Monthly Archives: April 2017

Buy the Dips Summer Stock

Put down the 10-K filings and the stock screeners. It’s time to take a break from the traditional methods of generating investment ideas.┬áToday we’ll leverage the power of the crowd to take a look at some of the most active stocks on the market.

It’s a concept that’s known as “crowdsourcing,” and it uses the masses to identify emerging trends in the market.

Big picture, the stock market averages are correcting modestly this afternoon. The S&P 500 Index is off by 32 basis points as I write, with 350 S&P components lower now. While volatility is generally very low, there’s no shortage of large stocks that are teetering on the verge of breakout territory Tuesday. That’s particularly true in the perennially high-volume stocks we’re taking a look at today.

More importantly, those market-moving narratives are creating trading opportunities for investors who are paying attention.

Meanwhile, Jim Cramer isn’t buying Apple here, and says Facebook and Alphabet look better on a dip.

Disney’s Stock Is Toxic

The big stock market averages are hovering around their all-time highs this summer, giving investors hope that stocks will tack on more points this June.

But all isn’t what it seems right now.

Sure, the big S&P 500 Index is up 9.8% on a total returns basis this year, but a very big chunk of the individual stocks that make up that big index aren’t participating in the upside in 2017. Case in point: despite the sizable rally in the S&P so far this year, approximately one in three S&P 500 components is actually down since the start of the year.

Simply put, the key to beating the market this summer isn’t finding the very best stocks to own; instead, the key is just not owning the stocks that could drop further from here. To accomplish that, we’re turning to the charts for a technical look at three stocks that are about to trigger sell signals (and when you should actually sell them).

Just so we’re clear, the companies I’m talking about are hardly junk–many of them have very strong businesses.

But that’s frankly irrelevant to what happens to their stocks; from a technical analysis standpoint, sellers are shoving around these toxic stocks right now. For that reason, fundamental investors need to decide how long they’re willing to take the pain if they want to hold onto these firms in the weeks and months ahead. And for investors looking to buy one of these positions, it makes sense to wait for more favorable technical conditions (and a lower share price) before piling in.

Here’s a look at three big stocks that could turn “toxic” for your portfolio in the near-term.

Beat a Frothy Stock Market Is None Other Than Coca Cola

Summer is heating up, and the best way to beat the rising mercury might just be with an ice-cold Coke.

No, I’m not just talking about the temperature outside. U.S. stocks have been having a heat-wave of their own, up more than 10% on a total returns basis so far in 2017, and the big S&P 500 index is hovering right at all-time highs as I write.

What’s the best way to beat that frothy market action as investors get increasingly nervous about a possible correction this summer? It’s shares of The Coca-Cola Co. (KO) .

Jim Cramer talks about oversold retail stocks on Real Money. Get his insights or analysis with a free trial subscription to Real Money.

Coke has been a strong performer in recent months. Shares are up more than 14% on a total returns basis since bottoming back in mid-February. Simply put, this big blue-chip beverage stock is meaningfully beating the rest of the market right now — and one chart is signaling that the rally in Coke could be about to accelerate again as we head toward July.

Before we get to that, a bit of background on Coca-Cola.

Coca-Cola is the biggest beverage company on the planet, serving up more than 1.9 billion drinks per day. Coke also boasts one of the most impressive distribution infrastructures in the business, with an operational reach that spans more than 200 countries.

It’s that infrastructure that’s been driving big change in Coke recently. After consolidating its North American bottlers back in 2010, the firm is reversing course, with plans already underway to refranchise the majority of its company-owned bottling operations. While that may seem like a bizarre about-face, it actually makes considerable sense.