Archive for Rick Pendergraft
Rick is currently the Editor-in-Chief of The ETF Options Trader and the Triple Wave Investor. At the age of 23, on the third options trade he had ever placed, Rick turned $1,800 into $22,000 in less than a week, when the company he bought became the target of a takeover. He admits it was a stroke of luck, but it was a memorable education as to the leverage that options can provide. He lives near Delray Beach, FL with his wife and three children.
Why Positive Data Doesn’t Mean Economic Recovery
Several data releases last week - including new home sales, durable goods orders and GDP growth - signaled an improvement in the U.S. economy. But Rick Pendergraft in Investor’s Daily Edge says it is important to distinguish between stabilization and reversing course. A huge backlog of unsold houses and ongoing job losses will keep the economy on shaky ground for the time being…
Stay Away from the Retail Sector Until Christmas
Despite falling commodity prices, producer and consumer inflation are rising. Add to this low consumer confidence and you get bad news for the retail sector, says Rick Pendergraft in Investor’s Daily Edge. Rick recommends steering well clear of retailers right now…
Rick Pendergraft Says Oil Won’t Break $147 Again for Years
Crude oil prices plunged on Friday - the sharpest one-day fall in percentage terms since December 2004.
This morning, however, crude was up almost $1, touching $115.57 a barrel on the Nymex.
Rick Pendergraft in Investor’s Daily Edge says strong trendline support for the crude oil should prevent a further fall in prices in the coming months. But falling demand and a breakout for the US dollar mean $147 will be the high water mark for oil for several years.
Expect Dollar and Oil Reversals to Hurt Airline Stocks
According to a recent article in Barron’s, now is a good time to sell airline stocks.
So far this year, 25 airlines have collapsed. Those that have survived have taken on hefty losses. The seven biggest US carriers had combined 2Q losses of almost $6 billion.
Nevertheless, over the last month the AMEX Airline Index (XAL) rallied as the price of crude oil fell. This trend will be short lived says Rick Pendergraft in Investor’s Daily Edge. A reversal of fortunes for the dollar and for oil will send airline stocks back down again soon…
Google: Internet Darling No More
As recently as last November, Google was priced at over $700 per share. But the one-time Internet darling seems to have lost some of its allure. Google took Wall Street by storm in August ‘04 when the stock debuted at an even $100 a share.
Blue Chips At Risk If SEC Shuts Down Naked Short Selling
Much has been written about the new drive by the Securities and Exchange Commission (SEC) to eliminate naked short selling of stocks. (Read the Mogambo Guru scathing criticism here.)
Rick Pendergraft in Investor’s Daily Edge has no problem in principle with the clamp down on naked shorting. But it may create more problems than it solves.
If hedge funds and brokerages suddenly have to settle all unsettled short sells, they will have to sell assets to cover their naked shorts. Blue chips with high institutional ownership are most vulnerable…
This Obscure 1999 Law Is to Blame for the Credit Crisis
Who’s to blame for the collapse in the credit markets? The Federal Reserve? President Bush? The Treasury Department?
Rick Pendergraft in Investor’s Daily Edge says the real culprit is an obscure law known as the Gramm-Leach-Bliley Act. This allowed commercial banks, investment banks and insurance companies to operate under one roof.
Had the financial service industry been kept separate, we might have avoided the worst of the worst of the credit crisis. More from Rick…
How to Know Which Stocks to Buy at the Bottom
U.S. stocks are taking a beating. And ‘bottom feeder’ investors are on the hunt for a turning point. Rick Pendergraft at Investors Daily Edge says you have to be selective if you want to fish around the bottom. Just because a stock has slumped doesn’t mean it can’t sink further. Rick says the trick is finding a company with strong fundamentals (plenty of cash in hand) and bearish market sentiment…
One Source of Volatility You Can Prepare For…
There are plenty of reasons why US stocks are volatile at the moment (to get a better idea, check out these articles by Brian Hunt, Rick Pendergraft, and Jeff Clark). But lurking behind the chaos in the banking sector and wildly fluctuating commodity prices are ‘witching days.’
Expect Oversold Stocks to Rally This Week
Earnings season is upon us. Aluminum giant Alcoa (NYSE:AA) reports 2Q results tomorrow. General Electric Co (NYSE:GE) follows suit on Friday.
Stock futures rose this morning ahead results from these bellwethers, mainly buoyed by lower crude oil prices and a stronger dollar. CNN reports that at 8:50 a.m. ET, the Nasdaq and S&P futures were higher, suggesting a stronger open for Wall Street.
But how will stock prices play out on earnings news? Rick Pendergraft in Investor’s Daily Edge says oversold US stocks will rally this week. But expect the selling to resume soon…
Latest News
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- And Then There’s This… Thursday, September 4th, 200811:31am CDT
- Resource Stock Roundup Thursday, September 4th, 200811:26am CDT