The Ultimate Cage Fight: Buffet vs. Munger + 3 Bullish PowerRatings Stocks
The first and most critical step is to only look at stocks trading above their 200-day Simple Moving Average. This assures that a strong, long term up trend is in place, increasing the odds that you are not buying into a falling knife or catching a stock in a death spiral.
The second step is to drill deeper into the list locating stocks that have fallen 5 or more days in a row or experienced 5 plus consecutive lower lows. Yes, you heard me right, fallen 5 or more days in a row. I know this is counter-intuitive of conventional wisdom of buying stocks as they climb higher. However, our studies have clearly proven that stocks are more likely to increase in value after a period of down days than after a period of up days.
The third and final step is a combination of whittling the list down even further by looking for names whose 2-period RSI (RSI)2 is less than 2 (for additional information on this proven indicator click here) and the Stock PowerRating is 8 or higher. [Read the full article]
U.S. markets reversed intraday after opening significantly lower on Thursday to close near session highs. Relative to the S&P 500 and the Nasdaq 100, the Dow industrials – as represented by the DIAMONDS Trust Series ETF (NYSE:DIA – News) – lagged behind, though just outside oversold territory.
From a sector perspective, sellers were more aggressive in the financial sector than others, leading to a modest loss for the SPDRs Select Sector Financial ETF (NYSE:XLF – News). Buyers bid slightly higher consumer staples stocks, giving a boost to ETFs like the the ProShares Ultra Consumer Goods ETF (NYSE:UGE – News).
Among the country ETFs pulling back into oversold territory ahead of trading on Friday are the iShares MSCI Taiwan Index Fund ETF (NYSE:EWT – News) and the iShares MSCI South Korea Index Fund ETF (NYSE:EWY – News). [Read the full article]
Investors are anxiously awaiting the start of Ben Bernanke’s testimony before congress midweek. A more hawkish tone is expected that may dampen the recent equity enthusiasm. Another hefty slate of earnings will also greet traders on Wednesday. A sharp, unexpected drop in the consumer confidence number sent shares sharply lower Tuesday. Strong results in the retail sector were not enough to keep the bullish ball rolling on the session. The DJIA plunged 100.97, the Nasdaq fell 28.59 and the broad based S&P 500 gave back 13.41.
General Mills (NYSE:GIS – News) reports after the close with a forecast EPS of 93 cents. The Stock PowerRating for GIS is 5.
Struggling video rental chain, Blockbuster (NYSE:BBI – News), is expecting a 17 cent/share loss after trading ends. The Stock PowerRating for BBI is 3.
Mc Mansion masters, Toll Brothers Inc (NYSE:TOL – News), announces during the trading day with an estimated EPS loss of 34 cents. The Stock PowerRating for TOL is 6. [Read the full article]
David Goodboy is Vice President of Business Development for a New York City based multi-strategy fund.
A Moody’s downgrade of Greece’s debt sent a bearish shiver into the markets spine today. Fear of the international downgrade spreading combined with worse then expected job figures pressured stocks lower on the session. Word that Apple may conduct a 4 to 1 stock split added some bullish sentiment lifting the closing numbers well off the lows. The final trading day of the week brings traders the GDP figures as well as earnings from several key names. The DJIA ended the session down 53.13, the tech heavy Nasdaq gave back 1.68 and the broad based S&P 500 fell 2.31.
Warren Buffet’s baby, Berkshire Hathaway Inc, BRK-A, reports after the close with an unknown forecast at this time. The Stock PowerRating for BRK-A is 4.
Rumors of Apple (NasdaqGS:AAPL – News) splitting its stock 4 to 1 persist on the Street. The Stock PowerRating for AAPL is 6. [Read the full article]