Mullooly Asset Management

Apple: Now What?

Thomas Mullooly — Tue, 21 Feb 2012 14:06:17 +0000

We’ve recived LOTS of calls and emails regarding Apple:
“What do we do with Apple now?”
“Should we be thinking about selling Apple?”
“Is it too late to buy Apple?”

All good questions. Take a look at this short video, and you will see the dramatic move Apple has made, and what is to come. We have mentioned Apple in a few recent videos, but because of its’ popularity, Apple needs its’ own video review. Remember, if you have a stock, mutual fund or exchange traded fund (ETF) you want us to analyze, get in touch with us!

If you are relying on a blog post for specific investment advice, you are making a huge mistake. Please speak with an investment adviser before making ANY investment decisions.
If you do not have an investment adviser, we encourage you to contact Mullooly Asset Management at 732-223-9000, or through our website. Under no circumstances should the content discussed here to be considered specific investment advice.

Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that the future performance of any specific investment or investment strategy will be profitable or equal to past performance levels.

All investment strategies have the potential for profit or loss. Changes in investment strategies, contributions, or withdrawals may materially alter the performance of your portfolio. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for an investor’s portfolio.

401K: We Can Manage Your Account

Thomas Mullooly — Fri, 17 Feb 2012 15:31:34 +0000

401k: Login and look.

You need help managing your 401(k). Mullooly Asset Management provides a service where we will manage your 401k account for you. We have no interest in managing your entire company 401k plan. We work with individual investors, making changes to the investments in their 401k account, when it is time to make those changes.

Hire Mullooly Asset Management to manage your 401k account.

In this podcast, we discuss the steps we follow to manage your 401k account at work. This same process applies to your 403b annuity. This process also works with getting help for your deferred compensation account at work.

All investment strategies have the potential for profit or loss. Changes in investment strategies, contributions, or withdrawals may materially alter the performance of your portfolio. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for an investor’s portfolio. Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that the future performance of any specific investment or investment strategy will be profitable or equal to past performance levels.

Point and Figure Charting: Not Just For Stocks

Thomas Mullooly — Sun, 12 Feb 2012 17:55:39 +0000

Point and Figure Charting is not simply for stocks, mutual funds or exchange-traded funds. Of course, if you have an investment in your 401k or your retirement account at work, we would be happy to analyze the funds and investments in your account for you. But we can analyze so many other topics, for example housing starts. In this video, we examine the point and figure chart for XHB, the S&P Homebuilders Index, along with the history (and chart patterns) of Housing Starts in the United States, going back over twenty-five years.

You have heard me say before, past performance may not be indicative of future results. Therefore, no current or prospective client should assume that the future performance of any specific investment or investment strategy will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Changes in investment strategies, contributions, or withdrawals may materially alter the performance of your portfolio. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for an investor’s portfolio.

Investing In ETFs: Podcast

Thomas Mullooly — Sat, 11 Feb 2012 13:28:46 +0000

Exchange Traded Funds (ETF’s) can be the answer to: How do you buy expensive stocks, like Apple Computer? It is tough to have a balanced portfolio when one stock represents a large portion of the investment account. We have found there are plenty of exchange-traded funds where a large portion of the portfolio is invested in one stock (like Apple). This can be an alternative way to participate in a stock move… without owning the actual stock itself.

Regarding Apple: Several ETF’s (exchange traded funds) like QQQ and IYW invest a significant portion of their funds in this one investment. Likewise, with the exchange traded fund VOX, nearly half of the portfolio (46%) is invested in just two stocks, AT&T and Verizon.

I would also add the following: Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that the future performance of any specific investment or investment strategy will be profitable or equal to past performance levels.

Facebook IPO: Will This Be a Great Deal or a Bust?

Thomas Mullooly — Mon, 06 Feb 2012 22:59:31 +0000

Facebook IPO News February 2012

Last week, in February 2012, Facebook filed for their initial public offering of stock. In this podcast, we discuss some of the basics of all IPO’s (Initial Public Offerings) and some of the merits of Facebook which are known at this point in time (February 2012). We do not have all of the information disseminated yet from Facebook at this time.

Any offering of shares can be made by prospectus only.

However, every investment adviser is likely to get calls from clients and prospective clients about Facebook. Their offering will be historic in several ways. Like many famous initial public offerings, shares may be very hard to come by.

But keep this in mind — after the offering, Facebook will be one of the largest publicly traded internet and technology companies. Which means Facebook will probably be attractive to exchange traded funds and mutual funds which invest in technology and the internet.

We have to say “probably” in this blog post and podcast, because we have no guarantee anyone will buy their shares or even if the initial public offering gets completed. It’s also a bad idea to speculate about the future, period! But the media will have a field day with any news regarding a Facebook IPO.

Two other things:
1. This video is NOT a recommendation to buy or sell any of the securities mentioned here.
2. None of the securities mentioned in this video represent past specific recommendations of Mullooly Asset Management.

If you would like to see a mutual fund, exchange traded fund or individual stock analyzed using point and figure technical analysis, please contact Mullooly Asset management at 732-223-9000. I would also add the following: Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that the future performance of any specific investment or investment strategy will be profitable or equal to past performance levels.

2 Semiconductors Stocks To Avoid Now

Thomas Mullooly — Mon, 06 Feb 2012 18:44:36 +0000

There are plenty of semiconductor stocks worth considering at the time of this writing (February 2012).

Why do people keep asking about the WRONG semiconductor stocks to own now?

If you have been a reader of this site, you know we employ point and figure charting to analyze stocks, analyze mutual funds and exchange traded funds (ETF’s). But another tool we include in our analysis is relative strength. And by combining point and figure trend charts with relative strength charts, we can see there are clearly some semiconductor company shares we would prefer to own, and some semiconductor we would probably pass on.

However, before we begin the ANALYSIS of these charts, we need to mention two other important points at this time:
1. This video (and this blog post) is NOT a recommendation to buy or sell any of the securities mentioned here.
2. None of the securities mentioned in this video (or in this post) represent past specific recommendations of Mullooly Asset Management.

In this short video, we analyze two semiconductor stocks we have been asked about recently, and also share a relative strength matrix (from Dorsey Wright & Associates) which stacks all the names in a sector from top to bottom based on relative strength (as of February 6, 2012). This video will be well worth your time.

I would also add the following:
Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that the future performance of any specific investment or investment strategy will be profitable or equal to past performance levels.

Relative Strength: The Basics

Thomas Mullooly — Tue, 31 Jan 2012 02:19:53 +0000

Relative Strength is possibly the single best approach to keep tabs on winners and losers in the stock market. How do you know if your investment is merely taking a breather or pulling back — or how do you know if this is the start of a freefall off a cliff? Relative Strength can often hold the keys.

Charts with Relative Strength BUY signals tend to:
Go UP FASTER than the rest of the market
– and tends to go DOWN SLOWER than the rest of the market.

Charts with Relative Strength SELL Signals tend to:
Go UP SLOWER than the rest of the market
– but tends to go DOWN FASTER than the rest of the market

We say “tends to” because it is not a RULE, but we often see tendencies in these patterns.

A change in relative strength is a VERY big deal. But I would also add the following: Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that the future performance of any specific investment or investment strategy will be profitable or equal to past performance levels.

Bank Stocks Point and Figure Analysis January 2012

Thomas Mullooly — Mon, 30 Jan 2012 21:08:23 +0000

How healthy are the big banks? No one knows the details, but we can get a pretty good idea of what investors think of banks, by simply looking at the point and figure charts in this sector. In fact, we can look at the entire banking sector, the entire financial sector (not just banks) — and the relative strength of these sectors. It’s a worthwhile look!

We close this video with the grand-daddy of all financial sector charts: Lehman Brothers from 2008.

If you’ve got a mutual fund, exchange traded fund or a stock you would like us to ANALYZE, get in touch w/us! You can find Mullooly Asset on the web, or you can call us at 732-223-9000. We would be happy to review a chart for you and maybe even make a video of it. I would also add the following:

Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that the future performance of any specific investment or investment strategy will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Changes in investment strategies, contributions, or withdrawals may materially alter the performance of your portfolio. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for an investor’s portfolio.

If you are relying on a blog post for specific investment advice, you are making a huge mistake. Please speak with an investment adviser before making ANY investment decisions.

If you do not have an investment adviser, we encourage you to contact Mullooly Asset Management at 732-223-9000, or through our website. Under no circumstances should the content discussed here to be considered specific investment advice.

QQQ: PowerShares QQQ NASDAQ 100 Exchange Traded Fund

Thomas Mullooly — Mon, 23 Jan 2012 19:23:16 +0000

We have prepared a short video (less than five minutes) analyzing the current point and figure chart for QQQ, which is the exchange traded fund representing the NASDAQ 100 Index, issued by PowerShares. This ETF (exchange traded fund) invests in the index, which is the top 100 names found on the NASDAQ 100 Index. The top few names in the basket include Apple, Microsoft, Google, Oracle, Intel, Cisco, Qualcomm and Amazon. It covers a LOT of recognizable technology names, so this represents an easy way for investors to get into some very recognizable technology names without a lot of fuss, or cost.

This ETF has been popular over the years, but popular only wins in school board elections. So I would also add the following: Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that the future performance of any specific investment or investment strategy will be profitable or equal to past performance levels.

If you are relying on a blog post for specific investment advice, you are making a huge mistake. Please speak with an investment adviser before making ANY investment decisions. This is NOT a recommendation to buy or sell, this is an ANALYSIS of the current point and figure chart.
If you do not have an investment adviser, we encourage you to contact Mullooly Asset Management at 732-223-9000, or through our website. Under no circumstances should the content discussed here to be considered specific investment advice.

Top-Down vs. Bottom-Up Approach

Thomas Mullooly — Mon, 23 Jan 2012 14:11:37 +0000

January 2012: the US market is off to a good start. It’s hard to predict what the rest of the year will bring, but indicators like the Santa Claus rally and the January Effect are working. There is no fundamental basis that the “January Effect” or “Santa Claus Rally” will bring success in 2012.

Sectors working well so far in the new year include Machinery, Electronics (in Manufacturing), Biotech.
Even some retailers are seeing positive breakouts appear on their charts. Suddenly, Consumer Discretionary names are breaking out daily. And with that (amazingly), the home-building sector is also working its’ way higher on the charts: NOT necessarily the actual home-builders, but companies that sell things going IN the house (paint, furniture, etc).

Some of these sectors which are participating are sectors that (historically) participate in the early stage of a bigger move. With many sector and individual charts starting to broaden out, this positive move in the market MAY have some legs here. But again, we do NOT make predictions.

Financial companies are still lagging. These charts provide some interesting speculation off the bottom, but there is still FAR too much risk in the group to think about buying across the board for all clients. Financial stocks — at the present time — appear really for traders only.

The approach we employ to manage money for clients is a “top-down” approach. When comparing top-down vs. bottom-up styles, there really could not be two different approaches.
We use a top-down approach, employing relative strength and point & figure charts.
The first step we need to know is, is the market on offense or defense? If it is on defense, our entire strategy changes from wealth-building (trying to make money) versus wealth preservation (trying to protect our assets to play another day).
Next, we need to know what area of the globe do we want to be in now? In the 1980′s, it was a US-driven market. But we have seen periods in the past few years where the US markets were one the WORST places to invest. We need to know that!

Next, which sectors are favored? And then, which sectors have the best relative strength?
At this point, with the vast (and still growing number of Exchange Traded funds (ETF’s), some folks can stop right there and simply stick with the sectors providing the best opportunities.
We then drill down one more level and want to know which are the names (companies) leading the sectors?

A bottom-up manager would employ the exact opposite: they are looking at the specific company fundamentals to choose where to place their money. Companies with strong fundamentals, low P/E ratios, growing market share, great management are things that matter most to bottom-up money managers. To a bottom-up manager, it does not really matter if the sector is in or out of favor, or even if the market is on offense or defense. I would also add the following:

AUSAX: Columbia Acorn USA Fund

Thomas Mullooly — Mon, 16 Jan 2012 14:59:22 +0000

Is the Columbia Acorn USA Fund (symbol AUSAX) available in your retirement plan at work? AUSAX may be available in your deferred compensation plan or your 401k plan. In the many retirement plans I have reviewed, the Columbia Acorn Fund is one of the more popular funds — meaning, it is often offered as one of the choices for growth funds in a 401(k) plan.

The Columbia Acorn USA fund is currently (January 2012) invested in technology, retailing and other small cap investments. This can be a volatile fund both UP and DOWN, but you will need to see the video below for more details.

In some deferred comp accounts and 401(k) plans, the Columbia Acorn fund (AUSAX) is sometimes the most recognizable growth fund in your plan. With that in mind, I have prepared an analysis of the point and figure chart for this fund.

If you are relying on a blog post for specific investment advice, you are making a huge mistake. Please speak with an investment adviser before making ANY investment decisions.

Please note this is an ANALYSIS of AUSAX, the Columbia Acorn USA fund, this is not a recommendation to buy or sell this fund. In fact, none of the securities analyzed represent past specific recommendations of Mullooly Asset Management.

Additionally, all investment strategies have the potential for profit or loss. Changes in investment strategies, contributions, or withdrawals may materially alter the performance of your portfolio. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for an investor’s portfolio.

Feel free to pick up the phone and call us (or email) to get your questions answered about the Columbia Acorn fund (AUSAX), or your 401k retirement account at work, any investment your are considering. We can be reached at 732-223-9000.

Santa Claus Rally and 2012 January Effect

Thomas Mullooly — Sat, 14 Jan 2012 18:38:54 +0000

Two old sayings can harm your investment returns and your 401k at work: “January sets the tone for the entire year” and “the first five trading days set the tone” for the whole year do not always work. We are off to a good start so far in 2012, but predictions are a slick way of simply guessing about the future. What DOES work are the patterns we see on the point and figure charts. As noted before, if supply and demand work on Main Street, and at the food store,, and at the gas pump… why does supply and demand NOT work on Wall Street? Well, it DOES. I would also add the following:

Volatility in the Marketplace Podcast

Thomas Mullooly — Mon, 09 Jan 2012 21:30:23 +0000

Podcast January 9, 2012

Even though the Standard & Poor’s 500 Index was essentially flat (up less than one percent) in 2011, we witnessed the most volatility in recent memory. However, the volatility might NOT be coming from the daily news that so many feel are driving the markets. In Bear markets (and we are in a secular bear market in 2012), there is (often) a tremendous increase in volatility. But the strange phenomenon about bear markets is they typically finish where they began. We also spend time in the podcast discussing why Mullooly Asset Management does not make market predictions and why predictions about the economy and predictions about the stock market are usually a waste of time.

We encourage our readers and listeners to our podcast to consult with their investment adviser before making a decision to buy or sell any investment.

And if you are relying on a podcast for specific investment advice, you are making a huge mistake. Please speak with an investment adviser before making ANY investment decisions.

If you do not have an investment adviser in the New Jersey or New York area, we encourage you to contact Mullooly Asset Management at 732-223-9000 or through our website.

Under no circumstances should any of the content discussed on this podcast be considered investment advice.

The Mullooly Asset Management Podcast can be found below. The Podcast can also be found on iTunes. Go to the iTunes Store and simply search for “mullooly.” Under no circumstances should the information contained in this blog or podcast be considered investment advice.

Thank you for listening. We welcome your comments and questions.

Sell Signals: Point and Figure Videos, vol 3

Thomas Mullooly — Sat, 07 Jan 2012 20:48:39 +0000

If you have not seen the first video on the origins of Point and Figure Charts, I suggest you head over and watch the video, it is just a few minutes long.

This video covers how sell signals are created on a point and figure chart. Buy signals and sell signals on point and figure charts are the building blocks behind some of the greatest investment discoveries. It will be well worth your time to see exactly how sell signals are created on these charts. In this example of a sell signal, we used the current point and figure chart for Walter Energy (ticker symbol WLT). If you would like us to analyze an investment for you, feel free to contact us.

Have you seen the video on Point and Figure Buy Signals?
If not, check out that video, it’s just a few minutes long.

None of the names mentioned in this video are (or have been) specific recommendations of Mullooly Asset Management.

At one point in the video, I mentioned “there are two questions to ask when charting by hand.”

Unfortunately, I gave you ONE of the questions! The two questions to ask when charting were established by Charles Dow, who created point and figure (then called “figuring”) back in the 1800′s, are:
1. Whatever column the chart currently is in (a column of X’s going UP, or a column of O’s going down), did the chart move enough to put another X or O in that column?
(if yes: add the X or O and move to the next chart, this one is done for the day)

2. If you did not add an X or an O to this chart, did the chart (the price) REVERSE by more than three boxes? (if yes, create a new column in the new direction).

Buy Signals: Point and Figure Videos, vol 2

Thomas Mullooly — Sat, 07 Jan 2012 18:34:15 +0000

If you have not seen the video on the origins of Point and Figure Charts, I suggest you head over and watch the video, it is just a few minutes long.
This video covers how buy signals are created on a point and figure chart. Buy signals and sell signals on point and figure charts are the building blocks behind some of the greatest investment discoveries. It will be well worth your time to see exactly how buy signals are created on these charts.

This is the video on Point & Figure BUY Signals.
Once complete, you can check out the video we have put together on Point & Figure SELL signals.

I would also add the following:

Managing Money in 2012: What Investors Need

Thomas Mullooly — Tue, 03 Jan 2012 13:28:27 +0000

I have been helping individuals manage their money for over twenty five years.

Actually longer — if you count the days I spent with EF Hutton, before becoming a licensed stockbroker. I have seen everything, so I will not recount the glory days and the gory days here.
We all have our war stories.

Along the way, I learned how making investment decisions based on news can really kill your portfolio. I have employed point and figure analysis to help manage money for my clients since 1997. The beauty of these charts, if you have followed my work, is they cut through all the noise we hear (and read) on a daily basis. All you see on point and figure charts are columns of X’s going up, and columns of O’s going down. The patterns they form point us into the right choices.

No doubt, 2012 will give us some serious headlines. News that will make us want to vomit, and news that will make us scratch our heads.

And only then most folks TRY to figure out HOW this news will affect their investments. Yikes.

Over the weekend, I saw a very famous photo, courtesy of www.championsgallery.com.
It immediately struck me: this is what we ALL need to successfully navigate 2012.
Look at the photo, below:

Managing Money Needs Focus

I want you to look at something in this photo: even though Secretariat was THIRTY ONE LENGTHS in front of the competition…
Notice the blinders.
Notice the eyes.
Forward.

I’ll say it again: 2012 will bring some gut-wrenching news. The beauty of point and figure charting is these charts cut through all the noise we hear (and read) on a daily basis. Point and Figure keeps our blinders on, and keeps our eyes focused straight ahead. Not on some far-off dream like they preach at the big firms (“ya gotta be long term”). All you see on point and figure charts are columns of X’s going up, and columns of O’s going down. The patterns they form, point us toward the right choices.

Point and Figure charts have been pointing people in the right direction since they were created over one hundred years ago, in the 1880′s. These charts do NOT follow the news. They follow the ultimate indicator: prices. News often breaks well after people have placed their bets. In other words, charts will begin moving up (or down) well BEFORE the news is learned. By the time they are talking about it on TV, it is too late.

We remain focused on what is happening in the market, and what is happening with your investments in particular. We are keeping the blinders on, vowing NOT to be distracted.

Point and Figure Chart Videos: vol 1

Thomas Mullooly — Tue, 27 Dec 2011 18:44:48 +0000

Following the first point and figure video, this lesson in point and figure charting builds on a practice begun in the 1880′s by Charles Dow. I would also add the following:

Point and Figure Videos: start here

Thomas Mullooly — Mon, 26 Dec 2011 18:46:51 +0000

If you are looking to learn the BASICS of Point & Figure Charting, you should start with this short video here. The point and figure video is only a few minutes long and covers the basics of how point and figure charts began, what these charts can (and cannot) do. I would also add the following:

The next video to follow up is Point and Figure Charting Vol 1.