Contributors

Using the Relative Strength Index (RSI) and Covered Calls to Preserve Long Term Capital Gains

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One of the tools I regularly use to preserve gains and especially long-term capital gains is writing covered calls on positions that I think can do down in the near term. Technical analysis is a great tool to predict short-term price movements.  Take the example of Crown Castle Internationa. Crown Castle is a real estate investment trust and provider of shared communications infrastructure in the United States. Its network includes over 40,000 cell towers and nearly 80,000 route miles of fiber supporting small cells and fiber solutions. Wikipedia CCI has got most of the ingredients we want for a low-risk equity … Read more

In the Belly of the Beast by Howie Bick on Vornado Realty Trust $VNO

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Analyzing VNO: Vornado Realty Trust Vornado Realty Trust is one of the biggest players in New York City Real Estate there is. Whether we’re talking about office, residential, or retail, they are one of the powerful and impactful players in the NYC Real Estate game. Between some of their developments, and purchases, they control some of the most valuable and high-profile properties scattered around New York City. Led by Steve Roth, the companies are one of the many high profile, high flying New York Real Estate Behemoths. Portfolio: A lot of the Vornado Realty Trust portfolio comprises office buildings, or … Read more

$BZH Beazer Homes Why Buy a Home When You Can Buy the Builder below its Cost

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Our ten point analysis on Beazer Homes Ticker: BZH Chart- Beazer home stock is continuing to go down. The 52-week high price was at 23.24 and the 52-week low has been at 12.19. The average volume (10-day trade) is around 228.45K with shares outstanding being 32.18M Score: 0 Analyst- There are about 6 analyst that cover Beazer Homes. About 3 are saying to hold, 1 says sell, and 2 says it is underperforming. Until we start to see a consistent stock price and at least a couple of analysis say buy, I would hold. Score: 0 Insiders- Last February, the … Read more

Stocks are Tapering Themselves – Barrons.com

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  By MICHAEL KAHN | MORE ARTICLES BY AUTHOR The Dow Jones Industrial Average is coming off its worst week of the year and now, for the second time in 2013, it is trading below its important 50-day moving average. Even without any fancy indicators, it is not difficult to surmise that something has changed in the stock market. Now is not the time for taking big risks. Not only has the blue chip index dipped below its 50-day average, but it is the first major index to fall below its rising trendline from the market’s 2012 low (see Chart 1). That … Read more

| The Exchange – Yahoo! Finance

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Finance Week Ahead: Earnings Season Kicks Off By Rebecca Stropoli | The Exchange – Fri, Apr 5, 2013 8:39 PM EDT   What a difference a few days makes: On Tuesday the S&P 500 was a mere three points away from busting past its all-time intraday high, set in 2007. Now the index has closed its worst weekly performance so far this year, with a highly disappointing March jobs report putting a damper on investor sentiment on Friday. While Wall Street pared much of its early losses by market close (as Breakout’s Matt Nesto had predicted here), all three major indices still … Read more

U.S. Moves F-22 Jets to South Korea – WSJ.com

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U.S. Ups Its Show of Force in Korea By JULIAN E. BARNES Agence France-Presse/Getty Images The U.S. sent F-22 fighters like this one to South Korea for exercises. The U.S. flew F-22 stealth fighter jets to South Korea Sunday for joint exercises, a further demonstration of advanced military capabilities meant to deter provocations from Pyongyang. The deployment comes amid an intensifying back-and-forth between Pyongyang and Washington, with North Korea issuing ever-more-pointed threats and the U.S. responding with its own tough language and displays of sophisticated hardware. via U.S. Moves F-22 Jets to South Korea – WSJ.com.

Non-correlated returns

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As the market creeps higher and higher, the chances of sharp pullbacks increase.  At this time, I’m looking for non-correlated returns.  Risk arbitrage is one place where you may find them.  Take this excellent analysis from David Merkel author of the The Aleph Blog » Blog Archive » On Merger Arbitrage. ” Merger arbitrage is a lot like credit analysis.  Analyze why the deal might not go through.  Your upside is capped, but your downside is unlimited. Only work with binding commitments.  Do not speculate on “letters of intent.” Do not speculate on mergers that the media cooks up. Merger arbitrage … Read more

The Aleph Blog » Blog Archive » Wall Street Hates You

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Wall Street Hates YouI have a saying, “Don’t buy what someone wants to sell you. Buy what you have researched.”And so I would tell everyone: don’t give brokers discretion over you accounts, and don’t let them convince you to buy unusual bonds, or obscure securities of any sort.  By unusual bonds, I mean structured notes, and eminent men like Joshua Brown and Larry Swedroe encourage the same thing: Don’t buy them. via The Aleph Blog » Blog Archive » Wall Street Hates You.

Reading the Markets: Bulkowski, Visual Guide to Chart Patterns

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Bulkowski, Visual Guide to Chart Patterns In general, the Bloomberg visual guides are a conceptual stretch, but Thomas N. Bulkowski’s Visual Guide to Chart Patterns (Wiley/Bloomberg, 2013) is an obvious exception. Charts are by definition visual. Bulkowski’s books on chart patterns and their statistical characteristics are classics. So why yet another book? First, the Bloomberg visual guides are in color. Second, Bulkowski has updated his statistics through 2011, so we can see how trading off of chart patterns might have performed over a more extended period of time. via Reading the Markets: Bulkowski, Visual Guide to Chart Patterns.

Pension Pulse: The End Is Here?

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FRIDAY, DECEMBER 28, 2012 The End Is Here? Noah Barkin of Reuters reports, Euro doomsayers adjust predictions after 2012 apocalypse averted: Back in May, as the euro zone veered deeper into crisis, Nobel Prize-winning economist Paul Krugman penned one of his gloomiest columns about the single currency, a piece in the New York Times entitled “Apocalypse Fairly Soon”. “Suddenly, it has become easy to see how the euro — that grand, flawed experiment in monetary union without political union — could come apart at the seams,” Krugman wrote. “We’re not talking about a distant prospect, either. Things could fall apart … Read more

| Live Trading News

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Recently, a friend and advisor to me who is a medical professional asked me if I had looked into any of the publicly traded marijuana opportunities.  I hadn’t but am starting to do that now.   US President Obama says federal authorities should not target recreational marijuana use in 2 Western states that voted to make it legal, given limited government resources and growing public acceptance of the controlled substance. Mr. Obama’s first comments on the issue come weeks after Washington State and Colorado voters supported legalizing cannabis last month in ballot measures that stand in direct opposition of federal … Read more

The Aleph Blog » Blog Archive » How Warren Buffett is Different from Most Investors, Part 1

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How Warren Buffett is Different from Most Investors, Part 1There was an academic article published recently on the investing of Warren Buffett.  Afterward, I thought I saw a few articles reflecting on it, but here is the only one I see now: There’s Warren Buffett — and then there’s the rest of us.Buffett is different, because he grew as an investor and as a businessman, and usually made the right moves over a 50+ year career.  When you don’t have a lot of assets, and few people are doing value investing, you can do amazing things with special situations, and being … Read more

| Live Trading News

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  Economist Shayne Heffernan has identified the state of the European Economy, rising debt in the USA and a Global rise in unemployment as a reason to re-evaluate portfolio holdings and in many cases, it is time to sell. While many are trying to talk the market up, the reality is the economy has not seen improvement significant enough to reflect the growth seen on the US markets. As Warren Buffett has said, “be fearful when others are greedy and to be greedy only when others are fearful.” via Shayne Heffernan Says It’s Time to Sell | Live Trading News.

Tracking Top Funds Activity: Q2 2012

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SATURDAY, AUGUST 18, 2012 Tracking Top Funds Activity: Q2 2012 Earlier this week, wrote a comment on setting your sights on Soroswhere I briefly discussed what some top hedge funds bought and sold in Q2 2012. Will dedicate this weekend to take an in-depth look at how top funds positioned themselves during the second quarter. Before I proceed, please remember the three sacred rules of 13-F filings: Never buy or sell any stock based solely on 13-F filings. Never buy or sell any stock based solely on 13-F filings. Never buy or sell any stock based solely on 13-F filings. Got … Read more

Time to Give Funds of Funds Another Go?

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Guest Post By: Leo Kolivakis Harriett Agnew of Dow Jones Financial news reports, It’s time consultants gave funds of funds another go: Funds of hedge funds has become a dirty term since the financial crisis. The industry has struggled to shake off the mistakes of 2008: investments in funds of convicted fraudster Bernard Madoff, liquidity mismatches and underperformance. Memories of funds of funds forced to sell their best investments to stay afloat remain painful. But those who dismiss funds of hedge funds as a spent force are overlooking a far more pressing issue: the problems presented by the rapidly rising power of … Read more

An ETF To Capitalize on Growth in Regional Banks

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Guest Post By: Benjamin Shepherd Thus far, 2012 has been a great year for the money center banks; shares of Goldman Sachs (NYSE: GS) and JPMorgan Chase (NYSE: JPM) have all gained more than 30 percent year to date. Solid balance sheets, growing profits and a strengthening domestic economy have underscored the fact that, thanks to aggressive intervention by government and banking authorities at the peak of the financial crisis, American banks are now the strongest in the world. According to the Federal Deposit Insurance Corporation’s (FDIC) most recent quarterly assessment of the banking industry, the sector posted its tenth … Read more

| Live Trading News: Economic and Investment Research

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Apple was up a thumping 15 points today.  The market is increasingly look like the stock chart of Apple.  It’s not surprising that Apple is winning the mobile advertising game, the fastest growing online ad market. Apple Inc. (NASDAQ:AAPL) Dominates Mobile Ad Space InMobi, the largest independent mobile ad network, released its Mobile Insights Report: North American Edition, February 2012. This comprehensive report is based on data from InMobi’s global network. via Apple Inc. (NASDAQ:AAPL) Dominates Mobile Ad Space | Live Trading News: Economic and Investment Research.

Pension Pulse: Hidden Burden of Ultra-Low Interest Rates?

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Guest Post By: Leo Kolivakis via Pension Pulse: Hidden Burden of Ultra-Low Interest Rates?.   Matthew Philips and Dakin Campbell of Bloomberg report, Banks Join Pensions in Squeeze as Federal Reserve’s Low Rates Erode Profit:   The Federal Reserve, which cut its target for the federal funds rate to a zero-to-0.25 percent range on Dec. 16, 2008, said last month that rates would remain “exceptionally low” at least through late 2014. While the unprecedented period of near-zero rates is meant to aid an ailing economy, it poses challenges for banks, insurers, pension funds, and savers. The hope is that by making mortgages and … Read more

Differentiating Between An Irrational Market Or Strong Bull Market Trend?

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Guest post by: Kirk Differentiating Between An Irrational Market Or Strong Bull Market Trend? These past two weeks have been tough as an options trader. Differentiating between trading an a possibly irrational market or bull market trend is sometimes very difficult to assess. We all know that the stock market can push us to extremes and then, just when we “give up” and “give in” the turn happens. Timing is really everything. Blow-off Top or Pull-Back? Most traders I talk to are in one of two schools of thought right now. Either you think this is the best shorting opportunity for the … Read more

Hedge Fund Performance in 2011 Not All Lemons

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Hedge Fund Performance in 2011 Not All Lemons Chase Coleman Hedge fund may have had a tough year, on average – Amid political uncertainty, the debt-ceiling debate in Congress and mounting fears of a European financial crisis, the Eurekahedge index, which measures average returns, dropped 4.1 percent for the year – but that is just an average. For every hedge fund that lost over 50%, like John Paulson’s Paulson & Co., there is another one that had returns in the upper double digits. Chase Coleman’s Tiger Global Management had a stellar year, posting a 45% gain through mid-December, reports Barrons. Carl Icahn … Read more

Six Reasons to Avoid Japan In 2012

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Guest post: Ron Rowland One of the best ways to make money in ETFs is to not lose money.  I know it sounds obvious, but I can assure you that many people don’t get this key point.  So if I can help you do that, then I count it as a success.  And today I’ll talk about an ETF category I think you should avoid in 2012: Japan. What’s Wrong with Japan? I’ve been to Japan many times.  I love the country and the people.  Yet I have to tell you that now is not the time to invest in … Read more

Ranadivé and Maney, The Two-Second Advantage

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Ranadivé and Maney, The Two-Second Advantage by Brenda Jubin The Two-Second Advantage: How We Succeed by Anticipating the Future—Just Enough (Crown Business, 2011) by Vivek Ranadivé and Kevin Maney explores how our brains predict future patterns and what this might mean for predictive software technology. Here I’ll limit myself to a couple of insights about our predictive abilities. Yes, you may have read most of this before, but it bears repeating. The hero of the book is Wayne Gretzky, the 170-pound “weakling” who developed “an exquisite hockey brain.” I assume you know the famous line: “he doesn’t skate to where … Read more

Businomics Blog: Banks More Willing to Lend

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Banks More Willing to Lend The latest data from the Federal Reserve Survey of Senior Loan Officers show that banks continue to loosen their credit standards and narrow their interest rate spreads on commercial and industrial loans. The chart shows the percentage of banks that say they are tightening minus the percentage that say they are easing credit standards. Thus the negative numbers we’ve seen lately indicate more easing than tightening. There is no way to gauge the magnitude of the tightening/easing actions, just the number making a change in a given direction. via Businomics Blog: Banks More Willing to … Read more

Pension Pulse: State of Injustice?

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TUESDAY, OCTOBER 25, 2011 State of Injustice? Ekathimerini reports, EU deal will need a big majority: A new bailout for Greece, currently being hammered out by European Union leaders as part of a broader rescue package for the bloc, will need a qualified majority of at least 180 in Greece’s 300-seat Parliament, Finance Minister Evangelos Venizelos suggested on Monday after telephoning opposition party leaders from Brussels to brief them on the progress of talks at an EU summit. Asked by reporters late on Monday whether the government would seek a qualified majority when the rescue package reached in Brussels is … Read more

|| Equities, Forex, Gold, Silver and Oil Trading

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Coal Miners a Must Own HKG:1088, NYSE:YZC, ASX:GCL Banpu, China Shenhua Energy Company Limited, HKG:1088, Yanzhou Coal Mining Co. (ADR), NYSE:YZC, Gloucester Coal Limited , ASX:GCL Utility companies in Indonesia, China and India are building more power plants that use thermal coal to satisfy the increasing demand for power in the region, which will in turn help keep coal prices high. President Susilo Bambang Yudhoyono announced in March that unrefined coal exports would be banned from 2014, leading to what some observers have described as the “Indonesian coal rush.” via Coal Miners a Must Own HKG:1088, NYSE:YZC, ASX:GCL | Live … Read more

Occupy Wall St, the start of a new protest era?

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(Reuters) – When Paul Friedman met the rag-tag youth camped out near Wall Street to protest inequality in the American economy, he felt he was witnessing the start of a protest movement not seen in America since the 1960s. And Friedman should know. The 64-year-old was a student organizer during the anti-Vietnam War movement, protesting from 1964 for 11 years until the war ended. He also joined Civil Rights actions against racial segregation in America. On Wednesday, as thousands of union workers marched to show solidarity with the movement called Occupy Wall Street, he walked shoulder-to-shoulder with dreadlocked college dropouts, unemployed … Read more

Businomics Blog: How Are Consumers Able to Keep Spending?

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How Are Consumers Able to Keep Spending? Yep, consumers continue not only to spend, but to increase their spending in most months. Here’s the latest data: Over the past 12 months, total consumer spending has increased 4.5 percent. I hear people say that consumers are maxed out on credit, no longer can dip into housing equity, and don’t have jobs. So how can they spend? Keep in mind, first of all, that our 9.1 percent unemployment rate works out to a 90.1 percent employment rate. Double check my math if you like. via Businomics Blog: How Are Consumers Able to … Read more

5 Questions To Ask Yourself Before Making Impulsive Trades – Option Alpha

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Questions To Ask Yourself Before Making Impulsive Trades Posted In Blog | Add Your 2 Cents If you’re new here, you may want to subscribe to our RSS feed or follow us on Twitter and Facebook. Either way, thanks for checking us out! There is no secret sauce to control your trading psychology on ever single trade – but you can get better at it over time. More often than not it’s the impulsive trades that become destructive to our portfolio. You know the trades we make on a whim and hope with no more than 15 seconds of analysis. … Read more

China Will Back the EU

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China Will Back the EU China pledges unconditional support to EU in debt crisis China’s support for the European Union in coping with its debt crisis is unconditional, Shen Danyang, spokesperson for the Ministry of Commerce (MOC), said Tuesday. “China has set no preconditions for offering help to others. We only hope that we can gain respect when treating others sincerely,” Shen said at a regular news briefing. Shen said that the EU not recognizing China’s status as a Market Economy and China providing support to the debt-hit EU are inherently different issues. via China Will Back the EU | … Read more