Trading Tips Blog

The S&P 500 recently tested its 50-day moving average, but does that mean valuations for the index have normalized? Unfortunately, it hasn’t even begun to do so. Looking at the Shiller P/E ratio for the S&P 500, the market has only been more overvalued one other time and that was during the 2000 tech bubble. The market may only be in a quiet period before significant volatility returns. In this climate, identifying value companies that pay dividends may be a ...
Read More About This

It may be hard to appreciate a rental car company as an investor when travel is so impacted, and Hertz declared bankruptcy. However, not all companies are the same and some are underappreciated and undervalued. Avis Budget Group Inc (NASDAQ: CAR) may be one of those companies as the stock continues to trend higher. One big indication is string of insider buying by 10% owner SRS Investment Management. Avis has been a solid performer since its March lows and is ...
Read More About This

It can be startling when the volatility of the market rears its ugly head when it’s been gone for a while. This past week may be a reminder that it’s not always an up day and the down days can see gains diminish quickly. As stocks look to find their footing, it will be interesting to see which companies begin to lead. On Wednesday, the increased bullish option activity in Altria Group Inc (NYSE: MO) may be an indication ...
Read More About This

For the past three months, the share price of Invesco Ltd (NYSE: IVZ) has been trading in a range between $10 and $11.60. The price just made another run at the resistance last week as volume surged but faded from the high yesterday. As the price was beginning its run, the president and CEO Martin Flanagan and another insider began buying shares. The insider buys may be an indication that they expect the price to move higher. Invesco is a ...
Read More About This

Gold has a history of outperforming during a market correction. The recent selling period is another example of this historical trend. Part of the reason is that gold’s selling is primarily a result of dollar strength and not the loss of value that stocks experience. On Tuesday, gold futures finished 0.17% higher while the S&P 500 finished 2.78% lower. As SPDR Gold Trust ETF (NYSEARCA: GLD) share price cozies up to its 50-day moving, the option market is looking ...
Read More About This

As was expected, the selling spilled over into this week. Many stocks have fallen from their highs and are in the process of testing their moving averages. A key moving average for institutional investors is the 5-day simple moving average. The area around the average often triggers investors to buy a company. Here is a list of six blue chip companies that have fallen to their 5-day moving averages and how to use options to trade it. A “blue-chip” company ...
Read More About This

Real estate is a powerful asset class, and one that often competes with stocks and bonds. Most of the world’s ultra-wealth have either made their money in real estate, or keep a significant chunk of their net worth in the real estate market, given its large market cap. In today’s capital markets, there are plenty of companies that offer exposure to the real estate sector with the liquidity of a company on a publicly-traded stock exchange. These opportunities cover a variety ...
Read More About This

Franchise Group Inc (NASDAQ: FRG) has been testing its $27 resistance again last week as the it has several times over the past year. Before the price made a run at that level last week, there was insider buying by the CEO and 10% owner Brian Randall Kahn. The buying is an indication of an expected rise in price and a potential breakout. Franchise Group operates a retailer, franchisor operator, and acquirer of franchised and franchisable businesses. The company’s insiders ...
Read More About This