Posts by Pras Subramanian
- Pras Subramanian at Breakout5 hrs ago
Say one thing about this bull market, it’s resilient. A tough start to the year has almost been forgotten, with stocks fighting to push higher. In fact, the Dow Transports (^DJT), a leading indicator of sorts for many in the market, just hit a new all-time high today.
Even with this resilience, veteran stockpicker and friend of Breakout Hugh Johnson of HJ Advisors isn’t taking anything to chance, as he’s seeing some other patterns forming that aren’t completely bullish.
“Look at the performance of the market recently,” he says in the attached clip, “the market’s themselves have become defensive, the best performing sector is utilities, you see large cap outperforming small cap stocks, we see value stocks outperforming growth stocks.”
Whipping out his playbook, here are his top plays to stay defensive, as well as a couple stable offensive trades, for investors to stay on top of this market
- Pras Subramanian at Breakout2 days ago
Take a look at the Nasdaq Biotech ETF (IBB) chart from the end of February until now and you’ll see a visual depiction of the word ‘agita.’ Traders playing this high-flying stock have been hitting the Pepto-Bismol heavy and hard, and the question is whether there’s relief in sight.
Legendary chartist Louise Yamada of LY Research Advisors has seen some of these “parabolic” formations before, and when high-flying stocks do come down, they come down pretty hard.
In the attached video, Yamada does note that most stocks, even the high-flyers of the world, will give you some technical clue as to where they might be headed next.
- Pras Subramanian at Breakout5 days ago
If you’re invested in this market, you may feel like 2014 has been one long ride on a Six Flags roller coaster. Although the S&P 500 (^GSPC) is flat for the year, it’s been one bumpy ride getting here.
Over the past five years, however, investors have had very little to complain about. A steady, upward climbing market with little volatility had 401Ks and IRA accounts humming nicely. But one group of investors missed out on the action: young investors, or millennials.
After 5 years of steady returns, the return of volatility is now likely to dissuade new investors from buying in. Nick Colas of ConvergEX thinks that would be a mistake.
“This is year is a lot more normal, it’s a lot more like what should be expected,” he says in the attached video. “We get volatility, we get pullbacks closer to 5%, we’ll still be OK for the year, but the volatility will be much higher than last year.”
Colas says the same problems, or fears, affect everyone from mom and pop, to Wall Street whales, and new college grads looking to buy an ETF.
- Pras Subramanian at Breakout6 days ago
Another strong day for the market (^GSPC) yesterday has traders in better spirits after an ominous start to the week. Bullish comments by Janet Yellen on Wednesday helped, but one can’t help but feel we’re still in uncharted territory, with most market veterans seemingly grasping at straws to determine where we are in terms of the current bull market.
Many believe we are in the midst of an ongoing bull. Paul Schatz of Heritage Capital is one of these prognosticators, but senses our current bull market is getting close to be sent out to pasture. “The Bull market is old, and it’s wrinkly, but it’s not over yet,” Schatz opines in the attached video. “The bull market is transitioning to its final phase which is normal, bull markets don’t last forever.”
With that in mind, there are 3 sectors Schatz likes as the current bull market heads off into the sunset.
- Pras Subramanian at Breakout8 days ago
“These aren't the drones that you're looking for…” or so one imagines Larry Page and Sergey Brin whispering into the ears of Facebook (FB) founder and CEO Mark Zuckerberg. Google (GOOG) confirmed on Monday that it had swooped in and acquired drone-maker Titan Aerospace, a company Facebook was reportedly interested in acquiring.
Although Facebook ended up buying U.K. based drone start-up Ascenta, the turf war for drone supremacy is just taking off. Led by their visionary founders, both tech giants are taking to the skies to plant their company’s flags. It’s all about reaching an estimated five billion people worldwide who need access to the Internet, and thus capturing more information and getting in front of ever more eyeballs.
Access and Information
- Pras Subramanian at Breakout8 days ago
Phew! That was investors rubbing the sweat off their collective brows after Monday’s welcome relief rally, with the Dow (^DJI) gaining nearly 1%, and the S&P 500 (^GSPC) gaining back 0.8%. After a volatile and downright painful in some respect trading week, stocks have caught a bit as better than expected retail news and possibly cheaper, high-quality stocks have brought investors back into the fold.
But don’t tell the permabears that. The “I told you so” crowd has been beating their chests as off late, with Barron’s joining the chorus with their latest cover story on overvalued tech names.
Trader and hedge fund founder Jonathan Hoenig of Capitalistpig.com has a bit of advice for investors who might be swayed by the permabears. “No one knows what will happen in the market… We haven’t even had a 10% selloff in the major indices, so I’m trying to stick with technique more than prognostication.”
- Pras Subramanian at Breakout14 days ago
The Fab Five, as my colleague Phil Pearlman calls them,have been more like the ‘Filthy Five’ for investors. Netflix (NFLX), Facebook (FB), Tesla (TSLA), Priceline (PCLN) and Google (GOOG) have been shellacked in the past month, with some in fact entering bear markets (down over 20%).
- Pras Subramanian at Breakout16 days ago
First we had the Hang Seng China Enterprises Index, then 2013’s big star the Nikkei (^N225) got hit. Bear markets are creeping up in global markets, and even among some indivisual high flyers in U.S. like Netflix (NFLX), Facebook (FB) and Priceline (PCLN). While indices that track larger companies like the S&P 500 (^GSPC) is doing much better than high-flying momentum stocks after hitting all-time highs last Friday, our friends from Bespoke are finding that the average stock in the S&P 1500 (which includes small-caps and mi-caps into the mix) is down an average of 12.8%.
- Pras Subramanian at Breakout19 days ago
Has a longtime Minnesota bull turned bearish? Jim Paulsen, Chief investment strategist at Wells Capital Management, came out with a peculiar research note earlier in the week. Paulsen highlighted some similarities with an S&P 500 (^GSPC) chart from our current bull market with one that shows a similarity to the 1982 bull market that culminated int the Black Monday crash in 1987:
the contemporary bull market has been following the 1982 bull market fairly closely. As recently as last year-end, both bulls were up about 175% from their respective bear market lows! The important anniversary passed just a couple days ago was the 1274th trading day of both bull markets – the day on 8/25/1987 when the 1982 bull market reached a notable peak. On that day, the S&P 500 Index peaked for the year at 336.77. Moreover, we are now just 37 trading days from another important anniversary in financial history – 10/19/1987 when the S&P 500 Index suffered its biggest single day collapse ever!
- Pras Subramanian at Breakout22 days ago
The Obamacare individual signup deadline came and went yesterday, and not without a whimper. In yet another setback, the healthcare.gov portal was down again after a rush of last minute visitors tried to sign up on deadline day, knocking the exchange outon two separate occassions. Despite the hiccups, the administration claimed nearly 7 million signees, topping the target of six million in six months the White House had established. To be fair, the six million target was scaled back from seven million a few months ago.