Extremely volatile markets create an environment for the formation of a very specific type of technical price pattern. The “Dead Cat Bounce” pattern (DCB) may have a macabre name but it comes with very nice profit potential and is relatively easy to identify. At its heart the DCB is a great study in investor psychology. … Continued
A buyback benefits shareholders by increasing the percentage of ownership held by each investor by reducing the total number of outstanding shares. We talk about how to identify buyback programs and discuss strategies for investors to take advantage of stock buyback opportunities.
Optimize your dividend investing for better profits over the long term. We have often suggested that building a portfolio of dividend paying stocks may make more sense over a “growth” portfolio because the income can help offset some market volatility and price declines over the long term. Traders will often struggle with this concept because … Continued
Stock seasonality is more about rumors and superstition than actual fact. Learn more about whether the summer doldrums are really predictive or not.
In this article we introduce the Bollinger Bands indicator and focus on two common uses for Bollinger Bands and how they can be used to improve your trading.
Insider trading is an often misunderstood investing tool. It can be helpful for traders but its value is usually overstated. This is a good topic to tackle right now as we are seeing an up-tick in the number of insiders buying in late 2008 and early 2009 compared to the last year. This could indicate that insiders … Continued
The basic idea behind a short squeeze is to look for a stock that a lot of traders have been shorting in the recent past (this is a very bearish thing to do) and then are reversing direction and covering those trades by buying the stock. All this buying creates a positive feedback cycle by … Continued
When the U.S. government announces plans to increase spending on infrastructure projects this should be viewed as an opportunity for investors. In this article we help you navigate the risks and opportunities associated with infrastructure spending plans.