Since the end of World War II, the United States has been unmatched in its role as a global superpower. No one can dispute the country’s influence shaping the world economically, politically and culturally.   However, in the last several decades, new powers have begun to emerge.  This inherent tension presents a wealth of opportunity for the companies that design and manufacture products for the cash-rich defense industry. Take, for example, the Asia-Pacific region. India, Singapore, South Korea, Vietnam, Mongolia, Laos and the Philippines are all on the rise. As nations grow, they aim for greater power and influence over… Read More

Since the end of World War II, the United States has been unmatched in its role as a global superpower. No one can dispute the country’s influence shaping the world economically, politically and culturally.   However, in the last several decades, new powers have begun to emerge.  This inherent tension presents a wealth of opportunity for the companies that design and manufacture products for the cash-rich defense industry. Take, for example, the Asia-Pacific region. India, Singapore, South Korea, Vietnam, Mongolia, Laos and the Philippines are all on the rise. As nations grow, they aim for greater power and influence over their neighbors. And while many of these nations are trade partners and allies with the U.S., all of these countries share a common concern: China. China — whose GDP has grown 90-fold since 1978 — overtook Japan as the world’s second largest economy in 2010. Despite slowing down in 2014, its economy is expected to grow by 7.4% in 2015, nearly tripling the expected growth of the United States. In 2013, U.S. military spending fell 7.8%, while China’s rose 7.4%. Between 2004 and 2013, China’s military spending grew 170% to $188.5 billion. Wary of China’s growing reach, the United States… Read More

One of my favorite times to trade a stock is just as it’s breaking out of a base. If there is a clear, definable stop-loss nearby, so much the better since my risk is limited.  And when the fundamentals support the bullish technicals, the probability that I have found a successful trade is high. Enter Steelcase (NYSE: SCS), a Michigan-based manufacturer that was founded in 1912. Its first patent was granted in 1914 for a steel, fireproof wastebasket, revolutionary for its time. #-ad_banner-#At first glance, the company looks like a maker of conventional office furniture and related products. Read More

One of my favorite times to trade a stock is just as it’s breaking out of a base. If there is a clear, definable stop-loss nearby, so much the better since my risk is limited.  And when the fundamentals support the bullish technicals, the probability that I have found a successful trade is high. Enter Steelcase (NYSE: SCS), a Michigan-based manufacturer that was founded in 1912. Its first patent was granted in 1914 for a steel, fireproof wastebasket, revolutionary for its time. #-ad_banner-#At first glance, the company looks like a maker of conventional office furniture and related products. It makes ergonomic chairs, tables, bookcases and cabinets. It also provides LED desk lamps and presentation technology such as interactive whiteboards that fuse analog and digital content. Its products are delivered through a network of independent dealers with 650 locations around the world. What differentiates Steelcase from its competition, however, is its emphasis on partnering with academic research institutions to find out how individuals “really work.”   Management believes workplace satisfaction is highly correlated with employee engagement and, thus, productivity. They view their office products not just as “furniture,” but as an attempt to create an environment in which individuals… Read More

As a regular subscriber to all of the leading car magazines, I am delighted to read about the technological advances taking place. Sure the gas mileage of many vehicles keeps rising, and the electrification of propulsion is a clear game-changer, but the most fascinating changes are taking place in every nook and cranny of today’s vehicles. The cars you’ll drive in just a few years will have a range of systems that couldn’t even be dreamt half a decade ago. Many of those changes involve communications and information technologies. How hot is this segment for investors? Well, shares of Harman… Read More

As a regular subscriber to all of the leading car magazines, I am delighted to read about the technological advances taking place. Sure the gas mileage of many vehicles keeps rising, and the electrification of propulsion is a clear game-changer, but the most fascinating changes are taking place in every nook and cranny of today’s vehicles. The cars you’ll drive in just a few years will have a range of systems that couldn’t even be dreamt half a decade ago. Many of those changes involve communications and information technologies. How hot is this segment for investors? Well, shares of Harman International Industries, Inc. (NYSE: HAR) have surged 40% since I profiled the company five months ago. Frankly, this stock may be getting ahead of itself, especially when you consider that the company’s cutting edge infotainment systems will still yield just 10-to-15% annual growth. I still love the investing angle, but am less enamored of this high-flying stock. Perhaps it’s time to broaden the scope with some other auto technology stocks. Here are three on my radar: Mobileye N.V. (NYSE: MBLY) This company, which focuses on vehicle piloting technologies, was one of the hottest initial public offerings of 2014. It… Read More

In recent years, investors increasingly use exchange-traded funds (ETFs) on the short end of their portfolio. Shorting these funds provides an easy way to hedge a portfolio managers’ position in individual stocks. Yet some ETFs with high short interest are simply the target of speculators that are anticipating a big decline for an industry or asset class. When this happens, the short interest can grow to alarming levels. For individual investors that are able to wait out near-term bears and focus on the long-term, it can mean a strong upside when sentiment turns. The Market Loves To Hate Oil… Read More

In recent years, investors increasingly use exchange-traded funds (ETFs) on the short end of their portfolio. Shorting these funds provides an easy way to hedge a portfolio managers’ position in individual stocks. Yet some ETFs with high short interest are simply the target of speculators that are anticipating a big decline for an industry or asset class. When this happens, the short interest can grow to alarming levels. For individual investors that are able to wait out near-term bears and focus on the long-term, it can mean a strong upside when sentiment turns. The Market Loves To Hate Oil As you’d expect, energy-related ETFs are an especially popular target for short sellers these days. In fact, almost every share held in long accounts for the SPDR S&P Oil & Gas Explorers ETF (NYSE: XOP) is also currently borrowed for short seller accounts.   The latest headache for oil prices and oil stocks: fears are growing that U.S. oil storage tanks could reach capacity in April. While Petroleum Administration for Defense District (PADD 1) storage is near capacity at around 85%, total storage is only at 60% capacity. The PADD regions were created during WWII to… Read More

Normally at StreetAuthority, we focus on the “long” side of the market, but today we’re going to spend some time explaining the other side: shorting stocks. If shorting stocks isn’t already part of your profit strategy, then be prepared to expand your horizons… You see, shorting a stock is as easy as going long a stock — once you understand the basics. And because stocks tend to fall much faster than they rise, there’s a chance to make bigger profits in less time. #-ad_banner-#This is especially true with the types of stocks Dr. Thomas Carr regularly highlights in StreetAuthority’s newest… Read More

Normally at StreetAuthority, we focus on the “long” side of the market, but today we’re going to spend some time explaining the other side: shorting stocks. If shorting stocks isn’t already part of your profit strategy, then be prepared to expand your horizons… You see, shorting a stock is as easy as going long a stock — once you understand the basics. And because stocks tend to fall much faster than they rise, there’s a chance to make bigger profits in less time. #-ad_banner-#This is especially true with the types of stocks Dr. Thomas Carr regularly highlights in StreetAuthority’s newest premium newsletter service, Trader’s Edge. Along with his regular long trades, his system pinpoints the top three stocks in any given week that are poised to fall sharply after achieving unsustainable highs. When you think about it, shorting some stocks, while going long on others, can theoretically double your overall returns. But to be fair, this doesn’t come without risks (more on that in a moment). Plus, shorting can provide a substantial hedge during market downturns. How To Short Stocks When investors go long, it means they’re buying shares of a stock in the belief that the… Read More

Dear StreetAuthority readers, Next week, I’m headed to the 2015 Market Technicians Association’s (MTA) Gala Awards Dinner in New York City. The event is hosted by the MTA, a global organization of 4,500 professional investment analysts. I’m going because Amber was awarded the 2015 Charles H. Dow Award. This award was established in 1994 by the MTA to highlight outstanding research in technical analysis. This is an incredible achievement and recognition of Amber’s expertise in the field. As StreetAuthority readers, you’ve likely heard of Amber Hestla or maybe even profited from her research. Her award-winning paper… Read More

Dear StreetAuthority readers, Next week, I’m headed to the 2015 Market Technicians Association’s (MTA) Gala Awards Dinner in New York City. The event is hosted by the MTA, a global organization of 4,500 professional investment analysts. I’m going because Amber was awarded the 2015 Charles H. Dow Award. This award was established in 1994 by the MTA to highlight outstanding research in technical analysis. This is an incredible achievement and recognition of Amber’s expertise in the field. As StreetAuthority readers, you’ve likely heard of Amber Hestla or maybe even profited from her research. Her award-winning paper detailed and tested the strategies she uses to select trades in her premium newsletter, Income Trader. She’s closed 86 straight winners selling put options, but the results of her research can be applied to other trading strategies. So in today’s issue, we’re doing something a little different. Amber will be revealing the results of her research. I hope you find this information — which is not available anywhere else — as extraordinary as I have.  Congratulations, Amber! Frank Bermea  Publisher, Profitable Trading I spend a great… Read More

Public health insurance is a fast-growing business. The number of people enrolled in Medicaid and the Children’s Health Insurance Program has soared 19% to nearly 70 million since the Affordable Care Act (ACA) went into effect in 2013. This group of new enrollees, which represents more than 20% of the U.S. population, qualifies for public health insurance by meeting ACA requirements for annual household incomes that are less than 138% of federally-defined poverty levels (an annual salary of $11,770 for an individual and $24,250 for a family of four). Although highly controversial, the advent of government-sponsored health insurance has been… Read More

Public health insurance is a fast-growing business. The number of people enrolled in Medicaid and the Children’s Health Insurance Program has soared 19% to nearly 70 million since the Affordable Care Act (ACA) went into effect in 2013. This group of new enrollees, which represents more than 20% of the U.S. population, qualifies for public health insurance by meeting ACA requirements for annual household incomes that are less than 138% of federally-defined poverty levels (an annual salary of $11,770 for an individual and $24,250 for a family of four). Although highly controversial, the advent of government-sponsored health insurance has been a boon to firms involved in delivering health benefits. Analysts are especially high on managed care provider Molina Healthcare, Inc. (NYSE: MOH). Molina is not a well-known stock, but is clearly gaining a following these days. Following recent share price gains, investors may think they’ve missed the boat, but that’s not the case. Molina’s focus on providing healthcare to those receiving government assistance makes it a key beneficiary of public healthcare’s rapid expansion and a solid bet to outperform again this year.  Molina’s recent operating trends are quite impressive: the company now insures more than 2.6 million people,… Read More

Whenever you see a stock with a huge short position, you have one of two actions you can take. First, you can pile in with the crowd, as many have done with the high-profile short sale target Herbalife Ltd. (NYSE: HLF).  Or you can buck the tide and go long — if your research suggests the shorts are wrong. If you’re right and they’re wrong, then a massive short covering may push shares sharply higher, even beyond justifiable fair value. The latter is precisely what is happening with software provider Ebix, Inc. (Nasdaq: EBIX), which surged more than 15% last… Read More

Whenever you see a stock with a huge short position, you have one of two actions you can take. First, you can pile in with the crowd, as many have done with the high-profile short sale target Herbalife Ltd. (NYSE: HLF).  Or you can buck the tide and go long — if your research suggests the shorts are wrong. If you’re right and they’re wrong, then a massive short covering may push shares sharply higher, even beyond justifiable fair value. The latter is precisely what is happening with software provider Ebix, Inc. (Nasdaq: EBIX), which surged more than 15% last week on the heels of better-than-expected fourth quarter results. Last summer, I wrote about how Ebix’s growth-through-acquisition strategy created an operational mess, but management was already making progress in streamlining recently-acquired divisions. I figured shares would eventually rise to the mid $20’s, though a short squeeze has pushed it past that mark. Currently, a similar set-up is in place for another heavily-shorted stock: CARBO Ceramics, Inc. (NYSE: CRR). Fully 42% of Carbo’s shares are held by short sellers, equating to roughly 10 days’ worth of trading volume. The stock fell from $156 a year ago to a recent… Read More

There’s a huge disconnect in the market right now… and it has created an even bigger opportunity. So far in 2015, oil prices have plunged 16%. Yet, during that same time period, fuel prices have jumped 6%. History shows we can make a 69% gain in the coming months thanks to this anomaly if you know where to invest. Let me explain… There’s a huge supply of oil in the market. The most recent EIA Petroleum Status Report showed an inventory build of 10.3 million barrels of oil, more than double analysts’ expectations for an increase of four million. As… Read More

There’s a huge disconnect in the market right now… and it has created an even bigger opportunity. So far in 2015, oil prices have plunged 16%. Yet, during that same time period, fuel prices have jumped 6%. History shows we can make a 69% gain in the coming months thanks to this anomaly if you know where to invest. Let me explain… There’s a huge supply of oil in the market. The most recent EIA Petroleum Status Report showed an inventory build of 10.3 million barrels of oil, more than double analysts’ expectations for an increase of four million. As you can see from the chart below, inventories (blue) have not just been growing… they’ve been consistently exceeding expectations (orange line) for most of 2015. Generally, oil producers slow production if they see a glut of supply, but that hasn’t been the case here. With nowhere for the crude to go, storage prices are at a premium, and one of the only ways to move that oil out of storage is for oil prices to fall. Well-respected analysts at both JP Morgan (NYSE: JPM) and Goldman Sachs (NYSE: GS) believe oil is likely to stay below $50 for… Read More

Emotion is the bane of traders. It causes us to act rashly instead of rationally, and typically at times when it’s most costly.  It has been shown that investors are most bullish at or near tops and most bearish at or near capitulation bottoms. Just look at the mania right before the dot-com bubble burst or the despair during early 2009 following the credit crisis meltdown. In both instances, the trend was turning as emotions peaked. #-ad_banner-#There’s only one way I know of to remove emotions from investing: following a rules-based… Read More

Emotion is the bane of traders. It causes us to act rashly instead of rationally, and typically at times when it’s most costly.  It has been shown that investors are most bullish at or near tops and most bearish at or near capitulation bottoms. Just look at the mania right before the dot-com bubble burst or the despair during early 2009 following the credit crisis meltdown. In both instances, the trend was turning as emotions peaked. #-ad_banner-#There’s only one way I know of to remove emotions from investing: following a rules-based system built on a measurable, repeatable process. And the system I follow in my premium newsletter, Alpha Trader, has worked very well for me and my readers. We’ve detailed numerous times how our proprietary indicator, the Alpha Score, goes about selecting stocks poised to make huge runs based on a relative strength (RS) score above 70 and a fundamental trigger. (For more on how the Alpha Score works, you can read this recent article.) But today, I want to talk about how our rules-based system… Read More