Jan 15, 2013|
Amy Smith, Investors Business Daily and author of "How To Make Money in Stocks Success Stories"
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
Get the looks like the Dow's down about 35 -- and NASDAQ down 21 S&P down five and we -- in the red but not much oil trading down 23 cents to 9391. Gold is the only thing up 1110. To 1680. Very good very good don't forget you can email me Barry Armstrong a WR GO dot com Amy Smith from investors business daily she's also the author of the book. How to make money in stocks success stories Amy -- you don't welcome. Hey thank you very -- good morning again. It -- so well what do the trends that your track and it IDD this week. I am taking a look at -- homebuilding industry because one of the leading companies Lennar reported for the open. Other results are better than expected that the -- a pretty weak reactions that we'll have to be healthy recovery continues or not. And it seems they have recess in my personal observation the least we still a glut. Of four closures I think the delinquency rate is around five and a half percent I'm I'm not buying housing stocks are you bullish on the. I'm not particularly all you know there's some of the biggest performer last year Lumber Liquidators about 199%. Around with the under in 32% and -- I was at 97 and now. They are kind of setting up right to validate and but the fact that Lennar had that and weak report. I mean is that they report was but the results were very very blocked the -- -- all of -- and. Kelly also have side of the nation's biggest banks reported this week and that and it's not about the health of the financial sector. -- JPMorgan and Goldman -- on Wednesday Citibank and Bank of America on Thursday. Would anybody -- the F financial sector because they flushed all their bad news -- -- right at the end of last year he noticed that. They took out big charge like Bank of America wrote off all their Fannie Mae stuff -- it's it's like they were trying to clean up their balance sheets before the end 2012. Well we got kind of a week peak last week led Wells Fargo now there mortgage originations. Loved his declining your right about that at and they reported. -- about not getting as much money in the interest rate is so low that that is hurting their profit margin there are gonna have to wait a speed -- Oh and a couple more years for the bank stocks. Big and I you know we're all hoping that help Rick Perry and wanna get that behind. Well apathy in front of the Atlantic that the job because now marketed as a and then on the you know. I don't see any reason to believe that the -- labor participation rate that's -- tracking more than the jobs numbers. I look at that participation rate I don't see movement much deal. Now we. -- dull little week we have a lot to get through with you know wherever look at that you. Now we've seen apple I know you got probably helped -- yesterday to. We have -- so what's it doing today is it down. It is out today. That you're so. Our great spirit as a former leaders wrecked on average 72. Per cent. And -- that the and other reminded. They don't follow a lot of -- -- apple -- great company. But you have to be very careful when the big former leader against the all of our kids face it apple probably bill as always. It broke that 500 and a big way it's at 490s now what does that mean. I've -- I've talked to some guys and they said if this thing breaks 500 look out. What it can't look at the round numbers 1020300. You know that there at that number at that institution is look at. And I would say that that definitely technical weakness you know it a lot of as the kind of support your position. Women via Scott that dropped below those big numbers and the fact that Apple's -- below what else is -- the end of the least bit slowly getting out. I saw a lot of hedge funds get out of apple. As soon as they came out the iPhone 5 you were selling their stock at 68700. Bucks a share they look pretty Smart right about now. Had to -- apple one of those you know -- the institutions are in a tough position because. If you look at the number I think sport thousand. Funds have a position in apple and I mean they are out there eyeball an apple. If they dumped the puck. Quickly wiped out -- they can't do that they have to -- and -- Selling a little bit little that little bit but -- athletic -- a long -- That's like a slow death felt you know it's like Diane -- million little cuts you know yet. Fidelity besides OK we're gonna sell a million shares and Vanguard's decides they're gonna sell a million shares in not a lot of buyers that's -- problem in Iraq. Well and when you're talking about even if apple came up with you know the news and TV. You have to take a look at what makes the -- go up -- -- -- all the all the time. It volume you have to actors well where's the money is going to go in apple where's -- going to come up. So let me ask you would. How do you. Teach listeners. Like how to buy stocks that are setting up are still within a binary because that's. That's really what everybody's listening to the show for right -- wanted to how to make money in the stock market. How an IBD would you recommend how do you follow the trend how do you determine whether stocks about to remove. You know what to think great quest an emblem of the first turning out a long time ago it is apples and apple in. You know chart are very confusing. I would look at it like -- Support and mean as we and the call areas that right consolidations. Or bases. And a couple of the main -- has been elected couples handle waste land base rent double bottom. Rather than even if someone doesn't know all of the technical take a look at the chart and has been salivating in a right. Is that an area -- consolidation in a tight range. And it popped out of that -- On big volume as big volume in what is going to tell you that -- -- In the national footprint right there. Itself is being in the -- buying shares -- weak volume. Is no demand for the stock -- -- -- its mission and it is no reason that we eat at individual investors. We need to take a risk in Atlanta. Where -- get those volume numbers how to it has like a guy listeners to show he's a work he's doing a lot of that trading. Where does he find that volume information. You know what request and you can go to investors.com. And -- free bad on the front page of our web site. You can see what's called -- audiences and the -- stocks that we track. And have these huge volume percentage -- We just stopped going up and not going down. And that big institutional money it is it as -- listed if you look at the front page of the it was moving today could take a look. Well this is we were right in the thick of earnings season how does that impact you're right you're trading the united. -- started last week without called that you know this weekend next weaker -- you know the big ones. They are the -- -- and I you know for everybody out there earnings. We love earning. And it's -- that I die each time it is the time he should have a watts -- Ready. Very often is that if a company report very strong earnings it will jump out of that type consolidation and go up and that's what you wanna get into it -- On the other hand you don't wanna buy it right before -- because she can get hurt now yesterday. The lemon reported earnings disappointed in the count and it's and an after hours. That's what you would never want not right before earnings because it's really -- roll of the dice and anything can happen. That is our -- Amy thank you I hope you'll come back. Amy Smith investor's business daily joining us today on the financial exchange.