Analyst Articles

While no developed nation came out of the Great Recession unscathed, some did emerge in a far better position than other major developed countries. One of those is our neighbor to the north… Canada. In fact, I think Canada is one of the single… Read More

Would you rather have a 60% or a 100% return on an investment? The obvious answer is 100%. But this answer ignores an important factor: How long will this investment take to reach this amazing return? That’s exactly what’s happening with financial services stocks… Read More

When a company misses earnings or lowers their revenue forecasts, the stock price tends to fall. Some traders invariably “buy the dip,” meaning that they buy after a decline thinking the pullback in price is simply a blip in the longer-term uptrend. This rarely works, and usually the first bit of bad news is followed by more bad news and even lower prices. Netflix (Nasdaq: NFLX) is an example of how bad news can impact a stock’s price.   NFLX sits over 80% below its all-time high more… Read More

When a company misses earnings or lowers their revenue forecasts, the stock price tends to fall. Some traders invariably “buy the dip,” meaning that they buy after a decline thinking the pullback in price is simply a blip in the longer-term uptrend. This rarely works, and usually the first bit of bad news is followed by more bad news and even lower prices. Netflix (Nasdaq: NFLX) is an example of how bad news can impact a stock’s price.   NFLX sits over 80% below its all-time high more than a year after the bad news started to flow. While hopeful buyers averaged down, the stock fell for months before it became oversold. Oversold is shown in the chart with the stochastics indicator. That indicator works well to show how markets reach extreme levels and tend to stay there for extended periods of time. This insight sets up a trade now in another former high-flyer, O’Reilly Automotive (Nasdaq: ORLY). ORLY was a market leader after the March 2009 bottom in stocks, soaring… Read More

It started out as an experiment. It wound up being one of the greatest investment discoveries we’ve ever found. About two years ago, StreetAuthority co-founder Paul Tracy approached me with an idea. He wanted me to build a portfolio of dividend stocks that would pay out… Read More

The recent decade-long-plus highs in technology stocks have left out some old standbys that need to tweak and reinvent their business plan. Hewlett-Packard (NYSE: HPQ) has dropped from highs near $50 in 2011 to trade at the lowest levels since 2004. The three-month trading channel shown on the chart below… Read More