System Signals Silver Sale (SLV,GLD,XAU,TSLA,GM,MSFT)

There are all sorts of trading systems out there.   Some old-timers swear by the Graham and Dodd fundamental model, that tells you to buy them when P/E ratios and dividend yields are sparkling and dump them once the ratios are no longer competitive.   Others will tell you that’s balderdash, and only technical analysis can produce for you winning trades over the long haul.   There are those who swear by cycle analysis, point and Figure charting and Elliott wave theory.  Some adhere exclusively to Dow Theory. And still more go in for Gann triangles and Fibonacci retracements.  And believe it or not, some have even made consistent money trading the interplanetary orbitals of…

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Trading Basics (TSLA,MSFT,OLN)

We’ve had several readers contact us over the years to ask how it is we stick so fiercely to the same set of technical tools to obtain our read of the markets.  And the answer is simple.   Our reliance on a set of four moving averages, volume, RSI and MACD have everything to do with the fact that, after almost twenty-five years of toying and testing every possible indicator available, these ones actually work consistently. Now, that’s not to say that other tools won’t work, or that we don’t occasionally rummage through the technical toolbox to confirm what the above named indicators are telling us.  No, no.   Indeed, we look to a variety…

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Don’t Miss the Boat (MSFT,TSLA,GLD,FB,FXI)

With the biggest turnaround in the stock market in 80 years now upon us, the greatest danger facing investors is no longer being invested in equities – it’s rather missing out on what could BE a profoundly successful investing year.   That’s right, despite Wall Street’s worst start to a year ever, the major indexes have now sprung back into the black for 2016, and that has folks looking over their shoulders, wondering if it behooves them to do like their neighbors and colleagues and get back into the investment saddle. We just can’t go out anymore…   Now, whether the turnaround is due to the latest round of earnings, which were far better than…

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Insiders Buying (FAS,BAC,MSFT,QQQ)

The world is on the edge. The market senses it. The political class makes hay of it. The news media luxuriates in it. And the average guy on the street just stares into the headlights, frozen, unsure when impact will occur.   One would think that the reaction here in the U.S. of A. would be one of outright panic. After all, we are the world’s leading consumers of news and politics, the ones who imbibe daily wars in the Middle East, the dreaded actions of the Fed (and other central banks), the rancor of an elbows-only political rush to become president. We hear it and see it and breathe it daily, non-stop, and whaddaya…

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Call a Freakin’ Doctor! (NFLX,FB,TYL,MSFT)

Just a few reminders…   Back in the fall of 2008, when the indexes were almost at their bear market lows, and the situation looked as dire as it’s ever been, we saw an unprecedented government intervention and knew immediately that the markets would be buoyed and eventually lifted to new highs.   We repeated our claim numerous times in the months that followed, and those who heeded the call when the market was off nearly 50% from its peak are today sitting in the lap of luxury, not owing a penny in debt, howling like the pack of mother-stuffing money badgers that they are!   And today, we’ve come full circle.   We’re now…

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Microsoft Jumps – Sell Microsoft! (MSFT,QQQ)

Anyone paying attention to markets last week certainly saw the incredible action on Microsoft stock (NASDAQ:MSFT). It was Friday, the company had just announced a noteworthy earnings beat ($0.62 instead of the expected $0.52), and the stock never looked back. It gapped higher at the open and closed up $4.53 on the day (10.45%), for one of the company’s best sessions ever. Revenues, too, beat estimates, coming in at $21.73 billion for the quarter, versus an expected $21.06 billion. Take a look – The jump can be attributed to a number of factors, among which a re-focus toward cloud software sales, which have been doubling for the last seven quarters straight, may be the most…

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New home sales up, Ford (NYSE:F) reports drop in profits and Microsoft (MSFT) announces strong quarter

Markets were headed slightly higher on Friday after it was reported that new home sales in the U.S. hit a six-year high in September. The Commerce Department announced that home sales were up 0.2% to a seasonally adjusted rate of 467,000 units. A reading of this level has not been recorded since July 2008. They also reported that August’s data was downwardly revised to show 466,000 units from the previously reported 504,000 units. Despite the large gain, the reading still missed analysts’ expectations of 470,000 units. New home sales have an 8% affect on the overall housing market. When compared with sales from last year, September’s reading was up 17%. Gennadiy Goldberg, an economist at…

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Buy the Chinese Chicken Dealer (YUM, INTC, MSFT, QQQ, XHB, IBB)

We’ve got a great deal to report this week, so buckle up and get ready to roll. We’ll start with a trade that we’re not so pleased with. It was set on June 16th in a letter called Homage to the Aged, a letter that attempted to convince you that the old-line tech stocks were where it’s at, and that concentrating on these issues over the short term would pay off handsomely. And as it turns out, we were right – even though the trade didn’t work out. As fellow Normandy analyst Matt McAbby pointed out last Thursday, it’s the big names that have thrived on the NASDAQ Composite, while the greater number of her…

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To the Risky Go the Spoils (IBB, MSFT, INTC)

A number of you have written or called recently regarding our open pairs trade of June 16th, that matched tech giants Microsoft (NASDAQ:MSFT) and Intel (NASDAQ:INTC). The reason for your worry, apparently, was that Intel bucked our initial negative assessment, continuing to rise even as we claimed that her top was already in. And there, we can make no argument. A fact is a fact and a rise is a rise. But we have to add that MSFT, too, has risen beyond our initial prognostications, meaning the (paper) loss on the trade is still minimal, and judging by the relative technical merits of the two, we believe it’s premature to initiate any kind of repair…

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Homage to the Aged (MSFT, CSCO, INTC, ORCL)

We’re not so big on popular culture as we once were. Movies and music used to be our lifeblood back in high school and college. Today, we’re more apt to agree with that highbrow critic who opined nearly twenty-five years ago that the “movies are just dog-sh*t. Can’t be bothered to go. As for music, we don’t listen anymore, though we still hold a soft spot for some of the older balladeers, among who we count Bob Dylan and Gordon Lightfoot to be among the cream. And it’s precisely to these two songsters that we make reference today, as we turn our attention back to our current market predicament. Why these two? Because Bob Dylan’s…

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