However, Friday's losses barely put a dent in an otherwise robust year for US stocks, with the market maintaining most of its winnings since the Republican sweep of the November US elections, which sparked hopes of more growth-friendly policies from Washington.
The Dow finished the year up 13.4 percent while the S&P 500 rose 9.5 percent and the Nasdaq 7.5 percent.
Source: Yahoo News (checked today, Friday, December 30, 2016, 4:10 pm Central Time)
Vanguard beat T. Rowe Price on Precious Metals at 51% (T. Rowe Price does not have a Precious Metals fund); but, Fidelity beat Vanguard with Fidelity's Precious Metals fund earning 87%. So, what is that? If a person had $100K and put it all there, they would have made $87K. However, you could not have lived off of any of that $100K during the year. You would have been making money for 2017.
Let's say you need $60K for 2017. Then, you would have increased your investment a/c from 100K to 127K.
third Friday of every month, all four asset classes expire simultaneously on the third Friday of March, June, September and December. Much of the action surrounding futures and options on quadruple witching days is focused on offsetting, closing or rolling out positions, as well as arbitrage trades, with the result being elevated volume, particularly in the last hour of trading.
Kiplinger’s Personal Finance, 1/2017, p 19, “My 10 Top Stock Picks for 2017” by James K. Glassman
Take-Two Interactive Software (TTWO) Held by World Innovators Fund The company makes video games such as Grand Theft Auto. Take-Two’s revenues and profits have been bouncing up and down lately with the popularity of its products, but analysts see brisk earnings gains for the year ahead. Flush with cash, the firm could be a takeover target. With a market capitalization of $3.8 billion, Take-Two has about $1.5 billion in cash and short-term investments and just $500 million in debt.
Henry Schein (HSIC) Held by T. Rowe Price New Horizons (a hot venue for small- and midsize-company growth stocks since 1960. Schein is an 84-year-old company that distributes health supplies to physicians, dentists, and veterinarians. A mid-cap stock, Schein is not a superfast grower, but it has a rock-solid niche, with earnings expected to rise at a good clip.
Salesforce.com (CRM) Held by Raymond James (Terry Tillman, technology analyst) Salesforce.com is a rapidly expanding company that sells web-based software that helps companies manage relationships with their customers. (Salesforce did not purchase Twitter.) Tillman sees revenues rising by 25% in the fiscal year that ends January 31, 2017, and by 21% for the following year.
gayinacworthga saidIve made over 28K in 5 weeks on just 2 stocks.. Starting with around 7K. Ive been averaging 1500-3800 dollars a day in gains.
Well, you know what I will be using (shown above). I do not consider myself a day trader. I consider myself a short term trader. I'm setting up my policies and procedures now.
There are many technical day traders like you that are doing this now. I have to get there. Yes, I would like to make, say, $2,000 a week / 8,000 a month / $96,000 a year. That would be $4,000 a month or less to live off, pay all sorts of taxes and have medical insurance and the other $4,000 going into trading funds and long term funds 80%/20% (aggressively growing my trading business).
An article I have to read, then study, then make policy: "High Close Doji Trigger."
See, you're only using two stocks. I'm currently gathering a list of stocks. If your two stocks are small cap, that's not me. I might do a small cap mutual fund, but that's about it.
I don't do options. After I get to, say $600,000, I might consider becoming an expert at options and opening an account for $100,000 for options trading.
Google Question: What household income is considered affluent? Result: average household income is currently around $52,000, which means if you want to be considered a mass affluent household, then you must earn at least $76,000 a year.
Given the data above, I do not see $250K for any state. The highest is $145K.
= = =
Looking at my last set of policies and procedures, I was using
MA MACD ADX On-balance volume RSI and gaps CCI and gaps Stochastics
I hadn't incorporated candlesticks into my trading policies and procedures.
Where are your stocks? Dow? S&P? Nasdaq? What technique/s are you using? Are you using studies on your charts? As mentioned above, I'm going to use two of Person's studies.
I'm thinking seriously about not using the Fidelity platform for my trades but T.D. Ameritrade's Think or Swim. I have to see the cost per trade. I probably will put my mutual fund trades with Fidelity or maybe a Roth account with Fidelity and the rest with TD Ameritrade. I better call Fidelity tomorrow and see if there trading platform can have studies added to it.
AT&T had a double digit price appreciation with 4.6% yield. Ticker symbol T Verizon had a double digit price appreciation with 4.3% yield. Ticker symbol VZ
I want to double check their beginning of 2016 price against their end of 2016 price.
Yep, AT&T went from about 35 to about 42.7 And, Verizon went from about 46 to about 52
Barron's is saying to stay clear of telecom in 2017.
Well, one thing: I know 2G phones were called in by end of 2016, so sales growth into replacement phones has happened and there probably won't be a shutting down of 3G phones in 2017 for a sales pop. Maybe there was telecom growth in 2016 for people ditching 2G phones, even though carriers replaced some 2G phones at their expense.
I got rid of one 2G phone. I have to get rid of my dark red Blackberry Curve phone after I delete all of my contacts. AT&T told me they would recycle it for parts.
So, 5% APR plus 20% positive price change is my hypothetical IRR. And bottom line #2: i still have to read the Barron's article 1/2/2017: Best Income Ideas for 2017 to find which ticker symbol might do that in 2017, especially depending on when you get in to get the full ride of dividends and the best ride up and out of price appreciation.
amazon.com review by Bookman of Market-Neutral Trading by Carr
Also, in today's world of High Frequency Trading, any time you place an order, an HFT mafioso (tipped by the exchange for a bribe) sneaks in front of you, and before you trade, he'll buy it and re-sell it to you higher. Something like an illegal Hotel.com that takes a cut off every hotel room. The Exchanges know of this, but half their business is HFT, so tough. The SEC knows, too, but if they apply the rules, half the exchanges will go bust. So trading today has costs you don't even know.
Financial Shenanigans: How to Detect Accounting Gimmicks & Fraud in Financial Reports, 3rd Edition
amazon book review by Don
The book by Howard Schilit and Jeremy Perler dives deep into the dark world of corporate accounting, blowing apart common tricks corporate accountants use to make businesses look better than they are. The book hits hard on the many changes in GAAP accounting and how masterful accountants trick business analysts with gimmickry.
In total there are:
7 Earnings manipulation shenanigans – These run the gamut from simple revenue recognition discrepancies to very disingenuous sales processes that allow a company to record revenue before a sale is even made. The author boosts this section of the book with high-quality examples from leading public companies including Sunbeam and IBM. You won’t believe the extent to which high-profile companies report earnings beats with fictitious accounting numbers.
4 Cash flow shenanigans – The cash flow statement is one of the most difficult to engineer – a company produces cash, or it doesn’t. However, accounting teams still have four methods to boost cash flows when a business would otherwise produce very little free cash. This section primarily focuses on how businesses shift financing cash flows (money from stock and bond sales) into operating income. Also, this section uncovers how acquisitions and disposition can be used to make cash flow look stronger than it really is.
3 Key metric shenanigans – This section targets the key metrics used by executives when they talk about their business and brand. In particular, it examines how corporate brass can turn attention away from struggling businesses with non-GAAP measures like “same store sales” or “average revenue per user.” This section curiously touches on the subject of “bookings,” a metric used by recent IPOs like Groupon to hide their true revenue per user metrics. This is a must-read section for people who tune into corporate conference calls or who read conference call presentations.
This book will also help anyone who:
Invests in individual stocks – Particularly in large cap companies, where the sheer complexity of one or many businesses can hide the true operating performance of a company, this book gives investors a way to “fact” check the going-ons of a company from quarter to quarter. If you invest in individual stocks, this is a must-read book.
Values stocks on cash flows – The cash flow shenanigans are absolutely incredible. Anyone who uses a discounted cash flow analysis to value companies will appreciate the wisdom in Financial Shenanigans. The cash flow statement is not as impenetrable as investors seem to believe.
Wants to learn more about financial history – The book takes you through the evolution of corporate scams and accounting frauds. The author makes frequent references to massive scams like Enron and Worldcom, and even goes back in time to show you how investors could have caught onto the false accounting that made these companies the biggest frauds in Wall Street history.
What I like most about the book is that it doesn’t just expose the gimmicks that businesses use to fake their financials. Instead, the authors go to great lengths to give examples, and then explain how you can fact check the accounting of any public company.
All in all, at little more than $18 for the hardcover, this is a must-own book for any serious individual stock investor. It’s easy to read, easy to follow (there are literally hundreds of examples), and easy to apply what you learn to companies you watch immediately after reading.