Posted on Wednesday, 8th July 2009 by admin

The US market is going through one of its worst recession ever and some people are even talking about a market depression. So which stocks to buy in recession? Instead of giving you a list of stocks to buy (which I provide once in a while anyway ), I will outline so important key point to look at when you are doing your stock hunt

Cash is king

Nothing is more important than cash during though time. Why? Because sales will usually go down, banks are less likely to lend money to companies and competition is stronger than ever since everybody is battling for the only slice of the pie left by the economic crunch. When looking at financial statements, you must look at the short term assets (cash, money market funds, receivables, etc.). While having a lot of liquidity is a good thing, you also need to look at the financial obligation of the company you are about to buy. If their liquidity ratios are good, then you have a solid company that will be able to not only survive in this hostile environment but probably grow even stronger out of it.

#1 Cash will enable the company to meet their financial obligations and maintain a good credit. Therefore, it will be easier for this company to get more financing if they need to do any projects.

#2 Speaking of which, cash will enable the company to buy more performing equipment and invest in R&D. This will obviously enable the company of remaining competitive and probably increase its profitability once the economy start going up again.

#3 If they have a lot of cash, they will also be able to maintain their best element in place and probably recruit the best employees in the industry. Most workers want to work for a well establish company that will last. They seek stability, same for the shareholders

There are many other factors to consider when buying stocks in a recession. Cash was the first of them. During the next months, I will add more key factor to buy great stocks in 2009. Stay tuned!

Posted in Best Stocks in 2009 | Comments (2)

Posted on Tuesday, 30th June 2009 by admin

A little over six weeks ago I produced a video on the relationship between Apple and RIMM.

I called it the “Battle Of The Tech Titans,” and in this short video I explained that we felt the relationship was changing between Apple, Inc. (NASDAQ_AAPL) and Research In Motion, Ldt (NASDAQ_RIMM). I detailed a strategy of approaching this market using a trading strategy that I call “pair trading” or “trading pairs.”

What trading pairs means is that you buy one market while going short the other market in the same sector. Now Apple and RIMM are battling it out right now in the smart phone sector. It remains to be seen who is going to be triumphant in this battle but it would appear as though Apple may have the upper hand based on its very successful “APP” store.

I strongly suggest you watch my earlier video on this subject; here’s the link. http://broadcast.ino.com/education/apple_vs_rimm/ And then watch our latest video which I just produced.

Trading pairs is what many professionals do when they are unsure as to the direction of the general market but feel pretty comfortable in their analysis of the relationship between two stocks. I hope you find the video both informative and educational.

The video is free to watch and there is no need to register. Please click here to watch the video.

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Posted on Monday, 29th June 2009 by admin

This has been another rough week on the stock market as it is the 2^nd week in a row where stock markets end-up in the red zone. Pushed by their emotion from the previous week, investors tumbled under the pressure when the World Bank issued its concerns towards the current global recession.

US Stock Market

Discouraged, investors received “bad” news this week. The American consumers are now gathering their pennies and keeping them for themselves! Hence, the American saving rate surged to 6.9% in May compared to 5.6% in the previous month. This is a record high for the past 15 years!

Since Americans are paying down their debts and saving their money instead of buying more goods, we are in right to believe that they may not become the power that will push the economy out of this recession. Therefore, we may have to look on the Eastern side of the globe for an economic saviour.

Canadian Stock Market

The Canadian Stock market was hit by unexpectedly bad results from RIM and Potash a couple of weeks ago. Potash keeps deceiving as it shows lower sales expectation at a lower price. It seems that China and Brazil massive investment in R&D is giving its fruits.

Resources, currencies and others…

The oil barrel stayed relatively stable and got close to the psychological bar of $70. The war in Nigeria should help the barrel maintain this level for a few weeks. Speculators are ready for actions!

While US dollar gained a few cents against the Canadian dollar, we still have some concerns. The Central Bank of China actually requested alternative money to the American dollar. It reinstated its wishes to have another reference for international transactions. Therefore, we expect the US dollar continue to tumble compared to other currencies.

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Posted on Friday, 26th June 2009 by admin

In today’s video, I will be using MarketClub’s “Trade Triangle” technology to discover stocks that are potentially getting ready for big moves on the upside.

I will show you a quick and easy way to replicate these moves using using MarketClub’s tools for the trader. With just a few clicks of the mouse, you too will be able to spot these trades.

You can use MarketClub’s “Trade Triangle” signals for Stocks, Futures, Precious Metals, forex, ETFs and Mutual Funds. To the best of my knowledge there is no easier, faster way to find winning trades.

The video is free to watch and there is no need to register. I would love to get your feedback about this video on our blog. To watch this free video, please click here.

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Posted on Monday, 8th June 2009 by admin

US Stock Market

There were a few events on the US stock market last week. The most important is probably the continuation of GM’s nightmare as it is presently splitting the company in two parts (the good one with Chevy, Cadillac, GM and the evil one with Hummer, Saab, Saturn et the deceased Pontiac). Rumors have already been heard about a Chinese company buying Hummer and it should be done by the end of the year. The US Government is injecting 50 billions in this “project” in order to keep as many jobs as possible. We all know that the closing of the biggest carmaker would have an awful impact on the fragile economy. However, stock markets had already predicted the event as they didn’t budge upon the official announcement.

In order to make sure that banks are still giving out loans while paying back the taxpayer bailout, the Fed required a higher ratio of capital for each of them. Despite the fact that banks went through their stress test about a month ago, the Fed want to make sure banks keep doing their primary business; giving loans and providing credit to the US citizens.

Recent job loss stats were welcome with “only” 345,000 job loss in May compared to 520 000 anticipated by financial analysts.

In the end, the Dow jonest went up by 3.09%, the S&P 500 by 2.28% and the Nasdaq by 4.23%.

Canadian Stock Market

Directly related to GM, Magna (a auto part maker) loss 10% of its value on the market due to the bankruptcy of the giant carmaker.

Energy sectors and materials saved once again the Canadian market as the American recession seems under control and is losing its strengths. We all hope to see the light at the end of the tunnel!

Canadian market went up by 1.92%.

Resources, currencies and others…

Next week, we will have to look after the BRIC who will discuss their expansion strategies. As they already started to do so, one of the point of discussion will be the fact that they are slowly leaving the American dollar in order to prioritize their local currency.

Less speculation on the oil barrel as it is “stable” around $68. During the week, we even saw it reached $70 for a short period of time. Natural gas dropped by 10% as investors prefer to jump in the oil barrel train.

Posted in Market Commentary | Comments (1)

Posted on Wednesday, 3rd June 2009 by admin

As stock markets are going super fast these days and we receive so much information (and we have so little time to process it!), we have decided to give a quick market review at the beginning of each week in order to outline the important information about the economy and the best stock pick for 2009.

Canadian Stock Market

We had a lot of important news last week on the Canadian stock market as the Canadian Banks were giving their result from their latest quarter. We personally think that Canadian Banks could be part of the best performing stocks in 2009. Actually, most Canadian Bank stocks rose by 40% since December 2008. Is it too late to buy them? Well their dividend yield is still around 4 to 5% depending on the stock. This lead us to think, since they are well capitalized, they can keep paying their dividend and that their stock should go up again in order to reach a 3% dividend yield (which would be normal to the Canadian Bank industry).

US Stock Market

The sky is cloudy down south as GM is declaring bankruptcy and hope to do damage control and create a new entity within the next 3 months. The US dollar keeps losing strength in front of other currencies (such as the Canadian Dollar and the Euro) even though the rumors about the US government losing its AAA credit rating. Moody’s and Standard & Poor’s reiterate the perfect credit rating of the US last week. Nonetheless, BRIC countries (Brasil, Russia, India, China) keep selling their US currency in order to trade it for gold (price is rising near 1,000$ / oz).

The good news for Americans is that the consumer confidence index rose and we are expecting citizens to start spending a little bit more. We all hope that the negative effect on employment due to GM and Chrysler won’t affect them too much!

The party is still on with resources

I think of the price of copper which reached a peak last week and the oil barrel that keeps surging out of the dead (was $35) to near $70. Even though it is mostly speculation, the barrel keeps rising and the gas pump still ask for more. Summer is going to be rough on American as their dollar keeps going down and gas keeps increasing. That doesn’t left much cheap destination for vacation!

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Posted on Monday, 20th April 2009 by admin

It seems that the great results from Citigroup and Wells Fargo from last week weren’t enough to convince investors that financials were solid again. In fact, we just hit a wall while crossing a six-week old rally on the US stock market (seven week on the TSX).

All markets were down this afternoon, the Canadian dollar and the crude oil barrel was following the parade. May crude oil contract on the New York Mercantile Exchange almost lose $5 and we are now far away from the “stable price” of $50 a barrel.

The price of gold, which has been decreasing as people started to brave the market and leave the precious metal, increased in order to comfort investor’s anxiety about banks.

The truth is that many concerns remain unresolved concerning toxic assets and how Washington will get hurt by injecting over $700 billions in financials. Even though Bank of America said it earned more than expected, they still put $13.4 billions to cover losses from souring debts. It seems that financial problems may not be over yet.

As a matter of fact, nothing was justifying such rally for the past month in a half. Several stocks have gone up (especially in the financial and natural resources sector) for no real reason.

Several good stocks went down today such as Timminco, MI developments, Eli Lilly, Pepsi Co and Hasbro were part of the bigger losers during this red Monday.

On the other side, it may seem normal to get some pullback on a market that soared 25% in March. We will have to wait to see what is going to happen in the upcoming days to know if we are going back in the market rally or this was simply a market correction during a bear market. My bet is that we are going back into the rally!

For more information and trend analysis on the above mentioned stocks, please visit trend analysis (it’s free!)

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For the money you don’t have invested in the stock market, finding a good internet bank is crucial. Internet banks can usually offer the best savings accounts as well as the best CD rates because they don’t take as much money to run as a traditional bank.

image source: flickr

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Posted on Friday, 17th April 2009 by admin

A few years ago, Apple  (a great techno stock) created the Iphone and seemed to completely rebirth with this new technology. We all thought that Apple was going sideways since his former CEO, Steve Jobs, left the boat. But with him back in the picture and an all new line of products (Ipod, Itouch, Iphones, etc), it seems that an all new Apple has grown from the tree.

Since techno stocks seems to be part of a new hype (Google, Amazon and other techno stocks have soared since November 2008), Apple stock is getting more and more attention from financial analysts.  This may definitely be a great buy if you are looking for a strong techno stock.

In this short video, I will take a look at Apple, Inc (NYSE_AAPL). I have to admit I love Apple products. I have an iPhone, an iMac and an iPod touch and several other Mac add-ons.

I have always loved their products, but I tend to be fickle with the stock. Thanks to our “Trade Triangle” technology, I have fallen in love all over again with Apple’s stock. I had been looking for this market to move lower based on the economic conditions and the market action, however this proved to be a false indication as Apple has moved to its best levels in quite some time.

I’ve just finished a new video on Apple, my first video on Apple in a while. Take a look and I’ll give you my thoughts and target zones for this very exciting stock.

The world has changed, it is not a buy and hold market anymore. You need to be nimble, trade with a game plan and be disciplined. Those are the key mantras of a successful trader.

As always, this video is with our compliments and there is no need to register to watch.

Enjoy this video by clicking here.

image source: Apple Logs

Posted in Best Stocks in 2009 | Comments (1)

Posted on Wednesday, 15th April 2009 by admin

About a year ago, I read a great and inspiring book written by Timothy Sykes (An American Hedge Fund). The book is actually about the stock trading experience of Timothy Sykes who started with 12K and ended up with 1,6M$ in four years (during the techno bubble). The kid (he was at college during that period) quickly learned how to buy stocks in a highly profitable manner.

Was it only luck? Should you buy stocks and hope doing like Sykes? The answer to the first question is probably no (as he made an astonishing return of 197% in 2008 while the stock market plunged 40%). However, the answer to the second question is a lot harder to tell. While Sykes basically learned how to buy stocks on his own, this can become a very risky adventure if you want to try it by yourself.

Nonetheless, Sykes can definitely help you learning how to buy stocks cheap and sell them at a high price! He has now a website and a blog where he gives you hint about his stock trading strategies.

His ability to buy stocks at the right time and sell them (or short sell them!) at an even better timing is quite impressive. With his videos, you have the possibility to learn how to buy stocks and penny stocks. You can learn how to buy stocks according to the fundamental technique or give it a try on the day trading game. On Timothy Sykes website, you also have the possibility to register for his TIM alert and get real time advice on how to buy stocks and when to buy them!

According to his website, he was ranked the #1 investor over 18,000+ traders over at Covestor.com in 2008 (they verify all trades). So if you are looking a place to start learning how to buy stocks and make profit, the banner below will direct you to his main webpage:

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Posted on Monday, 13th April 2009 by admin

With all the movements in the market recently, traders and investors are focusing more and more on protecting their capital.

A lot of them have lost their faith into their stock broker or financial planner and DIY investor don’t know where they should be heading to find the next best stock in 2009.

Experts have found that by properly knowing the trend of the symbols in their portfolio and keeping on top of those moves, they are able to protect capital and pull profits out of the market. It is one thing to know when to buy a stock,  but it is something else to follow your whole portfolio and identify the right timing to sell your stocks as well!

A good portfolio would include around 10 to 20 stocks. If you are keeping money in the money market fund for the next move, that would make a lot of stocks to follow. Staying on top of the changes and momentum shifts often becomes overwhelming, especially if you’re watching a large number of symbols and open positions. One free tool utilized by hundreds of professionals is Trend Analysis. Trend Analysis is a daily email analysis tool that gives focused insight into exactly what a portfolio is doing. The good thing about Trent Analysis is that it’s free and you get relevant information instantly.

*Get your symbol analyzed today*

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CFD Analysis

A CFD is an alternative to traditional share buying and selling. Make money from relative changes in price between initial and offsetting positions. A properly place stop-loss can protect your investment against market fall.

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