| October 22, 2014 | | | | | |
 | | | | McDisaster: Fast Food Is Dying. Here's How to Make a Killing From It... | | | - A super-sized crash?
- Ditch the junk
- Plus: How (not) to trade a bottom
|
| | | Greg Guenthner coming to you from Baltimore, MD...
 | | Greg Guenthner | Excuse me sir, would you like to super-size that crash?
McDonalds stock is getting crushed right now. Shares have been in a tailspin since June. But it's not just Mickey Dee's. Coca Cola shares are in freefall, too.
Bad news for them. But if you want to rake in a pile of easy money, it could be great news for you. Here's why…
See, Americans just aren't choking down this junk like they used to. The fast food burger, fries and a Coke are just down payments on an early coronary - and Type II diabetes. And everyone's finally gotten the message. In a recent Consumer Reports survey, McDonalds ranked dead last in food quality, value, and service. Consumers are looking for healthier alternatives, and there's a growing demand for "green" organic and hormone-free foods.
Just look at shares of McDonalds Corp. (NYSE:MCD). It's down nearly 4% on the year. Only yesterday, the fast food giant reported 30% drop in its third-quarter earnings. Management cites challenges in the biz that are "more formidable than expected."
Gee, I wonder if the captain of the Titanic used that phrase to describe the threat of icebergs after he slammed into one...  Whatever McDonald's excuses are for laying an egg this earnings season, one fact is undeniable: Unhealthy, traditional food offerings are on their way out the door. And anyone owning shares of the junk-peddlers will suffer in the long-term. The stock is already breaking down to new lows on the year. It's only a matter of time before shares find themselves locked in an even nastier downtrend.
Still don't believe me? Check out Coca Cola Co. (NYSE:KO). The Big Mac's best friend is coming off its sugar high and spiraling lower.
After posting disappointing earnings and a cruddy full-year outlook, Coke shares took their worst one-day hit since October 2008.  Both McDonalds and Coca Cola are in big trouble. And these are Dow stocks we're talking about! Investors are looking to these names for safety. But they're getting nothing but losses.
Here's the truth that many investors can't admit: There's no growth in junk food anymore. Consumers' habits are changing. They're gluten free, low-carb, no-carb, organic and environmentally aware. I really don't care if you think these are the attitudes of tree-huggers and hippies —I'm just telling you what's happening in the market.
Companies are realizing they need to shift focus to healthier options -- or lose market share.
So put that burger down and sell these bloated "junk" stocks now. | | | | | | | | | Just like the super-rich. Ordinary Americans are cropping up all over the country who have figured out this closely guarded secret. And it's about time you join in on the fun. Click here for all the details. It will take only two minutes to understand what it is. | | | | | | | |  | | | | Rude Numbers | Targets, Predictions and Wild Guesses
| | | | 0.1% | is how much consumer prices rose last month. Economists were expecting prices to be flat in September. | | 37 | points were added to the S&P 500 yesterday, marking the large-cap index's best day of the year so far… | | $17.24 | is where you'll find silver futures early this morning. The poor man's precious metal is the worst performing commodity of the bunch, dropping nearly 2% in early trading. Meanwhile… | | $1,242 | marks the spot for gold futures. The yellow metal is down about $10 to start the trading day… | | $83.10 | buys a barrel of crude today. Oil is slowly attempting to rebound from its lows near $80… | | | | | | | | Rude Trends | When to Buy... When to Sell
| | | "Sure would have been nice to have gotten this a couple days earlier—before the homebuilders shot up by double digits," quips a reader.
Yeah, about that. I'm going to let you in on a little secret…
On October 14th—when the SPDR S&P Homebuilders Index ETF (NYSE:XHB) was trading for about $28—no one knew it had found a floor. No one. If someone told you they knew with complete certainty that the stock hit its lowest price of the month, they're either a liar or just plain nuts.
Of course, in hindsight, it's easy to look back at a trade and say "Wow, it would have been nice to buy a couple of days earlier…"
But you and I both know that's not how the market works. We don't know a bounce is brewing until we see it with our own eyes. If you ran around like a madman buying every single stock that was dropping in anticipation of some sort of bottom, you'd be broke by Thursday.
When it comes to trading, you're never going to buy exactly at the bottom and sell at the top. That's a pipe dream. Instead, you need to look for the high-probability trades (like XHB after it has shown signs of life). That's how you'll make consistent gains—no matter what happens in the markets.
[Ed. Note: Send your feedback here: rude@agorafinancial.com - and follow me on Twitter: @GregGuenthner] | | | | | | | Ignore At Your Own Peril | Today's Must Read Links
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