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.
Sunday, December 9, 2012
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.
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.
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!
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.
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