Market Inefficiencies Give Black-Eyes to Classic Economists by Wade of Investing Caffeine Markets are efficient. Individuals behave rationally. All information is reflected in prices. Huh…are you kidding me? These are the beliefs held by traditional free market economists (“rationalists”) like Eugene Fama (Economist at the University of Chicago and a.k.a. the “Father of the Efficient Market Hypothesis”). Striking blows to the rationalists...
Nasdaq- Facing most important resistance test this year! by Chris Kimble From a Power of the Pattern perspective, Tech humbly appears to be facing the most important resistance test its faced in 2016. The left chart looks at the NDX/S&P ratio, which reflects that tech was much stronger from early to 2013 until late 2015. Even though the S&P 500...
Did the S&P just crush this ‘irrefutable’ sell signal? by Simon Maierhofer Is this the beginning of the end? The S&P 500 (SPX) (SPY) (and most other major market indexes) just got struck by the ominous “death cross.” An irrefutable sell signal? This is not just your average death cross — where the 50-day simple moving average (SMA) drops below the...
Investors expect a smooth summer for stocks, according to Goldman by Alex Rosenberg Options prices have fallen to a one-year low according to Goldman, in what may be an indication that big investors foresee a mild summer ahead. "It appears that investors are expecting low volatility as we enter the summer months," the Goldman Sachs options research team surmised in...
Biotech could be due for a turnaround thanks to these stocks by Annie Pei Biotech stocks as a group have suffered a tough start to the year, but traders are beginning to see a turnaround for the struggling sector led by big-cap biotech stocks. When he looks at the Nasdaq Biotech ETF (IBB), Piper Jaffray technical analyst Craig Johnson sees "a...
The 3 reasons you should buy tech stocks now: Analyst by Annie Pei After a fairly dismal month amid earnings, the tech sector has rallied through May, and the upswing is giving some investors hope. The SPDR Technology Sector ETF (XLK) is closing back in on $45, which Oppenheimer technical strategist Ari Wald believes is a new point of resistance. On CNBC's "Trading...
There's a 'controversy' brewing in gold market: Goldman Sachs by Alex Rosenborg Gold (GLD) has been one of the best investments this year, rising 15 percent even as the S&P 500 (SPX) (SPY) is only a few percentage points better than flat. But as gold has slipped over the past month due to heightened expectations of a summer rate hike, indicators "show controversy" around gold...
Citi: It Looks Like Low Oil Prices Didn't Help Other Companies Make More Money Earnings estimates have been slashed across the board, but consumers didn't take their money elsewhere. by Luke Kawa The collapse in oil prices (USO) prompted analysts to slash earnings estimates for energy companies around the global by $164 billion in 2015. Those losses were supposed to turn...
These dividend ‘kings’ have had average annual returns of up to 21% for 25 years Eighteen U.S. companies have increased their dividends for at least half a century by Philip Van Doorn Discussions of the S&P Dividend Aristocrats are popular with MarketWatch readers. And now Ben Reynolds of Sure Dividend has identified a list of 18 “dividend kings” that takes the Aristocrats idea a...
Forget the Fed and earnings – right now, it’s all about this currency by Annie Pei Investors are keeping an eye on a possible Fed rate hike in June and the continuous trickle of first-quarter earnings releases, but the short-term future of U.S. stocks could actually depend on a foreign currency. On Wednesday, the Chinese yuan hit its lowest level...
