Stocks & Bonds

4 Prevalent Investor Biases And How To Manage Them

If you had to analyze every decision you make on a given day, you probably wouldn’t get much done. You might not even make it to work. Once awake, analyzing whether you should brush your teeth first, then shower then shave or change the order would surely slow down your…

Merck’s Stock Jumps Over 5 Percent On Keytruda Trial Results

Merck (MRK) jumps over 5% Shares of Merck (MRK) rose after positive results on trials of its Keytruda lung cancer drug. This stock move has produced a large bullish candle that appears to confirm the multi-week reversal off the November lows. Question now becomes, “can active investors expect further upside?” See…

S&P 500 Weekly Outlook: Market Cycles Point To A Pullback

The stock market has been “off to the races” to start 2018, as the S&P 500 is testing the 2800 price level. Stock prices continue to stretch higher. Let’s discuss what’s happening and what stock market cycles are telling us here. S&P 500 Summary and Market Cycle Outlook: The S&P…

Interface (TILE): Strong Combination of Fundamentals and Technicals

Interface Inc (TILE) Interface is a $1.54B maker of modular carpet for commercial and residential markets trading 19X Earnings, 1.59X Sales and 41.83X FCF with a 1% dividend yield. Interface’s stock (TILE) has been a relatively lower revenue growth name for the past few years but expecting 2018 and 2019…

Stock Market Futures Trading Update: Watch Those Divergences!

Market Outlook for January 16, 2018  The S&P 500 and broad market indices are seeing some bullish continuation after the long holiday weekend. However, there is some technical divergence playing out. Buying on pullbacks provides the least risk today. Note that you can access today’s economic calendar with a full rundown of releases….

Market Update: Consumer Staples (XLP) / NYSE Composite Ratio

The last time we blogged about this important ratio, we highlighted an important juncture for the market’s next move. While the targeted price level did yield support for a minor bounce, the overall market did not pay attention at all and the continued ‘risk-on’ institutional appetite continued. This latest advance…

Is CAPE Valuation Indicator Portending Bad Things For Stocks?

In this week’s market video, we analyze Shiller’s PE, or the Cyclically Adjusted Price Earnings Ratio (CAPE). Stock valuation measures are generally poor indicators for market timing.  Just take a look at a chart of the standard Price to Earnings ratio.   Standard Price to Earnings (PE) Ratio Chart So how…

Stock Market Weekend Update: Near-Term Concerns Bubble Up

The market has been very strong to start 2018 but there are a few near-term concerns bubbling up. Investor sentiment has become overheated, the broader stock market is overbought, and the Russell 2000 and small cap stocks are still lagging. Key Takeaways: Small-caps are trending higher and making new highs,…

Utilities Sector ETF (XLU) Looks Ready To Bounce

The Utilities Sector ETF (XLU) has been in a pretty good correction over the past several weeks. Could that be coming to an end?  At least from a short-term trading perspective? Looking at the chart below, you can see that the Utilities ETF (XLU) is holding above its 61.8% Fibonacci…

Russell 2000 Spotlight: Small Cap Stocks Outperforming

The Russell 2000 and small (and micro) cap stocks have been outperforming of late. This pick up in near-term strength bodes well for small caps over the coming week, but it should be noted that the broader indices like the S&P 500 and Dow Jones Industrial Average are nearing exhaustion….