With stocks much improved in the last few weeks on hopes for concrete steps being ten toward a resolution of the European sovereign debt crisis and hints from several Federal Reserve Governors that more quantitative easing is on the way, we closed our SPDR Financial Select Sector ETF (XLF) January 11 put option yesterday. Also yesterday, we added Manitowoc (MTW). Although it’s up sharply from its recent lows, the stock is still off about 60 percent from its April high. Judging by Caterpillar’s results the other day, analysts have likely gone too far in lowering their projections for Manitowoc, which offers the potential for a quick pop in the share price. But even if the company fails to offer improved guidance, the stock has room to move higher to work off its oversold condition. Halliburton (HAL) exceeded earnings expectations with its quarterly results last week, but investors came away worried about its international growth prospects as well as that of certain basins in the US. The retreat that resulted wiped out our early gain in our Halliburton (HAL) January 38 call option trade. However, with oil prices moving higher and the stock trading at very low valuations, we expect the stock to move higher in the coming weeks. The option is a buy at the current price. Read More
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Sell to close SPDR Financial Select Sector ETF (XLF) January 11 put option at the market. Buy Manitowoc (MTW) stock at the market price. Read More
China’s third-quarter economic growth slowed to its weakest pace in two years, suggesting that the government’s policy measures to cool growth have taken effect. The Chinese economy grew by 9.1 percent year over year in the third quarter, compared to 9.5 percent in the second quarter and 9.7 percent in… Read More
Investors are counfounded by the tax status of gold ETFs. Read More
Updates on past recommendations and how they've fared. Read More
Stocks staged an impressive rally last week on hopes that European leaders are making progress in resolving the debt crisis and patching up the continents battered banks. The S&P 500 tacked on 6 percent, its biggest weekly gain since 2009. Read More
We sold the National Oilwell Varco (NOV) January 62.50 call option for a 17 percent gain in just one day. We replaced that position with the Haliburton (HAL) January 38 call option. That trade, however, got off to a good start only to cause a good deal of pain as the stock sold off sharply yesterday, despite the company reporting better-than-expected quarterly results, on concerns of rising cost pressures. Still, the stock isn’t likely to stay down and we rate the trade a buy at its current price. We also sold ON Semiconductor (ONNN) after the stock handed us a 9 percent gain in just four days. We immediately returned to the technology sector by buying the Qualcomm (QCOM) January 55 call option. The company is a sure-fire winner from the growing popularity of smart phones. The option can still be purchased with a limit order set at $3.60 per contract. A powerful rally in bank stocks fleetingly carried the SPDR Financial Select Sector ETF (XLF) above its 50-day moving average, the ETF has backed off since and was unable to break its downtrend. The SPDR Financial Select Sector ETF (XLF) January 11 put option is a buy at its current price. Read More
Two top investing experts tell us what to buy now and why. Read More
Sell to close ON Semiconductor (ONNN) at the market. Buy to open the Qualcomm (QCOM) January 55 call option. Use a limit order to pay no more than $3.60 per contract. Read More
China’s inflation continued to moderate in September, though food prices remained stubbornly high. China’s consumer price index in September rose 6.1 percent, a slight decrease from the August reading of 6.3 percent and down from the three-year peak of 6.5 percent reached in July. However, food prices rose by 13.4… Read More