility this analyst has used a method to stay out of trouble & keep on the right side of the huge swings. This tool now foresees a great opportunity as he explains below – R. Zurrer for Money Talks
On March 9, I cautioned you that we were about to enter a period of prolonged volatility…
And that’s exactly what we saw.
The S&P 500 Index has plunged as much as 8% since that day, and the volatility in the market is nerve-racking.
A 1% move in the broad market now takes just hours, compared to what would have taken days to amass during all of last year.
But just as my chart of moving averages showed this was coming, it is also showing that the end of this slump in the market is near, and now is a great time to jump in.
Take a look:
In the chart, the red line is a simple 200-day moving average, an average almost all traders follow.
The green line is the 50-day moving average, and the yellow line is the 50-day moving average offset by 25 days.
The blue line is my forward indicator for the yellow line, because the data continues to change until it is 25 days old. At that point, it is our 50-day moving average offset by 25 days (the yellow line).
This yellow line is the key one, but the blue line is our indicator for where it is headed.
And just as it showed it was about to cross below the green line a month ago (which was bearish), it now shows that it is set to climb back above the green line — a bullish move.
This is why jumping in now is a great time to buy the dip.
I know, it may seem nerve-racking to enter with such volatility, but start small.
Buy some stocks to benefit from the quick rally, but keep some cash on the side due to the volatility that you can put to work once the market has turned the corner and is officially out of the stock market correction.
Regards,
Chad Shoop, CMT
Editor, Automatic Profits Alert
Timing is everything, and seasonality is a great tool to use to help get your timing right. A strong seasonal period began with Stocks in General on April 11th, and is currently powering the Energy Sector higher. This report covers the Markets, individual stocks and Energy. – R. Zurrer for Money Talks
Seasonal Chart Analysis
Analysis of the S&P Global Inc. (NYSE:SPGI) seasonal charts above shows that a Buy Date of October 5 and a Sell Date of December 29 has resulted in a geometric average return of 2.39% above the benchmark rate of the S&P 500 Total Return Index over the past 20 years. This seasonal timeframe has shown positive results compared to the benchmark in 17 of those periods. This is a very good rate of success, but the return underperforms the relative buy-and-hold performance of the stock over the past 20 years by an average of 3.5% per year.
The seasonal timeframe is Inline with the period of seasonal strength for the Financial sector, which runs from November 22 to April 13. The seasonal chart for the broad sector is available via the following link: Financial Sector Seasonal Chart.
The Markets
Stocks jumped on Tuesday as investors reacted to a speech from Chinese President Xi Jinping, who discussed plans to to open up the country’s economy. The S&P 500 Index surged by 1.67%, testing, once again, the declining 20-day moving average. The benchmark has been gyrating between resistance at this short-term moving average and support at the 200-day moving average for the past three weeks, charting large intraday swings as investors attempt to find a level of comfort amongst equity prices. The more formidable level of resistance to watch is the gap around 2700, which is now intersecting with the declining 50-day moving average. Significant negative reaction to this hurdle would increase the likelihood of a break of horizontal support below around 2575. A bullish MACD crossover was triggered during Tuesday’s session, presenting some hope that the next move on the benchmark is higher, barring some catalyst that destabilizes markets, yet again.
Topping the leaderboard on Tuesday was the energy sector as commodity prices moved higher following the Chinese President’s remarks. The S&P 500 Energy Sector index broke out from its intermediate consolidation range, as well as advanced beyond significant moving averages in the process. The energy benchmark has significantly outperformed the market for the past three weeks, benefitting from the strength in the price of oil, which remains around multi-year highs. Strong demand for product commodities and a return to normal levels for stockpiles of the raw input have been a significant influence. Seasonally, the price of oil and the stocks of the companies that produce it tend to gain through the start of May. We’ll obtain further insight as to the state of the oil market when the EIA releases their official tally on Wednesday.
ENERGY Relative to the S&P 500
….if you want more analysis on the economic front continue reading HERE