We tried to rally but fell off as the Dow dropped 10 points on average volume.  The advance/declines were positive.  October trading has ended and we're on to November.  We've got the employment report on Friday and then the US election on Tuesday.  Technically the stock indices are still oversold and I believe that regardless of the numbers, near term we will move higher.  The S&P 500 has gone sideways for 4 days in a row.  Although the summation index is still heading lower, I expect an upside pop in the major averages within the next 2 days.  I could be wrong but I don't think so.  GE was off a nickel on about average volume.  Short term oversold here as well.  Gold moved higher to close out the month.  The futures rose $7.  The US dollar didn't do much today but had been lower when the US markets were closed.  The XAU gained 5 1/2 as it continues to outperform than precious metal.  ABX up 1 1/3, GG added 1 /2 and NEM rose 1 1/4.  Volume was average for the gold shares.  Higher prices were expected in the gold shares and we got them.  I ended up getting some ABX November calls before tomorrows earnings report.  I'm not a big fan of chasing moves but I think that ABX is going to go higher.  I still like the January calls as well if there is some pullback down the road.  Of course I could be mistaken and the stock sells off on the earnings report.  I have a stop loss order in place.  Regardless, it looks like last week was the time to purchase the January calls for ABX.  Mentally I'm feeling a bit tired.  Oversold on the stock indexes and staying there.  That is usually a recipe for disaster but we've only been moving sideways.  Perhaps another day of wait and see before the numbers on Friday.  It's anybodies guess.  Gold moved up today but the gold shares have really been acting well lately.  We'll see if that trend continues.  I'm not sure how long I will hold on to the November ABX calls.  I have a commitment on Friday halfway through the trading day. That will delay the blog posting until Saturday.  I will also be away from my desk for a couple of days next week due to a prior engagement.  The blog might be late or not posted in the middle of the week.  We'll see how ABX reacts to the earnings and go from there.  

A mini-holiday for those not dealing with the wrath of the storm named Sandy.  Wall Street should get back to business tomorrow.  The S&P 500 futures sold off over 10 points yesterday but we are back to being a bit higher.  I do expect some strength in the stock indices before the employment report on Friday.  Gold hasn't done much in the past 2 days.  The US dollar however did have some weakness today.  The gold shares have made some gains over the past 2 days on the Toronto exchange.  I will try and purchase some ABX calls ahead of the earnings that are out early Thursday however the premiums will probably be inflated.  It most likely would have been easier to attempt this trade under normal market conditions but that isn't the case.  It's hard to say what the conditions will be like tomorrow with the end of the month.  Perhaps we'll see some volatility but it's really anybodies guess.  The foreign markets have generally been slightly higher the past 2 days.  So we'll see what happens tomorrow morning and go from there. 

Stock Markets Definitely Closed Tuesday, Wednesday Up in the Air

According to a report from Reuters, both the New York Stock Exchange and NASDAQ will definitely be closed Tuesday. They hope to reopen Wednesday, assuming weather conditions allow.

Track Storm Sandy on the Google Super Storm Sandy Map

Google has a map that allows you to track Sandy, the 'Super Storm'. It can be accessed here. It includes information about the current location, the forecast track, and the 3 day forecast cone, plus it can provide emergency shelters.

Hurricane Sandy: New York City Endures Storm's Wrath, Buildings Damaged

ABC's Chris Cuomo reports the storm in New York City.

URGENT - New York Stock Exchange Under Water!! Will This Be The Financial Collapse Starting?

URGENT - New York Stock Exchange Under Water!! Will This Be The Financial Collapse Starting? Interesting video.

3 Feet of Water at the New York Stock Exchange per NBC

NBC just reported that there is three feet of water at the New York Stock Exchange in New York City. The Exchange was closed today and is expecting to be closed tomorrow.

Used Adult Diapers and Other Weird Sources of Fuel

You may have previously read our article about flywheel stocks, the companies that make battery-free electrical storage devices, such as Active Power Inc. (ACPW) which trades on NASDAQ. We also wrote about stocks that produce power from hot air from the ground, like Calpine Corporation (CPN). Then there is one source of green energy that I didn't include in my book, The Green Light on Green Stocks. It was the body heat used by a Swedish company to heat companies.

Now there is a new source of fuel: dirty adult diapers. Due to Japan's rapidly aging population and its limited landfill sites, the country has been inundated with piles of used dirty adult diapers. Fortunately, a company has come up with a solution. Super Faiths Inc. has created a manufacturing process that processes used adult diapers into solid fuel. This fuel is now being used in a Tokyo hospital.

So what other companies use weird fuel? One company that uses an eclectic group of sources of fuel to produce electricity is Hawaiian Electric Industries (HE), which is one of the leading utilities involved in the use of renewable energy sources for the generation of power. Hawaiian Electric uses sugarcane waste to run its generators along with municipal waste and waves from the ocean. Of course the company uses other less exotic power sources such as wind, solar, photovoltaic, geothermal, and hydroelectric. Earnings for the latest quarter ending June 30 spiked by an incredible 43% on a 7.5% rise in revenues. The stock trades at 15.5 times forward earnings and has a 4.8% yield. The company has scheduled its earnings announcement for November 7.

If you like interesting stock lists like this, check out the many free lists of stocks at WallStreetNewsNetwork.com that can be downloaded.

Disclosure: The author didn't own any of the above at the time the article was written.

By Stockerblog.com

Man Who Claims He Owns Half of Facebook Charged with Fraud

A Wellsvlle, New York businessman who claimed that he was entitled to half ownership of Facebook (FB) has been arrested. He is charged with fabricating and destroying evidence, claiming that he and Mark Zuckerberg signed a two page contract back in 2003.

Are Clothing Stocks Dressed for Success?

With the exception of nudists and streakers, people will always wear clothing. And with the holiday season coming up, investors are taking a closer look at apparel and clothing companies. With consumer confidence the highest it's ever been in the last five years, based on the recent Thomson Reuters/University of Michigan survey, the future may bode well for these stocks.

According to the free list of apparel and clothing stocks at WallStreetNewsNetwork.com, there are over 25 companies in this sector, with ten paying dividends, ranging from 0.2% to 5.5%.

If you like low priced stocks, American Apparel (APP) trades close to a dollar a share. This Los Angeles based vertically integrated company makes and markets branded apparel for women, men, children, and babies, including T-shirts, sweaters, and jackets, and operates over 285 retail stores in 20 countries. It operates the largest garment factory in the United States, with the knitting, dyeing, cutting, sewing, photography, marketing, distribution and design taking place in the company's facilities in Los Angeles.

Total net sales for the quarter ending September 30, 2012, rose by an estimated 15% to $162.6 million, and comparable retail and online sales spiked by an estimated 21%. The company's official earnings announcement is scheduled for November 8.

The stock has an extremely favorable price to sales ratio of 0.21. (Remember, the lower the P/S ratio, the better. Under 1 is good, over 2 is not so good.)

American Apparel is known for its innovative advertising and marketing. As a matter of fact, Ryan Holiday is the director of marketing for the company. He's the author of the book Trust Me, I'm Lying: Confessions of a Media Manipulator, a must read for anyone who ever goes on the Internet, which is basically ... everyone. (I will be publishing a book review about it in the next few days.)

For investors who like income, Columbia Sportswear Company (COLM) pays a CD beating annual yield of 1.6%, with dividends paid quarterly. This Portland, Oregon based company designs and sells outdoor apparel, footwear, and accessories. The company's brands include Columbia, Mountain Hardwear, Sorel, and Montrail. It operates retail stores in the United States, Canada, western Europe, Japan, and Korea.

The stock trades at 19.6 times trailing earnings. Revenues for the latest reported quarter ending September 30 were down slightly, dropping 3.8%. The price sales ratio is 1.07. Annual dividend payouts of $29.8 million are easily covered by an operating cash flow of $95.25 million.

To see a free list of clothing and apparel companies, which can be downloaded and sorted, go to WallStreetNewsNetwork.com.

Disclosure: Author didn't own any of the above at the time the article was written.

By Stockerblog.com

SFO Magazine taken over by TraderPlanet

Those of you who used to read SFO Magazine probably realize that the company stopped publishing in July of this year. SFO has been purchased by TraderPlanet.com. The site publishes several investment articles a day. By the way, SFO stood for 'stocks, futures, options.'

Stocks Going Ex Dividend the Second Week of November

  Here is our latest update on the stock trading technique called 'Buying Dividends'. This is the process of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend. This technique generally works only in bull markets. In flat or choppy markets, you have to be extremely careful, and may need to avoid the technique during those times.

In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can't sell the stock until after the ex date. The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork.com has compiled a downloadable and sortable list of the stocks going ex dividend during the next week or two. The list contains many dividend paying companies, all with market caps over $500 million, and yields over 2%. Here are a few examples showing the stock symbol, the ex-dividend date, the yield, and the market capitalization.

Intel Corporation (INTC)  11/5/2012 4.2% $108.0B

Navios Maritime Partners L.P. (NMM) 11/6/2012 11.6% $932.7M

Highwoods Properties Inc (HIW) 11/7/2012 5.2% $2.5B

Walgreen Company (WAG) 11/7/2012 3.0% $33.3B

Consolidated Edison, Inc. (ED) 11/9/2012 4.0% $17.5B

The additional ex-dividend stocks can be found at wsnn.com. (If you have been to the website before, and the latest link doesn't show up, you may have to empty your cache.) If you like dividend stocks, you should check out the high yield utility stocks and the Monthly Dividend Stocks at WallStreetNewsNetwork.com or WSNN.com.

Dividend definitions:

Declaration date: the day that the company declares that there is going to be an upcoming dividend.

Ex-dividend date: the day on which if you buy the stock, you would not be entitled to that particular dividend; or the first day on which a shareholder can sell the shares and still be entitled to the dividend.

Monthly Dividend Stock List
Record date: the day when you must be on the company's books as a shareholder to receive the dividend. The ex-dividend date is normally set for stocks two business days before the record date.

Payment date: the day on which the dividend payment is actually made, which can be as long at two months after the ex date.

Buying Dividends (Dividend Capture) book 25% Off
Don't forget to reconfirm the ex-dividend date with the company before implementing this technique.

Disclosure: Author did not own any of the above at the time the article was written.

By Stockerblog.com

The stock market tried to sell off today but didn't as the Dow gained a mere 3 points on light volume.  The advance/declines were negative.  We've moved sideways for 3 days and I think we are going higher.  We're still short term oversold.  My gut feeling is that if we were going to continue lower, we would have already.  When the market is in a decent decline, it doesn't hang around for 3 days.  It falls and we haven't, even though there has been plenty of bad earnings lately.  The GDP report was better than expected but this is a number that will be revised a couple of times.  I'm not saying that we will go to new yearly highs but we should rally in the beginning of next week.  GE lost 1/8 on average volume.  Oversold here as well.  No trades in mind at the moment.  The gold futures as well as the US dollar were flat on the day.  The XAU lost 1 3/8.  ABX, GG and NEM all had fractional losses on light volume.  I've left in the open order for the January ABX calls.  The earnings for ABX are due on November 1st.  I believe that I will need to make the purchase ahead of the earnings if GG was any type of indicator.  Mentally I'm feeling a bit tired.  The stock indices have had every reason to fall after Tuesdays drop and they haven't.  That's bullish moving forward.  The summation index is still heading down but that could change with one decent up day.  We should see higher stock prices in the beginning of next week.  The employment report on Friday should be the next major mover.  Gold has been in a downtrend for the month of October.  The gold shares have basically moved sideways in the same time period.  I will be trying to get some ABX calls at a good premium in the beginning of next week.  I would like to go out to January because the weekly chart here shows a potentially bullish head and shoulders pattern.  Potential because it hasn't happened yet and may not.  I may just get the near month for the earnings report but the risk would be much higher.  We'll see.  Plenty to think about over the weekend.  For now it's Friday afternoon and time for a break.

Got somewhat of a bounce today as the Dow gained 26 points on average volume.  The advance/declines were positive.  The day started with a nice rise but then the sellers took over for most of the rest of the day.  We're still short term oversold.  We should move off of the GDP report tomorrow.  Which way is anybodies guess.  GE was flat on the day with average volume.  We have at least stopped going down for now.  No trades for GE in mind at the moment.  Gold gained $11 on the futures and the dollar was a bit higher as well.  The story was in the gold shares as the XAU gained 4 7/8 on a strong earnings report from GG.  ABX and NEM were up a buck, GG soared 2 3/4.  The volume was light though, however you cannot argue with the price movement.  I still have the open order in for the January ABX calls.  Earnings are due for both ABX and NEM on November 1st.  I will probably want to own the calls before then if todays market action in GG is any indication of the future.  Or perhaps I'm too late once again.  Mentally I'm feeling tired, did not sleep well.  The summation index continues lower but there is the possibility that if we rally tomorrow that the decline is over.  That's a guess as usual.  There's still a chance that we could unravel as well.  That is the type of market environment we are in at the moment.  There is no clear picture but we have moved lower lately.  Gold has held the level of $1700 so far and that would be a positive going forward if we can hold up.  I think the gold share calls can still be purchased for ABX.  Perhaps tomorrow if we see some weakness. 

You've Probably Never Seen a Musical Instrument Like This: Incredible!!!

Check out Animusic - Resonant Chamber:

The Dow closed down 25 points today on light volume.  The advance/declines were negative.  The Fed came and went with no real market reaction.  That was anticipated by most of the players.  The stock indices tried to rally today but to no avail.  We are short term oversold so some type of bounce should appear.  But the trend is down and support lines have been violated.  The Dow transportation index was down heavy today.  GDP on Friday and that should be the next market mover.  GE was flat today on average volume.  Oversold here as well.  Gold fell again today, off $7 on the futures.  The US dollar was flat today.  The XAU fell 3 1/8 as near term support appears to have been broken.  ABX down 3/8, GG lost 1 1/2 and NEM fell 1 1/4.  Volume picked up a bit and that isn't positive going forward.  The gold shares look like they're breaking down here on the daily candlestick charts.  ABX has held up better than the rest lately, however that could change at any time.  I still have the open order in for the January calls there but I might adjust it overnight.  Mentally I'm feeling OK.  No buyers lately for stocks.  I don't feel any sense of impending doom here but the summation index continues lower.  Oversold on the stock indexes and that is a condition that needs to change or things could get dicey.  Oversold and staying there is a recipe for downside surprise.  Gold has gotten to $1700 and it really needs to hold on here.  There is some other support at $1675 but I would not like to see that happen.  The market will go where it wants though.  Commodities in general are falling now.  I'll have to ponder the ABX trade tonight and decide what to do.  We'll see if we can mount some type of rally tomorrow.

Stocks Going Ex Dividend the First Week of November

  Here is our latest update on the stock trading technique called 'Buying Dividends'. This is the process of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend. This technique generally works only in bull markets. In flat or choppy markets, you have to be extremely careful, and may need to avoid the technique during those times.

In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can't sell the stock until after the ex date. The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork.com has compiled a downloadable and sortable list of the stocks going ex dividend during the next week or two. The list contains many dividend paying companies, all with market caps over $500 million, and yields over 2%. Here are a few examples showing the stock symbol, the ex-dividend date, the yield, and the market capitalization.

IDACORP Inc (IDA) 11/1/2012 3.4% $2.2B

Itau Unibanco Holding SA ADR (ITUB) 11/1/2012 4.2% $31.2B

Natural Resource Partners LP (NRP) 11/1/2012 9.9% $2.3B

The Southern Company (SO) 11/1/2012 4.2% $40.1B

The additional ex-dividend stocks can be found at wsnn.com. (If you have been to the website before, and the latest link doesn't show up, you may have to empty your cache.) If you like dividend stocks, you should check out the high yield utility stocks and the Monthly Dividend Stocks at WallStreetNewsNetwork.com or WSNN.com.

Dividend definitions:

Declaration date: the day that the company declares that there is going to be an upcoming dividend.

Ex-dividend date: the day on which if you buy the stock, you would not be entitled to that particular dividend; or the first day on which a shareholder can sell the shares and still be entitled to the dividend.

Monthly Dividend Stock List
Record date: the day when you must be on the company's books as a shareholder to receive the dividend. The ex-dividend date is normally set for stocks two business days before the record date.

Payment date: the day on which the dividend payment is actually made, which can be as long at two months after the ex date.

Buying Dividends (Dividend Capture) book 25% Off
Don't forget to reconfirm the ex-dividend date with the company before implementing this technique.

Disclosure: Author did not own any of the above at the time the article was written.

By Stockerblog.com

There was no upside follow through as the Dow fell 243 points on average volume.  The advance/declines were about 3 to 1 negative.  After yesterdays nice comeback, the stock indices just could not hold up.  We are short term oversold here, so a bounce tomorrow would not be out of the question.  The Dow transports actually were higher on the day.  The breadth of the market wasn't so bad either considering the magnitude of the decline.  The summation index continues lower though.  Rising trend lines on many of the stock indices have been broken.  We're heading lower and perhaps sideways is the best we can hope for near term.  GE fell another 3/8 and the volume was good.  This chart has broken down and that doesn't bode well for the overall market.  No trades in mind here.  Gold fell today as well on a stronger US dollar.  The precious metal futures dropped over $15.  The XAU fell 5 2/3.  ABX off 3/8, GG lost 1 1/8 and NEM led the way down, weaker by 1 2/3.  Volume was light.  ABX held up considerably well with todays market sell off.  I still have in an open order for the January calls here but I may have to adjust it to get filled.  The option premiums are staying quite high for the ABX January series, which tells me that this idea may actually work.  We'll see.  Mentally I'm feeling OK.  The tone of the game here has changed.  We are heading lower on the S&P 500, perhaps to 1400 or 1380 in my view.  Anything below that and we could be in big trouble.  I don't see that happening.  Gold is getting close to the $1700 level and it will be important to hold that in my opinion.  Might get there tomorrow.  We've got the Fed tomorrow but there really isn't much to expect from that this time.  I could be wrong.  We'll see how the overseas markets react to todays decline and go from there.

Top Stocks Selling Below Book Value

Book value, in very simple terms, is what the shareholders would receive for each share if the company sold off all its assets today, paid off all its debts, and distributed all the cash on a pro-rata basis. Therefore if you can buy a stock below its book value, you have reduced one element of risk.

An example is the New York Stock Exchange company Thompson Creek Metals Company (TC), a Denver, Colorado based company which is in the mining and marketing of molybdenum. The stock trades at 25% of book value, 15 times trailing earnings, and 10.6 times forward earnings.

Another stock trading way below book is Petrobras Argentina SA (PZE), the Buenos Aires based company involved in the exploration and production of oil and gas. The stock sells at 43% of book value, and trades at 23.4 times trailing earnings. The forward price to earnings ratio is 4.0. Earnings for the latest quarter spiked by 127% on a 13% rise in revenues.

Photronics Inc. (PLAB) manufactures photomasks used in the manufacture of semiconductors and flat panel displays and trades at 55% of book value. The trailing PE is 9 and the forward PE is 7. Earnings for the latest quarter dropped 2.8%.

If you like interesting stock lists like this, check out the many free stock lists at WallStreetNewsNetwork.com.

By Stockerblog.com

Space Shuttle Time Lapse Video

If you haven't seen the official Los Angeles Times Space Shuttle Time Lapse Video yet, check it out. The best part is in the middle of the video when the space shuttle comes within inches of houses and trees. It is less than three minutes long.

The Dow made quite a comeback today as we were down over 100 points and came back to finish up 2.  The advance/declines were slightly negative and the volume was light.  We rallied in the last hour and that is a positive going forward.  We'll see if we can follow through to the upside tomorrow.  I'm not completely sold on the idea that the recent decline is over though.  But it could be as we hover at the 50 day moving average on the Dow.  The summation index continues to the downside.  We've got the Fed to deal with this week and the GDP report on Friday.  GE fell 1/3 on heavy volume.  GE cut it's loss for the day more than half as well.  However the GE daily chart looks like it is breaking down.  If GE is a precursor for the overall market, we'll see lower overall stock prices ahead.  Gold gained a couple of bucks on the futures as the US dollar was pretty much flat on the day.  The XAU rose 2 1/4.  The gold shares continue to outperform.  ABX, GG and NEM all were higher by about 1/2 on light volume.  I'm leaving in the open order for the January ABX calls.  The open interest expanded on the strike prices that I observed on Friday and that's bullish.  I would ideally like to purchase some gold share calls this week on weakness.  May not get the chance but it's early in the week still.  Mentally I'm feeling OK.  It was a nice comeback for the stock indices today.  Follow through seems to me to be more important than usual considering where we are on many indexes.  The over the counter indexes have been weaker and that isn't a good sign for the bulls.  But if the major indices can hold up here, perhaps the decline is actually done.  I'm not exactly sure but my guess would be lower prices this week.  I could be wrong.  Gold is right on it's 50 day moving average.  The chart on the gold shares has been moving sideways for over a month.  I'll be looking for an upside breakout at some point.  Hence, I'd like to own some calls before that happens.  But the markets will do what they please, as always.  We'll see what transpires tomorrow.   

How to Ruin Your Financial Life

How to Ruin Your Financial Life according to Ben Stein:

Want to buy his book? Click: How To Really Ruin Your Financial Life and Portfolio

Stocks Going Ex Dividend the Last Week of October

  Here is our latest update on the stock trading technique called 'Buying Dividends'. This is the process of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend. This technique generally works only in bull markets. In flat or choppy markets, you have to be extremely careful, and may need to avoid the technique during those times.

In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can't sell the stock until after the ex date. The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork.com has compiled a downloadable and sortable list of the stocks going ex dividend during the next week or two. The list contains many dividend paying companies, all with market caps over $500 million, and yields over 2%. Here are a few examples showing the stock symbol, the ex-dividend date, the yield, and the market capitalization.

Boardwalk REIT (BOWFF) 10/29/2012 3.0% $3.1B

ConAgra Foods, Inc. (CAG) 10/29/2012 3.6% $11.2B

DNP Select Income Fund Inc. (DNP) 10/29/2012 7.7% $2.4B

NiSource Inc. (NI) 10/29/2012 3.8% $7.3B

Bank of Montreal (BMO) 10/30/2012 5.0% $38.3B

The additional ex-dividend stocks can be found at wsnn.com. (If you have been to the website before, and the latest link doesn't show up, you may have to empty your cache.) If you like dividend stocks, you should check out the high yield utility stocks and the Monthly Dividend Stocks at WallStreetNewsNetwork.com or WSNN.com.

Dividend definitions:

Declaration date: the day that the company declares that there is going to be an upcoming dividend.

Ex-dividend date: the day on which if you buy the stock, you would not be entitled to that particular dividend; or the first day on which a shareholder can sell the shares and still be entitled to the dividend.

Monthly Dividend Stock List
Record date: the day when you must be on the company's books as a shareholder to receive the dividend. The ex-dividend date is normally set for stocks two business days before the record date.

Payment date: the day on which the dividend payment is actually made, which can be as long at two months after the ex date.

Buying Dividends (Dividend Capture) book 25% Off
Don't forget to reconfirm the ex-dividend date with the company before implementing this technique.

Disclosure: Author did not own any of the above at the time the article was written.

By Stockerblog.com

Do You Know What Flyboarding Is? Check it out

I think I've found my new action sport to participate in, flyboarding. Not sure what it is? Check it out this video:

The Art and Science of Technical Analysis

I am more of a fundamental trader and investor than a technical trader, but I do look at charts, and my limited technical analysis helps me make investing decisions. The book The Art & Science of Technical Analysis: Market Structure, Price Action & Trading Strategies by Adam Grimes is the most complete book of technical analysis I have ever seen.

This 463 page guide covers everything from market cycles to trends to breakouts to risk management. My favorite chapter is Chapter 11 called The Trader's Mind. It goes into great detail about the psychological aspects of trading. The trader's emotions can be their undoing. Check out the subsection called Biases Concerning Losses and see what choice you would make. Would you follow logic? In the same chapter, a long list of what to do if you become too aggressive and out of control, putting you on a losing streak.

The book is filled with charts on almost every page, which gives visual example of the concepts covered in the chapters. The books starts with the basics and moves on to all the advanced trading topics. If you want to develop your own methodology to use in finding trading patterns to become more profitable, I highly recommend The Art & Science of Technical Analysis.

By Stockerblog.com

Economic Fight of the Century: Keynes vs. Hayek: Round Two

John Maynard Keynes versus Friedrich von Hayek

Seniors Losing their Homes with Reverse Mortgages

Reverse mortgages are supposed to provide senior citizens with the security that they can keep their houses for the rest of their lives. However, according to a recent article in the New York Times, this is turning out not to be true. Many of these loans carry pitfalls.

According to the US Government, there are currently 775,000 reverse mortgages in force. Now 9.4 percent of these loans are in default, up from 2% ten years ago. Only four years ago, only 3% of borrowers were taking reverse mortgages as lump sums; now, 70% of reverse mortgages are taken in lump sums.

Buy a Plot of Land for Only $10

Now you can be a land baron for the price of less than a bag of groceries; only ten dollars. The town of Reston, Manitoba, Canada, located close to North Dakota, is offering 13 undeveloped buildable lots for only $10 each.

The one catch is that you have to begin construction within 90 days of purchase. However, the good news is that the town will pay a $6,000 grant to people who have built a new house.

Want more info? Click here.

25 Year Anniversary of Stock Market Crash: Dow Drops 205 NASDAQ Drops 67

Today is the 25th Anniversary of the 1987 stock market crash. Is today a repeat of history. At least today's drop wasn't as bad. The Dow Jones Industrial Average tanked by 205 points or 1.5% and the NASDAQ went down by 67 points or about 2.2%. This is the biggest drop in about four months.

Did anyone read the article from Sunday, October 14, on How to Speculate on a Market Drop Without Options or Shorting? The article described the Daily S&P 500 Bear 3X Shares ETF (SPXS), which was up 5.1% today. The Direxion Daily Energy Bear 3X Shares (ERY) was up 4.5% today.

As for the popular stocks, Google was down 74 points in the last two days due to missing estimates on revenues and a substantial drop in earnings per share. Apple (AAPL) fell over 22 points today. Chipotle Mexican Grill, Inc. (CMG) was off by about 43 points, or 15%.

Disclosure: Author owns AAPL.

By Stockerblog.com

An interesting expiration Friday as the Dow fell 205 points on average volume.  The advance/declines were 3 to 1 negative.  Earnings disappointments were the norm for today.  The S&P 500 is right back to the 50 day moving average and the technicals have rolled over.  It appears that we are going to head lower.  My call for new yearly highs looks like another bad idea on my part.  I expected some weakness next week but not of this magnitude.  The uptrend line that has been in effect since June has been broken and the next support that I see is at around 1420 and then 1400 if that doesn't hold.  Anything could happen but todays action changes the near term tone of the market.  GE fell on its earnings report.  It was down 3/4 on heavy volume.  On the weekly chart here the uptrend line is at $21.50.  That line has been in effect since late 2011.  It is important that we stay above that level on a weekly closing basis or it could spell trouble for the overall markets.  That's my thoughts there at the moment.  Gold fell $20 on the futures as the US dollar was higher on the day.  However the gold shares did not follow as the XAU only lost 1/4.  ABX, GG and NEM were mixed with fractional moves.  The volume here picked up and they closed well off of their lows of the day.  Money sought the gold shares as a safe haven today in my opinion.  I left in the open order for the January ABX calls.  I noticed extremely heavy volume in the January 42 ABX calls today.  If the open interest expands on Monday it would be a positive sign.  The same type of action occurred in the ABX calls prior to the August-September run up.  I'm still a believer in the gold shares moving higher in the medium term future.  I could be wrong and often am.  Mentally I'm feeling OK.  Today was possibly a game changer for the overall stock indices.  The tech shares are leading the way down.  If the bank shares roll over here as well, we will probably be in a longer term decline.  Hasn't happened yet.  The fact that gold sold off today also makes the possibility of asset liquidation look real.  I'm going to try and purchase some gold share calls next week.  That is the game plan as of right now.  I'll be checking all the charts over the weekend to decide the best course of action.  I'll also be watching the financial media to see the reaction to todays sell off.  If the tone is bullish then we are most likely headed lower.  For now it's Friday afternoon and time for a rest. 

Latest News about Warren Buffett

The latest news about Berkshire Hathaway's (BRK-A) (BRK-B) Warren Buffett for the week.

Wells Fargo: These Stocks are Potential Warren Buffett Buys

Buying Opportunity for Warren Buffett's Favorite Banking Stock

Billions of Reasons to Think Like Warren Buffett

What Do Snoop Dogg and Warren Buffett Have in Common?

Berkshire Likes Lee And So Do We

If you want to invest like Warren Buffett, go to the free list of Warren Buffett stocks at WallStreetNewsNetwork.com

A bit lower today as the Dow fell 8 points on good volume.  The advance/declines were slightly negative.  The summation index is heading higher.  The overall market was weaker than the Dow.  Getting short term overbought on the technicals for the stock indices.  That doesn't mean that we can't go higher though.  The NASDAQ had a big dip thanks to Google.  I'm not sure that means anything going forward.  I still think that the presidential re-election rally is in place.  GE was off 1/8 on average volume.  The earnings should be a factor tomorrow.  I have no idea what will happen there.  Todays daily chart candlestick was bearish though.  Gold fell about $8 on the futures as the US dollar was higher.  The XAU fell 5 points and closed practically on its low.  That's bearish going forward.  ABX, GG and NEM all lost a buck or more on what passes for average volume lately.  I dropped the strike price on my open order for the January ABX calls.  I would ideally like to purchase some gold share calls next week.  I believe that we'll see some overall market weakness next week and the gold shares should follow.  I could be wrong.  That is the game plan at the moment.  Mentally I'm feeling a bit tired.  Expiration Friday on tap with a bunch of earnings reports as well.  Perhaps we'll see some volatility.  Otherwise it's a wait and see mode for me at the moment.  I might switch to the December gold share calls but that is something that I'll consider over the weekend.  We'll see what comes out of Europe overnight and go from there.

Stocks Going Ex Dividend the Fifth Week of October

  Here is our latest update on the stock trading technique called 'Buying Dividends'. This is the process of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend. This technique generally works only in bull markets. In flat or choppy markets, you have to be extremely careful, and may need to avoid the technique during those times.

In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can't sell the stock until after the ex date. The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork.com has compiled a downloadable and sortable list of the stocks going ex dividend during the next week or two. The list contains many dividend paying companies, all with market caps over $500 million, and yields over 2%. Here are a few examples showing the stock symbol, the ex-dividend date, the yield, and the market capitalization.

Boardwalk REIT (BOWFF) 10/29/2012 3.0% $3.1B

ConAgra Foods, Inc. (CAG) 10/29/2012 3.6% $11.2B

DNP Select Income Fund Inc. (DNP) 10/29/2012 7.7% $2.4B

NiSource Inc. (NI) 10/29/2012 3.8% $7.3B

Bank of Montreal (BMO) 10/30/2012 5.0% $38.3B

The additional ex-dividend stocks can be found at wsnn.com. (If you have been to the website before, and the latest link doesn't show up, you may have to empty your cache.) If you like dividend stocks, you should check out the high yield utility stocks and the Monthly Dividend Stocks at WallStreetNewsNetwork.com or WSNN.com.

Dividend definitions:

Declaration date: the day that the company declares that there is going to be an upcoming dividend.

Ex-dividend date: the day on which if you buy the stock, you would not be entitled to that particular dividend; or the first day on which a shareholder can sell the shares and still be entitled to the dividend.

Monthly Dividend Stock List
Record date: the day when you must be on the company's books as a shareholder to receive the dividend. The ex-dividend date is normally set for stocks two business days before the record date.

Payment date: the day on which the dividend payment is actually made, which can be as long at two months after the ex date.

Buying Dividends (Dividend Capture) book 25% Off
Don't forget to reconfirm the ex-dividend date with the company before implementing this technique.

Disclosure: Author did not own any of the above at the time the article was written.

By Stockerblog.com

Just hanging around today as the Dow gained 5 points on average volume.  The advance/declines were 2 to 1 positive.  The overall market was stronger than the Dow.  The summation index is heading higher.  The Obama re-election rally lives on.  Look for new yearly highs in the S&P 500 in the next few days.  The positive expiration week bias remains in effect.  No telling how long this uptrend will last but higher is the path of least resistance for now.  GE was up 1/4 on light volume.  A waiting game on the earnings here.  A good number could propel this issue to new yearly highs as well.  Gold gained $6 on the futures as the US dollar was lower again.  The XAU rose 2 1/8.  ABX, GG and NEM all had fractional gains on light volume.  I'm leaving in the January ABX call open order for now.  Mentally I'm feeling OK.  A European summit meeting tomorrow will grab the headlines and could possibly be a market mover.  The market is trending higher regardless.  We could continue to the upside until the US presidential election.  That's a guess as usual.  The gold shares continue to outperform the price of gold itself.  That remains a positive going forward.  We'll  keep an eye on the overseas markets and go from there.     

Expensive Stuff for Billionaires

Have a few extra bucks? Check these out. Maybe some of these would make great gifts.

$315 Nike Sneakers

Two Pound Truffle Sold for $300,000

$1,000,000 for One Penny

$264,000 for a Gun

The $2.5 Million Bra

A Cocktail for $8,824

Continuing higher as the Dow gained 127 points on average volume.  The advance/declines were 3 to 1 positive.  Getting some OEX calls yesterday was the obvious trade that I failed to do.  Once again an opportunity has been wasted because I simply did not want to take the risk.  No risk, no reward in this game.  The summation index could turn back to the upside with todays numbers.  It appears that the stock indices want to rally into the election, which discounts an Obama victory.  2 solid up days are the beginning of a trend, as there are not any apparent sellers so far this week.  GE was flat on the day and the volume wasn't anything special.  Probably just waiting for the earnings on Friday here.  Gold bounced back as the US dollar was weaker today.  The yellow metal futures were up over $10 today.  The XAU gained 3 3/4.  ABX up a buck, GG added 1/2 and NEM led the way higher by 1 1/4.  Volume was light but the price action was positive.  I've left in the open order for the January ABX calls but we may start to rally in the gold shares as well.  The daily candlestick charts look constructive to the upside with todays action.  Perhaps the November calls are in order here.  Mentally I'm feeling a bit tired, could have slept better.  The positive expiration week bias remains as we have gained over 2oo points in the first couple of days this week.  Not taking advantage of that is painful.  But you have to move on.  It looks like new yearly highs for the stock indexes are coming soon.  The gold shares are outdoing the price of gold once again and that is a positive moving forward.  ABX, GG and NEM should follow the overall market higher unless we see some sort of breakdown in gold but I don't see that happening.  Gold is still attracting capital.  We'll see what happens tomorrow after tonights second presidential debate.  That may or may not influence the price action on Wednesday.

We got a bounce today as the Dow gained 95 points on average volume.  The advance/declines were 2 to 1 positive.  Some upside was expected and the next question is whether we can sustain it.  The market did rally in the last hour which is a positive going forward.  We've held the 50 day moving average on the S&P 500 daily charts.  The summation index is still moving down but that could change with another day like today.  There is a school of thought that says that we will rally into the election because of the re-election of Obama.  That could be true.  But we'll stick with the technicals and they are oversold and starting to move up on the stick indices.  So there is room to go higher.  GE was up 1/8 on light volume.  No trades here and the earnings are due on Friday.  Gold fell today as the futures lost over $20, breaking support.  The US dollar was lower as well.  The XAU sold off early but followed the overall market back to finished up 1/4.  The gold shares outperformed gold itself and that bodes well for the gold shares moving forward.  ABX, GG and NEM all had fractional losses on light volume.  I still have the open order in for the January ABX calls.  I'd like to see it filled before the earnings come out on November 1st.  May or may not happen.  Mentally I'm feeling a bit tired, did not sleep well.  The positive expiration week bias looks intact after todays market action.  But we still have the rest of the week to go.  Plenty of earnings being reported this week along with a number of economic reports.  Time will tell if this is the beginning of a new leg up for the stock indexes.  I'm not sure one way or the other but we could rally into the expiration.  After that, we'll have to wait and see.  Gold broke down today on the daily chart.  The technicals are just getting oversold.  The 50 day moving average could act as support and that comes in at around $1710.  I'm still a believer in higher prices going out in time.  But for now it appears that gold is going to take a rest.  I'd still like to get some gold share calls though.  We'll see if the stock indices can follow through to the upside tomorrow.  

How to Speculate on a Market Drop Without Options or Shorting

Investors who may be anticipating an October stock market crash have a few options. One way is to short the market, however, the potential loss is unlimited. Another way is to buy put options. However, these have fast approaching expirations, and if they aren't in-the-money at the time of expiration, it will result in an entire loss of the investment. Plus, for novice investors, options may be difficult to understand.

So what is left? Bearish exchange traded funds, also known as Bearish ETFs. These are investments that have a goal of providing the daily inverse of a stock index. Some of these ETFs have an objective of 100% of the reverse performance, and some can provide a 300% opposite return. These are extremely volatile investments that are designed for short term trades, not long term investments. They achieve their performance through the use of various financial instruments including futures contracts, options, equity caps, collars, floors, swap agreements, short positions, and reverse repurchase agreements.

According to WallStreetNewsNetwork.com, there are over a dozen commonly traded triple bearish ETFs available for investors. One popular one is the Daily S&P 500 Bear 3X Shares ETF (SPXS), which attempts to produce 300% of the inverse of the performance of the S&P 500. In other words, if the S&P 500 drops 2% in one day, the ETF should drop 6%. Of course, if the S&P 500 rises by 2%, the ETF will drop by 6%, a significant loss. So it is worth repeating, there are extremely risky investments.

Investors can be more specific in terms of what sectors will drop, or will drop the most. For example, suppose you think energy stocks will tank. There is the Daily Energy Bear 3X Shares ETF (ERY), which attempts to track 300% of the inverse of the Energy Select Sector Index. Think bank and financial services companies are overpriced and due for a drop? There is the Daily Financial Bear 3X Shares ETF (FAZ).

There is even a triple bearish gold ETF called the Daily Gold Miners Bear 3X Shares ETF (DUST). Take a look at its stock ticker symbol! It's objective is to produce 300% of the opposite of the NYSE Arca Gold Miners Index.

For a free list of the most commonly traded triple bearish ETFs which can be downloaded, go to WallStreetNewsNetwork.com.

Disclosure: Author didn't own any of the above at the time the article was written.

By Stockerblog.com

Latest Weekly News about Warren Buffett

The latest news about Berkshire Hathaway's (BRK-A) (BRK-B) Warren Buffett for the week.

The Controversial Advice That Warren Buffett Uses To Beat The S&P

Kim Kardashian Is 'No Warren Buffett'

Warren Buffett's Wells Fargo Investment Hinges on Bernanke

Warren Buffett's bet on newspapers is black and white (and read all over)

Buffett's Berkshire Hathaway Raises Stake in DaVita to Almost 11%

Warren Buffett's UK Investments

If you want to invest like Warren Buffett, go to the free list of Warren Buffett stocks at WallStreetNewsNetwork.com

Time for a Rebound in Israeli Stocks? Top High Yield Israel Companies

Did you know that the number one country that has more companies listed on the NASDAQ other than the United States and China? It is Israel. They currently have over 85 stocks listed on NASDAQ. If you look at the iShares MSCI Israel Cap Invest Market Index ETF (EIS) and compare it to the S&P 500 over the last twelve months, you will notice that the S&P is up about 20%, yet Israeli stocks are where they were a year ago. Is it time for Israeli companies to catch up?

The ETF does pay a dividend semi-annually yielding 2.7%. In addition, there are plenty of other Israeli stocks that pay dividends. Risk can be reduced by investing in dividend paying stocks by reducing volatility and accelerating your return of capital. According to WallStreetNewsNetwork.com, there are about ten dividend paying Israeli stocks with payouts ranging from 0.3% to over 12%.

Teva Pharmaceutical Industries Ltd. (TEVA) is a developer and producer of generic and branded pharmaceuticals and is the largest generic drug manufacturer in the world. Products include Copaxone for the treatment of multiple sclerosis and Azilect for treatment of Parkinson's disease. Other products include Adderall, Calcitriol, Ciprofloxacin, Diazepam, Nystatin, along with many others. The company has been paying quarterly dividends since 1997 and yields 2.1%. It trades at 11.1 times trailing earnings and 6.8 times forward earnings. Earnings for the latest quarter were up an amazing 49.8% on an 18.6% rise in revenues.

Elbit Systems Ltd. (ESLT), a manufacturer of defense systems and products, pays dividends quarterly and yields 3.5%. The company has been paying dividends since 1997. The stock trades at 8.7 times forward earnings.

Cellcom Israel Ltd. (CEL) is a cellular communications provider in Israeli that yields a very high 11.5%, with dividends having been paid quarterly since 2007. The stock has a price to earnings ratio of 5.9 and a forward P/E ratio of 2.3.

The dividend paying stocks from Israel that trade in the United States can be found in a free list at WallStreetNewsNetwork.com, which can be downloaded, sorted, and updateding.

Disclosure: Author did not own any of the above at the time the article was written.

By Stockerblog.com

Stocks Going Ex Dividend the Fourth Week of October

  Here is our latest update on the stock trading technique called 'Buying Dividends'. This is the process of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend. This technique generally works only in bull markets. In flat or choppy markets, you have to be extremely careful, and may need to avoid the technique during those times.

In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can't sell the stock until after the ex date. The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork.com has compiled a downloadable and sortable list of the stocks going ex dividend during the next week or two. The list contains many dividend paying companies, all with market caps over $500 million, and yields over 2%. Here are a few examples showing the stock symbol, the ex-dividend date, the yield, and the market capitalization.

The Clorox Company (CLX) 10/22/2012 3.6% $9.3B

Putnam Municipal Opportunities Trust (PMO) 10/22/2012 5.1% $563.3M

Putnam Premier Income Trust (PPT) 10/22/2012 6.3% $815.2M

Alpine Total Dynamic Dividend Fund (AOD) 10/22/2012 14.6% $994.6M

Alpine Global Premier Properties Fund (AWP) 10/22/2012 8.2% $787.6M

Royal Bank of Canada (RY) 10/23/2012 4.3% $82.8B

The additional ex-dividend stocks can be found at wsnn.com. (If you have been to the website before, and the latest link doesn't show up, you may have to empty your cache.) If you like dividend stocks, you should check out the high yield utility stocks and the Monthly Dividend Stocks at WallStreetNewsNetwork.com or WSNN.com.

Dividend definitions:

Declaration date: the day that the company declares that there is going to be an upcoming dividend.

Ex-dividend date: the day on which if you buy the stock, you would not be entitled to that particular dividend; or the first day on which a shareholder can sell the shares and still be entitled to the dividend.

Monthly Dividend Stock List
Record date: the day when you must be on the company's books as a shareholder to receive the dividend. The ex-dividend date is normally set for stocks two business days before the record date.

Payment date: the day on which the dividend payment is actually made, which can be as long at two months after the ex date.

Buying Dividends (Dividend Capture) book 25% Off
Don't forget to reconfirm the ex-dividend date with the company before implementing this technique.

Disclosure: Author did not own any of the above at the time the article was written.

By Stockerblog.com

The Most Beautiful McDonald's Restaurant in the World

Do you think sales for McDonald's (MCD) would skyrocket if all the McDonald's restaurants look lie this?

Yes, this is a genuine McDonald's restaurant, built into a mansion called the Denton House built back in 1795. It is located in New Hyde Park, NY.

Photos courtesy of ScoutingNY.com

A Day in the Life of a Financial Advisor

A Day in the Life of a Financial Advisor

Unreleased $100 Bills Stolen at Airport

Brand new hundred dollar bills that have not been released to the public yet were stolen at the Philadelphia International Airport.

These are $100 bills that are designed with special anti-counterfeiting features such as a disappearing Liberty Bill. A large amount of these bills were stolen according to the FBI.

We closed the week with a whimper as the Dow gained just 2 points on pretty light volume.  The advance/declines were almost 2 to 1 negative, the opposite of yesterday.  Summation index heading lower.  The overall market was weaker than the Dow.  Short term oversold and a bounce is overdue.  The S&P 500 is trying to hold its 50 day moving average on a daily basis.  The Dow as well is trying to hold on here but it has broken the uptrend line that began in June.  The over the counter markets remain above their uptrend lines.  It's a mixed bag but we are oversold and expiration week is coming up with its usual upside bias.  GE was flat and the volume was light.  It's possible that we are trying to put in a short term bottom here at around 22.50.  Gold was weaker on the day as the futures fell over $10.  The US dollar was weaker as well.  The XAU dropped 3 3/8.  ABX off 7/8, GG lost 2/3 and NEM down 3/8.  Volume was very light.  I canceled the open order for the November ABX calls and left in the order for the ABX January calls.  I may try the November calls again next week.  Earnings for ABX are due on November 1st.  Mentally I'm feeling a bit tired, could have slept better.  The weekly chart for the S&P 500 now has a bearish engulfing candlestick and the technicals have rolled over.  Perhaps we'll see some more weakness next week but I do believe that we will see some type of bounce first.  I could be wrong and often am.  I'm choosing not to take any risk there for now though.  I could change my mind over the weekend.  I still like gold for higher prices going forward but if the overall market falls here, the gold shares will probably follow.  I don't have any problem going out to January with the options.  But like anything else, it's just a guess.  I'm willing to take the chance here though.  The gold share weekly candlestick charts look bearish here as well, with the exception of NEM.  I'll have to double check the charts over the weekend.  For now it's Friday afternoon and time for a break.

We tried to hold onto the gains made early today but could not.  The Dow lost 18 points on average volume.  The advance/declines were 2 to 1 positive though.  Short term oversold and a bounce is coming.  The indices were mixed today.  I'd expect some type of rally attempt tomorrow into early next week.  We are still right at the uptrend line for the S&P 500 and I expect it to hold for now in the short term.  But if it doesn't, the game will have changed.  Hasn't happened yet.  GE had a slight gain and the volume was very light.  No trades here for now.  Gold was up $5 on the futures as the US dollar lost some ground today.  The XAU gained 7/8.  ABX and GG had fractional losses, while NEM was up 1/2.  Volume remains light here.  I adjusted down the price for the November ABX calls again.  I also placed an open order in for some January ABX calls.  I am now thinking that October could be a consolidation month for the gold shares.  That's a guess as usual.  Mentally I'm feeling OK.  6 days to go in the October option cycle.  If I had the guts, I'd be willing to try the OEX calls tomorrow on any weakness.  The problem there is that if we break the uptrend line in the S&P 500, we'll be heading lower rather quickly.  The summation index is heading lower as well so I'm not willing to take the risk.  Gold is still meandering around here.  I'll keep an eye on Europe overnight and take it from there.

How to Stop Spam Phone Calls on your Cell Phone

Scammers have been making phone calls claiming to represent the National Do Not Call Registry. The calls claim to provide an opportunity to sign up for the Registry. These calls are not coming from the Registry or the Federal Trade Commission, and you should not respond to these calls. To add your number to the Registry you can call 888-382-1222 from the phone you wish to register, or go click on “Register a Phone Number” at DoNotCall.gov.

Your registration will not expire. Telephone numbers placed on the National Do Not Call Registry will remain on it permanently due to the Do-Not-Call Improvement Act of 2007, which became law in February 2008. Read more about it at http://www.ftc.gov/opa/2008/04/dncfyi.shtm.

The National Do Not Call Registry gives you a choice about whether to receive telemarketing calls at home. Most telemarketers should not call your number once it has been on the registry for 31 days. If they do, you can file a complaint at the DoNotCall.gov. You can register your home or mobile phone for free.

We are right at the point of ending the months long rally as the Dow fell 128 points on light volume.  The advance/declines were negative.  The S&P 500 is sitting on the uptrend line that began in June.  The summation index continues lower.  On the plus side, we haven't broken down yet.  We are also short term oversold.  Plus the advance/declines for today were not as bad as a down 128 point market.  The overall market was stronger than the Dow as well.  But we are at a point in time where things might change and we have to be aware of that.  GE was off 1/4 on light volume.  It looks like we are rolling over here and that would not be bullish for the overall stock indices.  Gold was flat on the day as was the US dollar.  Waiting on a meeting in Europe tomorrow is my guess.  The XAU gained 1 1/3.  ABX, GG and NEM were mixed with slight moves one way or the other on light volume.  I left in the open order for the November ABX calls after adjusting the price lower.  I am also looking at going out to the January calls here.  ABX is trying to hold the $40 level and a break of that should take us to the 50 day moving average at the $38.5 level.  That may actually be the spot to get long.  All just theory there.  I remain a longer term believer in higher prices for gold and the gold shares.  Mentally I'm feeling a bit tired, did not sleep well.  Just as today was important, tomorrow is even more so.  We probably should bounce but after that it could get dicey.  What I'm saying is that being careful here would not be a bad idea.  That said, the decline could also be done and now we rally to new yearly highs.  Take your pick but I think we'll know pretty soon what is going to happen.  Gold is still holding up pretty good for now as the US dollar is at an important juncture as well.  Any strength in the dollar will break through a down trend line that has been in effect since late July.  It is something to keep an eye on with respect to gold and the stock indexes as well.  We'll see what tomorrow brings.

Weakness today as the Dow fell 110 points on light volume.  The advance/declines were 3 to 1 negative.  The summation index will be back to heading lower.  We closed almost on the low of the day for the S&P 500 and that isn't exactly bullish.  A decline in the early part of this week was expected.  The uptrend line from June comes in at around 1435.  We need to hold on there or the game will be changed.  Haven't broken it yet but beware if we do.  1435 would be a logical spot to get some calls if you were so inclined.  I've had a bullish stance on the overall market for a while but the technicals have rolled over.  I'm on the sidelines with regards to the OEX as the time to buy the puts there has probably already passed.  GE fell 1/3 on average volume.  The same story here as the technicals are heading south.  No trades here for me now.  Gold fell $10 on the futures as the US dollar had a good day.  The XAU dropped 4 points.  We've got the technical rollover here as well.  ABX off 7/8, GG fell 1 1/2 and NEM down 1 1/4.  Volume remained light.  I adjusted down the strike price for the November ABX call order.  I will have to ponder this trade tonight because if the overall market starts to fall here, the gold shares will most likely follow suit.  Mentally I'm feeling OK.  Important session tomorrow for the stock indices in my opinion.  We're not overbought or oversold at this juncture, so anything is possible.  I'd like to see the rally continue but that doesn't mean that it will.  So we'll see what happens.  I'm still a believer for higher gold prices in the future.  However this market can get moving pretty fast one way or the other at times.  If we break down from these levels it could get ugly pretty fast.  Again, hasn't happened yet and I'm still ready to try the gold share calls here.  Perhaps going further out to January is a possible trade.  I'll consider that tonight as well.  We'll watch how the foreign markets react to todays US stock index action and go from there.  

Latest Weekly News About Warren Buffett

The latest news about Berkshire Hathaway's (BRK-A) (BRK-B) Warren Buffett for the week.

Knowing the real value of Warren Buffett

BerkshireInsurance.com to enter life insurance biz soon

Buffett Rule Act

Street Smart: Optimists, pessimists and Warren Buffett

Warren Buffett's Berkshire Hathaway's Biggest Investments: CNBC

Roll Up, Roll Up... Warren Buffett Never Had an Edge...

Lynch & Buffett Strategies Winning North of the Border

If you want to invest like Warren Buffett, go to the free list of Warren Buffett stocks at WallStreetNewsNetwork.com

It was a semi-holiday today as the bond market was closed for Columbus Day.  The Dow fell 26 points on extremely light volume.  The advance/declines were negative.  I expect a bit of weakness in the early part of this week.  After that, who knows?  Not a lot of economic data out this week.  The trend is still up.  GE fell almost 1/4 on the same very light volume.  We're still overbought on GE, so there is room to head lower near term.  That doesn't mean that will happen but the technicals won't remain overbought forever.  Gold lost $5 on the futures as the US dollar was a bit higher.  The XAU fell 1 1/2.  ABX, GG and NEM all had fractional losses on the very light volume.  Still moving sideways here.  I did place an open order for some ABX November calls.  This will be my next trade if it gets filled.  This is the idea for now but that could change going forward.  Mentally I'm feeling OK.  I'm still a believer in new yearly highs for the S&P 500 going forward.  We've been moving sideways for 3 weeks.  No uptrend lines have been broken.  Earnings season is upon us.  Gold is moving sideways as well.  If and when we get through 1800 should signal the next up leg.  Patience is required for now.

3D Printers Featured at Maker Faire: How about 3D Printer Stocks?

3D printers have come a long way. They first came about during the 1980's, but they were large and clunky, and the products they produced were limited. Now you can print everything from cars to bikinis to houses. The 3D printers were recently featured at the Maker Faire in New York where advancements in this technology were demonstrated.

There are several companies that have jumped on the 3D printing bandwagon, both from a software and hardware standpoint. According to WallStreetNewsNetwork.com, there are ten 3D printing stocks in the 3D printing arena.

Let's start with an overlooked area of 3D printers, the software. After all, you need a way to run these printers. Autodesk, Inc. (ADSK) makes 3D software for many different industries, everything from entertainment to architecture to manufacturing. The stock trades at 26.5 times trailing earnings and a forward price to earnings ratio of 15. Earnings for the latest reported quarter were down 9.3% on a 4.1% increase in revenues. The company has no debt, and has $1.5 billion dollars in the bank, amounting to 6.31 per share in cash. It does not currently pay a dividend.

In regards to hardware, there is Stratasys, Inc. (SSYS), which produces three-dimensional printers, rapid prototyping systems, and related consumable materials. This Minnesota based company was founded in 1989. Although the latest quarterly earnings dropped by 24.4%, revenues increased 30.7%. This is another debt free company which has $51 million in cash. The stock trades at 70 times trailing earnings and 38.5 times forward earnings.

3D Systems Corporation (DDD), a Rock Hill, South Carolina based company, makes and sells 3D printers and related products, including the Cubify.com 3D @home experience and the Kinect-to-print app powered by Geomagic. 3D Systems was founded in 1986. The stock trades at 62 times current earnings and 26 times forward earnings. Earnings for the latest quarter dropped by 37.8%, yet the company had a 51.7% rise in sales. The company has $158.5 million in cash and approximately $140 million in debt.

For a free list of the companies involved in 3D printing, which can be downloaded, sorted, and updated, go to WallStreetNewsNetwork.com.

Disclosure: Author owns ADSK and DDD.

By Stockerblog.com

You might also want to check out the following video on how houses can be built in just 20 hours with a 3D printer.

Will Halloween Stocks Be Tricks or Treats for Your Portfolio?

Now that it's October, it is time to load up on candy, buy your costume for the upcoming parties, and decide on the scary movies you want to watch at the end of the month. It's also time to look for stocks that may benefit from Halloween.

Candy companies benefit the most from Halloween. Hershey Foods (HSY) is the large chocolate and confectionery company which is known for its Hershey Bars. The stock sports a trailing P/E ratio of 24, forward P/E ratio of 20, and pays a decent yield of 2.1%. Latest quarterly earnings were reported up 4.4% on a 6.1% rise in revenues.

Tootsie Roll Industries (TR) makes all kinds of candy for trick-or-treaters including Tootsie Rolls, Tootsie Roll Pops, Caramel Apple Pops, Charms, Blow-Pops, Blue Razz, Zip-A-Dee Pops, Cella's, Mason Dots, Mason Crows, Junior Mint, Charleston Chew, Sugar Daddys, and Sugar Babies. The stock has a P/E ratio of 36 and a yield of 1.2%. Quarterly earnings spiked 15.8% on a 3.1% boost in sales.

Netflix (NFLX) may be the primary beneficiary of the demand for horror films. The company has a significant number of scary motion pictures available for your viewing pleasure. The stock trades at 38 times trailing earnings and 73 times forward earnings. Quarterly revenues were up 12.8%, but earnings tanked by 91%. The company has 14.65 per share in cash. The stock does not pay a dividend.

The leading producer and distributor of scary movies is Lions Gate Entertainment (LGF). The company has made has made such films as American Psycho, Ginger Snaps, Route 666, The Devil's Rejects, House of the Dead 2, Saw VI, See No Evil, The Evil Woods, My Bloody Valentine 3D and many others. The company has a forward price to earnings ratio of 12, with revenues rising by over 80% for the latest quarter versus the same quarter last year.

If you like interesting stock lists, such as casino stocks, cloud computing stocks, birth control stocks, coffee stocks, and China stocks, check out WallStreetNewsNetwork.com.

Disclosure: Author did not own any of the above at the time the article was written.

By Stockerblog.com

Are You Smart Enough to Buy For-Profit Education Stocks?

With the Department of Education tightening up on rules relating to for-profit education companies and the recession, the publicly stocks of private education companies have been severely beaten down. As an example, Apollo Group (APOL), the company that owns the University of Phoenix and other educational institutions, has tanked by over 45% year to date. Another player in the for-profit education field is Strayer Education (STRA), which has had a stock price drop of over 31% since the beginning of the year.

Apparently there are plenty of for-profit education stocks. According to WallStreetNewsNetwork.com, there are over 35 education companies that own private colleges, universities, and other educational institutions, with about a quarter of them paying dividends. Also, it is interesting to note that about a third of these stocks are of companies based in China.

Let's take a look at Apollo and Strayer. Apollo trades at a very favorable seven times trailing earnings, and nine times forward earnings. Earnings for the latest quarter were down around 39% on an 8.5% drop in revenues. The stock has 5.31 in cash per share and does not pay a dividend. The company has scheduled its earnings announcement for the latest quarter for the middle of October.

Strayer is one of the education stocks that pays a dividend, and a healthy one at that at 6.3%. Dividends have been increased in nine out of the last ten years. The stock trades at nine times trailing earnings and 11.5 times forward earnings. Earnings for the latest quarter were down 28.5% on a 10.7% drop in revenues. The company has over 90 campuses in Alabama, Arkansas, Delaware, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Maryland, Mississippi, New Jersey, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, West Virginia, Wisconsin, and Washington.

DeVry, Inc. (DV) is another education stock that has suffered a huge drop, falling by 38% year to date. The stock trades at 11.4 times trailing earnings and 10.8 times future earnings. It pays a yield of 1.3%.

Are these stocks ripe for a year-end tax-selling bounce? Are they possibilities for a long term investment? Maybe you you take a closer look at these and a few of the other for-profit education companies. A free list of these companies can be found at WallStreetNewsNetwork.com, which can be downloaded, updated, and sorted.

Disclosure: Author didn't own any of these stocks at the time the article was written.

By Stockerblog.com

A mixed market once again as the Dow gained 35 points while the overall stock indices were weaker.  The advance/declines were positive and the volume was light.  We rallied on a better employment percentage number early in the day and then sold off for the remainder of the session.  There was a huge drop in the rate of unemployment but by now we all know that these numbers are byproducts of government.  The group in power would like to remain so and an election is imminent.  As traders we only care how things affect the market, regardless of the party in the White House.  The fact that the rally could not sustain itself could be a negative in the short term.  The summation index was higher yesterday but not by much.  The stock indexes are approaching short term overbought.  GE was up 1/8 on light volume.  GE is saying that the rally here still has legs.  I can't argue with that yet.  Gold fell $15 on the futures and the US dollar closed the day about unchanged.  The XAU dropped 2 points.  ABX and NEM had slight fractional losses, while GG was unchanged.  Volume was very light.  I'll be looking at the gold shares closely over the weekend to try and come up with some type of game plan for next week and beyond.  I'm still a believer in higher prices for the precious metal shares.  Mentally I'm feeling OK.  Todays market action does not look positive going forward in the short term.  We could not hold the early gains.  Of course that could all change on Monday but I really don't think that it will.  I could be wrong.  I'll be checking the charts closely over the weekend.  2 weeks to go in the October option cycle.  Gold had a slight sell off today but the fundamentals remain in place.  We've been overbought here for quite a long time and perhaps it is finally time for gold to take an extended rest.  We've been moving sideways for 3 weeks.  I'm not exactly sure here and will ponder this over the weekend.  For now it's Friday afternoon and time for a break. 

Book Review: Investment Philosophies

The book, Investment Philosophies: Successful Strategies and the Investors Who Made Them Work, by Aswath Damodaran, is a very comprehensive 600 page guide to investing. The books covers all aspects of stock and bond investing, starting with the very basics of understanding financial statements, valuing companies, comprehending the concept of risk.

Damodaran then delves deeper into the more complex areas of the investment arena, covering such areas of utilizing arbitrage and timing the market. He provides extensive coverage of technical analysis, including charting and identifying price action patterns. One of the most interesting chapters is Information Pays: Trading on News. It discusses trading on public information and private information.

If you are looking for investment strategies and the background information that goes along with these philosophies, you should read Investment Philosophies: Successful Strategies and the Investors Who Made Them Work.

By Stockerblog.com

Would You Pay to Buy Tap Water on the Streets of New York?

Here's an innovative start-up business idea. Sell tap water on the streets of New York City. Of course the company providing this innovative product, the Molecule Project, dispenses the water through a very high quality filtering machine. Will this company give the water utilities a run for their money? Probably not, as these utilities have been doing very well, with many increasing their dividends over the last few months.

According to the free list of high yield water utility stocks at WallStreetNewsNetwork.com, American States Water (AWR), which was founded in 1929, distributes water in 75 communities in California. It trades at 17.7 times forward earnings and pays a decent yield of 3.2%. In August, the company boosted its dividends by an incredible 26.7%. Earnings for the latest quarter were down 5.5%, but revenues were up 4.1%.

Aqua America (WTR) distributes water to customers in Pennsylvania, Texas, North Carolina, Ohio, Illinois, New Jersey, New York, Florida, Indiana, Virginia, Maine, and Georgia. The stock has a forward price to earnings ratio of 20.9, and yields 2.7%. The company has raised its dividends every year since 1988 and has numerous stock splits during that time. Earnings for the latest quarter were up over 10% on an 11% increase in revenues.

Connecticut Water Service (CTWS) trades at 24 times earnings and yields 3.1%. Earnings were up a substantial 20% on a significant 23% boost in revenues. The company, which was founded in 1956, serves customers in 55 towns in Connecticut. The company recently raised its dividend by 2% in August.

For a free list of high yield water utility stocks, go to WallStreetNewsNetwork.com.

Disclosure: Author didn't own any of the above at the time the article was written.

By Stockerblog.com