Sunday, January 27, 2013

Stock of the Week

Here is Alleyway Investing's Stock of the Week!

Our Stock of the Week is... Illinois Tool Works!

Yes Illinois Tool Works is a great stock to buy for this week because it goes off of its earnings. Its earnings come out this week and so it can continue its nice run. It should have good earnings and has solid fundamentals, not mention machinery should be a key sector to look at in 2013. I like this company a lot. Invest with care and confidence. I am a Minor. Only giving opinionated investment advice. Advice subject to change. Not responsible for losses. 

Stocks Weekly Forecast

Stocks last week soared; the S&P and Dow both hit 5 year highs. Although the NASDAQ was not as successful, mostly because of Apple shedding another 14% on rough earnings. Exxon Mobile passed Apple last week as the most valuable company in the market. So with a good week (except for some techs, and Apple) what will the market do next week?

 - The markets last week enjoyed consecutive gains even with a correction in question, the S&P and Dow hit 5 year highs, and most forecasters did not predict these consecutive gains, especially from a key earnings report from Netflix. So now, with such great gains last week in consecutive trading sessions what should we expect this week?

- This week is critical for 3 reasons. Big earnings reports continue with the earnings season still in force. More and more investors are turning their head sideways on these markets trying to figure out if it could really support these consecutive gains. The next reason is because this week is a big week for economic data coming out. Now before I go into each reason in depth, you should expect a couple of things this week. The last week of January is the busiest week for 4th quarter earnings results with many S&P companies releasing earnings. Hard for all of these companies to have huge earnings reports especially when most of them are expected to be week. Although that could help the markets if they do beat reports, it would be easier for them too. Also, even though the fiscal cliff has been averted till May now, the only problem from Washington is the March 1st budget deadline which is coming closer and closer with us  switching the calender from January to February. The closer we get the more chances of the market getting spooked, although come Friday this week, we will still be 27 days away. Finally, with huge economic data coming out, and with the US economy picking up its pace can it keep ahead of steam? Well only thing stopping this market is a brick wall, which stands for surprisingly bad data. Which could happen, but seems unlikely. What is more likely to bring this market down are critics. Anyone knows whether it be sports or the markets, streaks have to come to an end at some point, and as more investors climb aboard this bull run, investors need to be prepared for a pull back or correction at some point. The question is when, and I'd have to say this week it might drop 1 or two days. I'm not saying big drops (unless some reports are negative) i'm saying some minor drops. Volume in the market is growing and more investors seem to be willing to spend in the market and stopping now wouldn't be a good idea, although the date might be coming up soon.

- Here are some notable earnings reports coming out this week: Yahoo, Caterpillar, Jet Blue, Harley Davidson, Ford, Amazon, Boeing, Facebook, Time Warner, Exxon Mobile, Illinois Tool Works, Pfizer, NextEra Energy, and many many more. Look for some big companies to release some big earnings, I prefer to look at a good Illinois Tool Works earnings as well as Exxon Mobile and NextEra Energy. There are some other reports that I think will be notable, Facebook might not have good earnings as well as Time Warner, and Boeing could be interesting although it has been resilient through its 787 debacle. It might have bad earnings.

- The data that could move the markets, durable goods orders, consumer confidence, nonfarm payrolls, and other sales could also be potential data that could move the markets. With an economy that is picking up these data numbers are crucial to back up the claim that the market is making true gains. Make sure these are good number or else the markets could get worried and fall.

- One thing to keep in mind about this week is that the streak of the markets having gains will probably come to an end this week. Whether it be off of earnings reports or economic data or a mix I do not know, but that assumption seems to be a fair one with many investors.

              This week will be crucial with everything said. And to sum it up, it could be a good one depending on some reports. As an investor, staying in the market seems to be a good idea, and looking at stocks carefully could also be an idea to think about, but once Washington gets to business with the debt deal and fiscal cliff. Unless Disney spreads some of there magic to Washington, congress won't agree on much, and so a deal would be hard to come by. But with postponing the deadlines could give some hope of getting a good deal done. I'd advise on contemplating getting out of the market come fiscal cliff time although it depends on the months coming up if I'd keep that opinion. For now, and this week, look at the earnings reports and the data to see how the markets will do and see if any big news comes out to shake the markets. Invest with care & confidence.

Friday, January 25, 2013

What To Look For In The Market

       When researching the market for certain stocks, you don't have to just go off of what another investor says or the researchers say for your brokerage account, you can go off of your own thinking once you get the hang of it. There are some key statistics to look at to find successful stocks and funds. In my last article about "Short Term Investing" the key ratios to look at is how the company is producing right now. Does it make enough money to sustain a profit? And if it makes a lot of money, does it put more money into the company so it keeps ahead of the competition? The next key to look at is what about the company appeals to you? Is it the leadership? Is it the companies competitive advantage? Or does its product or service have potential in the future to be dominant? Also look for its stock charts and patterns. Key stock charts can hold some hints to what the future holds for the company. Certain patterns in the chart could help predict what could possibly happen next to the company. Although it is a risky tactic, there has been proven facts that say studying the stock charts can be a beneficial way to find certain stocks.
       The worst thing to do when looking for a stock is going off of what spam says. Don't get me wrong; reading respected authors and successful investors is a great way to widen your investment knowledge, but you have to realize that there is some spam out their that say they can offer you 1,000% in a 9 month span, and so use the rule; if it's too good to be true, it probably is. What you should look for in the markets today is certain trends that you think will bring you the most profit. For example, mobile devices including smart phones have been a trend ever since the first iPhone came out. Although popular trends that are lasting a long time can't hold their momentum forever. Hidden trends are tends to invest on. Trends like 3D printing is a great trend to invest on for the future. Even recreational marijuana is a trend to invest on. Medbox has soared in the last few months after Washington and Colorado past recreational marijuana laws. Different trends are hard to predict and making bad predictions can happen and so getting the feel for trends and when they slow down and when they speed up is a huge asset to have for investing.
       To sum it all up you might want to take the advice of top investors and famous writers but be careful who you trust. Be confident in the knowledge you have. Have your own investing style. But still have the basics down and trust the right people until you get the hang of it. And if you are already a pro then master your market reads so you can make most out of your profits. Invest with care.

Sunday, January 20, 2013

Stock of the Week

Here is your Alleyway Investing's Stock of The Week!
Our stock of the week segment has been very popular and many of the stocks have done very well since we mentioned them. This week I am taking a risk that many of you may not be willing to take. Our stock of the Week is.. Abbot Laboratories!

It came down between Abbot Laboratories and CSX. I still like CSX but Abbot Laboratories earnings look compelling and so it may be risky to like these companies but both of these companies look to have a good week.

Stocks Weekly Forecast

Stocks last week ended with little volatility but ended the week with gains. NASDAQ had some gains but still was a weak 5 days for the NASDAQ behind ups and downs from Apple and tech stocks last week. With great signs of the economy picking up, can the stocks keep up this bull run again this week?

- The stocks last week with huge earnings reports from banks were pretty mixed. Our stock of the week last week, Morgan Stanley had a great week though. Although Citi didn't have a great week. Other stocks like Intel slipped and Ebay only held slight gains. The market for the most part remained mixed from some bad earnings reports, some good earnings reports, and some decent economic reports.

- This week earnings will still be a big part of the market. The market will prepare itself for earnings reports and hopefully will have a some other news to balance out some bad earnings. On Tuesday, notable earnings reports from IBM, Texas Instruments, Verizon, Johnson & Johnson, Google, TD Ameritrade, Delta Airlines, and CSX. Unless some huge earnings report comes out from one of these companies, the company that many will be looking at to turn the markets, especially technology stocks will be Apple on Wednesday. Apple's earnings are expected to be big, but the biggest test for the worried company will be Wednesday when its earnings do come out. They should try to put the downward spiral to rest. Will they? Well Apple's products line hasn't changed too much from December, and with some decent holiday reports from retails, including Best Buy, Apple products could benefit from it. Other earnings reports you should do some research into to see if they are with investing in. The market should go up and down on these reports unless most of them are positive, then the market will have some nice gains.

- Other notable earnings reports coming out this week: Abbot Laboratories, Coach, McDonalds, Motorola, Netlfix, SanDisk, 3M, Amgen, Brunswick, AT&T, Celgene, Etrade, Microsoft, and more. With so many earnings reports this week. What do you pick out? Well Alleyway Investing likes Celgene a former stock of the week, IBM, Verizon, Google, and to watch Apple and Johnson &  Johnson could be interesting.

- With the entire fiscal cliff worries and budget crisis looming over the markets, Washington voted to move the storm that could hit wall street hard, to April during tax season. This might leave you more room to investing in the time being and the market could propel higher for the short term till April, but this storm has to get handled the American way; arguments. And when it does, it won't be pretty. And so the markets could be threatened. Until then the market won't be terrible, in fact you can get some nice gains in the time being.

         Futures seem to be up after Washington voted on worrying about the budget crisis in April instead of February or March. This week could be a little like the last with ups and downs from earnings reports. Some earnings reports could have more impact than others, like Apple and Google, but investing on earnings reports could be a good way to invest and rack up some gains this week. Instead of worrying about all of the earnings reports coming out, we suggest to just focus on a key few. That makes it easier for you to study the hell out those few companies and squeeze out as much gains as possible without spending days and days and days researching every company. Although the stock everyone will watch next week is Apple. Also, with housing reports continuing momentum, the economy has really been picking it up recently, and it could continue until taxes come into question in April. This week will be big for the NASDAQ and Apple but the markets could correct itself slightly Monday and then go off of earnings reports the rest of the week. Invest with confidence, invest with care.

Friday, January 18, 2013

How To Trade Emerging Markets

          With the fiscal cliff and budget crisis still not quite avoided, and expected to come crashing into the scene in February, the US markets might get spooked and pull back from their recent bull run. Alleyway Investing still likes many US stocks and are willing to keep their money in them come February, but we are preferring to go with emerging markets instead.
          Their are some promising emerging markets to look at this year, and with the worries here in the US coming up, it is the perfect time to put in some research into these markets. Their is tremendous upside in emerging markets because of the fast growing economic growth measured by GDP. Many emerging markets are having greater middle income families and more discretionary income that they may spend. Although their is upside, emerging markets are risky. Political instability, domestic infrastructure problems, volatility, and weak equity are all the risk factors that have to be accounted for when researching emerging markets. Also, you have to do more research into emerging markets than any other markets because of the risks and because you might have to familiarize yourself with the countries economy. With all of this being said, there is still upside in these emerging markets in 2013. 
        The Philippines - When investors look at Asian markets they probably don't look at the Philippines too often. But, this might be the next Asian market to emerge to be a superstar in Asia this year. In 2012, The Philippines were one of the fastest growing markets in the world, and their real estate industry was one of the hottest in the world. Now with expectations to continue growing, The Philippines might be a market to look at. Their GDP outlook is moving at an impressive 7.1% rate. The Philippines exports are also rising with Japan and the US. Not to mention the Philippines and I also share a common love, basketball. Although, their seems to be some reports of slight downside. Their is a WPR article that says the structural weakness and tensions with China seem to be some negative sides of the Philippines, I'd do some more research into this countries markets before taking any type of action. 
       Peru - Peru looks to be one of the best markets to invest in this year. We really do see tremendous upside in Peru this year. Sure it is a very risky market since the turmoil of the 80s and 90s drug trafficking, violence, and high inflation, but Peru seems to be on the upside and is sneaking past some investors as a dominant South American market. Their leading sectors: banking, construction, and retail are all major signs of a growing market. Peru also has a big growing middle income class. With Peru picking up steam in the end of 2012 it should continue a strong year in 2013. Peru's biggest exports are gold, copper, and silver and other natural resources. With natural resources looking to bounce back this year, Peru is good market to look at and invest in this year. 
     South Africa - South Africa's stocks went up 22% in 2012. And this emerging market is quickly becoming popular. I'd do some more research into this market before investing in it, but much like Peru, South Africa has a high growing GDP, and a middle class expansion, also like Peru it is a big natural resource exporter, but also has high agricultural exports as well. It is more of a diverse market, and seems to be less of a notable emerging market because of its negative side. The problem with South Africa is its expectations seem low, which might look like a good thing to see South Africa beat its expectations, and it could, but there seems to be some lingering issues. A high unemployment isn't too good for an emerging market. It also relies too much on its exports and energy sector, that if failed, could leave South Africa in trouble. Its imports are expected to decrease this year. Its market chart also looks like it can't keep supported an upward trend and could pull back slightly, although with all of that being said, South Africa could be a good market to at least take a look at. 

     These three markets are poised to have a nice upside this year. Doing more research into them, and figuring out your strategy plan of how to get in and out, would be beneficial for you because of the high risk involved. Markets like Russia and India may be getting all the attention but that might not be the best way to look at emerging markets, finding a surprising market that has a tremendous upside could be a better choice. Invest with care. 

Investment opinions by a minor, not responsible for losses, WPR article in research as well as Investopedia.   

Sunday, January 13, 2013

Stock of the Week

Alleyway Investing's Stock of the Week is .... Morgan Stanley!

Yes, I am taking the gamble and going with the financial sector despite all of the reports. This decision is risky, but I have a good sense why I should chose this stock. With all of the big banks reporting their earnings this week and with Wells Fargo beating earnings, but getting beat in the mortgage business because of the smaller profit margins. Therefore, most of the financials got hit Friday. This is foreshadowing for this week, financial stocks could beat earnings, but get killed in the mortgage business. The financials will have a good year, and have good earnings, but with the news released from Wells Fargo being negative, the financials got drilled Friday. Morgan Stanley is less of a player in the mortgage business than Bank of America, Citigroup, Wells Fargo, and others therefore, if Morgan Stanley beats its earnings, the effect from the smaller profit margins in the mortgage business will have little effect on Morgan Stanley, causing it to be Alleyway Investing's stock of the Week.