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FEYE Finally Back Above $45

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Article by: www.wealthblueprintletter.com, 2/26/2015

FireEye, Inc. provides products and services for detecting, preventing, and resolving advanced cybersecurity threats. Its products comprise threat prevention system that provides threat protection from network to endpoint for inbound and outbound network traffic, such as Web threat prevention appliances to analyze all Web traffic; email threat prevention appliances that detect and stop advanced attacks; and file threat prevention appliances, which analyze network file servers to detect and quarantine malicious software.

Take a look at the 1-year chart of FireEye (Nasdaq: FEYE) below with the added notations: Here

FEYE fell off a cliff after its March peak. However, since bottoming near $25 last May the stock stabilized and has been trading mostly sideways since. The more important thing to note is that FEYE has a key level at $45 (blue) that it has recently broke back above. This should lead to another leg up for the stock.

The Tale of the Tape: FEYE has a key level at $45. A trader could enter a long position on a pullback down to $45 with a stop placed under the level. However, a short trade could be made instead if the stock fails to hold $45.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!

Christian Tharp, CMT

Follow me on Twitter:
@cmtstockcoach

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The August Stock Market Performance

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August Stock Market Performance

The Stock Market August Performance Is Best in 34 Years

The US stock market’s August performance is one for the books. All in all, the major indices posted their best August for some time now. Both the Dow Jones and the S&P 500 closed out the month with gains of more than 7%, their best in 34 years. The DJIA rose 7.6%, while the S&P went up 7.2%. Nasdaq also emerged as a winner, gaining 9.6% during the month.  All three major indices recorded their fifth straight month of gains

The final day of August saw dips from DJIA and S&P 500, but not enough to pull them to the red. The Dow slipped 0.8% or 223.82 points to 28,430.05, while the S&P 500 went down 0.2% to 3,500.31. Nasdaq rose 80 points on August 31, posting a 0.7 % gain. The day’s losses didn’t faze the month’s gains.

RELATED: US Tech Stocks Are Worth More Than Entire Euro Stock Market

August’s last day also debuted stock splits from tech giants Apple and Tesla. Apple split its stock 3 for 1, while Tesla exchanged 5 shares for each stock.  Both hoped the splits would make their stock more affordable to investors. The market welcomed them with a barrage of buying. Apple gained 3.4% on the day, while Tesla hovered in the $500 range before settling to $498, closing with a 12.57% increase.

Tech Stocks Push S&P 500

Nowhere are the gains more dramatic than in the S&P 500. August saw the index posting a record high on seven occasions. It helped that the S&P 5000 held some valuable stocks: Netflix, Facebook, Alphabet, Amazon, and Apple.  These account for 26% of the S&P’s total value. Removing these five from the index plunges the S&P to a year-long loss.

Dow Jones Reconfigured

The Dow Jones Industrial Index (DJIA), which hosts 30 public stocks, made some changes. This was a reaction to the Apple stock split, which will lessen tech representation in the DJIA. As a result, the Dow added three tech stocks and removed three old-timers. Amgen, salesforce, and Honeywell replaced ExxonMobil, Pfizer, and Raytheon. 

With this new lineup, the Dow is now more accurate in reflecting the influence of the tech sector in the market. During the first day with the newcomers, the Dow inched within a few points to its record high of 29,551.42. The 30,000 mythical ceilings got closer.

Nasdaq hits a 5-month high

The tech-heavy Nasdaq Composite also celebrated a positive August. It closed at 11,695.63, increasing 0.7%, and saw its 40th closing high this year so far. The index was the prime beneficiary of the stock splits from Apple and Tesla. Workday Inc also carried Nasdaq on the last day with a 12.6% gain.

All in all, Nasdaq gained 9.6% in August, posting its best monthly performance in the last 20 years.

Fascinating Run

What’s fascinating is that all these gains are occurring despite the current economy. Coronavirus has kept businesses from operating in full. Unemployment is high for almost half a year, and the economy has contracted. While there are signs of recovery, a full reopening is months away until a vaccine gets approval.

Even with the gloom scenario, the economy started to pick up. Stocks responded to the Fed’s updated fiscal policy and news on an improving job market. By August, the indices have offset all previous losses for the year.

September Incoming

While it was all cheers for the markets last month, this month gets the reputation as a buzzkill. LPL Financials warn that September is “the worst month of the year on average.” According to Chief Marketing Strategist Ryan Detrick, this trend goes back to 1950. What’s more, in the last two years the market rose above 5% in August were in 1986 and 2000. The S&P then proceeded to fall by 8.5% and 5.4% the next month.

Stocks often go down in September, the elections might cause even more fluctuations. While the Republicans seem to gain lost ground the last few weeks, it’s still too early to call. Also poised for a thrilling finish are the Senate and Congressional races.

Add to that awaited developments on the fight against coronavirus, and the stage is set for a wild ride. Strap yourselves in!

Watch this as CNBC Market reports on stocks still head for best August since 1984:

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Jeff Bezos Is Now Worth $200 Billion

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Jeff Bezos Worth

Amazon founder and CEO Jeff Bezos is now worth $200 billion. Bezos first hit $100 billion in 2017, is Forbes’ wealthiest person in the world by 2018. Thanks to the pandemic, the richest man in the world got richer by a couple of billions more. As a result, Bezos became the first person in history to have a net worth of over $200 billion

RELATED: Market Insiders Are Cashing In

Bezos turned his 1993 online bookstore into an e-commerce titan. Little by little, he added more and more inventory to his online warehouse as demand went bigger. Along the way, Amazon swallowed smaller competitors and expanded into other services. By 2015, Amazon had a bigger market capitalization than Walmart.

Pandemic-led Boom

With the coronavirus pandemic in 2020, demand for online purchases shot up. People afraid to get infected stayed home, and most turned to online shopping to buy what they need. As more physical stores closed, more people went online to shop, where Amazon was waiting.  It offered everything from food to supplies to videos and exercise equipment. In addition, pandemic staples like sanitizers, toilet paper, and face masks are available.

As a result of all this demand, stock prices (AMZN $3,420.20) have gone up 80% since January. Along with it is Bezos’ net worth, which depends a lot on his 11% stake in Amazon. In January, that stake was worth around $115 billion, and now its nearing double. Amazon itself is worth $1.7 trillion, making it the second-most valuable company in the U.S after Apple. Despite its considerable spending due to the pandemic, revenue reached almost $90 billion. And investors can’t get enough, pushing the stock price to almost double its January rate of $1,898.01.

Bezos’ shares in Amazon represent 90% of his personal wealth. In addition, he also owns a media company, the Washington Post, and aerospace firm Blue Origin.

The Centi-Billionaires

Jeff Bezos is by no means the only centi-billionaire among his peers in the tech community. The second richest person in the world, Bill Gates, is worth $116 billion and made most of his money in Microsoft. Facebook CEO Mark Zuckerberg recently became joined this exclusive club. With Facebook hovering at $300 per share, his net worth reached $100 billion this month.

Close to joining is Elon Musk, whose EV company, Tesla, is the world’s most valuable automaker by market cap. Right now, Musk is a few billion short, with his net worth at $96 billion this year. But if Tesla continues its streak, give him a few more months.

The remaining centi-billionaire is the only one outside tech, Bernard Mark Arnault. While the chairman of LVMH lost his spot earlier this year, he reclaimed it in a few months. Arnault is now worth $115 billion and is the 3rd richest person on earth.

How much is $200 billion?

Jeff Bezos would’ve been richer if he hadn’t divorced his wife, MacKenzie Scott in 2019. During the divorce proceedings, he agreed to give 25% of his Amazon stake to her as part of the settlement. At present, that stake is worth $63 billion. Due to this windfall, Scott became the second richest woman and 14th richest total.

In pure compensation, Bezos receives around $1.7 million a year. This includes a base salary of $81,840, plus $1.6 million in other compensation. Amazon shoulders his security and travel expenses. Using this number, he makes around $5,005 a day, including weekends and holidays. For a CEO, these numbers are at the lower end of the spectrum. In contrast, Elon Musk received $595.3 million in compensation from Tesla last year.

If you use Bezos’ net worth ($205 billion as of August 26) instead, the figures become eye-popping. For this year, he will have earned $6,500 a second. This is $1,495 higher than his daily take based on salary.

The numbers don’t end there. Amazon, like most other tech stocks in the market today, is in the middle of an extraordinary bull run. Despite the current pandemic gloom and doom scenario, share prices keep going up. This means the net worth of Bezos and company are still about to rise. So, who wants to be a centi-billionaire?

Watch this as the Amazon CEO Jeff Bezos becomes the first person ever worth $200 billion:

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Gold Closes Above $2000 Per Ounce For First Time In History

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Gold Closes Above $2000 Per Ounce For First Time In History

Gold prices closed above $2,000 per ounce for the first time in history. This is the latest signal that a bull market in precious metals is well underway. Since bottoming in late March at $1,498 per ounce, gold has rallied 33%. It did so as governments around the world have turned on their printing presses in an effort to boost their economies.

Investors are betting that the trend will continue in both. They say so because of gold climbing higher as the government print more and more money.

Analysts with Bank of America Global Research have predicted that gold prices will surge another 50%. They say it will happen over the next 18 months. This may push the price of an ounce of gold to $3,000. And it’s not just gold, but all precious metals that stand to benefit according to the analysts.

They add that because of falling bond yields and near-zero interest rates, there are multiple ways that gold could quickly climb to $2,500 per ounce.

Michael Widmer, metals strategist at Bank of America said in a recent research note, “When you’re looking at what levels we would need to see gold at $2500 per ounce, it is combinations like the DXY (the ICE U.S. Dollar Index) at 90 and real rates (10-year Treasury note yield) at minus 2. That will take gold to $2500. The DXY at 85 and real rates at minus 1.75 will also take you to $2500. DXY at 80 and real rates at minus 1.5 also take it to $2500 an ounce,” Widmer said.

Carlo Alberto De Casa, chief analyst at ActivTrades, says that investors are watching to see how the next coronavirus stimulus package shapes up here in the US to see how much additional money the Federal Reserve will be printing. De Casa says any large increase could be the catalyst for the next surge in gold prices.

“It is clear the resistance level of $2,000 is a strong threshold for the price and significant volumes are placed there,” he wrote. “Any news regarding new monetary stimulus from the US Federal Reserve could trigger gold to break up the resistance level of $2,000.”

Horizons ETFs portfolio manager Nick Piquard says the longer the coronavirus pandemic drags on, the more dollars the Federal Reserve will have to print as stimulus.

“Investors are seeing that this COVID crisis isn’t going to go away anytime soon. The cases keep going up globally. And the longer it takes, the more debt needs to be created,” Piquard said. “Congress is debating right now about how many trillions of dollars they’re going to have to spend for a new stimulus after having already spent trillions of dollars.”

Piquard says that will inevitably push gold prices higher. “The U.S. is probably going to have to print a lot of dollars to bail out all this debt. That’s really fuelling the gold rally.”

And once the pandemic is behind us, he says there will be too much stress on the system to raise taxes and pay off all the debt. “After all that money has been spent, it’s not like you’re going to be able to raise taxes to get that money back, or it’s not going to be easy to raise rates. The market is anticipating that the Fed is going to have to do more. And all those things are just beneficial for gold.”

Piquard says there’s an easy way to tell when the gold rally has ended.

“Silver price generally makes new highs towards the end of a gold bull market,” Piquard said. “The reason for that is because silver is more of an industrial metal, which is used more in the economy. So when silver starts rallying, that implies that the economy might be picking up.”

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