Verified Investing's Blog – July 2016 Archive (21)

This morning at 8:30AM ET, the news hit that second quarter GDP came in at 1.2% for the second quarter. Expectations had been for 2.6% GDP browth The first quarter was revised down to 0.8% growth. While the stock market is mostly shrugging this off, it will change the tune of the Federal Reserve from just two days ago. On Wednesday, the Federal Reserve had hinted they may consider raising interest rates in September and/or December 2016. This came on the back of a better jobs report last…

Ever wonder why the big institutions make billions of Dollars a year trading the stock market? Why great investors like Warren Buffet almost always make great investment choices? Yet the little investor loses over and over again? Sure, part of the reason the big boys make money is because they have better information but a major part of it is also because they are not ruled by emotion. They make logical decisions on when to invest and what to invest in. Surprisingly enough, this does not…

Oil has been in a down trend now since it topped out in early June at $52 per barrel. Now trading at $41.05, oil is starting to get interesting for a near term bounce. I would not suggest holding it for longer periods but a technical bounce will be seen in the price. The key level is $40.00. This will also result in a key gap fill on the $USO (the oil tacking ETF). Patience as it falls, look for this level to make solid money off of.

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The M&A action is insane right now. Almost daily there is a new deal announced, with one company buying another. Today we saw Oracle Corporation (NYSE:ORCL) buying NetSuite Inc (NYSE:N) in a deal worth approximately $9.3 billion. So why are all these buyouts coming over the last month or so? What is going on? Is there that much value in these names or is there something amiss.

Below are the the two main reasons why there are so many buyouts going on.

1.…

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Superconductor Technologies, Inc. (NASDAQ:SCON) is a small cap company that has a history of mega moves. The small cap market right now is red hot and every investor is looking for that next big score. SCON is likely that stock. Trading at lows in an amazing long base of consolidation, this company has just peaked above the 200, 50 and 20 daily moving averages. Volume has been increasing over the last two weeks as well on accumulation. A break above $3.75 sends SCON to $6.25. There is huge…

I have been following spot crude for decades, trading it on occasion when the chart dictates. I called a short on crude oil when it kissed $52 per barrel based on a 100% move off the lows, $50 even number resistance, overly bullish sentiment and a plethera of other technical indicators. I rode it down, profiting nicely, taking my profits at $45.00.

How crazy is it that when crude oil was tradnig below $30 per barrel, analysts were calling for $20 oil. Then when it rallied to $52 per…

Earnings from Sprint Corp (NYSE:S) were at rockstar status today. The stock is surging, trading at $5.79 +1.19 (+25.87%). Big money is watching the gap fill on the chart at $6.20 as a shorting level. Until then, it is not worth stepping in front of this train. Fantastic move but there will be a trade here in the next few days on the short side. See the chart below.

Signup free to Verified Investing to gain access to my live swing trades. You can choose to gain access to any…

Teucrium Corn Fund (NYSEARCA:CORN) is the ETF that tracks the commodity CORN. This jumped on my radar on Friday because of the oversold chart put in a reversal signal known as a bottoming tail. Bottoming tails are candles on the chart that are important when they occur at multi month lows. This is the case on CORN. When this occurs, the odds heavily favor a move to the upside. Note the chart below. Upside is likely to $21.50 in the next month or two.…

The iShares Russell 2000 Index (NYSEARCA:IWM) has a beautiful bull flag on the daily chart. Most investors would look at that and think it is going much higher. However, they could possibly be getting faked out hard. The flag pattern has lasted for nine days with no breakout yet. Once a bull flag has matured it needs to rip higher quickly. If it does not make its move, failure is likely. When a bull flag fails, the resulting opposite move (in this case down) is epic.

How do…

The housing market is hanging on by a thread. The thread that is holding it up? Super low interest rates. This is keeping the real estate market floating but significant weakness in high end housing spells trouble. While many areas across the United States are showing increases in housing prices, this is mostly in middle to low end housing. Once you move north of $1+ million, demand has cratered. Why? The upper income buyers have too many questions about the future of housing in relation to…

The U.S. stock market closed on Friday flat to slightly lower. Institutions kept the lid on the news that was breaking a world away to make sure the stock options they had sold to investors expired worthless, maximizing profits. Options expiration is a multi-million Dollar payoff to institutions, thus important to control.  An attempted miliatary coup in Turkey. The Middle East, a hot bed for terror already, had just blown up again with more violence. Turkey is a…

Inflation Data Surges, Federal Reserve Nervous

This morning saw the Bank of England surprising the financial markets by not lowering interest rates as had been expected. This move is shocking because it goes in the face of all other global central banks and their easy money policy. After Brexit, the Bank of England was in a perfect position to lower rates but chose to stand firm. Could this be a new wave of central bank thought? Is easy money policy not the answer to…

The VIX is slightly higher today even with the big stock market bounce. This is a warning sign that the markets may not hold their gains or we could see some selling in the next few days. Basically, it tells us big money/smart money is buying protection here. This morning the BOE (Bank of England) surprised by not raising interest rates, JPMorgan Chase beat earnings and inflation data showed more inflation than expected. Regardless of the initial bullish move in the markets, be on…

Amazon, Inc. (NASDAQ:AMZN) is putting in the sell signal of the year. This stock has been a one way freight train, but that is about to reverse hard. Take a look at the price action in 2016. The stock is up from $475 per shares to a high yesterday of $757 per share. Just in 2016 that is a gain of almost 60%. The overbought nature of this stock is only a minor part of why it is going to be a huge sell with a target of $600. The main factor has to do with the sell signal seen on the chart in…

The driving force of every stock and market is greed and fear. While many will tell you it is earnings or the economy it is not. Earnings or lack there of, just create the human emotion of greed or fear. Greed drives people to invest their hard earned money irrationally and fear causes a mass exodus based on pure emotion. The best traders and investors in the world use fear and greed to place themselves on the opposite side of the majority. Remember, small investors always lose. They invest…

Fastenal Company (NASDAQ:FAST) reports earnings before the stock market opens on Tuesday July 12th, 2016.. Analysts expect $0.49 earnings per share on $1.02 billion in revenue. So what will the stock do? For that we look at the stock chart.

 Initial analysis reveals that the stock has rallied $42.20 on June 27th to close today at $45.36. Most average investors would view this in a bullish light but smart traders understand that the recent gains can take some power out of a good…

The Non Farm Payrolls Report came in at a whopping 287,000 today. This blew expectations out of the water. Most economists were expecting between 150,000 and 200,000. A strong jobs number puts the Federal Reserve hiking interest rates back on the table for later this year, perhaps post election in December 2016. However, there is some major price action that should really freak investors out.

 The jobs number being stronger than expected should have had the impact of seeing gold and…

The investment world has thrown the baby out with the iPhone. As much as a fan favorite Apple Inc. (NASDAQ:AAPL) was, it is now hated on by nearly every investor. Institutions and investment kings like Carl Icahn have dumped their positions, hundreds-of-millions of shares sold. The stock currently trades at $95.32, +0.33 (+0.34%), down from a 52 week high of near $135.00. This is a whopping 30% fall for a company that sits on an epic cash pile and pays a solid $2+ dividend per year.…

Clean Diesel Technologies, Inc. (NASDAQ:CDTI) may be an under the radar small cap. With a market cap of under $10 million and trading at just $0.40, the facts give a very attractive buying opportunity to tuck away in a portfolio. Let's look at the facts.

1. CDTI is debt free. This is rare for a micro cap stock.

2. CDTI will be profitable in the fourth quarter per their latest conference call. Extremely rare for a micro play.

3. Debt conversion is very attractive…