Sunday, December 30, 2012

Stock of The Week

Here is your Alleyway Investing Stock of the Week!

For our stock of the week we chose, Celgene Corporation! Celgene is a great biopharmaceutical company to own in 2013. Alleyway Investing recommends biotech stocks and pharmaceutical companies as a big sector to invest in; especially in 2013. Celgene is one of the leading companies in this sector and can really out perform the NASDAQ next year and hopefully can be fiscal-cliff proof in the beginning of 2013. 

Stocks Weekly Forecast

          This is more of a week in Washington then it is for the markets. Congress needs to act as soon as possible to hammer out some sort of a deal in order for the economy to keep growing, keep taxes at a lower rate, and keep the market afloat. If no deal gets in place, the market will tank, taxes will be hiked and the economy will stall. This is what we have on tab for this week in the market.

Your stocks weekly forecast

- The market last year took a big hit, especially Friday, as we came to no new news in Washington over concerns of the fiscal cliff. Republicans and Democrats have been in a grid lock for weeks, and it seems that the market has been teeter tottering back and forth in the last couple of weeks. The closer we get to a deadline without a deal, the further the market goes down. Last week the markets fell. The Dow lost 1.5% and got hit the hardest out of the S&P and the NASDAQ

- Since the markets got hit last week expect it to be even worse if Washington does not get a deal done. Have no fear, Alleyway Investing is doing a quick research into fiscal cliff proof stocks for 2013, and we will be listing our watch list for 2013 very soon.

- With New Years coming up, the week will be thankfully shortened for the markets, Tuesday the markets will be closed for New Years. 

- Many economic data comes out this week, including jobless claims, factory orders, construction spending, and more. This data which would have jumped the markets if a deal was in place, will do little change to the markets as the fiscal cliff seems to be the main target.

- With Finish Line and Family Dollar Stores's earnings coming out this week, there really isn't to much to be said about the earnings this week. It will have little effect with the ginormous fiscal cliff cloud over the market. 

       So what should you do? With this fiscal cliff talk that has been going on for months coming to a dramatic climax, how does this hurt your investments? And with more budget issues ahead what should we expect with the markets in 2013? These are all questions to take into consideration when investing in the new year. The market could teeter totter and probably get some of its gains chipped way in the beginning months of the year. We suggest to start selling your gains of the year this week with the markets getting drilled on the fiscal cliff crisis. Tomorrow being the last trading day of the year, seems to be a good idea to sell them then, of course it depends on the stocks that you own since they may still be worth owning. But, this week seems to be in a dark shadow even with economic reports coming out. So if no deal gets done, the markets will get drilled, if a miracle does happen then maybe 2013 will be filled with wonders and joy ... and gains! Keep your eyes peeled and invest at you own risk.   

Friday, December 28, 2012

Stock Picks For 2013

       As many investors clear out their watch list and sell their gains and losses for 2012, it's time to look forward. The technology sector had its ups and downs, going with certain trends of the year, while Apple ended the year on a disappointing fall. Still Apple remains a stock to watch in 2013. The energy sector fell as economic data grew and gas prices fell, a sign of a recovering economy. But how much will it recover? The fiscal cliff holds the keys to the success or failure of the markets in the beginning of next year. January looks to be a dim month with the gridlock in Washington. And even if a deal gets done how big of a deal will it be? Is it enough to make such an impact on the markets for the long run? The retailers were let down with a less than expected holiday season, and that may hurt the high end retailers. How much will Americans cut back on in 2013? With so many questions in sight for next year we have sorted it all out for you.
        The technology sector has always been something to bank on in recent years and with such a trendy market and wanting buyers will it keep it's hot streak? The answer will be yes but what stocks should you buy? Apple seemed to dominate the market with its line of dominate and trendy devices, but many companies have cut into their market share. Microsoft, Google, Samsung, Motorola, and others have all cut into the smartphone and tablet markets. Making it tougher for Apple to pile up such enormous profit. Moving jobs to America might help the economy a little bit but then work costs will rise, making it even tougher for Apple to make a profit. So then what do you bank on? Well Apple might be coming out with their TV which is sure to attract customers, but at what price? How successful can it be? If you want to bank on a tech stock in 2013 you might want to go with companies that can dominate their market. Intel has dominated the chip market, but will it be able to turn around in 2013? Intel is down almost 30% year to date and with less demand for computers and laptops its future is in question. But with a 4% yield on its dividend I wouldn't count it out just yet for 2013. It has one of the highest dividends for a tech stock in the market. That attracts investors,  plus if it can turn some more revenue in 2013 it might be a good pick. Cisco also should make a huge comeback. Cisco is developing a cloud system for its technology services and has been spending tons of money marketing on it. If it makes those expectations it will be huge for the stock. Google might be a good stock in 2013 because of its new smartphone coming out, as well as Google Fiber growing.  The technology sector in general can see growth in 2013, but choose wisely in it since their is stocks that could go wrong.
       Depending on how the fiscal cliff situation goes the financial sector could also have a big 2013. The fiscal cliff seems to be an iron wall preventing the markets from reaching their potential. If we do go over the cliff (which looks likely now) the markets could have a real shakeup and may not be able to get over consistent gains. The beginning of 2013 could be a rough start if the we do go over the cliff. Although if the markets do break that iron wall, the financial sector which showed good signs in 2012, could have even bigger strides in 2013. Citigroup and Bank of America seem to lead the charge and look to continue their big runs in 2013. Although depending on how bad the fiscal cliff hurts us in 2013, the financial sector could feel it too.
       Retailers which saw a weak holiday season in 2012 will look to rebound in 2013, although the fiscal cliff will crush the retailers and high end shops. Investing in the retail sector is still not a terrible idea. You have to do your research and be smart enough to pick the right stocks in order gain. High end retailers will get hit in 2013 if the fiscal cliff is as bad as we think. Our fiscal cliff proof stocks would have to be Dollar General and Target. Shops that target middle income to lower income customers that will attract them to these stores if we do go over the cliff and their taxes get hiked. Also we believe that the biotech sector could have a good year with Obama's medicare plans, it shouldn't be effected too much on the fiscal cliff.
       2013 will surely hold some questions and scratch some heads, but depending on how we fix this spending, budget, and taxes all might not be bad. We can still grow our economy if we get this deal done. Although if we don't, markets could feel it. The beginning of 2013 could be rough if we go over the fiscal cliff. It'll effect consumers all the way to the job reports, and small business. Keep your eyes peeled and if we get a deal done, the stocks will grow! If we don't this might be an interesting year.

Tuesday, December 25, 2012

How To Invest Long Term

      First of all happy holidays from Alleyway Investing! Long term investing seems to be a popular strategy by most investors to get ahead and save for their kids colleges or retirement. Alleyway Investing specializes in short term investing, although we do have long term options for you.
     Long term investing can be from 1 year investments to years of investments. Maybe never sold. Long term investing is liking a company for years, a company that can be trustworthy, non volatile, and can go with or sometimes even beat the markets. Their are many sectors that you can invest in for long term. Look for low P/E ratios and low volatility stocks. The less risky the stock the better for long term. Depending on how long term your planing, there is one sector that I think is a perfect long term investments. Although it may be questioned by most investors. The energy sector I think is a perfect sector to invest in for long term. Energy sources for the most part that we use today; coal, oil, and gas are not renewable and as solar energy and wind seems to creeping up it is not a significant energy contributor around the world just yet. (but those are good investments too)
       The energy sector goes with supply and demand of the world's energy. And with a rising population, the world then in turn needs more energy. Energy is needed around the world and since it is not renewable it is bound to run out at some point, whether it be in the near future or long future. Energy goes hand and hand with politics. The energy sector is sensitive to political events. So, I know this sounds bad, but in times of turmoil, the energy sector tends to increase. Those are times you may make the most profit. Also in times of more demand and less supply of energy; the energy sector will tend to increase. Although, the biggest flaw is since there is such little volatility in the energy market, the US government regulates the prices of energy so they can stay for the most part even upon most competitors. Sounds like cheating right? Well that just makes it so everyone in the US gets the fair price for their electrical bill. So, why invest in it? Well the price of it should eventually go up in time and makes it a great sector to invest in. Foreign energy markets seems to be great bet since they tend to regulate it less than they do here in the US.
       Now you may be reading this and thinking i'm crazy since the energy sector as been lagging the last decade. Well I assure you that won't stay that way for the next couple of decades, energy; especially around the world, should be rising in different countries especially the third world countries. The energy stocks to invest in for the long term Exxon Mobile, NextEra Energy, Exelon Energy, Duke Energy, FirstEnergy Corp., and Schlumberger. Do your own research and see if these stocks fit you.
     If you want to stay away from the energy sector, then look for different staple stocks that have low volatility and some good momentum. Just keep thinking future with long term stocks. What is going to be most needed in the next 10 years? If you keep that in mind then you will be in good shape for the future.

Stock opinions are from a minor. Follow at own risk.

Sunday, December 23, 2012

Stock Of The Week

Our stock of the week is Apple! Yes, you heard it here first, Apple is still a buy. It is so diverse in not only computers, phones, and tablets but it also makes it a great retailer stock too. Once the fiscal cliff talks die down and in hopes of getting a deal done the market will rise and so will apple. Look for good gains out of apple in 2013. 

Stocks Weekly Forecast

      This week will be a wacky one. With the different trading hours, and Christmas the markets will be in a bit of confusion with the fiscal cliff and good economic data. Another crucial week is in place as Christmas week and the last full week of December trading comes near, so does the fiscal cliff. With 8 days left until the cliff, will congress come to a deal in the last days? Well that might be unclear but here is what to expect from the markets this week.

      This week's market forecast.

- Last week was surprisingly good, ending in gains throughout on hopes of a deal, and the market really held positive gains until Boehner's plan B fell through and led to the markets dip low and cut the gains from the week. But all in all the week was not a downer.

- As usual the week will be filled with the fiscal cliff concerns, with Obama and Boehner optimistic about a deal; they might be talking up the markets for a gain Monday, but the market may not buy it.

- It'll be an interesting week as Christmas Eve brings shorter hours to the markets Monday. The markets are closed on Tuesday.

-No big earnings should be coming out this week as the big earnings for most companies will be in January.

- This week we will hope for a miracle to get a deal done about the fiscal cliff. With a shortened week and light economic data, the focus will be almost entirely on the fiscal cliff.

- The housing reports should look good as well as consumer data. The biggest sector in question should be the retailers as they will gain from a good holiday season.

      So what should you do? With the last trading session of the year coming up do you sell your gains? Or stay in and hope for the best? Well with all of the questions asked, and such a crucial week in Washington here, if you normally sell your gains at the end of the year, then you might want to do that if we go over the cliff. If we don't the market is expected to stay afloat and rise, as well as the economy. The housing market would be something to invest in sooner or later. So go with the news in Washington and prepare for the worst if we go over the cliff and no deal gets done, but if a deal gets done be an opportunist and take advantage.

Saturday, December 22, 2012

How to Invest In Penny Stocks

       Penny stocks always seem to catch the attention of investors that hope to turn a quick profit. But, penny stocks are one of the highest volatile investments you can take. It is also the most riskiest. Stocks that are that cheap are usually that cheap for a reason, investing in them is incredibly risky. The stock may double in hurry but that can turn into a huge loss just as quick. The risk and the volatility is tremendous and to some investors it attracts them to think they can turn a quick profit. Well as quick as a profit they may turn, it can also turn into a horrible investment just as quick. That's why investing in penny stocks is so risky. The research into penny stock investing seems to be some negative; almost all of the indicators of the companies are so weak there almost seems to be no reason to invest in penny stocks at all. But, that's just not true. Investing in penny stocks is hard, really hard and we'll help you.
      Now Alleyway Investing is not the biggest fan of penny stock investing. But we do have tips for those of you wondering on how to do it. The SEC has many rules and regulations on how to trade penny stocks, so they watch it very closely. One rule we uses to watch penny stocks to see the high trading volume. If the trading volume stays consistently high then the penny stock might break out. If it is making a profit and is consistently growing, then you might want to think about investing in it, plus look at its earnings and when they come out. Have an entering and exit strategy to it and be sure you plan your strategy when to go into it and when to sell it wisely so you don't get on the losing end of it.
      Don't believe the scams on the internet on how they can turn your investment into a 1,000% gain in 1 month, those just don't really come true. Unless you have such influence to change the stock by using the "pump" and "dump" method. The '"pump" and "dump" method is a used when an investor buys a such a large amount of shares that it artificially inflates and manipulates the price, then investors look at the stock and see how well it is doing and so they invest in it, but then the investor will "dump" its large shares and cause the stock to go down. Although the SEC is regulating the trade of penny stocks but still watch out for this method since it is hard to detect. The volume that you see from a penny stock might be fake. Also a tip that you should follow, how did you find out about the stock? If it was from a scam or convincing article then you should probably think twice about that stock, but if its a brand name that you have heard of then maybe do your research on it to see if its enough to invest in it. But always remember the biggest key on investing in penny stocks; it is a penny stock for a reason.
 

Sunday, December 16, 2012

Stock of the Week

For Alleyway Investing's Stock of the Week we chose..... FedEx! FedEx is a low maintenance, low volatile stock that has a slight fiscal cliff proof to it. It goes by how businesses go running the world in delivering packages, but it is also diverse, consumer use FedEx and everyday people that need things shipped all use FedEx. With online shopping picking up, and a good holiday season expected, FedEx will gain from this and expect one of the busiest seasons. Plus the fiscal cliff proof aspect of it is that its earnings come out on Wednesday. So expect FedEx to have a huge week.

Stocks Weekly Forecast

Week 2 of another crucial week for the markets. Talks in Washington will again be center stage, but what will tilt the markets this week?

Here's your weekly forecast.

- Stocks last week ended down and for the most part, tried to stay in the positives even with uncertain fiscal cliff news. It couldn't stay in the positive for long though, other than last Monday the markets went slightly lower, even on the news out of the US Treasury, the Federal Reserve's news budged the markets slightly upwards, and then fell in the last hour of trading during the week's end.

- This week is another crucial one. The markets will most likely stay with the gridlock in Washington and could tilt downwards. We expect it to end out of the 13000's if no deal gets done in Washington.

- Although their is some speculation that stocks could withstand some fiscal cliff news. Although the markets are all expected to go down with more and more gridlock in Washington the markets have held  even for the most part. Either going slightly positive or negative. Expect that the markets could do this again this week if the economic news comes out positive.

- The two things that are important to look at this week have to be with economic data and the earning reports. If economic data is good, the markets will go back and forth stalling between positive and negative while the if any bad news comes out, the markets could fall.

- The earning reports to be watching are Oracle, Bed Bath & Beyond, Discover, Carnival, Nike, Walgreen's, and more. These stocks could be the fiscal cliff proof stocks of the week with good economic data coming out and good earnings.

To put it in a summary, the markets are expected to go negative, and with any bad news out of Washington and bad economic data the markets could take a hit. But be speculative, the economic data should be good. And with that the markets could even out. Maybe the holiday season can come early for the markets and Washington and hammer out a deal. If so, the markets will celebrate. Keep your eyes peeled. Invest with care.

Saturday, December 15, 2012

Whats the Deal With Apple?

Apple is stock that so many investors own. Its a staple. For so many different funds, Apple is always in the mix. And with the recent sell off of Apple, many speculators have been pointing fingers why. In reality it is still in mystery exactly why the stock has been tumbling from its recent high of $708 in September. But hopefully this information will clear things up.
           Since Apple is such a giant in the investing world that it really either holds up or brings down the NASDAQ and recently its been bringing it down. The NASDAQ has lost over 1% since November, 30th. Apple has already been very volatile, something pretty strange for investors since they don't see Apple move up and down as fast as it has the past couple of weeks. One reason why investors have been selling off is because such a large quantity of investors and funds have taken their gains and sold them off to secure their gains for the year. 
           For the tech savvy people, Apple has been the giant in the tech industry and one of the most resilient stocks during the recession in 2008. It still has been a very resilient stock during the recovery and has been one of the best stocks in the recent decades. So then why is this stock been correcting itself the last couple of weeks? Well as the tech people know the Iphone 5 coming out was in huge anticipation. Obviously people appreciate their Iphone and still love it, but there was a major flaw in this one. The Iphone 5 took away the Google maps and have tried to become more independent by rushing to create their own maps app. Apple maps have been in direct line of criticism and most customers have been dissatisfied with the app. And with a growing Android market, Apple's step back in its production of the Iphone has been to blame for its correcting Apple stock. Also with their Macbooks becoming slimmer and slimmer, some have been turning theirs back in to get fixed. Apple's perfect production seems to be in question and that's why the stock is too. 
         Another reason is why Apple has fallen seems to be one that you can blame on a lot of stocks. Since you have not heard enough of this fiscal cliff news we'll inform you even more about it! Well Apple and the fiscal cliff worries seem to be separate issues and hasn't been effecting the rest of the market like it has effected Apple. Since Apple is such a powerful stock, the fiscal cliff worries that are expected to hit buyers wallets if a deal does not get passed, has poisoned its first victim, Apple. Now their has to be other issues involving Apple's recent sell off other than the fiscal cliff. But with an already worrying consumer market, Apple seems to be getting hit first.
        Now, with this Apple sell of in question, the summaries all lead to these short term problems (other than the fiscal cliff). Apple has been a train just flying through its competition and leaving them in the dust and it seems to have slow'd down as of recently. Now the bigger question is, does that leave room for investors to look and buy the stock? Now Apple is almost $200 dollars off its 52 week high, but is still expensive. If you have the money for it, then we recommend to still stay speculative of it. If we go over the cliff, we predict the markets to take a hit and go negative. But if we don't, Apple might come back in 2013 and come back big. With CEO's Tim Cook coming out with a big interview of the future of Apple. Apple TV might be the next big thing. That would boost the stock if it becomes successful. And what product of Apple's hasn't been successful? We'll get you up to date and research any Apple news and sign up for our newsletter by emailing alleywayinvesting@gmail.com. Check out our twitter @alleywayinvest and soon to be Youtube account! Our website goes live in late January! 

Friday, December 14, 2012

Seasonal Investing

Obviously different seasons bring different materials. A season for snow plows. A season for lawn mowers. A season for harvesting. A season for planting. And a season for sharing. Guess what season we are in? Now it's common sense that certain investing seasons overlap but the correct answer to that would be a season of sharing. Surprised I didn't also say a season for snow plows? Here in Chicago, we have received one of the biggest snow droughts in recent history, largely to do with global warming. So how do you invest in the seasons? Well you for this instance you can short snow plowing companies since their service does not seem to be needed so far this year. There's other ideas as well. Alleyway Investing has been buying into the fact that retailers will have a better holiday season than they did last year, partially because of the weather. Doing our research and picking out the certain retail stocks that might succeed, we've banked on the retail market before, and the more the economy recovers the more people will shop. Now, if the economy stalls, or this whole fiscal cliff issue does not get resolved then we might have a problem.
         There is other seasons to invest in too. For instance we thought John Deer was a good buy a couple years a go in the summer because of new equipment coming out. Plus natural disasters; you can bank on the recovery of natural disasters because people need to start from scratch and the more people effected the more they have to buy. People have you asked can you invest on certain demographics? The answer isn't that clear. Demographics you can bank on sure, but the time taking to research each demographic, then certain trends, then certain companies and so forth is too time consuming, we've found shortcuts though. We'll explain that in another article.
        To sum everything up investing on the season's can be a good way and a safe way to captialize on your investments. Although researching them can be timely, and exactly how you research seasons is something we will go over in our weekly news letter. Email alleywayinvesting@gmail.com for more information on our newsletter. Also check out our twitter feed @alleywayinvest to get more tips!

Tuesday, December 11, 2012

The Trade That Never Was

          You win some you lose some; and then there's the phrase, "you could have won some; you could have lost some". As stocks has it's ups and downs, lets say you find a gem. You find the perfect stock that you like and put it on your watch list. But, you don't seem to jump at the opportunity to buy some, so you wait awhile and watch it. Over time lets say you even forget about. Then you look back at your watch list at the end of the year do some calculations and realize that the stock that you loved a year ago, is up 98% this year. It makes you almost want to punch a wall. Listen, we've all been their, chose a stock, it did well, and never got in it. The important tip to get out of this is to start being more aggressive. Don't dwell on the fact you could have made so much money, but make it a learning experience. You picked the right stock! That was a good start, now you have to be aggressive, smart, and confident to buy some shares of it. The faster you rebound from the trade that never was, the faster you'll be headed down the right track to find a new stock that could be even more successful. The three biggest factors to a successful investor is to be confident, wise, and willing to do as much research as it takes. The faster you buy into that motto, the faster you will become a successful investor. You have to be willing to do things that have not been done before, a creative mind will be a big key to thinking differently than other people. You can't think what is best for you when investing, you have to think about it from the companies or the customers perspective. It'll take awhile to get used to but once you do, it's a nice factor and a big step to becoming a great investor.

Sunday, December 9, 2012

Stock of The Week

       For this weeks Stock of The Week. Alleyway Investing chooses Dollar General! You might be raising your eye brows at this choice, but the Dollar General is a smart buy. Riding in between its 52 week range, the Dollar General is the largest dollar-store chain and with the huge fiscal cliff cloud looming over the markets, we tried to find the most fiscal cliff proof stock around and came up with the Dollar General.
     If the fiscal cliff news gets worse and worse, and if we go over, low income families will be hurt the most. So, the bargain stores could gain from this. Check out the Dollar General and tell us what you think! Follow us @alleywayinvest on Twitter or email us at alleywayinvesting@gmail.com

Stocks Weekly Forecast

        The stocks need a crucial week starting Monday. Obviously you can't seem to get enough news on the Fiscal Cliff. But it seems to be that big of a deal. It gets really annoying to hear about it, but it will be a crucial part for the markets this week and the next.
       
Here is the forecast for the stock markets this week.

- Last week was a wobbly one. No new news on the fiscal cliff let the markets react sideways. It was also trying to break out of its small gains a little, but failed. Maybe the markets will be able to break out of their small gains to a big one sooner or later. If no new news on the fiscal cliff comes out, instead of heading side ways, the stocks might fall.
- Apple killed the NASDAQ last week as Apple lost 9%. The NASDAQ ended up losing 1% a truly abnormal week. If Apple and the rest of the technology stocks keep lagging the NASDAQ will get brought down, and so might the rest of the markets. Expect the NASDAQ to have a better week if all things go as planned this week.
- The Federal Reserve will meet in the middle of this week and hope to bring relief to the markets and see what they can do to help the economy out even more. Although good news is expected from this, if any bad news comes out, the markets could tank.
- Some crucial earnings come out this week. Costco, Adobe, and Joy Global to name a few. They may have a good week while the markets might be bogged down.
- With good economic signals out on Friday you would think the markets would have had a field day, but they could not break out of their week gains since consumer confidence spiraled down because the media covering the fiscal cliff issue let more and more consumers be informed of what could happen if we go over the fiscal cliff. I still believe that the retailers will have a better holiday season than they did last year, although the fiscal cliff seems to be dragging it down, be speculative when playing the retailer sector.

          To sum it up the week is crucial because of the fiscal cliff news. Any good news comes outs, markets will react positively; any bad news comes out OR no new news at all, the markets could go flat or sink. The economy seems to still be in question, so stocks can't hold onto their gains as long especially with the news out of Washington, do your research as we will do ours. Hold off from buying for awhile, and if you seem to be in the buying mood, just be cautious with your choices. Most investors sell their gains or losses at the years end, you might want to follow depending on the news from the infamous fiscal cliff.

Saturday, December 8, 2012

Harmony in the Investing World

              Alright, I know how I said that I don't like cliche sayings but like my article with confidence, this one is essential as well. Harmony is needed in the investing world so you can live a better less stressful life, and can help you become more successful. Harmony in the investing world basically means to not live a life that involves only computer screens and coffee. Mixing it up will be beneficial for your health and your investments  For what I've seen in the investing world it is basically all routine. Wake up early, coffee, commute, meetings, research, more coffee, research, commute, Monday night football, business call, research, coffee, go to bed late, and repeat. You get the picture. First off sleep needs to be a big factor in investing since it will help your brain activity improve and can take less coffee. For all of the organized freaks out there, you might need to live a little and mix it up. Throw different activities in there and don't have every little thing planned out, be spontaneous. And for all you spontaneous people out there, you might want to organize yourself a little since it will make things a lot less stressful. Find the balance of spontaneous stuff and organizational skills. That will create harmony.
            It is essential to eat well and drink a lot of water. Coffee seems to be a theme in itself, but don't drink a lot of it. Also, try not to grab 3 beers every single night either. But you still need to relax, so indulge yourself in some after a successful night or a night socializing with some friends. Just remember in moderation. Go to the gym and get a run or workout in and you'll feel a lot better afterwords. Trust me it will feel worth it to once your done, you may dread doing it but you feel better afterwards. Plus, you'll body will thank you. Find another hobby to do too. Golf, basketball, sowing, it really doesn't matter but try to be more diverse then just stocks. I know this sounds like a bunch of cliche tips for life but its definitely tailored to help the investor as well. A healthy body helps with a lot of things, including investing.
            The  next important thing to do is to take breaks. Sure you might take a weekend off to visit family, or visit colleges with your kids or take trip to Vegas for the weekend with your girlfriend but you will most likely still be on your phone taking business calls and on the computer at some point. Listen, you need an actually break. I mean a week long, leave the phone, leave the kids, leave everything behind. Bring your girlfriend find a beach and relax. Take a spa day, (for the guys too) seriously you'll feel a lot better. Just spend a week and make a spontaneous trip and relax, no computer, no phone, no nothing. If you still feel anxious and are that big of a workaholic and do not like leaving things before you go, take your money out of the markets or find away to just relax for a week without wondering onto the phone to check something. (taking your money out of the markets is ill advised but if that is a necessary precaution then think about it)
             If you only get a couple messages from reading this then just remember to relax, not so much coffee, sleep, and i'm sure you are already on your way to being a better investor.
 

Thursday, December 6, 2012

How Earning Reports Can Help You Trade

Earnings reports are huge. Like what I have said on twitter, the make or break of a stock can depend on it's earnings sometimes. Trading through companies earnings report can help you become a successful trader once you master it. First of all you might want to know some background on what earning reports actually are.
            Earning reports are basically report cards for companies after each quarter of the year. Usually, the quarterly reports are in January, April, July, and October, although it varies between companies. The report card analyzes net income, EPS, (earnings per share) earnings for continuing operations, and net sales. Then investors can gauge whether or not they should invest in the company based on the health of the earnings reports.
            Now, the analysts that estimate the earnings for each company, are very smart. But, don't be fooled. Their estimates are not always right. This can help you make a profit. The risky way to make big investments is to go invest on the earning reports. What this can do is if the company beats its earnings that the analysts predicted the stock can go up in big percentage points. The risk to it is, their is always the down side, and the down side is just as big if it does not make it earnings. The company can either beat its earnings and go up, or meet its earnings, then the stock can go based on the markets or basically stay even, or the company can miss its earnings and go down.
          So this way is very risky. But, with a lot of research you will get the hang of how analysts predict the earnings. Once you pick certain stocks study their earning reports inside and out. Get to know the stock as much as possible through its earning reports. Once you get to know the company very well, you can start different strategies to see if the company really will beat or not beat its earnings. You can take surveys of people to see if they buy the product or use the service and see if they mention the name of your company and how often they shop there. The more people you get obviously the better. You have to avoid insider trading as much as possible since its illegal, but know the basis of your company. For example, since I am a teenager their are certain companies that go after teenagers and try their best to get the teenage market to buy their products. I also have the common sense to realize that teenagers are trendy. So things don't tend to stay in very long. For instance Pandora was a hip new app that many young adults used to get music. Although my friends still use it, many people have been getting away from it. It was a hit sure but it didn't seem to stay in the hype for as long as people thought. It when in and out and was popularly used in conversation, but once they mention a new one like Spotify then you realize its competitor is gaining ground in popularity.
       It ended up that Pandora was down over 17% and recorded another quarter of negative income. Obviously that's not good. Even if people have not heard Spotify yet, it has been gaining ground in an already tough sector. Using this knowledge before the earnings come out on certain companies can help you make money. Whether it be shorting a stock or buying it, earnings can lead to a successful portfolio for short term investors. Although, it is incredibly time consuming, tricky, and if you predict wrong, your money goes a long way the wrong way.  

Wednesday, December 5, 2012

The War of Giants

            Amazon, Google, and Apple. The three biggest companies dominated the technology game. And with Microsoft fading into a smaller role in the tech game, the question comes down to can all of these giants compete and live in the same Era? The answer is yes, they can, and they can thrive at it too. Amazon is the world's leading online shopping site has virtually everything, and at lower prices. As more people go online for their shopping, Amazon gets more shoppers, the growth just has not stopped. Google, obviously the biggest in internet is diverse with how much traffic Google attracts, plus its diversity in the smart phone world. Google and Apple go head to head vs. each other when in the smart phone race. Apple the technology store of this decade, develops lap tops, Iphones, Ipods, Ipads and more; although has been off its game the past couple months, is still a huge empire attracting customers with its products designs, and how fast the product runs. These giants go head to head against each other in the war to pick up customers and gain massive profits. All of which have been successful. The question now is, what is the long term future for these companies? And that question is a hard one. Surely their will be some emerging company in technology that may be able to compete with Google and Apple, or an online retail store to compete with Amazon, but how far can the newest technology giants stay up top? In a sector that quickly changes and adapts? We will find out how long they can stay up top for or even go further through his decade, but as they get older, maybe they get out of date?  

Monday, December 3, 2012

Biggest Key To Investing

I'm not the biggest fan of pep talks or cliche sayings, but if it comes to advice or tips on investing I'd have to say confidence is the biggest key by far. Like in a basketball game, job interview, or even when you set a goal for yourself, confidence is the biggest factor in success. That goes for investing too. If you don't believe the choice you made was the right one, or you don't have confidence in that choice, chances are that choice is going to be the wrong one. Once you have completed your research and you are confident in your decision to buy sell or short a stock or fund make sure your gut feeling is controlled because once in awhile your emotions will get to you and you'll make an emotional trade. Emotional trades can work out but chances are your research and confidence is your best bet to successful investment portfolio. What's the difference in confidence and your gut feeling? Well your gut feeling is based on instincts and what you have developed as habits throughout life, so if you have been in the market for 30 + years or your name is Warren Buffet, chances are your gut feeling needs more time. That's about how wise you are with your investments, but that's for another time. Confidence is on the building block to success. It builds character and helps you become more and more successful, because you start to believe in the process more and more and with hard work, wise trading, and confidence, you are on your way to being a successful investor!

Sunday, December 2, 2012

Stock of The Week

The Stock of the Week feature here at Alleyway Investing is a way to let our viewers know what we think will be the stock poised to have big gains this week.

      The Stock we are looking at to have big gains is an unusual one. Going oversees to grab our first Stock of the Week we chose Vodafone. Vodafone, an international wireless phone carrier that jointly owns Verizon Wireless is located in Spain. We believe it is poised for a big week as the Iphone will pick up in orders for the holiday season, and Verizon will have heavy advertising for season as well. Vodafone will be looking to expand and also cash in on the wireless market as it will be poised for a big gain. Happy Investing!

Stocks Weekly Forecast

We all know the Fiscal Cliff will be the one of the biggest factors in the markets this week, but we believe that there is some other ones too. 

This weeks forecast. 

 - The stocks fumbled at the end of last week, hovering for the majority of Thursday's and Friday's trading sessions. Therefore, expect the market to do the same if no new news comes out of Washington.

- Any positive news of a Fiscal Cliff deal getting done will boost the markets and have a huge impact whether it be a democratic or republican deal. (although it seems a republican deal with effect the market even more)

- Any negative news of the Fiscal Cliff deal could keep the markets stalling, or even worse, spiraling downwards. Keep yourself informed with the news in Washington.

- Alleyway Investing is expecting a great holiday season, so for any good retail news coming out expect the market to react to it.

- The news in the housing department seems to be growing back to positive. This will be a huge sign of the economy getting through the recovery. 

So keep yourself informed and ready, because if no good news comes out of Washington about the Fiscal Cliff, we are in for a LONG ride. Right now it seems that Washington is in a grid lock, and no relief seems to be in sight. Although, news on the housing market and great retail numbers could help the market stay a float. Keep your eyes pealed and ears wide.