Primer: Rates of return

Posted on March 21, 2015 by J.Wenger

Here is a good primer from Small Trades Journal on “rates of return”.  Required reading for those of you interested in understanding financial statements (i.e. everyone).

active senior investor's avatarSmall Trades Journal

Preview

The simple rate-of-return ( R ) is a measure of your investment’s profitability for any chosen time interval.  By comparison, the CAGR and IRR are rates of return that measure your investment’s profitability as if it were an orderly process with respect to time.  CAGR is the acronym for “compound annual growth rate”.  It is the constant rate at which an investment’s market value grows every year in a cumulative fashion.  IRR is the acronym for “internal rate of return”, which describes the performance of all cash flows in a financial project such as the individual investor’s program of dollar-cost-averaging or an investment club’s program of portfolio management.  IRR is an annualized rate-of-return when all time intervals are measured in years.

Return

Any profit from your investment is called a return.  There are 2 types of return: realized and unrealized.  Realizedreturns are cash payments from dividends, interest…

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Massive Insider Buying in Energy Stocks

Posted on March 21, 2015 by J.Wenger

Great information if you own a energy-sector companies…glad to hear that there are a least a few people that aren’t selling!

Lee Jackson's avatar24/7 Wall St.

RollercoasterWith triple digit up and down days all week long, many investors may feel like they have come to an amusement park and are caught on a ride that won’t stop. Typically, in the past, this kind of market action has been a harbinger of steep drop in the markets. You sure wouldn’t guess that by the sheer number of insiders that continue to buy their own companies’ shares.

We cover insider buying every week at 24/7 Wall St., and one interesting, and possibly very bullish sign we are seeing is insiders in the energy sector starting to grab shares of beaten down stocks. While the energy debacle could have some time to go, the fact that insiders are nibbling more than a little is a good sign.

Here are this past week’s top insider buying reports.

Diamond Offshore Drilling Inc. (NYSE: DO) is one of the energy stocks we…

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Weekend Market Outlook

Posted on March 15, 2015 by J.Wenger

Market Outlook entering the Week of March 15th = Uptrend @ Risk

MOVING AVERAGES

  • Short-term (20 DMA): Downtrend
    With the exception of the Russell 2000, all the major stock market averages remained below their 20-day moving averages.
  • Intermediate (50 DMA): Sell Signal
    With the exception of the NASDAQ and Russell 2000, the major stock market averages fell below their 50-day moving averages.
  • Long-term (200 DMA): Uptrend
    All the major stock market averages remained above their 200-day moving averages.

COMMENTARY
U.S. equities continued to struggle last week, and high-volume selling dominated Friday’s trading session for the third week in a row.  Last minute trading softened the blow covering up the day’s weakness.  Most of the indexes remained below their 20 DMA, and a few also took out the 50 DMA.  If we see continued weakness (the remaining averages take out their 50 DMA) and/or another day of high volume selling, the latest rally is as good as gone.

Intermediate-term Elliott Wave Analysis support and resistance levels fell again, back to the levels seen during early February:

  • Resistance: 2,070 / 2,085
  • Support: 1,973 / 2,019
2015-03-15 - US Stock Market Averages

2015-03-15 – US Stock Market Averages

Sources:

For the detailed Elliott Wave Analysis, go to the ELLIOTT WAVE lives on by Tony Caldaro.  For price/volume data, head to stockcharts.com.

Moving Average Signals:

  • Uptrend=Market indexes remained above their moving average during the trading week
  • Downtrend=Market indexes remained below their moving average during the trading week
  • Buy signal=Market indexes fell below their moving averages during the trading week
  • Sell signal=Market indexes rose above their moving averages during the trading week
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Weekly Reader – Personal Finance, Money Management, and Investing

Posted on March 14, 2015 by J.Wenger

Personal Finance

  • Life Lesson #1?  Start Saving for Retirement NOW! (Mark Manson)

Money Management

  • The difference between saving and investing (Vanguard)

Investing

Odds and Ends

Fisker Galpin Ford Mustang 2015 LA Autoshow

Ford Mustang – Courtesy of Fisker/Galpin

 

 

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Weekend Market Outlook

Posted on March 8, 2015 by J.Wenger

Market Outlook entering the Week of March 8th = Uptrend @ Risk

MOVING AVERAGES

  • Short-term (20 DMA): Sell Signal
    With the exception of the NASDAQ, all the major stock market averages ended the week below their 20-day moving averages.
  • Intermediate (50 DMA): Uptrend
    With the exception of the NYSE, all the major stock market averages remained above their 50-day moving averages.
  • Long-term (200 DMA): Uptrend
    All the major stock market averages remained above their 200-day moving averages.

COMMENTARY
U.S. equities struggled to increase in price this week, and high-volume selling dominated Friday’s trading session for the second week in a row.  Not the market action investors want to see during an uptrend.  Adding a sell signal from the 20 DMA tells us that it’s time to be cautious with new and/or additional stock buys.

Intermediate-term Elliott Wave Analysis support and resistance levels fell slightly, reflecting the past week’s weakness:

  • Resistance: 2,085 / 2,131
  • Support: 2,019 / 2,070

Sources:

For the detailed Elliott Wave Analysis, go to the ELLIOTT WAVE lives on by Tony Caldaro.  For price/volume data, head to stockcharts.com.

2015-03-08 - US Stock Market Averages

2015-03-08 – US Stock Market Averages

Moving Average Signals:

  • Uptrend=Market indexes remained above their moving average during the trading week
  • Downtrend=Market indexes remained below their moving average during the trading week
  • Buy signal=Market indexes fell below their moving averages during the trading week
  • Sell signal=Market indexes rose above their moving averages during the trading week
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Weekly Reader – Personal Finance, Money Management, and Investing

Posted on March 7, 2015 by J.Wenger

Personal Finance

Money Management

Investing

**It’s important for both types of investing strategies

Odds and Ends

Edible Growth 3D-printed cracker

Edible Growth’s 3D-printed cracker

 

 

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Weekend Market Outlook

Posted on March 1, 2015 by J.Wenger

Market Outlook entering the Week of March 1st = Uptrend

MOVING AVERAGES

  • Short-term (20 DMA): Uptrend
    All the major stock market averages ended the week above their 20-day moving averages.
  • Intermediate (50 DMA): Uptrend
    All the major stock market averages ended the week above their 50-day moving averages.
  • Long-term (200 DMA): Uptrend
    All the major stock market averages ended the week above their 200-day moving averages.

COMMENTARY
Another positive week for the stock markets, although high-volume selling dominated on Friday.  Price and volume analysis continues to show an uptrend, and with growth stocks leading the way.

Intermediate-term Elliott Wave Analysis shows support and resistance levels from the past 2 weeks are unchanged.

  • Resistance: 2,131 / 2,198
  • Support: 2,070 / 2,085

Sources:

For the detailed Elliott Wave Analysis, go to the ELLIOTT WAVE lives on by Tony Caldaro.  For price/volume data, head to stockcharts.com.

2015-03-01 - US Stock Market Averages

2015-03-01 – US Stock Market Averages

 

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