Category Archives: Fundamental Analysis

Global Manufacturing PMI Deteriorates Further

Posted on September 19, 2012 by

The trading rules series will continue shortly, but I wanted to comment briefly on a recent economic report.  JP Morgan’s Global Manufacturing PMI contracted at a faster rate in August, decreasing from 48.4 to 48.1.  The August PMI value was … Continue reading →

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Posted in Economic Indicators, Fundamental Analysis, Market Commentary, Market Timing | Tagged , , , | 1 Comment

Do Not Short a Bull Market

Posted on August 21, 2012 by

The first and most important rule of trading is to always trade with the prevailing trend.  I have emphasized this rule in a number of my past posts.  It holds true in all market environments, but is especially crucial in … Continue reading →

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Posted in Economic Indicators, Fundamental Analysis, In-Depth Article, Market Commentary, Market Timing, Options, Risk Management, Summary Market Indicator Score, Technical Analysis | Tagged , , , , , , , | 1 Comment

European Yield Barometer Tainted by ECB

Posted on August 16, 2012 by

Over the past week, the yield on ten-year Spanish debt dropped from over 7.00% to a low of 6.60%.  The yield on Italy’s debt dropped from over 6.00% to 5.78%.   That is great news, right?  It means that Europe … Continue reading →

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Prices and Earnings Diverge

Posted on July 29, 2012 by

According to FactSet, since June 1, the price of the S&P 500 index has increased by 6.4%, while the year-over-year earnings growth rate for Q3 has declined from +3.5% to -1.6%.  In other words, while analysts were reducing their earnings … Continue reading →

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Fed Rides to the Rescue – On a Broken-Down Horse

Posted on June 20, 2012 by

The Federal Reserve announced today that they will continue Operation Twist through the end of 2012.  Given the ongoing problems in Europe and the widespread weakness in the global economy, the Fed was widely expected to take substantive action to … Continue reading →

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Take the First Step Toward an Investment Process

Posted on June 15, 2012 by

Most investors do not use an investment process.  Instead, they ask their friends for stock tips, watch CNBC, read a few newsletters (or blogs), and hope for the best.  There is no consistent rationale behind their decision-making process, very little … Continue reading →

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Posted in Fundamental Analysis, In-Depth Article, Market Breadth, Market Commentary, Market Timing, Relative Strength, Risk Management, Seasonal Tools, Security Selection, Stock Screens, SWAMI Charts, Technical Analysis, Zacks | Tagged , , , , , , , , , , | 5 Comments

Spain: More Debt Equals Increased Risk of Default

Posted on June 12, 2012 by

After insisting a week ago that they did not need a bailout, Spain asked for $125 billion to shore up its crumbling banking system. World equity markets initially rallied on the news. Spain’s IBEX 35 index was up a remarkable … Continue reading →

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Posted in Fundamental Analysis, Market Commentary, Market Timing | Tagged , , , | 1 Comment

Proven Stock Screens Earn 20%+ Annual Returns

Posted on May 25, 2012 by

Consistently picking individual stocks that will generate excess returns is hard, but most investors make it much more difficult than necessary.  There are a number of simple, fundamental stock screens that have generated historical returns of 20% to 40% per … Continue reading →

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Posted in Fundamental Analysis, In-Depth Article, Security Selection, Stock Investor Pro, Stock Screens, Stocks & ETFs, Zacks | Tagged , , , , , , , , , , , , , | 15 Comments