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Holding Out for Dow 21,000 – and Beyond

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We can’t blame pundits for trumpeting the approaching 20,000 level on the Dow Jones Industrial Average. After all, such huge round numbers are rarities in the stock market, and readers eat up those headlines. Still, I prefer to look at the charts, make my projections, and then live or die by my work.

Right now, Dow 21,000 looks to be the far more important target.

While there is an argument that round numbers act as support and resistance on the charts, I wouldn’t bet the house on them. Few traders make decisions this way because they know that if everyone looks at a big price level, it’s not going to be that effective.

Why? Because people will jump the gun and trade ahead of them, hoping to get an edge on everyone else. That is why the end-of-year Santa Claus rally now starts in November, the current Trump rally notwithstanding.

Here’s how I get to the 21,000 level, and it starts with a measure of the giant trading range that ended in July (see Chart 1).

Freeport-McMoRan Director Bets on Copper, Oil, Gold

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Copper is a metal that can take a hammering. Copper stocks are, as well, with the commodity’s downturn.

Take Freeport-McMoRan (ticker: FCX), the world’s largest publicly traded copper producer. Over the last five years through Wednesday’s close, the stock is down 68%, adjusted for dividends.

Speaking of dividends, Freeport-McMoRan ended such payments in December. The company emphasized the bright side of the suspension: It would save about $240 million in cash per year “and further enhance Freeport-McMoRan’s liquidity during this period of weak market conditions.”

We were skeptical of the copper rally that seemed to materialize earlier this year, and the per-pound price remains almost as cheap as rotisserie chicken at about $2.25.

Using Stock Options to Generate Income

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Generating income is one of the biggest challenges facing investors. Interest rates have been unusually low since the crisis of 2008-2009 nearly brought down the financial system. The Federal Reserve may increase rates this December, but that will do little for anyone who earns a pittance of interest on their bank deposits or bonds.

Yet there is a way to enhance, and even create, an income stream for yourself: stock options.

Most people associate options with risky investments, but that misconception largely reflects the media attention given to speculators. Because options can be used to potentially make a lot of money while putting up only a small amount, some investors make wild-eyed trades because they have heard investment charlatans talk about triple-digit returns.

Don’t Cry for EBay’s $1.37 Billion Argentine Stock Sale

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No one can accuse eBay of holding on to things out of nostalgia.

Two days after shares of MercadoLibre (ticker: MELI), an Argentine online marketplace, traded to an all-time high, eBay (EBAY) announced it would sell most of its stake.

MercadoLibre subsequently announced that eBay would sell 7.1 million MercadoLibre shares to the public at $168 each, for a total of $1.19 billion. The underwriters also have an option to purchase up to 1,026,062 additional MercadoLibre shares from eBay. If that option is fully exercised, it would mean that eBay has sold all its holdings (for a total of $1.37 billion), down from an 18.4% stake before the sale.

Revealed – How to Bypass Craigslist Phone Verification

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Are you looking for information on how to bypass Craigslist phone verification? Phone verified accounts, or PVA, are now required in all of the services section and depending on the kind of IP you are using possibly every other section on Craigslist. The need for phone verified accounts is currently only limited to North America. This is because Craigslist USA is the main Craigslist classified site that gets the most amount of traffic. For anyone wanting to boost their business it makes sense that they should be posting on Craigslist USA to tap into this potential flood of traffic. The obvious question is how can you bypass phone verification? Is it even possible to get around the need for PVA or is it a complete waste of time?

In order to understand what you can do to bypass the need for PVA, you really need to first have a solid understanding of where and why verified accounts are required. Phone verified accounts are by default required in the services section. There is absolutely nothing you can do to bypass the need for PVA in this area. The services section is the only place small businesses are allowed to place ads on Craigslist. A quick look through this section will reveal that 99.9% of the ads are indeed business related and this is where you should be posting if you are a business or service provider. However, it is impossible to post in the services section without using an account that you have created and verified using a phone number. For anyone looking to bypass the need for PVA but wants to post in services, there is nothing you can do. Your only solution is to use PVA for Craigslist.

Is there no way that phone verification can be bypassed? Yes and no. Beside the services section, every other section on Craigslist can require a PVA and can also not require one. How does Craigslist make the decision if you need or don’t need a PVA in order to post? Craigslist determines if you need a PVA from your IP and nothing more. Everytime you post an ad on Craigslist the IP you used is logged. The more ads you post the more times that IP is logged. This eventually leads to flagging or blacklisting. Some IPs are flagged and when this happens the only way you can continue to post is by using phone verified accounts, even if you aren’t posting in the services section. The way to bypass this form of verification is to get fresh IPs. Fresh IPs are any IPs that aren’t already in the Craigslist flagged IP system.

Bypassing phone verification on Craigslist isn’t as simple as some would like. If you post in the services section then there is nothing you can do to bypass it and you will need to get phone verified or pva for Craigslist to place ads. If you post in other sections then the best thing you can do is try and get fresh IPs that aren’t already flagged.

Buy quality phone numbers for your Craigslist PVA and make your own Craigslist phone verified accounts for the best quality around. Make your own PVA for Craigslist.

Finding Tomorrow’s Star Growth Stocks Today

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Small-company investors typically limit their investible stock universe by market value. Brown Capital Management takes a different approach. The Baltimore-based small-company specialist defines “small” as businesses with revenues of $250 million or less. “It just makes more sense,” says Keith Lee, co-manager of the $3.1 billion Brown Capital Management Small Company fund (ticker: BCSIX).

Amazon’s 49,000% Gain: The Most ‘Super’ of ‘Superstocks’ Since 1926

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Finding the next Amazon.com, which first sold shares to the public 20 years ago this week, is hard. In fact, finding the last Amazon was hard, too. From 1926 through 2015, only 30 stocks accounted for one-third of the cumulative wealth generated by the entire U.S. stock market; Amazon was one.

That’s 30 out of a grand total of 25,782 companies that were publicly traded over that period.​

The search might not be completely futile, but many investors are going about it the wrong way. That’s because the average return of the stock market, and the return of the average stock in the market, are nothing alike. Even though the stock market generates positive average returns over time, more than half of all stocks lose money over their lives as public companies, and the number of stocks that make big money is astonishingly small.

Stocks Offering Investors Trump-Like Tax Shields

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This year’s presidential race will set records for crotch talk, crime accusations and apocalyptic warnings — records that hopefully won’t soon be broken. It also briefly put a spotlight on tax loss carryforwards, with reports that Donald Trump declared a loss of more than $900 million in 1995, and speculation that he used it to avoid personal taxes for many years afterward.

Stock investors can benefit from carryforwards, too, and not just the kind that involve offsetting portfolio winners with losers. Consider two pending deals on Wall Street. One will pair a movie studio and its accumulated losses with a cash-generating pay-television business. In the other, a telecom with plenty of cash flow and a massive dividend, but little growth, is buying another telecom whose gigantic tax losses will make those dividend payments more affordable.

No Surprise From Fed as Poll Shifts Roil Markets

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The Federal Reserve signaled an interest rate next month while the stock market shows signs of technical weakness along with crude oil and junk bonds. Sounds like 2015?

Except for one thing. There’s something happening Tuesday, what was it? Oh yeah, an election.

To the surprise of absolutely nobody, the Federal Open Market Committee voted to hold interest rates steady at the end of their two-day meeting Wednesday while deciding the case for a rate hike “has continued to strengthen.” Without putting a timetable on that—as the FOMC had ahead of its initial one-quarter percentage point increase last December—the federal funds futures market placed a 78% probability of a similar move next month, to a target range of 0.5%-0.75%.

The only slightly unexpected change was that there were only two dissents on the FOMC instead of the three at the previous meeting in late September. Esther George and Loretta Mester, presidents of the Kansas City and Cleveland regional banks, again called for an immediate rate hike while their counterpart in Boston, Eric Rosengren, withdrew his objection to standing pat this time.

More Reasons to Worry About the Stock Market

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Whether it‘s election jitters, the Federal Reserve, or just weak earnings, several key areas of the stock market — small stocks, railroads and home building — now show technical breakdowns. And not to be outdone, both ultrasafe Treasury bonds and ultrarisky junk bonds have also cracked.

It is hard to think that the broad stock market can move much more to the upside, barring a sudden Fed move or an election surprise, when these engines are shut down. I don’t think even Facebook (ticker: FB) can help, even if its earnings after the bell Wednesday continue to shine.

The Russell 2000 index of small-capitalization stocks broke down below a key short-term support level last week. The chart shows some sort of undefined topping pattern beginning in July. We could argue about what to call it, but it really doesn’t matter.

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