Direction of the Stock Market

Last week on Long & Short Investment, I had written about "Fibonacci Retracement in S&P 500" to determine the direction of th Stock Market.  I pointed out potential breakout to 50%

Summer Months Are Finally Here!

Stock market performance in May 2010 has been one of the worst months in many years and even historically May has not performed well.  The good news is

Technical Analysis Is Important!

I once believed that stock prices are random and that nobody really can predict how stock prices will move in the future.  Since then, I have learned that investors can predict the stock prices, but not 100% of the time.  We

Stock Market Pattern: Same as January-February Sell-Off?

Yesterday, we saw DOW Jones Index break its 200 day simple moving average at 10,258. This is very significant because many stock traders and stock analysts believe that 200 day simple

Has DOW Reached Its Peak And Now Headed In Reverse Direction?

According to the MarketClub, it looks like the stock market could be headed downward direction after hitting 61.8% Fibonacci

Going LONG or SHORT in Rail Companies? Series III: UNP

This week on Long & Short Investment, we examined two Rail companies so far: CSX and NSC.  We found that both companies revealed very similar characteristics as both are headed much lower.  Today, we will apply technical analysis on UNP to see if it

Going LONG or SHORT in Rail Companies? Series II: NSC

Previously on Long & Short Investment, we applied technical analysis on CSX to determine where this stock is headed and when investors should be going LONG.  In looking at the technical analysis on Norfolk Southern Corporation, we see very similar

Going LONG or SHORT in Rail Companies? Series I: CSX

I will be writing another series on Long & Short Investment covering Rail companies.  Generally, there could be some sell-off occurring in these Rail companies.  If we add these Rail companies to our portfolio at a right time, we could make some profit from

Correlation Between Stock Market and SPY ETF

In examining SPY ETF, it is still looking strong as recent stock market sell-off brought SPY to its 50 day moving average at around $111.50.  As long as it does not break $111.50 level, then

Why Big Banks Are Red and Small Banks are Green?

Today, President Obama announced that he plans to increase regulation on large banks by preserving banks ability to take risk and strengthening the money system.  This news caused large financial companies to sell off causing the stock market to decline almost by 2%. 

Big Profit From GS and EBAY But Higher Jobless Claims

It could be an interesting day…

Goldman Sachs posted a better than expected 4th quarter profit and Ebay also posted better than expected 4th quarter profit, both significantly beating analysts’ expectation.

Is Walgreen (WAG) Undervalued?

Walgreen’s strategy is to maintain constant and reliable growth by adding new stores, renovate existing stores, cut operating costs, and improve on their customer service.  Their sales has been on increase in 2009 and should continue into 2010.  Also, their

S&P 500 Retracement AND Buying Opportunity for GOLD

Previously on Long & Short Investment there was an article on S&P 500 Next Resistance Level and discussed how difficult it will be for S&P 500 to break $1150 level. Since 2010 S&P 500 has been pretty much trading in between $1135 and $1150. This trading pattern could come to an end with today’s big decline

Investment in Casino Stocks Series IV: Wynn Resorts

The final series of the Investment in Casino Stocks on Long & Short Investment is regarding Wynn Resorts.  In previous series, we applied technical analysis and presented concrete data on the potential direction of three stocks: Las Vegas Sands, MGM Mirage, and Vail Resorts.   Although these three casino stocks can soon present great buying opportunities, I would argue Wynn Resorts

Investment in Casino Stocks Series III: Vail Resorts

This article is series number 3 of 4 covering Investment in Casino Stocks on Long & Short Investment.  Both the Investment in Casino Stocks Series I: Las Vegas Sands and the Investment in Casino Stocks Series II: MGM Mirage presented a good opportunity to go LONG based on fundamental and technical analysis.

Will S&P 500 Break the Next Resistance Level?

Last month, I posted an article on how S&P 500 would have difficulty breaking pass its 50% Fibonacci Retracement level on Long & Short Investment. We now know that 50% Fibonacci Retracement level was easily broken and has recently made it all the way to $1150. $1150 marks the next major resistance level

MOO at 61.8% Fibonacci Retracement Level

I have posted my recommendation on shorting several stocks in the past (GOOG, LUV, ASH, DTG, XOM) on Long & Short Investment. Today, I will be looking at another short potential on an ETF. Looking at a two year chart on MOO ETF, we see that this agricultural business ETF more than doubled from its low of $20 per share around November 2008. It has now retraced back to

Santa Clause Really Does Exist!

I had posted an article “Interesting Historical Trend for DOW” on Long & Short Investment on December 18, 2009. Honestly, I was a little skeptical on any positive potential gain in the stock market

Follow Warren Buffett Long-Term Stock Picks

Do you follow Warren Buffett's philosophy in stock market and his stock picks?  There are many investors who do exactly this, follow Warren Buffett's moves regarding his stock holdings.  To start 2010, the year of Tiger in Chinese Zodiac, I would like to look at stocks currently owned by Warren Buffett as a long-term investment stragegy.  His investment strategy requires not only discipline but also patience. His main strategy is to buy the best companies in the market that are trading at a discount.  We should welcome these stocks to our portfolio and consider holding onto these stocks for the next 10+ years.

GOOGLE: Is It Time to Go LONG?

Previously on Long and Short Investment, there was an article on how we should be SHORTING GOOG with a tight stop when it was slightly above $625. We came to this decision by using a fundamental and technical analysis on the GOOG stock. Since