Archives for September 15, 2019

Stocks to Watch: Biosig Technologies (BSGM)

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Investors may be studying some short-term indicators on shares of Biosig Technologies (BSGM). The current 7-day average directional indicator is Buy. This signal may be used to determine the market trend. The 7-day directional strength is Soft. This trend strength indicator measures the signal based on historical performance where minimum would represent the weakest, and maximum would indicate the strongest. The 7-day average directional direction is currently Weakening . This signal indicates whether the Buy or Sell signal is getting stronger or weakening, or whether the Hold is heading towards a Buy or Sell. Taking a quick look at another popular indicator, we can see that the 10-day moving average Hilo channel is currently Buy. This indicator calculates the moving average based on highs/lows rather than the closing price.

Investing in the stock market can be highly challenging. Most investors have the same intentions of trying to maximize profits from investment capital. Realizing that there are many unknowns in the market, investors will need to make sure that they are constantly staying on top of the current economic scene. As most investors know, the market can see big shifts on a daily basis. Being able to deal with the constant ups and downs can be a huge asset to the individual investor’s psyche. Because stock market investing can get highly emotional at times, investors often have to find a way to keep a clear head and make the best possible decisions even when the market terrain gets rocky. Many successful investors have created a plan that they have been able to adhere to through the thick and thin.

The stock currently has a standard deviation of 1.21. Standard deviation is defined as a measure of the dispersion from the mean in regards to a data set. When dealing with financial instruments, the standard deviation is applied to the annual rate of return to help measure the volatility of a particular investment. Watching the standard deviation may assist investors with trying to figure out if a stock is primed for a major move. Biosig Technologies’s current pivot is 7.93. The pivot point is commonly used as a trend indicator. The pivot is the average of the close, low, and high of the prior trading period.

Tracking current trading session activity on shares of Biosig Technologies (BSGM), we can see that the stock price recently hit 8.07. At the open, shares were trading at 7.8. Since the start of the session, the stock has topped out with a high of 8.15 and bottomed with a low of 7.56. After noting current price levels, we can see that the change from the open is presently 0.27. Of course, there is no simple answer to solving the question of how to best tackle the stock market, especially when dealing with an uncertain investing climate. There are many different schools of thought when it comes to trading equities. Investors may have to first gauge their appetite for risk in order to form a solid platform on which to build a legitimate strategy.

At this time of year, investors may be reviewing their portfolios to see what changes can be made moving forward. As we head into the second half of the calendar year, all eyes will be on the next few earnings periods. Many investors may be looking to find some under the radar stocks that have a chance to take off. Successful traders are typically extremely adept at combining technical and fundamental analysis in order to find these stocks. Some investors may be better at sifting through the market noise than others. Active investors may be interested in tracking historical stock price information on shares of Biosig Technologies (BSGM). Over the past full year, the high point for the stock was seen at 9.97. During that same period, the low price touched 3.5. Investors will be watching to see if the stock can gain some momentum heading into the second half.

Active investors are constantly faced with tough decisions when managing their own stock portfolios. Deciding when to sell a certain stock may be just as vital as choosing which stocks to buy in the first place. There are bound to be extremes on both sides when analyzing buy and sell decisions. Maybe a well researched stock hasn’t seen the gains that were expected at the outset. When emotions take over, the investor may not be able to part with the stock. They may hold on to the equity with the hopes that someday it will bounce back. Of course this may happen eventually, but the situation could also worsen and the stock may keep losing. The same decisions sometimes have to be made when dealing with a winning stock. After a big run, the investor may have to decide whether to take the profits or hold off to see if the stock will continue to push upwards. These are no easy decisions for the individual investor. Being able to make the proper portfolio moves may take some time to master, but it may end up being highly important for continued, long-term success.

Stocks to Watch: Theravance Biopharma, Inc. (TBPH)

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Monitoring the technical signals for Theravance Biopharma, Inc. (TBPH), we have recently viewed the Percentage Price Oscillator Histogram line above zero. Traders may be using a PPOH reading above zero as a buy indicator.

Individual investors have a lot to study when dealing with the stock market. New investors may start out thinking that with enough capital, they can easily start securing substantial gains. While equity market investing can help individuals build wealth, it can also be highly risky. Market education may be an extremely important part of any investor’s game plan. Knowing exactly where the money is invested and why it is invested there, may be a big help when reviewing portfolio performance down the line. Any investor who takes the reins and decides to make their own decisions should realize the importance of a well-rounded stock market education.

Sharp investors may be looking to examine the Williams Percent Range or Williams %R. Developed by Larry Williams, this indicator helps spot overbought and oversold market conditions. The Williams %R shows how the current closing price compares to previous highs/lows over a specified period. Theravance Biopharma, Inc. (TBPH)’s Williams Percent Range or 14 day Williams %R is sitting at -32.49. Typically, if the value heads above -20, the stock may be considered to be overbought. On the flip side, if the indicator goes under -80, this may signal that the stock is oversold.

Keeping an eye on Moving Averages, the 50-day is 20.11, the 200-day is at 22.37, and the 7-day is 22.74 for Theravance Biopharma, Inc. (TBPH). Moving averages have the ability to be used as a powerful indicator for technical stock analysis. Following multiple time frames using moving averages can help investors figure out where the stock has been and help determine where it may be possibly going. The simple moving average is a mathematical calculation that takes the average price (mean) for a given amount of time.

We can also take a look at the Average Directional Index or ADX of the stock. For traders looking to capitalize on trends, the ADX may be an essential technical tool. The ADX is used to measure trend strength. ADX calculations are made based on the moving average price range expansion over a specified amount of time. ADX is charted as a line with values ranging from 0 to 100. The indicator is non-directional meaning that it gauges trend strength whether the stock price is trending higher or lower. The 14-day ADX is 24.01. In general, and ADX value from 0-25 would represent an absent or weak trend. A value of 25-50 would indicate a strong trend. A value of 50-75 would indicate a very strong trend, and a value of 75-100 would signify an extremely strong trend.

Theravance Biopharma, Inc. (TBPH) currently has a 14-day Commodity Channel Index (CCI) of 103.79. Active investors may choose to use this technical indicator as a stock evaluation tool. Used as a coincident indicator, the CCI reading above +100 would reflect strong price action which may signal an uptrend. On the flip side, a reading below -100 may signal a downtrend reflecting weak price action. Using the CCI as a leading indicator, technical analysts may use a +100 reading as an overbought signal and a -100 reading as an oversold indicator, suggesting a trend reversal.

Traders may also be paying close attention to RSI levels on shares of Theravance Biopharma, Inc. (TBPH). The current 14-day RSI is presently sitting at 62.74, the 7-day is 60.6, and the 3-day is 44.67. The RSI, or Relative Strength Index is a popular oscillating indicator among traders and investors. The RSI operates in a range-bound area with values between 0 and 100. When the RSI line moves up, the stock may be experiencing strength. The opposite is the case when the RSI line is heading lower. Different time periods may be used when using the RSI indicator. The RSI may be more volatile using a shorter period of time. Many traders keep an eye on the 30 and 70 marks on the RSI scale. A move above 70 is widely considered to show the stock as overbought, and a move below 30 would indicate that the stock may be oversold. Traders may use these levels to help identify stock price reversals.

When it comes to investing in stocks, the question of risk will eventually need to be addressed. Of course, there are no guarantees when investing in the stock market. With this in mind, investors can proceed with a plan that helps minimize risk while still providing the opportunity to experience large profit potential. Each investor may have a different financial situation or tolerance for risk. There is often a fine line between being too aggressive or too conservative with equity investments. Finding that balance between the two extremes may be exactly what the earnest investor strives to do when tackling the markets.

Stocks to Watch: CDW Corporation (NASDAQ:CDW)

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Wall Street analysts often give recommendations on equities that they cover. These analysts typically have a deep understanding of the health of a particular company. Taking a quick look at shares of CDW Corporation (NASDAQ:CDW), we note that the current average broker rating is now 2.25. This data is provided by Zacks Research using a ratings scale from 1 and 5. A broker rating of 1 would translate into a Strong Buy. A rating of 5 would indicate a Strong Sell recommendation. This average broker rating may help provide some insight on how the sell-side is currently viewing company stock. After a recent scan, we have also noticed that 4 Street analysts have rated the stock a Strong Buy or Buy, based analysts polled by Zacks Research.

Investors may be wondering what’s in store for the next couple of months in terms of the stock market. Bull markets are times when investors may be willing to take some liberties with stock picks. Risk management is typically on the minds of many investors. Investors trying to gain an advantage may be searching for the perfect balance and diversification to help ease the risk and give the portfolio a needed boost. With so many different stocks to study, it may take a while to hone in on the proper ones. Investors will also be closely following the next round of economic data. Investors may be on the lookout for the next major data announcement that either keeps the bulls in charge or ushers in the bears.

Following shares of CDW Corporation (NASDAQ:CDW), we can see that the average consensus target price based on contributing analysts is currently $119.5. Wall Street analysts often provide price target projections on where they believe the stock will be headed in the future. Because price target projections are essentially the opinions of covering analysts, they have the ability to vary widely from one analyst to another. Navigating the equity markets can seem daunting at times. Finding ways to identify the important data can make a big difference in sustaining profits into the future. As we move closer to the end of the year, investors will be watching to see which way the momentum shifts and if stocks are still primed to go higher. Investors might choose to rely heavily on analyst research and corresponding target predictions, or they may choose to use them as a guide to supplement their own research.

Zooming in on the current quarter EPS consensus estimate for CDW Corporation (NASDAQ:CDW), we see that the current number is 1.58. This EPS estimate is using 8 Wall Street analysts polled by Zacks Research. Last quarter, the company stated a quarterly EPS of 1.6. Sell-side analysts have the task of examining companies and providing estimates relating to future results. These estimates carry a lot of weight on the Street, and earnings hits or misses revolve around these numbers. Sometimes these predictions are very close to the actual reported number, and other times they are not. Many investors will be closely watching which way analyst estimates are being adjusted right before earnings. This may provide some insight on how good or bad the numbers for the quarter are likely to be. Investors might want to take a look at their holdings after the earnings reports to make sure that nothing extremely out of the ordinary after combing through the results.

Individual investors might be looking at all the angles in order to concoct a winning plan for the next few quarters. The diligent investor is typically on the ball and ready to encounter any unforeseen market movements. Monitoring recent stock price activity on shares of CDW Corporation (NASDAQ:CDW) we have noted that the stock price has been trading near $114.32. Turning the focus to some historical price information, we note that the stock has moved 5.74% over the previous 12 weeks. Since the start of the year, we note that shares have seen a change of 41.05%. Over the last 4 weeks, shares have seen a change of 5.15%. Over the last 5 sessions, the stock has moved -3.5%. After a recent scan, we can see that the 52-week high is currently $118.52, and the 52-week low is presently $75.33.

Some investors will scour the markets looking for cheap, quality stocks. These stocks can be attractive for investors looking to find a bargain that could turn into a big winner. Investors may be cautious when searching for these types of stocks. Often times, a stock will see a huge jump and then everyone will hop on the bandwagon to buy without checking into the fundamentals. Sometimes this strategy may work out, but in many cases, the stock has already made the run and become too expensive to add to the portfolio. Conducting diligent research and constantly adding to the individual’s overall market education level may help the investor sift through the sea of stocks and find those names that are really worth getting into.

53% of Canadians want next federal government to build Trans Mountain pipeline expansion, poll says

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Over 60% would prefer Ottawa invest in renewable energy sources

More than half of Canadians surveyed want their next federal government to build the Trans Mountain pipeline expansion between Alberta and British Columbia, according to a new poll.

An online survey of more than 1,500 respondents in August by the Angus Reid Institute found that Canadians were more than twice as likely to say the next federal government should proceed with and complete the pipeline project, with 53 per cent of respondents saying so, as opposed to those who say it should be stopped, at 24 per cent.

The Liberal government bought the pipeline for $4.5 billion last year. Some construction is already underway, and the government now says the expanded pipeline will be operational by mid-2022.

Despite the support for the project, most Canadians also want federal funding to be invested in renewable energy sources instead of non-renewables.

Over 60 per cent of respondents view renewable energy as a “huge opportunity” for Canada. According to Natural Resources Canada, only 17 per cent of Canada’s total energy supply comes from renewable sources like wind and solar energy.

“It seems like Canadians are supportive of a diverse energy portfolio,” said Dave Korzinski, a research associate at Angus Reid. “They like the idea of completing the pipeline but also using that money to invest in renewable resources.”

Among the provinces, only Quebec voiced more opposition than support for the Trans Mountain expansion. The project has a slight edge in approval in British Columbia and Ontario, where a little over half of respondents want it to proceed.

Albertans remain the pipeline’s biggest proponents, with 85 per cent of respondents from that province in support of its expansion. 

The detailed route for the Trans Mountain expansion has yet to be approved. The pipeline would transport bitumen from Alberta’s oilsands to the B.C. coast.

When it comes to assessing the federal government’s approach to the pipeline issue, Canadians are more divided. 

Four in 10 believe Ottawa should be doing more to increase pipeline capacity, while a third believe the government has already been pushing too hard on the project. Around a quarter of Canadians say the government has had a balanced approach.

“One of the biggest communication challenges for [Justin] Trudeau heading into the [election] campaign is this natural resources issue and the pipeline issue because Canadians are really all over the map,” said Korzinski.

Based on current voting intentions, more than 80 per cent of Conservative voters overwhelmingly support building the expansion. Canadians who lean toward the NDP and the Green Party are more likely to oppose the project, while Liberal supporters are less divided. 

For voters whose top election issue is the oil and gas sector, the Conservative Party emerges as a clear favourite with 36 per cent of those voters, compared to 19 per cent who would choose the Liberals.

The online survey was conducted Aug. 21-26 among a representative randomized sample of 1,534 Canadian adults who are members of Angus Reid Forum. A probability sample of this size would carry a margin of error of plus or minus 2.5 percentage points, 19 times out of 20. 

The survey was self-commissioned and paid for by the Angus Reid Institute, a non-profit, non-partisan public opinion research foundation.

Do You Misunderstand Roth IRA Saving?

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Many people casually throw around the terms Roth IRA and traditional IRA, but there are significant differences, with pros and cons to each. This article explains the value of a Roth IRA as a savings instrument.

Roth IRAs, like traditional IRAs, can accumulate money faster than a comparable taxable investment, providing more money to live on during your retirement years. However, they do not offer the tax deduction that makes the traditional IRA a more-discussed option around the April 15 tax-filing date. At that time of year, many people are looking for ways to decrease their current taxes, so the topic of Roth IRAs fades in most tax-deduction conversations. However, focusing on short term tax savings can end up costing you more money in retirement because of higher taxes. When you withdraw the money, both your original savings and all its investment returns will be taxed at your income tax rate at that time. While future tax rates are unknown, it appears likely that tax rates will be higher in the future.

Contributions you make to a Roth IRA are not deductible the way they are for a traditional IRA. However, you may be disappointed to find out what deductible means? All it means is that the dollar amount of your contribution is removed from your income for calculating your taxes in the year you make the contribution. It doesn’t mean that you never have to pay taxes on the money. (Some use the phrase pretax contributions as opposed to tax-deductible contributions to signal that the money will eventually be taxed.)

With a Roth IRA, you pay as if the money were simply coming out of your checking account, just as you pay your phone bill or make your car and mortgage payments.

When you recognize that contributing to a Roth IRA is like saving money right out of your checking account, you may be tempted to forgo saving in a Roth IRA. You may be even more tempted to do that when you consider that monies saved in a savings or brokerage account are taxed as long-term gains, and long-term capital gains are taxed based on your income at either 0%, 15% or 20%. Short-term gains, on the other hand, are taxed at your current income tax rate. If you save in a Roth and have short-term gains taxed at your marginal tax rate of, let’s say, 24%, that would reduce your gain on a dollar by $0.24.

Nevertheless, saving inside of a Roth increases your long-term accumulation, which will almost certainly be a plus come retirement time. And once you clear the five-year holding requirement and age 59 ½ hurdles (see below), you pay nothing on your gains. Another benefit of a Roth is that, if for some reason you need to access more money than your emergency reserves make possible, you can make withdrawals from your contributions without penalty. That’s because you have already paid taxes on the contributions. (If you want to access the gains prior to age 59 ½, however, you would be subject to penalties and taxes.)

This no-penalty feature on early withdrawals from contributions is not true of the traditional IRA. That’s why it’s important to consider when you will need to access money to determine where it should be saved. This is especially true if you want to retire prior to age 59 ½. In that case, you should have money saved in accounts that don’t penalize you for early withdrawals.

Two frequently asked questions

•            Do I qualify? The answer is yes if you have earned income for the tax year and your income is does not exceed the upper limit of the ranges below. If it exceeds the lower limit, your contribution will be reduced. If you are in between the limits, I recommend finding a professional to help with the calculations.

Single                                   $122,000–$137,000

Married filing jointly        $193,000–$203,000

Married filing separately $0–$10,000 

•            How much can I contribute? For tax year 2019, you can contribute up to $6,000 ($7,000 if you are over 50).

Five-year holding requirement for certain benefits

A few of the benefits of a Roth IRA don’t kick in until after you’ve been saving for five years. The five-year “clock” starts on January 1 of the year in which the first Roth IRA contribution is made. That means if you make the IRA contribution on April 15, it is treated as if you made it on January 1 for tax purposes, even though you didn’t get any earnings on your money between January 1 and April 15.

Once this five-year period begins, it counts not only for the initial contribution but also for all future contributions. The advantages that kick in after five years of saving include the first-time homeowner’s purchase mentioned below and the tax-free distributions to beneficiaries referenced in the Roth Advantages section.

Early-withdrawal penalty on earnings

Unless you qualify for an exception, any withdrawals of earnings, or gains, prior to age 59 ½ will be subject to a 10% early-withdrawal penalty. I refer to this as the retirement cookie jar penalty. Please note that this penalty is in addition to the tax due on the earnings. Here are the exceptions that exempt you from the early-withdrawal penalty on Roth IRA earnings:

·        death

·        disability

·        attainment of age 59½

·        substantially equal periodic payments

·        medical expenses in excess of 10% of adjusted gross income

·        first-time home purchase (up to $10,000) if you have met the five-year holding requirement

·        an unemployed individual’s purchase of health insurance

·        qualified higher education expenses

·        qualified reservist distribution

·        distribution due to an IRS levy of the qualified plan

These exceptions apply to individuals under the age of 59½ who withdraw earnings from their Roth IRA.

Roth Advantages

Along with featuring penalty-free withdrawals of contributions prior to age 59 ½, the Roth IRA might be advantageous for these reasons as well:

·        If you believe that the tax rates may change for the worse in the future: U.S. tax rates for middle- and upper-income earners are low right now when compared to the rates that prevailed in the 1960s and 1970s. Guessing tax rates is risky business, but when there is uncertainty, diversification can be a way to get you ready for all conditions. Why not have some money in both traditional and Roth IRA accounts?

·        If you want to shelter income and earnings from taxation after you reach age 70½: A Roth IRA lets you continue to save whereas a traditional IRA does not.

·        If you want to preserve your savings for beneficiaries and future generations: There are no minimum distribution requirements with Roth IRAs. Once the five-year holding period requirement has been met, beneficiaries of the account can receive tax-free distributions.

·        If you’re saving for a first home: The unique ability for first-time home buyers to take an early distribution without penalty makes the Roth IRA an attractive vehicle for accumulating a down payment. I believe this makes sense if the home ties into your retirement planning.

·        If you want to consolidate your IRAs: I’ll be writing at length in a later post about Roth conversions, but, for now, it’s good to know that Roth IRAs have the unique ability to accept “converted IRA” funds from both traditional and self-employment (SEP) IRAs with no time or income restrictions. You will have to pay taxes on the converted amounts, however. Conventional wisdom says the taxes should be paid from non-retirement accounts in order to benefit from a conversion. 

Roth 401(k) and Roth 403(b) to the rescue

Phased out of saving into a Roth IRA because your income exceeds the upper limit? Your 401(k) or 403(b) can now be amended to allow for Roth IRA-style deferrals. In fact, it may already have this feature. Such deferrals have two benefits over the Roth IRA:

1.           The annual contribution limit is higher. In 2019, $19,000 may be deferred to the plan under the Roth provision, plus an additional $6,000 if the participant is age 50 or older.

2.           Contributions under the Roth provision can be made by all participants, regardless of income.

This is the second article in a series about saving in a traditional IRA or Roth IRA and choosing the right one for you. I focused on traditional IRAs in the first article. I hope this article has helped you better understand the Roth IRA and its advantages in saving for retirement. In the next article, I will provide a comparison between the two types of IRAs.

Here’s how long it takes to improve your credit score

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Generally speaking, the higher your credit score, the better off you are when seeking a loan.

But the recovery time from a missed payment or financial setback of any kind differs for everyone.

As many consumers know, your credit score plays a big role in daily life. It can determine the interest rate you’ll pay for credit cards, car loans and mortgages — or whether you’ll get a loan at all.

Those three digits can save you tens of thousands of dollars over time, or cost you just as much.

“Depending on your credit history, a 15- or 20-point shift could mean the difference between being approved or declined or better terms or higher costs,” said Rod Griffin, the director of public education at Experian, a major credit-reporting firm.

The good news is that average credit scores have steadily ticked higher since bottoming out during the housing crisis about a decade ago, when there was a sharp increase in foreclosures. Now scores are at an all-time high, according to FICO, a leading credit-scoring company. FICO scores range from 300 to 850.

However, a missed payment or default can quickly drag your score down, sometimes significantly. (See financial comparison site SuperMoney’s charts below based on data by VantageScore and FICO.)

The best way to increase your credit score comes down to paying your bills on time or reducing your credit-card balance. (The common advice is to keep revolving debt below 30% of your available credit so that your utilization rate doesn’t hurt your credit score.)

Your payment history and utilization rate typically account for 60% to 70% of a credit score, according to Experian.

Such positive credit behaviors can start to improve your score as soon as a few billing cycles. “As a rule of thumb, you could see an appreciable difference in six months,” said Ted Rossman, industry analyst at CreditCards.com.

However, that also depends on the issues you are trying to overcome.

For example, “if a missed payment has dragged your score down, your score could rebound in a month or two, a series of late payments will take longer to make a full recovery,” Griffin said.

Being late on a mortgage payment is a more serious problem, yet you can recover from that in as little as nine months. File for bankruptcy, on the other hand, and it could take 5 years to 10 years to get back to where you once were, according to Miron Lulic, the founder and CEO of SuperMoney.

In addition, the condition of your credit history also plays a role, Griffin added. “The better your scores are to start with, the more difficult it is to improve them.”

That’s because a lower credit score reflects a pattern of missed payments. Adding one more missed payment is not as significant as it would be on someone who has a clean credit report, according to Lulic.

The goal isn’t to have a perfect score, Griffin said. “The goal is the have a score that qualifies you for the best terms of rates, generally 750 or above.”

Regardless of your starting point, to achieve very good or excellent credit, there are simple things you can do that will have an immediate impact. Here are five tips from SuperMoney to give your score a boost:

  1. Check your credit report and dispute every error you find.
  2. Pay your bills on time. Late payments stay on your report for seven years.
  3. Pay off your credit card balances. This will reduce your credit utilization ratio, which will do wonders for your score.
  4. Stop applying for credit. Hard inquiries ding your credit for up to 12 months.
  5. Ask a relative or friend who has good credit habits to add you as an authorized user on their credit card. As long as their payments are made on time, your credit score will improve.