May 4th, 2013

Published by: lancej93612

Stock Trading and Finding Stocks

Stock Market Forecast For Trading Week Of May 6 2013
By Stock Trading Master on May 4th, 2013

Why would institutional traders be buying into these offensive sectors at the start of the weakest 6 months of the year for the market if a big market pullback was coming? They wouldnt. The U.S. Jobs number for April was better than forecasted. For the past few years, weve gotten a economic slowdown in the springs as evidenced in falling jobs numbers. Will this year be different? Too early to know for sure but we are off to a good start. Both the S&P 500 and the Dow industrials hit record all-time highs for the first time, with the S&P 500 breaking through the 1,600 mark and the Dow briefly surpassing 15,000. The Russell 2000 also hit an all-time high.

The DOW, NASDAQ, S&P 500, and Russell 2000 are all in strong uptrends! My rating is that the Bulls have a strong advantage over the Bears going into trading next week. Heavy Institutional Buying Detected On Monday, Tuesday, and Friday I detected heavy institutional buying on three days last week: Monday, Tuesday, and Friday. The top performing sectors on those 3 days were: Technology, Energy, and Materials. Folks, these are strong offensive sectors!

Fundamental analysis reports that moved markets last week were Wednesdays FOMC Meeting Announcement and ISM Manufacturing Index, and Fridays Employment Situation report. The Fed essentially kept monetary policy unchanged. The Fed funds target rate remained at a range of zero to 0.25 percent. Importantly, QE3 and QE4 are unchanged with planned purchases of $40 billion per month in mortgagebacked securities and $45 billion in Treasuries.

May 4th, 2013

Published by: lancej93612

Strength in details masks what is a headline slowdown for the ISM index to 50.7 from 51.3. Positives in the report are acceleration for new orders, up 9 tenths to 52.3, and a backto-back build in backlogs at 53.0. The numbers are still soft but April employment beat expectations and there were upward revisions. Total payroll jobs in April increased a somewhat improved 165,000 after rising a revised 138,000 in March (originally up 88,000). Market expectations were for a 153,000 gain for April. There are no major fundamental analysis reports scheduled for release next week. Big earnings announcements to watch next week are: Monday Tyson Food Tuesday Disney, Electronic Arts, Whole Foods, DirecTV Wednesday Wendys, Toyota, Activision Blizzard Thursday Dish Network, Cablevision, Sony Friday True Religion This entry was posted in stock market and tagged stock market by Stock Trading Master. Bookmark the permalink.

This entry was posted in lessons and tagged stock trading lessons by Stock Trading Master. Bookmark the permalink.

Quantitative Easing, Inflation, and the Yield Curve

By Stock Trading Master on May 1st, 2013

Back in October of 2010, I did a video on YouTube called Bonds and Quantitative Easing For Dummies. It has over 58,655 views. I still get compliments on this video today. The battle line drawn in the sand by the Federal Reserve has been to hold a normalized yield curve. If you look at the S&P 500 and where its at today, you might be tempted to jump on the lame republican band wagon that the market is going to reverse and crash just like it has every time since 2000 when it gets to this level; however, if you really know your economics and the importance of the yield curve, you are not going to make that mistake in your analysis. Its amazing at how stupid people are, even CEOs, when they talk about how a major downturn is likely because it has happened before when the S&P 500 was up at the level it currently trades at today. Comparing the two previous downturns off this level in 2001 and then again in 2008, to the S&P 500 today is like comparing apples to oranges. You cant make that comparison. If you do, it shows you have no understanding of quantitative easing and how its all about holding the normalized yield curve. In this episode, Im going to look at the economy and the market from both a fundamental and technical perspective and show you how anyone comparing the S&P 500 today with 2001 or 2008 is an idiot. This entry was posted in stock market and tagged stock market by Stock Trading Master. Bookmark the permalink.

Stock Trading Seminar: Basing Patterns

By Stock Trading Master on May 3rd, 2013

Stocks will base or go sideways, then break either up or down. This makes the basing pattern or the consolidation pattern a great money making pattern. On May 1, 2013, JB made a killing in JRCC using the basing pattern. In this episode, Ill be using some new technology to look at charts in real time. The idea is to help you practice, in real time, a stock you may be stalking for an entry. You will see a capitulation move by the short sellers and how it looks in real time. You will also see how to sell a stock immediately after a capitulation move from Bears and what to look for as your exit.

May 4th, 2013

Published by: lancej93612

Stock Trading Courses From Top Trader On Wall Street

By Stock Trading Master on April 30th, 2013

The Long Case For PMC-Sierra

By Stock Trading Master on April 28th, 2013

Elevator Pitch PMC-Sierra, Inc. (PMCS) plunge of 9% on a Q1 earnings miss has created a compelling valuation and swing trade long setup. This ex-teacher pulls down over $10,000 in just 10 days with this stock trading method and Im about to show you how he did it so you can see how anyone can do what he did. When you were younger do you remember what you dreamt of? You probably didnt dream of being where you are now. Stuck in a job you can barely tolerate but wouldnt dare to quit. Weighed down with so much debt that it gives you an upset stomach to even think about it. But it never really does leave your mind. Thoughts of bills that are due always looming in the background. Too much stress and not enough joy. Thats why you started stock trading in the first place, isnt it? To relieve that stress. To relax a little and enjoy your life. But if youve been stock trading for any length of time, you already know a dirty little secret that surprises tens of thousands of people that start stock trading for the same reasons as you. ITS SO HARD TO MAKE MONEY AT STOCK TRADING! The good news is that this stock trading course will show you how you can make money stock trading from home or work. Enjoy! This entry was posted in lessons and tagged stock trading lessons by Stock Trading Master. Bookmark the permalink. It is usually a bad idea to try and catch a falling knife. With the huge red candle and sell off on Friday, it is a bad idea to jump in front of the selling because it might continue for awhile longer. Instead, we want to wait for a candle over candle or curl to form on the chart before taking an entry. The idea is to look for signs of institutional traders bottom feeding in the stock before going long. We do not yet have a bounce or curl on the chart and so we cant yet set a swing long price target. PMC-Sierra stock dropped because of an earnings miss reported on Thursday, April 25th 2013. Analysts had forecast earnings of $0.08 per share for Q1 2013. The company missed Company Description PMC-Sierra, Inc. makes semiconductor networking solutions. PMC is a provider of mobile backhaul network processors. The company sells semiconductor devices in three markets: storage, optical, and mobile networks. Thesis & Catalyst For PMC Sierra, Inc. PMC-Sierra plunged over 9% on Friday pushing its RSI down to 26.21 making it an oversold candidate.

May 4th, 2013

Published by: lancej93612

by $0.01 reporting earnings of $0.07 per share. In my opinion, the market over reacted to this earnings miss.

lots of it. It means they can pay the bills without having to use share offerings or borrow money. It also means they can acquire another business, expand the product line, spend more on research and development, and a host of other things that a large amount of cash and no debt allow. It can also make them an acquisition target like we saw in my stock pick PWER from several weeks ago. Just 3 weeks after my article on PWER and how they had a huge amount of cash and no debt, ABB bought the company which sent PWER stock soaring over 50% in a single day! Variant View PMC-Sierras Q1 earnings miss was mostly the result from its mobile market segment. Carriers could continue to experience weak demand in Q2 and beyond which would continue to weigh on PMC-Sierras earnings. After the huge sell-off on Friday, it may be too early to take a swing long position in this stock. As the old cliche goes, Dont try and catch a falling knife. With the 200 day moving average broke on Friday, this stock could continue to go lower. Disclosure: I do not hold shares of PMCS at the time of publishing this article but may go long PMCS within the next 72 hours. This entry was posted in stocks and tagged stocks by Stock Trading Master. Bookmark the permalink.

The company beat last years Q1 results by a whopping 16.67%! In fact, PMC-Sierras book-to-bill ratio was greater than 1 for the second consecutive quarter, indicating improving demand. Gregory Lang, Chief Executive Officer, President and Director of PMC-Sierra said in Thursdays earnings call, The environment continues to be challenging due to economic softness and weakness in carrier spending. However, were encouraged by stronger bookings within the quarter and expect to grow revenues in the second quarter of 2013. As swing traders, one of our favorite setups is when a company reports an earnings miss, but the longer term outlook stays intact. This kind of setup often results in market over reactions to the downside and sweet oversold entries for us. Mobile Data Traffic Soaring Cisco released the VNI report which forecasts that global mobile data traffic will increase 13-fold between 2012 and 2017! (Source: http://www.cisco.com/en/US/solutions/collateral/ ns341/ns525/ns537/ns705/ns827/ white_paper_c11-520862.html) PMC-Sierra saw revenues drop in their mobile market segment by 22% versus the prior quarter. The huge drop was due to a strong Q4 followed by an unusually weak Q1 with CapEx of the 2 largest carriers in North America down over 25%; however, bookings are starting to improve in Q2. (Source: http://seekingalpha.com/article/1373941-pmcsierra-management-discusses-q1-2013-results-earnings-calltranscript) Once again, the drop in revenues from PMC-Sierras mobile segment appears to be a temporary issue as mobile data traffic is expected to increase 13-fold between 2012 and 2017. Valuation PMC-Sierra has a hot forward P/E ratio of 11.18. Sales were a whopping $530 million in 2012. I like companies with a lot of cash and little debt. PMC-Sierra has over $181 million in cash with no debt and a sizzling hot Debt/Equity ratio of just 0.03! This means that even though PMC-Sierra stumbled in Q1 2013, they are making money and