Top Advisors Corner

Tom McClellan: Conflicting Messages for Crude Oil

I like it best when all of my indicators agree, but I don’t get to enjoy that condition very often.  This week, I have conflicting signs for the future of crude oil.

The chart above shows gold’s leading indication for crude oil prices.  The offset is currently running at about 20 months; it has been as low as 11 months in past years.  The basic idea is that the movements of gold prices tend to get repeated in crude oil prices.

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David Keller: Big Tech and Big Round Numbers

I have always been entertained when stocks find support and resistance at big round numbers.  I’m not the only one to have noticed this phenomenon, as you can see from articles by stockcharts.com writers Arthur Hill and Greg Schnell.  

Some have attributed this phenomenon to a behavioral bias called “round number bias” where people tend to gravitate to big round numbers such as 10, 100, and 1000 as anchors.  In fact, academic research has even recognized price clustering around round numbers.

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Mary Ellen McGonagle: How To Play The Hot IPO Market - One Sound Approach Can Get You In Front Of The Big Winners.

While the number of IPO’s listed in the U.S. continues to dwindle, there have been enough big winners in these newer issues to make it worth your while to check out these stocks.  After all, the powerhouse FANG stocks of today all started out as new issues.

To be fair, investing in new issues is not for the faint of heart as these generally smaller companies can be quite volatile. Most new IPO’s can bounce around for quite some time while growing but once investors see a promising trajectory of solid earnings and sales, shares can be bid up swiftly. 

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