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| | | How to Pick Stocks in a Sideways Market
We are at a typical crossroads in the stock market where the push-pull between bulls and bears has resulted in a fairly sideways market in recent days. Are we due for a protracted selloff after the recent rise or will the market forge ahead during this, the best-performing season of the year? Yes, stocks will move higher but prior to that we could be mired in the current, short-term sideways scenario.
One of the best approaches to finding winning stocks in this environment is to follow the money. Even if the overall market is not doing much of anything, there will be certain sectors that are under accumulation. Still, this does not necessarily mean that you should chase the best-performing stock in the sector or the stock that has the strongest gains in recent days. For example, if solar stocks are under accumulation (as they have been), some of the best ways to play the rotation into the segment is to buy shares of companies that are leaders in niche segments of the industry or just under the radar screen.
Moreover, it should easy to understand why the given space is moving and adjust your strategy accordingly within the group of stocks in the segment. Gravitate toward those stocks that expect to or are currently earning money or with stronger financials -- rather than to high flyers whose prospects may be a bit more suspect and are moving only because a rising tide lifts all boats. You will typically find less downside risk and greater upside potential in this fashion. Since it is a sideways market, you are trying to hit singles and doubles, not home runs. Swing for the fences and you are more likely to strike out.
To read more click here >> or visit http://www.thestockjunction.com
These Pumps Indicate Stocks Will Move Higher
We are excited about the outlook for equities of all sizes and talked about this recently. Since then, our perspective has only been bolstered by a series of events and news announcements. These include third-quarter financial results, mostly in line and better than expected, which have been happily welcomed by investors. While the list below highlights reasons why stocks should continue their march upward, there is always risk and stocks do not trade exclusively in one direction. With that in mind, here are three big-picture reasons why we believe not being invested in stocks could be harmful to your wealth.
1. The Pump Continues
There appears to be no end in sight to the monetary and fiscal policy by the United States Federal Reserve. Close market watchers have not forgotten how stocks were whipsawed multiple times from June to August on tapering fears that could harm the liquidity the Fed has maintained in the marketplace, along with its debt buying. While this strategy is not sustainable in perpetuity, it can mask the other economic problems and perhaps even keep some of them at bay while we wait for an upturn in corporate profitability to pick up a little slack.
To read more click here >> or visit http://www.thestockjunction.com
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