We offer regular reviews of topics that are important to asset owners and managers who trade capital markets. Our opinions and insights are freely shared.

Apple: Bottom Of 9th Inning

For many investors, Apple (NASDAQ:AAPL) is the closest thing to divinity on earth. And selling Apple’s stock would be a sin. We have heard more than one investment personality state that “Apple is a stock you hold, not trade.” For readers who have plunged too deep into the Apple Kool-Aid, it’s best to stop reading

Apple: Bottom Of 9th Inning

If Equities Drop, Just Add More

Equities Getting Frothy U.S. equity indexes began breaking out to new record highs at the very end of October and over the past week have added a few points each day at record levels. At the same time, the VIX volatility index (also known as the fear index) has fallen back to 12, about the

If Equities Drop, Just Add More

S&P 500 And 2015

And What If The Broad Equity Market Remains Range-Bound? We hear the calls of the Bulls predicting an S&P 500 above 3200 by year-end and the index at some 4000+ in 2020. On the other side of the debate, bears have been citing lots of legitimate reasons why stocks should come down. But the reality

S&P 500 And 2015

Not Trusting The A/D Line

We are getting another taste of 2017. Every day, the U.S. equity indexes rise, and every day, CNBC has the red banner “Record Close Watch” on the bottom of the screen. Equities are melting up once again on a combination of real optimism over trade, a friendly Fed, and FOMO (fear of missing out). The

Not Trusting The A/D Line

Equity Markets Roll On Towards Euphoria

So when can we say markets are euphoric? The Dow hit a new all-time record high earlier this week, joining the S&P 500 and Nasdaq at record levels. Sir John Templeton famously stated, “Bull Markets are born in pessimism, grow on skepticism, mature on optimism and die on euphoria.” The current Bull Market was certainly

Equity Markets Roll On Towards Euphoria

Alcoa: The Worst May Be Behind

We have opened a position in Alcoa (NYSE:AA), a very non-consensus stock in today’s market. The cyclical Materials sector has suffered from the global growth slowdown and trade tensions. We explain below some pros and cons of the Alcoa trade today. Alcoa: What’s Not Working Since Alcoa’s restructuring in 2016, the new company stock rallied

Alcoa: The Worst May Be Behind

Squaring Investor Pessimism And Equity Record Highs

It is said that markets climb a wall of worry. The U.S. China trade war and the brief inversion of the U.S. Treasury yield curve this year actually provided the impetus to push the S&P 500 (NYSEARCA:SPY) to a record high on Monday. Supposedly, “everyone” was worried about trade and a slowing U.S. economy. The

Squaring Investor Pessimism And Equity Record Highs

These Solar Stocks Will Be Heating Up

In this article, we issue Buy Recommendations on SolarEdge Technologies (SEDG), First Solar (FSLR), and Canadian Solar (CSIQ). Before we discuss these companies, we first present the current context for the solar energy trade. This week, the International Energy Agency (IEA) put out a report on the Global solar photovoltaic (PV) market. The IEA is forecasting a

These Solar Stocks Will Be Heating Up

9 Energy Companies That Won’t Go Bankrupt

Another week on financial markets driven by U.S.-China trade headlines. It is getting boring and quite annoying to step away from the trading screens for five minutes and see the Dow Jones suddenly down 300 points on an unsubstantiated Chinese newspaper report. And even more annoying to see the Dow finish the day up 150

9 Energy Companies That Won’t Go Bankrupt

Early Warning to the 2007-2008 Global Financial Crisis: Precursor to 2020-2021?

Bill Cara October 17, 2019 While searching the internet the week for an article I wrote on Bahamas while living and working there in 2006, I discovered a blog by somebody called wabrew that referred to a selection of my extensive Week In Review report dated October 14, 2006. Earlier that year the editors of

Early Warning to the 2007-2008 Global Financial Crisis: Precursor to 2020-2021?

We Are The Watchdogs

“Notre maison brûle, et nous regardons ailleurs. Nous ne pourrons pas dire que nous ne savions pas” (Our house is burning, and we choose to look away. We will not be able to say that we did not know) These words were pronounced by the late French President Jacques Chirac in 2002 during the 4th

We Are The Watchdogs

Forget 3,000 On The S&P 500: Part 2

Last Tuesday, October 1, we warned that a double top was setting up on the S&P 500 when the index was still above 2,960 (Forget 3,000 On The S&P 500). We indeed saw a couple days of stiff selling last week as the index touched a low of 2,855. While we believe macro fundamentals should

Forget 3,000 On The S&P 500: Part 2

What I have learned over 50+ years of trading

Change is constant. Markets are competitive. For the owners and managers of assets, only students of the market survive. We must learn to adapt to change. That involves the continuous study of  ​social and political change, macro-economic data and business conditions, international trade and taxation, commodity prices, interest rates and market liquidity, emerging markets, industry life cycles, corporate balance sheets and operating fundamentals, investor sentiment, trading research methodologies, and so forth. Needing to be a specialist at just one thing is a myth. Multiple interests and skills are required.

We all have it in our power to develop sufficient expertise to trade as well as most professionals. However, like anything in life, the experience needed to survive and prosper takes time and should not be rushed.

How to trade, survive and prosper

Through our publications, we offer a practical guide that incorporates an holistic approach to trading capital markets. Before we should buy any security, we need to understand the market and how to trade.

We believe we should buy only what we need and to buy the highest quality. The basic choices are Growth, Value or Yield. You should ignore any other marketing label put by to the sell-side. Understand that large-, mid- and small-cap companies or companies that operate in different regions of the world is simply your preference.

To ascertain the highest quality for Growth, Value and Yield requires a study of corporate fundamentals, comparing performance of one company to all other companies. In our proprietary database of almost 5,000 companies, we input the data of about 15 datapoints from Bloomberg and Thomson Reuters and then calculate weekly composite scores for Growth, Value and Yield, which we then rank from best to worst. For the most part, we are interested only in the highest quality companies. For order entry timing optimization, we study the market price & volume data for each of these companies from about 50 datapoints we capture from various sources on a daily and perhaps intra-daily basis.

Each portfolio is created and managed to meet different investor requirements; however, the trading methodology we use is consistent with what we know from experience works.

To guide our readers, we produce a Cara 100 list that balances Growth, Value and Yield considerations. This freely accessible list of what we consider to be quality companies is updated at the end of each quarter year, based on relative fundamentals, giving a range of large-, mid- and small-cap companies.