Top Advisors Corner

Tom McClellan: Lumber's Message For Interest Rates

The FOMC is now finally allowing interest rates to start moving where the market has already said they should have gone.  The 2-year T-Note Yield is already up to 1.27%, and the Fed is lagging behind in making an adjustment.  I have shown before that this can be a problem, having the Fed lag behind the message from the 2-year T-Note yield. 

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Tom McClellan: Bonds and Gold in Unusual Correlation

Gold prices have shown an unusually strong correlation to bond prices this year.  This is not normal, and the two are not usually marching in lockstep like this. 

The strong correlation began around May 2016.  It may just be a coincidence that May 2016 was when Saudi Arabia started selling off the holdings of T-Bonds from its sovereign wealth fund, an effort to fund their governmental expenditures in an era of low profits on oil sales.  See http://ticdata.treasury.gov/Publish/mfh.txt

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David O. England: Ask the Professor Part II... December 9, 2016

Q. Professor, with the post-election rally, what charts are you watching to signal global opportunities?

A. Last week, I featured my largest Global Economies 2016 Performance chart to identify trading opportunities when the momentum slows.  It identified Brazil as the performance leader while the Italian Index was the laggard.  
Some people emailed and asked how to play the then upcoming news from Italy.  My answer; trade what you see and not what you think will happen.  Since 2002, in my classes and seminars, I have taught thousands of students how to reduce costly mistakes and build financial wealth.  The students that jumped into trades thinking they knew what would happen after an event were the first to blow out an account.  More about this later. 

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Mark S. Young: Wall Street Sentiment-- Fighting the Market

In our last submission, we noted that thanks to our familiarity with the Wall St. Sentiment Survey (available here on StockCharts), we were able to discern a pattern that was closely linked to short-term reversals, and predicted just such a reversal, with the caveat that whatever strength we saw would likely be followed by some more weakness into October. Our insight served us well as we pretty much nailed that pattern.

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Mary Ellen McGonagle: Using Moving Averages to Pick Bottoms in Stocks

In my last post, I mentioned a retail stock that looked to have some nice upside potential.  The company was Five Below (FIVE) and the stock appeared to be reversing a 3 ½ month downtrend after being down 34% from its high in price. 

While my research generally leads me to stocks closer to hitting new highs, FIVE caught my eye because its moving averages were signaling a buy point.  I was also familiar with the stock from a fundamental standpoint and the company was in a growth mode but had sold off with other consumer stocks which had been out of favor with investors.  

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David O. England: Ask the Professor... December 2, 2016

Professor, with the post election rally, what charts are you watching to signal global opportunities?

Great question. Many Global economies have enjoyed a post-US Election rally and may provide trading opportunities when the momentum slows.  One of my favorite charts tracks the seven largest global indexes plus the Indian and Italian Indexes.

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Mary Ellen McGonagle: Pre-Thanksgiving is the New Black Friday Which is Now the New Cyber Monday - (And Lasts a Whole Week). And What About Super Saturday?

Struggling retailers are scrambling to find new ways to get their discounted merchandise in front of consumers. With the holiday season accounting for 20-40% of annual sales, the need to get it right is critical.  Last year was tough for many of these companies as weak holiday sales caused a selloff that was the beginning of a nine-month downtrend.

Many retailers have cleaned things up since then with more streamlined inventory and targeted advertising.  The recently strong Q3 earnings season in this sector shows this and we’ve seen a turnaround in many retailers.  Management at some companies are sounding brighter as well as Nordstrom (JWN) and Target (TGT) among others have recently raised guidance.  

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Gene Inger: The Inger Letter- November 23. 2016

Harvesting gains - on a short-term basis approaches, but isn't quite at that point yet; as I've indicated higher prices every day with pullbacks in context of the uptrend consistently projected (since the Election) to hit S&P 2200 or higher, before Thanksgiving.

This week I called for minor dips getting nowhere and always higher as it evolved. The optimism we expressed both before and after the Vote at the same time we allowed for pullbacks, has been rewarded with what's been a rotational advance that we called based on 'Fun in America'; as we believed not much changed with regard to near-term business; but a lot changed with respect to 'perceptions' of where the Nation's headed. 

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