The Facts About FHA And VA Home Loans & Refinancing
Government-Backed Loans – Government loans refer to those loans that are guaranteed by one of two federal agencies. The two types of government loans are: Federal Housing Administration (FHA) loans, and Veterans Administration (VA) loans. The advantage of financing using FHA loans are that they are easier to qualify for and allow a borrower to finance more of the loan amount than non-government loans. Whereas with a Conforming loan a borrower may only be able to finance 80% of the loan amount, a FHA loan allows a borrower to finance 97% of the loan amount. FHA loans are recommended for those borrowers who are first-time buyers, have little money to put down, have a short credit history, or are having trouble qualifying for a Conforming loan. The two main advantages of financing using VA loans are that the VA allows borrowers to finance 100% of the loan amount, and that, the VA only requires proof of veteran status to qualify for the loan. The only drawback to government loans is that mortgage insurance is required at all loan to values (LTV), unlike Conventional and Jumbo loans where payment of mortgage insurance is determined by the amount of equity a borrower has in his home.VA Loan InformationVA loans are designed to provide assistance in purchasing a home for United States Veterans. A benefit of a VA loan is that you can purchase a home with no down payment. In addition, it is slightly easier to qualify for a Veterans Affair loan when compared to a regular loan.Many people for who actually qualify for a VA Loan are not aware of it.Who qualifies for a VA Loan?The following table shows what type of service (and for what duration is required in order to be eligible for a VA Loan:WartimeService during:WWII-09/16/40 to 07/25/47 Korean-06/27/50 to 01/31/55 Vietnam-08/05/64 to 05/07/75 Persian Gulf-8/2/90 to undetermined. You must have at least 90 days on active duty. Plus, you must have been discharged under other than dishonorable conditions. If you served less than the standard 90 days, you may be eligible if discharged for a service connected disability.PeacetimeService during periods:-07/26/47 to 06/26/50 & 02/01/55 to 08/04/64 & 05/08/75 to 08/01/90To qualify for a VA Loan, you must have served at least 181 days of continuous active duty. Plus, you must have been discharged under other than dishonorable conditions. If you served less than the standard 181 days, you may be eligible if discharged for a service connected disability.Other questions about VA Loans:1) Is the spouse or children of a veteran eligible?A spouse is eligible if the veteran died as a result of a service connected disability or died while on active duty. The children are not eligible. 2) Who makes the loans?Private lenders make the loans. However, the VA guarantee protects these lenders against loss. The guaranty will allow lenders to make loans without other requirements (for example, a down payment). 3) Can I get a VA loan if I have been foreclosed on in the past?Yes. The best way to find out how to qualify for this is to contact a mortgage specialist. They can give you advice on what you can do to ensure you can qualify for a loan.If you are considering a VA Loan, remember that there are still a variety of different mortgages. A mortgage broker can be a useful tool to help find the most appropriate mortgage for your purchase. If you plan on living in your home for a long period of time, you may want to consider the traditional fixed-rate 15- or 30-year loan. Another option is to choose an adjustable rate mortgage and consider refinancing again in a few years. Short-term mortgages include balloon mortgages and one-year adjustable rate mortgages. Simply click APPLY NOW [https://www.peakhomeloan.com/homepage.asp]and select ‘Home Refinance Loan’ or ‘Home Purchase Loan’ for Type of loan desired? for an answer.Is an FHA loan the best home loan for my situation?You have many decisions when choosing which type of loan is best for your situation. Is the FHA loan the best? What about a VA loan? When is a Conventional loan better than an FHA loan?A mortgage specialist can analyze your situation, and help you determine which loan is best for you. In many cases, there are other loans more beneficial than an FHA loan. Although in some situations, FHA loans are the best choice. Simply click APPLY NOW [https://www.peakhomeloan.com/homepage.asp]and select ‘Home Refinance Loan’ or ‘Home Purchase Loan’ for Type of loan desired? for an answer.About the FHA Loan program. With an FHA Loan, your home loan is insured by HUD. The FHA Program is designed to help give home buyers the opportunity to qualify for a mortgage, when they may not otherwise qualify. HUD assumes some of the risk on the loan. The requirements are not as high for an FHA loan as they are for Fannie Mae or Freddie Mac Loans. Plus, a borrower can purchase a home with only 3% down. In some cases a borrower can qualify for gift programs which allow them to purchase a home with no money out of pocket. There are a variety FHA loan programs that you can take advantage of. A mortgage specialist can give you advice as to which is best for you.If you already have an FHA loan , you may want to consider refinancing to take advantage of today’s low rates.Peak Home Loans is 100% FHA and VA friendly. If you require a government-backed loan, we will get one for you. Simply click APPLY NOW [https://www.peakhomeloan.com/homepage.asp]and select ‘Home Refinance Loan’ or ‘Home Purchase Loan’ for Type of loan desired? for an answer.Thank you, Peak Home Loans
Internet Marketing Promotion and Advertising, Build a Successful Online Career
Online marketing is encircled by facts.Online marketing is encircled by specifics that every single aspiring online entrepreneur will need to understand. Whilst you have noticed multiple accomplishment stories regarding people who succeeded and gained thousands to millions of dollars by using Digital marketing, they are also bounded by these information existing round the market.Effective Marketers have spent more than a few years to perfect their marketing approaches.Initially, exactly like the common business investment, you are not able to make a lot of money immediately on Website advertising. Effective Online marketers have put in many years to perfect their advertising tactics. They have started from learning the ‘ins and outs’ of the business chance, used existing plans, developed their personal marketing approaches, and check their brand-new tactics to their marketing business. Though Website marketing provides a profitable business chance for everybody, it requires a while prior to you could generate millions of dollars because of Online marketing. You will begin from some hundreds and soon after many months or years, you will be capable to gain thousands of dollars on Digital marketing income.Your competitors will usually be your competitors.There are situations wherein they uses you for their benefit. Obviously, we do not need to damage friendships here, yet it is a truth that you will need to be cautious of. You can easily work together with other Web marketers, but you have to make sure that you are not working with hungry predators or those who will never work with your generosity for their benefit of generating even more money.Obtaining full potential customers is the most difficult element of your Website marketing profession.Keep in mind that the achievement of your Website marketing business depends on the easiest way you will catch the attention of likely clients originating from the bulk of traffic available the Net. Even if you have a practical site with beneficial facilities just like info catalogs and shopping cart services, on one occasion you did not draw in substantial website traffic toward your site, your Online marketing business will be of total catastrophe.Amongst the above mentioned details, the previous one is what you require think of most. As earlier mentioned, the achievement of your Digital marketing career depends upon just how you build your customers base. Many of these clientele base will act as your bloodline that could keep your marketing career surviving. With out them, the Website marketing industry will remain to be a dream for folk who wish to make more money.You need to study the whereabouts of Online marketing promotion and advertising.If you want to catch the attention of probable customers and convert them in to faithful product evangelizers, you will need to study the whereabouts of Digital marketing promotion and advertising. Promoting and advertising your Online marketing is vital to your web page and to your career too. Throughout these plans, you will probably be able to entice encouraged persons who are ready to buy what ever you are providing. Taking time to develop some hype regarding your internet site will keep them returning and produce an interesting impression to those persons who haven’t got a try of your products or services.Promotion and advertising will certainly help you secure the particular traffic.Promotion and advertising will assist you to acquire the targeted traffic that you desire in the early run of your Digital marketing career. Actually, the expense of promoting and advertising your internet site on the Net is not as costly as advertising your products and services throughout standard ways including billboards and classified ads of diverse newspapers. Even if you do not have that significant marketing budget, you can still publicize and advertise your site using different alternative and low-cost promotional solutions.Features of a great Website marketing promotion and advertising.Have a look on the following items and ensure that your promotion and advertising methods have these features:• It have to have a long-lasting influence.Do not only employ an advertising medium once and dispose of it. Discover methods on the best way you will be able to use it for different times. You might use a comparable strategy on each advertising tool and generate client understanding with the marketing instrument and also the product or service you are marketing. Think about some effective promotions and advertisement which include for Energizer batteries and others.• An successful Online marketing promotion and advertising have variants.Do not merely stay with a solo ad format. Switch the color, text, and the message of your advertisements but do not adjust its characteristic character. The modifications have to be carried out in the consideration of a lengthy lasting ad result. Do not hesitate to check out fresh choices. If you believe these innovative suggestions will help you enhance and advertise your Digital marketing business efficiently, then do it. The even more you expand your promotion and advertising attempts, you will be able to be successful in your Website marketing business career.
Financing Films – Use Your Tax Credits For Film Cash and Working Capital
Despite several major positives on the 2010 horizon financing films, the job of getting film cash and working capital is still a challenge for Canadian productions. Utilizing your tax credits in a creative and timely fashion is one method of raising capital in three of the main entertainment segments in Canada; they include film, television and digital animation credits.Owners of productions in these segments can be forgiven for feeling lost or having difficulty in moving a production forward.The challenge is even keener when as an owner of creator of a production you don’t necessarily have the ability to finalize distribution or pre – sales in today’s complex global environment. More than ever it is necessary to align yourself with a trusted, credible and experienced advisor in this unique business and financing area of the entertainment industry.Let’s focus on how you can in a straightforward yet creative way ensure that you are maximizing capital, and cash flow via the utilization of the current generous tax credits available in Canada. When you think of the various sources of financing for your production you should always consider tax credits, and the financing of them, as a key source of film financing and film cash. And as we noted, this applies to both televison productions as well as digital animation, which is fast coming up from the rear as a major entertainment and business segment in the industry.Tax credits should be an integral part of your overall financing strategy, and we clearly need to emphasize the need for an overall ‘strategy ‘in order to get your project completed. Identifying your tax credit financing partner will assist you in raising valuable capital and eliminating potential financing gaps in your production.A reputable tax credit financing advisor will help you navigate the maze of financial organizations that participate in financing of your tax credits – these include independent finance firms, private funds, and in some cases organizations related to accountants and lawyers in the industry.Many Canadian production owners do not realize the financing of your tax credits can be done at two different times in the life cycle of your project. Naturally once your credit has been filed and certified it is financeable at that time – generally we can say that you can received from 60-80% of the tax credit value in immediate cash and working capital, allowing you to recover a significant portion of your expenses. If we use 40% as a broad guideline (it varies between type of tax credit and type of production) you can see the cash flow and working capital power that immediate capital brings to your production.However, did you know that in many cases you can receive a type of pre- financing for your tax credit? This allows you to generate often needed working capital immediately after it has been determined that you have an eligible project, as well that its ability to be properly document re budgeted expenses and ‘ points ‘ required to be properly certified.Your ability to present a proper financing plan, demonstrate a realistic budget, and ensure that you have a team in place to document all that can generate a major part of your initial financing. Pre-financing of such a tax credit could often achieve immediate financing of at least 40% – if not more, in upfront working capital. Those funds, in connection with your other resources are often what can take the financing of your project to the goal line.Talk to an advisor in this area, ensure you understand the power and benefits of tax credit financing, and the fact that these claims can be financed prior to and during your project! That’s a winning film / TV, and animation financing strategy!
Custom Home Entertaining in Style and Comfort
Your home entertainment centers and theaters probably got a much-needed injection of excitement following the holidays. Did you score a new curved or 3 – D television in December? How about a new Blu – Ray box collection of your favorite series? Was a new stereo system under the tree this year? Improving your home entertainment options is a go – to plan for many during the holidays, but now you’re stuck in a conundrum. You have all the fixings for a great home entertainment system, but your entertainment center is seriously left wanting.It’s kind of like getting an original Matisse but without a frame or a wall to mount it on. Before you invite everyone over for a lazy January weekend of watching movies or binging on Netflix, make sure your home is hospitable. A customized entertainment center, hutch for the theater room or cabinetry to house those box sets is a must. It ties everything together and makes the difference between a “room where all your movie accoutrements are” and a bona fide entertainment center.Now That’s Framing!Martin Scorsese isn’t the only one who knows a thing or two about framing – so do you. Your new television deserves a center worthy of its glory. However, it’s going to be tough to find a quality entertainment center that’s perfectly designed for all your needs. Maybe you have a freakishly large collection of video game consoles or want very specific shelving dimensions to house all of your DVDs. The only way to get exactly what you want (and to ensure it looks great in the process) is to customize.As an added bonus, you can hand pick the type of wood, paint or stain that complements the rest of the room. Add in a matching cabinet or series of coffee tables to tie everything together. Want a personalized gaming table perfect for poker in between marathons sessions of Scandal? Anything’s possible when the work is done to your specifications.An Evening at the TheaterWhy spend $12 a pop for a movie ticket, and then get gouged by popcorn and soda prices when you can have it all in the comfort of your home? A genuine theater system complete with one of a kind seating pays for itself when you consider the cost of the theater these days. As an added bonus, you can kit out the room with a kitchen suite where all your favorite treats are an arm’s reach away. It’s what a night at the theater is supposed to be.January is ideal for entertaining at home, especially now that you have all of those holiday gifts to enjoy. Many people are surprised by how affordable home entertainment centers can be – and how quickly they can be built and installed. In fact, you can create a veritable “love nest” of a theater room in time for Valentine’s Day. Order a few classic DVDs like Casablanca or Roman Holiday and you’ll have all the fixings you need for the most romantic year ever.Care for a bonus? Add in a custom fireplace and mantel to the entertainment center for the ultimate date night hotspot.
Promote Your Business Online With Techniques That Will Boost Your Sales and Profits
If you own or manage a small business, what do YOU do to promote your business online with a focus on using the internet to generate sales or sales enquiries?When I ask this question to business owners and managers, the most common answer I get is “we have a website”. Perhaps your answer to the question is similar.So how much does your website contribute to your sales? What else do you do to promote your business online with success?In the past, simply having a website was the perceived pinnacle of modern business marketing. Not anymore. The internet offers a massive world of opportunity for your business, and if you aren’t maximizing the opportunity then you are losing a fortune in lost profits. But YOU have to MAKE it happen – if you develop the know-how then you can promote your business online with techniques that will skyrocket your business opportunities.Here are four very practical ways to promote your business online with techniques that will have a hugely positive impact on your business sales and profits.ARTICLE MARKETING is a great way to establish your business credibility on the internet, and it’s a FREE way to promote your business online with great potential to make lots of profit.How does article marketing it work? Well you already have expert knowledge in your own area of business, and people use the internet to search for information about things they need or want. So you write an informative article about something related to your business, and when someone reads your article because it relates to their problem or need then you direct them to your website to “find out more”. Online article marketing can be massively successful.The second way to promote your business online with effectiveness is SEARCH ENGINE OPTIMIZATION(SEO), which is another way to get free visitors to your website.So what is SEO? It is the process of getting your website ready to be listed well in search engines. Several factors are involved in making a site search engine friendly including the design and content of the site, Meta tags and Link Popularity.SEO has been around since the inception of search engines, and can be an effective way to promote your business online with good results for those who succeed in getting listed high in the search engines.The third way to promote your business online with great potential returns is PAY PER CLICK Advertising (PPC). Pay per click enables you to reach people instantly who have a direct interest in what you are offering, in a way that was never possible before.Imagine advertising in a magazine where you only pay for the people who actually read your advert. Well that’s how PPC works, you only pay for those people who actually read your advertisement, and you are able to measure exactly the effectiveness of your PPC advertising. So if you pay $10 per day in PPC advertising, and you earn $20 per day profits, then that sounds like a good business proposition.PPC advertising has the potential to generate huge profits for your business.The fourth very practical way is to promote your business online with EMAIL MARKETING. I am astonished at how many businesses neglect this easiest way to keep in touch with customers and potential customers on a regular basis.I am NOT talking about spam emails, you need to get people’s permission and build an opt-in list. There are different ways to do this, and it enables you to send valuable information, promotions, reviews etc – it is such an easy way to promote your business online with email opt-in lists.If you are running your own small business then you have my utmost admiration for having the courage to be an entrepreneur. I fully understand the challenge you face in balancing your time, resources and money when it comes to marketing your business.This article gives some ideas based on what works in practice – as opposed to theory. To try and implement all four techniques at once is not what I recommend, better to learn and perfect one technique at a time. That is likely to be much more achievable for a small business, and much more successful.
Personal Loan Insurance – Should You Consider?
I have had an experienced cash crisis recently. I was thinking to borrow some money then from a friend or relative of mine, but I dropped that idea. I seldom request anybody to lend me money or any thing like this. Cash withdrawal from credit card could have been a better option instead. However, I instantly dropped that idea too as borrowing charges from credit cards were high enough because of high rate of interest (normally up to 3% a month) after expiration of a fixed period, say 50 days. Finally I’ve decided to go for a personal loan because it was fast in approval and hassle free.A personal loan is a great option to have your funds for consolidating your debt and you can take personal loan to further your higher education, repairing your car, or even taking up a vacation.You may know that personal loans, just like credit cards, can be secured or unsecured. Secured loans are often much riskier because you may have to ensure the repayment of the loan by providing the lender with collateral security. If anyhow you fail to meet that repayment, the lender will legally repossess your property, vehicle, or what ever asset you used to secure the loan.But don’t be worried thinking about the failure. Personal loan is still a better option and offer plenty of opportunity for individuals to improve their overall financial condition. But you should develop a habit of good money management skills. However, certain inevitable incidents in life can changed everything and you may not have control over those things such as unexpected death of the lender, loss of employment, or becoming a disable person.Skipping the first issue of unexpected death of creditor, rest of the things can affect our ability to repay the personal loan. If that loan is of a secured type, you may lose your asset as well, being a collateral security.Now to protect yourself against all those probabilities, you should consider purchasing a personal loan insurance. Being an insurance guy,I would suggest you to actively consider the insurance option.I personally feel that personal loan insurance is the best protection you ever have for repayment of the loan and ensures you to have a peace of mind during the repayment term if opting for a secured one. The cost of such insurance, however varies and is generally determined by the outstanding balance of your loan amount. The type of personal loan insurance coverage will also affect the premium too.There are three types of personal loan insurance coverage to choose. For Americans, the specific dollar amount of coverage will depend on the laws in your State and the dollar amount of your loan. But I always suggest you to discuss the matter regarding your personal loan insurance with your lender.Personal loan death insurance will pay up to a certain dollar amount in the event of death of one of the individuals on the loan. In that case, the nominated person on the policy will be paid in full up to the maximum dollar amount or assured amount. Personal loans generally have a maximum loan amount of $15,000 in the USA.However it is not uncommon for individuals to take out more than that.Disability Plus personal loan coverage is such type of coverage that most often be purchased for personal loan protection. It will pay you the monthly personal loan repayments(EMI) up to a certain dollar amount. Additionally you will receive a cash payment for a percentage of your loan amount each month to help you with the cost of living expenses.Involuntary Unemployment Coverage Insurance for personal loans is very popular. This type of insurance will pay you up to a certain dollar amount per month in case your are being laid off.You may be aware of the fact that personal loan is a great financial tool when you use it properly. Personal loan insurance is a very reliable option to help you ensure to continue your repayments regardless of medical issues, unemployment, or death. And this type of insurance is especially important for individuals with a secured personal loan. Not having a personal loan insurance will create a kind of situation where, not only your credit score will be negatively impacted, you would be end up losing your valuable collateral assets that are tied to your personal loan.You’ll be happy to know that personal loan insurance is very affordable and can often be purchased through the lender. It is important that you educate yourself properly and inquire about it while you’re looking for such personal loans. Most lenders are readily available and more than happy to discuss about this option with you as it further assures them that they will receive the refund.
Are No Co-Signer Auto Loans Possible For Everyone?
When you can’t get an auto loan easily and have been troubled by rejection, co-signer becomes your answer. A co-signer is a back-up for somebody who’s doesn’t qualify for an auto loan. From the car loan borrower’s perspective, co-signing is a great way of securing auto financing options. Co-signer vouches for you when the lender has doubts about you.Getting a Co-Signer Is Finding a Needle in the Hay-StackA co-signer is great for someone with credit problems like bad credit scores, no credit history, etc. As a co-signer will infuse trust in the lender, your weakness will be over-shadowed. But, is finding a co-signer easy? The answer is a big NO. From the perspective of a co-signer, you are a risky proposition. If you don’t make the payments, his credit score will have to take the dent. Also, his assets would be in danger. In this economy, when everyone’s credit score has taken a hit, no one wants to assume the risk of someone else. Also, for a co-signer, you need someone with a decent credit score and a good debt-to-income ratio. These criteria make the search all the more difficult.No Co-Signer, No Car Loans?Think all these problems hampering your car dream? Well, auto loans without co-signer are your answer. Most car buyers consider no co-signer car loans to be a privilege and reserved for the excellent credit score. But, the reality is not so. You can get a no co-signer loan even when you are surrounded by credit crises. For understanding the situations in which you can get an auto loan without co-signer, you must understand the loan approval criteria.Most auto loan borrowers commit the fatal mistake of considering credit score as the single most important factor for getting no co-signer loans. But, there are many other factors which affect your approval chances:Credit Score – Higher score improves approval chances.
Credit Profile – A longer term gives lender a good chance to ascertain the risk.
Term of Loan – A shorter term means less risk and thus, lower interest rates.
Loan to Value Ratio – Lesser the ratio, better the chances of approval.
Down Payment – 10%- 20% will work.
Employment Term – You need to be working for at least six months.
Income – A decent income is a necessity. $1500 per month is a must for most lenders.
Time at Residence – Half year criteria applies here as well.
Age of Vehicle – If you are buying a used car, it shouldn’t be older than six years.
Miles on Vehicle – Most lenders won’t finance a car which is older than 80,000 miles.Can Bad Credit Shatter My Car Dream?All these requirements decide your loan approval, not one. So, when you have a bad credit score and want to avail car loans without co-signer, other factors should be strong. If you have good income or have a stable job, approval would be easy for you. If you decide to buy a less expensive car, approval would not be difficult.When You Have a No Credit HistoryYou have no credit score when you have never availed credit or are new on the credit scene. This makes your credit profile non-existent. When you have a zero credit history, lenders are not able to ascertain the risk associated with you. You must give them a reason to trust you. You can do so by increasing your down payment amount, going for a cheap car, opting for a shorter loan term, etc. If you improve on other approval criteria, getting a no credit no co-signer auto loan will be possible for you.Student Auto Loans without Co-SignerWhen you are a student, a car is a requirement and searching for a co-signer is quite a trouble. For getting a car loan with no co-signer, you must have a job that pays you well. Also, a down payment would help you. Get better on other factors so that your loan application will be accepted even if you have a no credit score.First Time Car Buyer’s Tryst with No Co-Signer Vehicle LoansWhen you are buying a car for the first time, you can avail a car loan without co-signer. All you need to ensure is spice up other requirements. If you have a good paying job and have been regularly paying your utility bills, then the lender can establish you as someone who is regular in paying-off liabilities. This will increase your chances of getting no co-signer auto financing.A no co-signer auto loan is great for almost all types of credit problems and situations. Getting it is easy when you know how to tackle the approval criteria.So, next time you think of auto loans without co-signer, highlight your strong points to the lenders.Remember that car loans are easy when you have the will to achieve it.
S&P 500 Rallies As U.S. Dollar Pulls Back Towards Weekly Lows
Key Insights
The strong pullback in the U.S. dollar provided significant support to stocks.
Treasury yields have pulled back after touching new highs, which served as an additional positive catalyst for S&P 500.
A move above 3730 will push S&P 500 towards the resistance level at 3760.
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Pfizer Rallies After Announcing A Huge Price Hike For Its COVID-19 Vaccines
S&P 500 is currently trying to settle above 3730 as traders’ appetite for risk is growing. The U.S. dollar has recently gained strong downside momentum as the BoJ intervened to stop the rally in USD/JPY. Weaker U.S. dollar is bullish for stocks as it increases profits of multinational companies and makes U.S. equities cheaper for foreign investors.
The leading oil services company Schlumberger is up by 9% after beating analyst estimates on both earnings and revenue. Schlumberger’s peers Baker Hughes and Halliburton have also enjoyed strong support today.
Vaccine makers Pfizer and Moderna gained strong upside momentum after Pfizer announced that it will raise the price of its coronavirus vaccine to $110 – $130 per shot.
Biggest losers today include Verizon and Twitter. Verizon is down by 5% despite beating analyst estimates on both earnings and revenue. Subscriber numbers missed estimates, and traders pushed the stock to multi-year lows.
Twitter stock moved towards the $50 level as the U.S. may conduct a security review of Musk’s purchase of the company.
From a big picture point of view, today’s rebound is broad, and most market segments are moving higher. Treasury yields have started to move lower after testing new highs, providing additional support to S&P 500. It looks that some traders are ready to bet that Fed will be less hawkish than previously expected.
S&P 500 Tests Resistance At 3730
S&P 500 has recently managed to get above the 20 EMA and is trying to settle above the resistance at 3730. RSI is in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.
If S&P 500 manages to settle above 3730, it will head towards the next resistance level at 3760. A successful test of this level will push S&P 500 towards the next resistance at October highs at 3805. The 50 EMA is located in the nearby, so S&P 500 will likely face strong resistance above the 3800 level.
On the support side, the previous resistance at 3700 will likely serve as the first support level for S&P 500. In case S&P 500 declines below this level, it will move towards the next support level at 3675. A move below 3675 will push S&P 500 towards the support at 3640.
SPDN: An Inexpensive Way To Profit When The S&P 500 Falls
Summary
SPDN is not the largest or oldest way to short the S&P 500, but it’s a solid choice.
This ETF uses a variety of financial instruments to target a return opposite that of the S&P 500 Index.
SPDN’s 0.49% Expense Ratio is nearly half that of the larger, longer-tenured -1x Inverse S&P 500 ETF.
Details aside, the potential continuation of the equity bear market makes single-inverse ETFs an investment segment investor should be familiar with.
We rate SPDN a Strong Buy because we believe the risks of a continued bear market greatly outweigh the possibility of a quick return to a bull market.
Put a gear stick into R position, (Reverse).
Birdlkportfolio
By Rob Isbitts
Summary
The S&P 500 is in a bear market, and we don’t see a quick-fix. Many investors assume the only way to navigate a potentially long-term bear market is to hide in cash, day-trade or “just hang in there” while the bear takes their retirement nest egg.
The Direxion Daily S&P 500® Bear 1X ETF (NYSEARCA:SPDN) is one of a class of single-inverse ETFs that allow investors to profit from down moves in the stock market.
SPDN is an unleveraged, liquid, low-cost way to either try to hedge an equity portfolio, profit from a decline in the S&P 500, or both. We rate it a Strong Buy, given our concern about the intermediate-term outlook for the global equity market.
Strategy
SPDN keeps it simple. If the S&P 500 goes up by X%, it should go down by X%. The opposite is also expected.
Proprietary ETF Grades
Offense/Defense: Defense
Segment: Inverse Equity
Sub-Segment: Inverse S&P 500
Correlation (vs. S&P 500): Very High (inverse)
Expected Volatility (vs. S&P 500): Similar (but opposite)
Holding Analysis
SPDN does not rely on shorting individual stocks in the S&P 500. Instead, the managers typically use a combination of futures, swaps and other derivative instruments to create a portfolio that consistently aims to deliver the opposite of what the S&P 500 does.
Strengths
SPDN is a fairly “no-frills” way to do what many investors probably wished they could do during the first 9 months of 2022 and in past bear markets: find something that goes up when the “market” goes down. After all, bonds are not the answer they used to be, commodities like gold have, shall we say, lost their luster. And moving to cash creates the issue of making two correct timing decisions, when to get in and when to get out. SPDN and its single-inverse ETF brethren offer a liquid tool to use in a variety of ways, depending on what a particular investor wants to achieve.
Weaknesses
The weakness of any inverse ETF is that it does the opposite of what the market does, when the market goes up. So, even in bear markets when the broader market trend is down, sharp bear market rallies (or any rallies for that matter) in the S&P 500 will cause SPDN to drop as much as the market goes up.
Opportunities
While inverse ETFs have a reputation in some circles as nothing more than day-trading vehicles, our own experience with them is, pardon the pun, exactly the opposite! We encourage investors to try to better-understand single inverse ETFs like SPDN. While traders tend to gravitate to leveraged inverse ETFs (which actually are day-trading tools), we believe that in an extended bear market, SPDN and its ilk could be a game-saver for many portfolios.
Threats
SPDN and most other single inverse ETFs are vulnerable to a sustained rise in the price of the index it aims to deliver the inverse of. But that threat of loss in a rising market means that when an investor considers SPDN, they should also have a game plan for how and when they will deploy this unique portfolio weapon.
Proprietary Technical Ratings
Short-Term Rating (next 3 months): Strong Buy
Long-Term Rating (next 12 months): Buy
Conclusions
ETF Quality Opinion
SPDN does what it aims to do, and has done so for over 6 years now. For a while, it was largely-ignored, given the existence of a similar ETF that has been around much longer. But the more tenured SPDN has become, the more attractive it looks as an alternative.
ETF Investment Opinion
SPDN is rated Strong Buy because the S&P 500 continues to look as vulnerable to further decline. And, while the market bottomed in mid-June, rallied, then waffled since that time, our proprietary macro market indicators all point to much greater risk of a major decline from this level than a fast return to bull market glory. Thus, SPDN is at best a way to exploit and attack the bear, and at worst a hedge on an otherwise equity-laden portfolio.
S&P 500 Biotech Giant Vertex Leads 5 Stocks Showing Strength
Your stocks to watch for the week ahead are Cheniere Energy (LNG), S&P 500 biotech giant Vertex Pharmaceuticals (VRTX), Cardinal Health (CAH), Steel Dynamics (STLD) and Genuine Parts (GPC).
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While the market remains in correction, with analysts and investors wary of an economic downturn, these five stocks are worth adding to watchlists. S&P 500 medical giants Vertex and Cardinal Health have been holding up, as health-care related plays tend to do well in down markets.
Steel Dynamics and Genuine Parts are both coming off strong earnings as both the steel and auto parts industries report optimistic outlooks. Meanwhile, Cheniere Energy saw sales boom in the second quarter as demand in Europe for natural gas continues to grow.
Major indexes have been making rally attempts with the Dow Jones and S&P 500 testing weekly support on Friday. With market uncertainty, investors should be ready for follow-through day breakouts and keep an eye on these stocks.
Cheniere Energy, Cardinal Health and VRTX stock are all on IBD Leaderboard.
Cheniere Energy Stock
LNG shares rose 1.1% to 175.79 during Friday’s market trading. On the week, the stock advanced 3.1%, not from highs, bouncing from its 21-day and 10-week lines earlier in the week.
Cheniere Energy has been consolidating since mid-September, but needs another week to forge a proper base, with a potential 182.72 buy point formed on Aug. 10.
Houston-based Cheniere Energy was IBD Stock Of The Day on Thursday, as the largest U.S. producer of liquefied natural gas eyes strong demand in Europe.
Even though natural gas prices are plunging in the U.S. and Europe, investors still see strong LNG demand for Cheniere and others.
The U.K. government confirmed last week that it is in talks for an LNG purchase agreement with a number of companies, including Cheniere.
In the first half of 2021, less than 40% of Cheniere’s cargoes of LNG landed in Europe. That jumped to more than 70% through this year’s second quarter, even as the company ramped up new export capacity. The urgency of Europe’s natural gas shortage only intensified last month. That is when an explosion disabled the Nord Stream 1 pipeline from Russia that had once supplied 40% of the European Union’s natural gas.
In Q2, sales increased 165% to $8 billion and LNG earned $2.90 per share, up from a net loss of $1.30 per share in Q2 2021. The company will report Q3 earnings Nov. 3, with investors seeing booming profits for the next few quarters.
Cheniere Energy has a Composite Rating of 84. It has a 98 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for share price movement with a 1 to 99 score. The rating shows how a stock’s performance over the last 52 weeks holds up against all the other stocks in IBD’s database. The EPS rating is 41.
Vertex Stock
VRTX stock jumped 3.4% to 300 on Friday, rebounding from a test of its 50-day moving average. Shares climbed 2.2% for the week. Vertex stock has formed a tight flat base with an official buy point of 306.05, according to MarketSmith analysis.
The stock has remained consistent over recent weeks, while the relative strength line has trended higher. The RS line tracks a stock’s performance vs. the S&P 500 index.
Vertex Q3 earnings are on due Oct. 27. Analysts see EPS edging up 1% to $3.61 per share with sales increasing 16% to $2.2 billion, according to FactSet.
The Boston-based global biotech company dominates the cystic fibrosis treatment market. Vertex also has other products in late-stage clinical development that target sickle cell disease, Type 1 diabetes and certain genetically caused kidney diseases. That includes a gene-editing partnership with Crispr Therapeutics (CRSP).
In early August, Vertex reported better-than-expected second-quarter results and raised full-year sales targets.
S&P 500 stock Vertex ranks second in the Medical-Biomed/Biotech industry group. VRTX has a 99 Composite Rating. Its Relative Strength Rating is 94 and its EPS Rating is 99.
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Cardinal Health Stock
CAH stock advanced 3.2% to 73.03 Friday, clearing a 71.22 buy point from a shallow cup-with-handle base and hitting a record high. But volume was light on the breakout. CAH stock leapt 7.3% for the week.
Cardinal Health stock’s relative strength line has also been trending up for months.
The cup-with-handle base is part of a base-on-base pattern, forming just above a cup base cleared on Aug. 11.
Cardinal Health, based in Dublin, Ohio, offers a wide assortment of health care services and medical supplies to hospitals, labs, pharmacies and long-term care facilities. The company reports that it serves around 90% of hospitals and 60,000 pharmacies in the U.S.
S&P 500 stock Cardinal Health will report Q1 2023 earnings on Nov. 4. Analysts forecast earnings falling 26% to 96 cents per share. Sales are expected to increase 10% to $48.3 billion, according to FactSet.
Cardinal Health stock ranks first in the Medical-Wholesale Drug/Supplies industry group, ahead of McKesson (MCK), which is also showing positive action. CAH stock has a 94 Composite Rating out of 99. It has a 97 Relative Strength Rating and an EPS rating of 73.
Steel Dynamics Stock
STLD shares shot up 8.5% to 92.92 on Friday and soared 19% on the week, coming off a Steel Dynamics earnings beat Wednesday night.
Shares blasted above an 88.72 consolidation buy point Friday after clearing a trendline Thursday. STLD stock is 17% above its 50-day line, definitely extended from that key average.
Steel Dynamics’ latest consolidation could be seen as part of a larger base going back six months.
Steel Dynamics topped Q3 earnings views with EPS rising 10% to $5.46 while revenue grew 11% to $5.65 billion. The steel producer’s outlook is optimistic despite weaker flat rolled steel pricing. STLD reports its order activity and backlogs remain solid.
The Fort Wayne, Indiana-based company is among the largest producers of carbon steel products in the U.S. It engages in metal recycling operations along with steel fabrication and produces myriad steel products.
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STLD stock ranks first in the Steel-Producers industry group. STLD stock has a 96 Composite Rating out of 99. It has a 90 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for share-price movement that tops at 99. The rating shows how a stock’s performance over the last 52 weeks holds up against all the other stocks in IBD’s database. The EPS rating is 98.
Genuine Parts Stock
GPC stock gained 2.8% to 162.35 Friday after the company topped earnings views with its Q3 results on Thursday. For the week GPC advanced 5.1% as the stock held its 50-day line and is in a flat base.
GPC has an official 165.09 flat-base buy point after a three-week rally, according to MarketSmith analysis.
The relative strength line for Genuine Parts stock has rallied sharply to highs over the past several months.
On Thursday, the Atlanta-based auto parts company raised its full-year guidance on growth across its automotive and industrial sales.
Genuine Parts earnings per share advanced 19% to $2.23 and revenue grew 18% to $5.675 billion in Q3. GPC’s full-year guidance is now calling for EPS of $8.05-$8.15, up from $7.80-$7.95. The company now forecasts revenue growth of 15%-16%, up from the earlier 12%-14%.
During the Covid pandemic, supply chain constraints caused a major upheaval in the auto industry, sending prices for new and used cars to record levels. This has made consumers more likely to hang on to their existing vehicles for longer, driving mileage higher and boosting demand for auto replacement parts.
Fellow auto stocks O’Reilly Auto Parts (ORLY) and AutoZone (AZO) have also rallied near buy points amid the struggling market. O’Reilly reports on Oct. 26.
IBD ranks Genuine Parts first in the Retail/Wholesale-Auto Parts industry group. GPC stock has a 96 Composite Rating. Its Relative Strength Rating is 94 and it has an EPS Rating of 89.