January 30, 2016: What Do I Do Now?

The Fed came out a little more dovish on Wednesday of this week (1/27/16) and the market initially declined. When this show was recorded (around 3am on Thursday), it was still heading down, but as we always say, watch the follow-through. On Friday, the market was up strongly. Some argue it was the negative interest rate move in Japan, others that the Fed may be done raising for this year, others will attribute it to astrology… It doesn’t matter why, the buying came back in. The question is, will it continue? The bigger question, what will the sellers do?

As we discussed in the show, during earnings season companies can’t buy back their own stock, which is a lot of what has been propping the market up for the last few years. Since many companies have now reported their earnings, they can step back in. This is part of what is happening to create demand in the market in the last several days. (As a note, next earnings season starts in April, watch out for weakness then). That said, if the selling starts coming in hard, it will likely overwhelm the buybacks and we could see more downward pressure on the market. Also, understand that the buybacks will really hurt us in the long-term. All of the money that is being borrowed to buyback stock must be paid back. This will limit the amount of capital available to these companies to grow in the future. This will have negative implications not just for the market, but for the overall economy and will condemn us to below trend growth for decades to come.

At this point, I think there is still more selling to come and rallies are opportunities to sell, instead of dips being opportunities to buy, but we’ll see…

I talked a little politics. You can listen to the show, but I’m surprised Trump did not re-enter the Fox News debate at the last minute. I think this is potentially a huge error on his part. Maybe it won’t hurt him, but I can’t see how it will help and the risk/reward of the move did not seem to be in his favor. I’m still on the 30% that Elizabeth Warren will be the Democrat nominee (have been since 11/2014) and I’m sticking with it until the last dog dies…

If you want to know more, plus get some updates on China, etc. check out this week’s show here:

Given this week’s topic we are going to be doing a special class, “What Do I Do Now?”. We will discuss not just surviving, but profiting from both up and down markets; we are likely to see both. If you would like free tickets, call 84-48-Income (844.846.2663) and tell them that you read about it on the Next Week In Stocks website. I hope to see you there!

Click Here For Free CD Offer!

If you would like to submit a question to the show, or to give us feedback, please send an email to:  phoenix@tradingacademy.com. Also, check out our sister show, “The Right Side Of The Trade” on the following stations:

◾Money Radio 1510 and 99.3: Thursday and Saturday at noon

◾1100 KFNX: Sunday at 11am and Wednesday at 3pm

Of course, you can always find “Next Week In Stocks” on:

◾550 KFYI: Saturday at 1pm and Sunday at 4am

January 23, 2016: Cashin Out?

Over the last couple of years on this show I have covered a wide range of topics that I thought were relevant to your investments and life. This week I read an interview with Art Cashin, a 50+ year floor veteran on the NYSE which covered many of these same topics. In this week’s show I discussed his perspective and provided some additional thoughts of my own. Some of it is practical advice to understand the mood of the market, some of it is more useful in understanding the real weakness in the market and the economy that is still not apparent (yes, it can get worse).

Check it out here:

Given this week’s topic we are going to be doing a special class, “Protection and Profit in Any Market”. We will discuss not just surviving, but profiting from both up and down markets; we are likely to see both. If you would like free tickets, call 84-48-Income (844.846.2663) and tell them that you read about it on the Next Week In Stocks website. I hope to see you there!

Click Here For Free CD Offer!

If you would like to submit a question to the show, or to give us feedback, please send an email to:  phoenix@tradingacademy.com. Also, check out our sister show, “The Right Side Of The Trade” on the following stations:

◾Money Radio 1510 and 99.3: Thursday and Saturday at noon

◾1100 KFNX: Sunday at 11am and Wednesday at 3pm

Of course, you can always find “Next Week In Stocks” on:

◾550 KFYI: Saturday at 1pm and Sunday at 4am

January 16, 2016: Lies My TV Told Me

We are constantly being bombarded with messages from the media designed to separate us from our money. This week we looked at a few of them, talked a little SOTU and revisited the market, which continues to fall. As we discussed, the market could get some big bounces, but remains very weak.

We talked a little more as well about the damage that debt is doing to our future. As we have discussed before, debt is a spending of future income. We have now spent so much of our future income, there is very little left (if any). This means it will be very difficult for us to grow for years or decades to come without major future increases in debt to cover up the underlying weakness.  There is another side to this as well that we discussed this week. If debt is the spending of future income, if future income is significantly below current projections, the debt problem will be even worse. It will be below current projections for at least two reasons. First, the assumed GDP growth rates are way too high (and largely measuring the wrong things). Second, income from things like pensions, annuities, mutual funds, etc., are all too high because they assume a stock market averaging an ~8% return a year, which is likely to be wildly optimistic.

Happy New Year!

Check it out here:

Given this week’s topic we are going to be doing a special class, “Managing Your Finances Like A Pro”. We will discuss not just surviving, but profiting from both up and down markets; we are likely to see both. If you would like free tickets, call 84-48-Income (844.846.2663) and tell them that you read about it on the Next Week In Stocks website. I hope to see you there!

Click Here For Free CD Offer!

If you would like to submit a question to the show, or to give us feedback, please send an email to:  phoenix@tradingacademy.com. Also, check out our sister show, “The Right Side Of The Trade” on the following stations:

◾Money Radio 1510 and 99.3: Thursday and Saturday at noon

◾1100 KFNX: Sunday at 11am and Wednesday at 3pm

Of course, you can always find “Next Week In Stocks” on:

◾550 KFYI: Saturday at 1pm and Sunday at 4am

January 9, 2016: Now, What?

I was talking to a student today about her investing philosophy. She is a classic “buy and hold” investor who did a great job of buying Apple at the bottom in 2009. Depending on the exact point at which she bought it, she might have had a profit of 100% or more over the last 6 years.

However, over the past several months, Apple has fallen more than 25% and could fall substantially more. My question to her was, “when are you going to sell?” She didn’t really know. This is not uncommon among retail traders, but if you want to succeed in the markets you must know when you are going to sell, either because you have hit your target or because you have been proven wrong.

In this show I contrasted the “retail” approach of “buy and hope” with the professional approach of planning a trade and executing that plan faithfully. I went back to the example of another person who we profiled in a previous show who purchased EMES at ~$39, rode it to $140, then when we met still had it in the $40’s. He was confident it would come back and was hanging on. As of today, it was less than $4. I don’t know if he still has it, but without a plan he turned a 250%+ profit into a 90% loss. You have to know when to sell.

I compared this approach with my two most recent trades. I used professional supply and demand zones for determining areas to buy and sell, as well predefined profit targets. I used a leveraged instrument (put options) designed to make money when the market goes down. One of these trades returned 20% in 3 days, the other 68% in 14 days. Especially in this market, you are going to need to be nimble in your trading and you will need to know how to make money when the market goes down.

Check out this week’s show here:

Given this week’s topic we are going to be doing a special class, “Managing Your Finances Like A Pro”. We will discuss not just surviving, but profiting from both up and down markets; we are likely to see both. If you would like free tickets, call 84-48-Income (844.846.2663) and tell them that you read about it on the Next Week In Stocks website. I hope to see you there!

Click Here For Free CD Offer!

If you would like to submit a question to the show, or to give us feedback, please send an email to:  phoenix@tradingacademy.com. Also, check out our sister show, “The Right Side Of The Trade” on the following stations:

◾Money Radio 1510 and 99.3: Thursday and Saturday at noon

◾1100 KFNX: Sunday at 11am and Wednesday at 3pm

Of course, you can always find “Next Week In Stocks” on:

◾550 KFYI: Saturday at 1pm and Sunday at 4am