After the share sell off last week, bearishness amongst investors was high going into the weekend. As usual the market likes to do the exact opposite in the following session. Monday was no different as the S&P closed up +2.3%, led higher by banks like JPM (+6.45%) and C (+6.89%).
Sharp rallies like these are often signs of short covering rather than healthy buying. Heading into Tuesday we can probably expect this rally to continue into the morning, but as the week progresses we have a lot of headline risk from Europe to contend with.
For intraday commentary and discussion, drop by the stock market today forum and chat with other traders!
Monday, September 26, 2011
Tuesday, September 20, 2011
Value Investing
We are in a period of volatility with headline news creating huge swings in the markets on a weekly basis. The Volatility Index (VIX) has been up in the 30 range which usually means we should expect 2% swings regularly.
At times like this, the conservative investor, now more than ever has to take a value investing approach to their portfolio.
When stocks are being pressured lower by broader market moves, you want to find the high dividend paying, low PE reliable stocks you can tuck away for a few years and collect that fat dividends while you wait for the market to sort itself out.
Defensive plays like biotechs are always a favorite, LLY and PFE are two to consider.
Drop by the thread linked above to get some more information and book recommendations on value investing.
At times like this, the conservative investor, now more than ever has to take a value investing approach to their portfolio.
When stocks are being pressured lower by broader market moves, you want to find the high dividend paying, low PE reliable stocks you can tuck away for a few years and collect that fat dividends while you wait for the market to sort itself out.
Defensive plays like biotechs are always a favorite, LLY and PFE are two to consider.
Drop by the thread linked above to get some more information and book recommendations on value investing.
Tuesday, September 6, 2011
Swiss National Bank intervenes in FX market
Investors woke to the stock market today with a surprise! The SNB announced overnight that they will peg the Swiss Franc at the 1.20 level by buying foreign currency in "unlimited" quantities.
Markets reacted swiftly with the USDCHF making huge moves at the announcement.
This is basically the Swiss saying that they are now joining in the to the bottom. No longer do they want the deflating US Dollar driving up their currency, they will now use all their resources to print more Francs and similarly flood the market just like Bernanke has been doing.
The markets opened up sharply lower but managed to close a 200 point drop. Leadership stocks were looking good with AAPL managing to close in the $377 range, with striking distance of the recent highs.
The markets looked prime for a move higher tomorrow, but macro economic fears will most likely bring about a second leg lower later this week or early next week.
Markets reacted swiftly with the USDCHF making huge moves at the announcement.
This is basically the Swiss saying that they are now joining in the to the bottom. No longer do they want the deflating US Dollar driving up their currency, they will now use all their resources to print more Francs and similarly flood the market just like Bernanke has been doing.
The markets opened up sharply lower but managed to close a 200 point drop. Leadership stocks were looking good with AAPL managing to close in the $377 range, with striking distance of the recent highs.
The markets looked prime for a move higher tomorrow, but macro economic fears will most likely bring about a second leg lower later this week or early next week.
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