I first wrote about a strategy I use when finding beaten-down stock in a February 2014 column titled “An Evergreen Strategy For Unstable Times.” In the column, I illustrated the strategy with an example using Walgreens WBA. Our buy in was around $29. Subsequently, Walgreens hit a high of $97.30.
Applying the same strategy here, there are two stocks I consider bargains that long-term investors may want to look at for scaling in. The charts look ugly, and therein lay the opportunities for well-informed investors. As purely technical traders and Wall Street algorithms sell, putting further pressure on the stock prices of these two companies, there will be an opportunity at hand for long-term astute investors to take the other side.… Please click here or the title below to read more.
(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers. )
September Non-farm Private Payrolls came at 118K vs. 200K consensus. This is completely unexpected based on the consensus view and other normally correlated data.
The employment number is a lagging indicator. The models at The Arora Report focus on leading indicators. However, in the short term, it is important for investors to immediately react to this number. There is a reason that this number is called the mother of all numbers.
