When stocks accumulate a significant short interest, it typically creates the risk of a short squeeze. When investors sell a stock short, they have to borrow and sell it to profit from their bearish views. However, closing the position involves buying back the stock. Knowing this, investors can probably guess what happens when short sellers…
As the second quarter comes to a wrap-up for the stock market, so do the required 13-F filings for some of Wall Street’s biggest investors. This time around, Warren Buffett’s report card came in due to a shift in markets in one view and direction. Investors would greatly benefit from not blindly following Buffett’s moves…
Global skepticism about the U.S. dollar is rising, and last week’s S&P 500 brief sell-off proves this new trend. It was sparked by Japan’s sudden interest rate hike, which triggered a so-called “carry trade” unwind. This unwind affected currency valuations and preferences, which could then lead to an equally significant rotation in the stock market….
Wall Street analysts tend to hide whenever stock markets selloff, as the S&P 500 and NASDAQ did at the beginning of last week. Reiterating buy ratings or taking a premature bearish view on stocks could cost them their reputations and their careers, so investors need to place a heavier weight on whatever new rating is…
Most investors, retail and professional, no matter where they are located in the world or what they invest in, tend to believe that the United States stock market operates in a vacuum. This couldn’t be further from the fundamental truth, and investors would benefit from remembering that the stock market is a forward-looking reflection of…
The typical advice in the financial market is to never blindly follow a whale investor like Warren Buffett. However, these investors’ reverse-engineering investment decisions can often prove helpful. Today, Warren Buffett didn’t buy more shares of Occidental Petroleum Co. NYSE: OXY because the economy is slowing but because a commodity supercycle could be about to…
Key Points The recent dip in the energy sector may present a buying opportunity as it consolidates bullishly above its rising 200-day Simple Moving Average. Key stocks like Exxon Mobil, up 14% YTD, and Occidental Petroleum, a favorite of Warren Buffett, present unique opportunities within the sector. Exxon and the XLE are forming a bullish…