1. You are obsessed with Warren Buffett
Do you watch every interview on CNBC that Buffett does?
Do you read every one of Berkshire’s shareholder letters, attend the annual meetings because you’re a shareholder, or quote Buffett on social media?
An obsession with Mr. Buffett is one big sign that you’re probably a value investor yourself.
2. You love stocks trading at 52-week lows
Benjamin Graham, the father of value investing, has told investors to look for stocks trading on new 52-week lows.
If you enjoy looking at those stocks because you’re thinking you’re getting a bargain, you could be a value investor.
3. You buy and hold your stocks
Buffett has owned some of his stocks for decades. Have you? If so, you may also be a value investor.
4. You love “boring” companies
Buffett has gotten rich owning some of the more “boring” types of companies including industrials, railroads, energy and, famously, insurance.
5. You never buy companies with negative earnings
If you don’t understand what all the fuss is about with Uber or Lyft, both of which don’t have positive earnings, you may be a value investor.
Sunday, October 20, 2019
Tuesday, October 08, 2019
major selloff predicted
The technical analysis that correctly called the market bottom in December is now calling a top in the S&P 500, CNBC's Jim Cramer said Tuesday.
The "Mad Money" host said a colleague of his at RealMoney.com is warning that "we're really cruising for a bruising" beyond the 1.56% decline Tuesday by the index.
Bob Moreno, chartist at RightViewTrading.com who projected in February that the market had more room to run, warns of a possible plummet in the large-cap index.
"Now those same charts tell Moreno that we're approaching an important moment and he's predicting a major sell-off from these levels, a 10% decline in the S&P," Cramer said.
That would bring the S&P below 2,620 from its 2,893.06 Tuesday close.
Since its low following the major December sell-off, the S&P 500 has gained about 27%. The index made a series of higher highs and higher lows during that expansion, but Moreno is convinced that momentum was disrupted in September when it produced a lower high, Cramer explained perusing the weekly chart of the S&P 500.
According to FactSet, the S&P 500 posted a closing high of 3,025.86 in late July and failed to break past 3,010 in September, a potential peak. Moreno, Cramer said, determined that to be a "double top," which is a bearish technical reversal pattern.
"Moreno believes the S&P is going to test its floor of support again, only this time that floor is at 2,825," Cramer said. "But if it fails, and he thinks it will, another floor at 2,725. That's where the S&P bottomed in March and June."
"Unfortunately, he doesn't see that trading floor ... holding either," Cramer said. "If the S&P breaks down from the current consolidation pattern, we could have not a little but a lot more downside."
There are more bearish indicators in Moreno's analysis. He notes the Moving Average Convergence Divergence indicator had a bearish crossover, which means momentum is slowing, and the Chaikin Oscillator supply/demand indicator dropped below its center line, which means money flow is negative, Cramer said.
"He's hoping the S&P 500 can find a floor at the 2,600 level. ... That's still a long way from a retest of last December's lows, but it's pretty horrible," he said. If the floor at 2,600 fails, Moreno "did say when we talked to him that if this fails, we could revisit [the December] level."
Chartists analyze past price action in stocks to forecast future price direction.
"Do I agree? Moreno's views echo my own for vast swathes of the market, but as someone who likes individual stocks, I'm ready for chance to buy best-of-breed names at bargain basement prices," Cramer said.
***
So he's predicting a floor at 2825, another floor at 2725, and another floor at 2600. Then I guess 2350 which is where the December low was. Well, that narrows it down...
I'd be looking to buy at each floor because nobody really knows which floor is actually going to hold.
***
Looking at the chart, I'd be looking to buy at around 2850 which is near the August bottom and the 200-day MA. Then I'd look to buy at around 2750 which is near the beginning of June low. Then maybe 2650 which is around the Oct/Nov 2018 lows. Then around 2400 as it approaches the December low. Maybe one of those will prove to be the bottom.
The "Mad Money" host said a colleague of his at RealMoney.com is warning that "we're really cruising for a bruising" beyond the 1.56% decline Tuesday by the index.
Bob Moreno, chartist at RightViewTrading.com who projected in February that the market had more room to run, warns of a possible plummet in the large-cap index.
"Now those same charts tell Moreno that we're approaching an important moment and he's predicting a major sell-off from these levels, a 10% decline in the S&P," Cramer said.
That would bring the S&P below 2,620 from its 2,893.06 Tuesday close.
Since its low following the major December sell-off, the S&P 500 has gained about 27%. The index made a series of higher highs and higher lows during that expansion, but Moreno is convinced that momentum was disrupted in September when it produced a lower high, Cramer explained perusing the weekly chart of the S&P 500.
According to FactSet, the S&P 500 posted a closing high of 3,025.86 in late July and failed to break past 3,010 in September, a potential peak. Moreno, Cramer said, determined that to be a "double top," which is a bearish technical reversal pattern.
"Moreno believes the S&P is going to test its floor of support again, only this time that floor is at 2,825," Cramer said. "But if it fails, and he thinks it will, another floor at 2,725. That's where the S&P bottomed in March and June."
"Unfortunately, he doesn't see that trading floor ... holding either," Cramer said. "If the S&P breaks down from the current consolidation pattern, we could have not a little but a lot more downside."
There are more bearish indicators in Moreno's analysis. He notes the Moving Average Convergence Divergence indicator had a bearish crossover, which means momentum is slowing, and the Chaikin Oscillator supply/demand indicator dropped below its center line, which means money flow is negative, Cramer said.
"He's hoping the S&P 500 can find a floor at the 2,600 level. ... That's still a long way from a retest of last December's lows, but it's pretty horrible," he said. If the floor at 2,600 fails, Moreno "did say when we talked to him that if this fails, we could revisit [the December] level."
Chartists analyze past price action in stocks to forecast future price direction.
"Do I agree? Moreno's views echo my own for vast swathes of the market, but as someone who likes individual stocks, I'm ready for chance to buy best-of-breed names at bargain basement prices," Cramer said.
***
So he's predicting a floor at 2825, another floor at 2725, and another floor at 2600. Then I guess 2350 which is where the December low was. Well, that narrows it down...
I'd be looking to buy at each floor because nobody really knows which floor is actually going to hold.
***
Looking at the chart, I'd be looking to buy at around 2850 which is near the August bottom and the 200-day MA. Then I'd look to buy at around 2750 which is near the beginning of June low. Then maybe 2650 which is around the Oct/Nov 2018 lows. Then around 2400 as it approaches the December low. Maybe one of those will prove to be the bottom.
Tuesday, October 01, 2019
Schwab eliminates commissions
Almost forty five years ago, Chuck Schwab made investing more accessible to all Americans with the concept of low commissions to buy and sell stocks. On October 7, 2019, in conjunction with the release of Mr. Schwab’s latest book, “Invested,” Charles Schwab & Co., Inc. is removing the final barrier to making investing accessible to everyone by eliminating commissions for stocks, ETFs and options listed on U.S. or Canadian exchanges, across all mobile and web trading channels1. Clients trading options will continue to pay 65 cents per contract.
Founder and Chairman Charles Schwab said, “From day one, my passion has been to make investing easier and more affordable for everyone. Beginning October 7, every Schwab client can trade U.S. stocks, ETFs and options commission-free. Eliminating commissions ensures my ultimate vision is realized – making investing accessible to all.”
Schwab CEO and President Walt Bettinger emphasized, “This is our price. Not a promotion. No catches. Period. Price should never be a barrier to investing for anyone, whether an experienced investor or someone just starting on the investing path. We’re proud to provide clients with a full-service, modern investing experience that delivers on our no trade-offs combination of service, simplicity and superior value – backed by a satisfaction guarantee2. In support of the valued independent investment advisors we serve, the same pricing will apply to their clients when trading at Schwab.”
Beginning October 7, 2019, the company will reduce U.S. stock, ETF and options online trade commissions from $4.95 to zero. And with no minimum account size3 to open a full featured Schwab brokerage account, every investor, no matter how large or small, can benefit from the expertise and support of a firm that has been entrusted with more than $3.7 trillion in client assets. Every Schwab client using our web and mobile channels automatically qualifies for the new pricing, without opening a new account, making a new deposit or maintaining a minimum balance of any type.
***
[10/3/19] ETrade follows TD Ameritrade in announcing zero commissions.
But what about Fidelity?
[10/12/19] Fidelity cuts fees to $0
Founder and Chairman Charles Schwab said, “From day one, my passion has been to make investing easier and more affordable for everyone. Beginning October 7, every Schwab client can trade U.S. stocks, ETFs and options commission-free. Eliminating commissions ensures my ultimate vision is realized – making investing accessible to all.”
Schwab CEO and President Walt Bettinger emphasized, “This is our price. Not a promotion. No catches. Period. Price should never be a barrier to investing for anyone, whether an experienced investor or someone just starting on the investing path. We’re proud to provide clients with a full-service, modern investing experience that delivers on our no trade-offs combination of service, simplicity and superior value – backed by a satisfaction guarantee2. In support of the valued independent investment advisors we serve, the same pricing will apply to their clients when trading at Schwab.”
Beginning October 7, 2019, the company will reduce U.S. stock, ETF and options online trade commissions from $4.95 to zero. And with no minimum account size3 to open a full featured Schwab brokerage account, every investor, no matter how large or small, can benefit from the expertise and support of a firm that has been entrusted with more than $3.7 trillion in client assets. Every Schwab client using our web and mobile channels automatically qualifies for the new pricing, without opening a new account, making a new deposit or maintaining a minimum balance of any type.
***
[10/3/19] ETrade follows TD Ameritrade in announcing zero commissions.
But what about Fidelity?
[10/12/19] Fidelity cuts fees to $0