Hello again folks. We know it's been pretty quiet at PBT lately. Perhaps Curt and I were too busy riding the rails to bother to peck out a post or two (or earning our paychecks...). Regardless, I hope you'll find something worth chewing on in this week's review.
This week's Flophouse News is a day late, but not a dollar short, and while Poor Brother Tom is feeling a little dried out this morning, he hopes you'll sit back with a styrofoam cup of whatever gets you going in the morning and check out these bum-worthy articles and blog posts.
Approximately 70% of U.S. GDP (Gross Domestic Product) is created for personal consumption. As consumption is such a large component of our economy, it is prudent for us, as investors, to have some tools to monitor consumption--both for insight into the broader market trend and trends in sectors more sensitive to changes in personal consumption, such as retail.
Here is one method of doing just that using the retail sales data series as compiled and published by the U.S. Census Bureau.
Thanks to Eric at Under the Buttonwood Tree for including our post on the ups and downs of dynasties in the 93rd Festival of Stocks. If you haven't read it yet, I highly recommend it.
I'll be including a few choice posts from the festival in tomorrow's Flophouse News.
It's Father's Day, and while my daughters aren't old enough to play the market yet, here are some investment-related lessons that I plan to teach them as they grow. Many of them are things my own dad taught me.
1. Dare to take risks. If you don't risk anything, you'll likely never grow – either your portfolio or as a person.
2. Don't rush into things. Do your homework and know what you're investing in. If you have any questions, don't do anything until they are answered.
If you were looking for a good entry for a new short position this past week, you missed the boat. Instead of a reflex bounce after last Friday's sell off (with the possible exception of the Dow), investors came back to the market on Monday ready to dump more shares. The selling pushed the indices even closer to their March lows. The NASDAQ Composite finally broke below its 50 day moving average (DMA), the last of our indices to do so, before popping back above it today.
A month ago today, I first wrote about Titan Machinery (TITN), suggesting that a likely bounce of the 50-day moving average (DMA) would be good for about a 20% gain in a few weeks. I was wrong – it was good for much more!
I've only done one weekly roundup so far, and I'm already changing the name. I hope you like the new title of this semi-fortnightly rag better.
Here's this week's flophouse news from around the 'net.
Lindsay Corp. (LNN) has been on Poor Brother Tom's watchlist since early April, as it was making a run up from a cup with handle breakout in March. Since then, it's continued it's journey upward to a new high a smidge above $131 – a 61% increase above the pivot price near $81!
Many thanks to Fat Pitch Financials for hosting the Festival of Stocks blog carnival and including our post Sector Analysis using ETFs in the mix.
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