Home Sales Data Rebounds

Existing Home Sales Rebound, and Could Have Been Even Better If… Last month, when November's pace of existing home sales fell to a multi-year low of 4.76 million, investors were understandably worried a brewing collapse in the housing market was a sign of an economic recession, which in turn would lead to a bear market for stocks. Those worries were...

Housing Starts And Building Permits Remain In Uptrends

Housing Starts & Building Permits Better Than Headlines Imply Yes, December's housing starts and building permits were down… from November's annualized pace. There's a proverbial "rest of the story" though. That is, November's permits were impressively and abnormally strong, and November's starts weren't too shabby either. And, both data sets remain in long-term uptrends. The specifics: The annualized pace of...

The Timeless CANSLIM Method For Stock Screening

William O'Neil's CANSLIM Method The CANSLIM approach to stock-picking was developed by William J. O’Neil, the founder of market-oriented publication Investors Business Daily. Designed primarily to find undervalued growth stocks, this multi-faceted strategy is simply the strict use of seven criteria; "CANSLIM" is an acronym for those seven rules. C: Current earnings performance.  Is the company in question doing well...

What Are Bollinger Bands and How Are They Used?

The Basics Of Bollinger Bands Bollinger Bands are a technical analysis tool that envelop a chart of a stock or an index as a means of defining a plausible volatility boundary for the instrument in question.  Plotted above and below the chart of the index or stock in question, Bollinger Bands are more responsive than a moving average envelope, but...

Earnings Growth By Sector & Market Fundamentals

Q4 Earnings Season Outlook It's here again… earnings season. Alcoa (AA) kicked things off on Monday evening, posting mixed results. That is, the per-share income of four cents it earned topped estimates of two cents per share, though last quarter's revenue of $5.25 billion fell roughly $40 million short of expectations. Regardless of Alcoa's numbers, the advent of earnings season...

Overall, Jobs Report Was Healthy

Unemployment Rate May Have Bottomed, But Job Growth is Still in the Cards Last month's job growth wasn't enough to push the official unemployment rate any lower than the reading of 5.0% it's been hovering at since October, but the 292,000 new jobs added in December was the second best month all year (and second only to the 307,000 newly-created...

Economy: Service & Manufacturing Jobs Picture Differ Greatly

U.S. Service Industries Confidence, Job Growth Differs from U.S. Manufacturing Business Call it a tale of two cities. Service-related business in the United States are doing well, and the nation's businesses know it. Conversely, factories are struggling, and the nation knows that too. Both sides of that coin will need to do well if the economy — and the stock...

Using Option Equity Collars On Stock Positions

Equity Collars An equity collar is the simultaneous use of two simple and commonly-used equity option trades as  means of defending against a loss on an existing stock position. It's called a collar because, though an equity collar trade using options can limit the potential downside of a stock holding, it also limits the potential upside of an existing stock...

Consumer Confidence Is Back On The Mend, But Not Soaring

Consumer Confidence Back on the Mend, But Not Yet Soaring Again It's still a bit soon to say the ongoing improvement in consumer confidence is back in place, but at least it can be said that the developing downtrend in consumer confidence has been quelled. That's the message delivered by December's consumer confidence score from the Conference Board anyway, which...

Head & Shoulders Pattern In Technical Analysis Charting

Technical Analysis: Head & Shoulders Pattern The head & shoulders pattern occasionally found on some stock and index charts can and often does suggest a trade-worthy move is underway. They can be bearish as well as bullish, and have a strong success rate compared to some other technical analysis tools. A head & shoulders signal is called such due to its...
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