STOCK SUPERSTARS ALERT FOR THE WEEK ENDING 5/10/2013
Posted on May 10, 2013 | Stock Superstars Report
Stock Superstars alert for the week ending 5/10/2013 updated.
An Income-Generating Options Strategy
Posted on May 10, 2013 | AAII Journal
Writing covered calls can add extra income to a buy-and-hold strategy, but it limits profits on the underlying stock.
RedLaser for iOS, Android & Windows Phone
Posted on May 9, 2013 | Computerized Investing
RedLaser allows users to scan bar codes and then comparison-shop at online retailers and local brick-and-mortar stores to find the lowest price available.
Stock Market Winners Screen
Posted on May 9, 2013 | Stock Screens
A screen that tries to interpret and apply successful trading rules in the real market environment.
New Junk Bond Record, But Risks Remain
Posted on May 9, 2013 | Investor Update
The quest for higher yields is going to end badly for some investors. There is new evidence that some investors are ignoring risks in exchange for quenching their thirst for income.
The latest is junk bonds. Yesterday, the yield of the Barclays US High Yield Index fell to a new record low of 4.96%. It broke the 5% level for the first time in its entire 30-year history on Tuesday. Barron’s noted that prior to this past January, the index’s yield had never fallen below 6%.
AAII Sentiment Survey: Bullish Sentiment Above 40% for First Time since Early March
Posted on May 9, 2013 | AAII Survey
A jump in optimism put bullish sentiment back above 40% for the first time in nearly two months, according to the latest AAII Sentiment Survey.
Bullish sentiment, expectations that stock prices will rise over the next six months, rose 9.8 percentage points to 40.8%. This is an eight-week high. It is also the first time since March 14, 2013, that optimism is above its historical average of 39%.
Neutral sentiment, expectations that stock prices will stay essentially unchanged over the next six months, declined 1.3 percentage points to 31.8%. This is the first time since September 2012 that neutral sentiment is above its historical average of 30.5% on three consecutive weeks.
Bearish sentiment, expectations that stock prices will fall over the next six months, plunged 8.5 percentage points to 27.4%. This is the lowest level of pessimism registered by our survey since January 31, 2013 and the first time pessimism has been below its historical average since April 4, 2013. Though seemingly low, bearish sentiment is just 3.1 percentage points below its historical average of 30.5%.
Bullish sentiment has risen by a cumulative 21.5 percentage points since bottoming on April 11, 2013. The rise has put the number of bulls above the number of bears for the first time since April 4, 2013. New record highs by the Dow Jones industrial average and the S&P 500, better-than-forecast earnings, signs of continued economic growth and a lack of new bad news are all contributing to the higher level of optimism. This is a cautious optimism, however, as many investors remained concerned about current valuations, the actual pace of economic growth and a lack of progress on key issues by the White House and Congress.
This week’s special question asked AAII members for their opinion of first-quarter earnings. Responses varied with 20% of respondents saying earnings were good, 15% saying results were mixed or so-so, and 14% describing profits as disappointing or weak. Slow revenue growth or the impact of widening margins were cited by 18% of respondents.
Here is a sampling of the responses:
- “Stronger than most felt they would be.”
- “So far, so good. Most companies are meeting expectations.”
- “Earnings are better than revenues suggest they should be.”
- “Earnings were okay, but revenues were weak.”
- “The earnings increase was due to cost cutting, not top-line revenue growth. This is a bad sign.”
This week’s AAII Sentiment Survey results:
- Bullish: 40.8%, up 9.8 percentage points
- Neutral: 31.8%, down 1.3 percentage points
- Bearish: 27.4%, down 8.5 percentage points
- Bullish: 39.0%
- Neutral: 30.6%
- Bearish: 30.6%
The AAII Sentiment Survey has been conducted weekly since July 1987 and asks AAII members whether they think stock prices will rise, remain essentially flat, or fall over the next six months. The survey period runs from Thursday (12:01 a.m.) to Wednesday (11:59 p.m.) The survey and its results are available online at: http://www.aaii.com/sentimentsurvey
Market Barometers: A Look at Stock Indexes and How They Work
Posted on May 8, 2013 | Investing
You may not need a weather man to know which way the wind blows.
But in the financial world, you do need a stock market index to know which way the stock winds are currently blowing. That’s why the broad market indexes are quoted daily by virtually every media source as a barometer of the state of the overall market.
How do these market indexes work and what are they telling you?
Sell of the week 5/8/2013
Posted on May 8, 2013 | Podcast
AAII Journal Editor Charles Rotblut Editor explains to Chuck Jaffe of MarketWatch why LinkedIn (LNKD) is his “Sell of the Week” on the MoneyLife Radio Program. MoneyLife is a daily personal finance show that sorts through the financial clutter to bring you the information you need to lead the MoneyLife.
Audio url: Sell of the week
BUY OF THE WEEK 5/7/2013
Posted on May 7, 2013 | Podcast
AAII Journal Editor Charles Rotblut explains to Chuck Jaffe of MarketWatch why Lincoln Electric Company (LECO) is his “Buy of the Week” on the MoneyLife Radio Program. MoneyLife is a daily personal finance show that sorts through the financial clutter to bring you the information you need to lead the MoneyLife.
Audio url: Buy of the Week
The April 2013 passing company lists and performance data is now available on-line
Posted on May 5, 2013 | Stock Screens
YTD Return of Top Performers: Piotroski: High F-Score 70.2% — O’Shaughnessy: Value 30.2%