Pendulum Experiment: The Weakest Metal Vs. The Strongest Future

Aibek Burabayev - INO.com Contributor - Metals


Dear readers, I hope things are good if you are short both top precious metals as per my Gold and Silver updates and you are enjoying the rising gains. As nothing unforeseen has been happening, let us do an experiment.

Do you know what a pendulum is and what the effect it has on an instrument? When something moves one way and then swings back and we push it harder forward, it will move back deeper for the distance that is equal to the distance between equilibrium and the forward point. Swings and waves are a normal part of our everyday life, and that is true for the markets as well. Continue reading "Pendulum Experiment: The Weakest Metal Vs. The Strongest Future"

No Matter How You Look At It, This Stock Is A Screaming Buy

Daniel Cross - INO.com Contributor - Equities


Investing in the market is a lot like anything else – if it seems too good to be true, it probably is. Then again, sometimes a stock play makes so much sense, it's impossible to ignore.

The current economic environment has investors concerned what 2016 will bring. China's stock bubble burst, commodities are suffering in the dredges with no positive catalysts anytime soon and the US stock market is looking more and more like it's hit the top and could be reversing course sometime over the next six months or so. And the Fed rate hike still looms large as investors prepare to get defensive against a rising rate environment that could last several quarters.

After more than five years of economic expansion, consumer spending is at all time high levels, although further growth has been mixed over the past few months – another sign of a market top. Margin debt levels hit a record high this year as well meaning consumers and investors both are leveraged more than ever financially. Continue reading "No Matter How You Look At It, This Stock Is A Screaming Buy"

This Stock Could Outperform The Market In The Next Three Months

October proved to be a spectacular month for stocks with the best gains seen since the third quarter of 2011. Historically, the last quarter proves to be a good one for stocks. That is not a guarantee that stocks will go higher, but historically since 1949, stocks have averaged a gain of 4% in Q4. That is followed by a strong Q1 with the average gain of 2%. History is all well and good, but it doesn't necessarily repeat itself in a very systematic fashion every single year.

Here's the stock that I think can do very well in Q4. The stock is TE Connectivity Ltd. (NYSE:TEL). Presently this stock is trading around the $64.90 area and I believe it can move substantially higher in Q4.

Here are the reasons why I think that: Continue reading "This Stock Could Outperform The Market In The Next Three Months"

Silver Update: Risk/Reward Ratio Favors Longs (1:4)

Aibek Burabayev - INO.com Contributor - Metals


Back in September, I posted a Silver update with the very promising title, "The Time Has Come," where I suggested both target and time for this fading downside move. The target at the $13.7 level hadn’t been reached as buyers did not wait to buy on the dips and had followed Gold to the upside beyond $15, but the time goal (which I stressed in the title) worked out perfectly according to the Fibonacci time zone extension. The downtrend exhaustion appeared in September and it has been really wasting away as not only the low, but also the high of September have both been trapped in the shadow of August (margins have been highlighted in two black dashed parallel horizontal lines). Below the chart, I am going to expand on the prospects of the current reversal.

Silver (FOREX:XAUGSDO)
Chart courtesy of TradingView.com

Laozi said, “A journey of a thousand miles begins with a single step” and the above daily chart shows us important details that can’t be seen on the monthly chart. Here we can see the last steps of the previous “journey” down and the first “step” for the way up. Continue reading "Silver Update: Risk/Reward Ratio Favors Longs (1:4)"

This Grocery Stock Could Be A Steal At This Price

Daniel Cross - INO.com Contributor - Equities


It's been a wild ride for Wall Street this past week as the broader indexes collapsed for several days before rebounding sharply back to the upside. The short correction was mostly blamed on the fallout from the Chinese stock market crash which triggered panicked selling across all assets and dragged down every segment of the stock market. But panic selling can be a great buying opportunity for value shoppers.

Sometimes a perfect storm can take a stock way down below its fair value. An earnings miss combined with a macroeconomic crisis can amplify losses well beyond a reasonable range. However, if the long-term fundamentals hold strong, investors can pick up a great value buy at a discounted price.

A solid company in the wrong place at the wrong time

The Fresh Market (TFM) is a grocery store with 168 stores in 27 states known for its organic foods selection. The stock has suffered mightily this year – down roughly 50% year-to-date. The company's recent earnings miss coupled with the recent events in the global financial markets have contributed to the stock's weakness. Continue reading "This Grocery Stock Could Be A Steal At This Price"