A look at IHG’s new EVEN wellness hotels

ATLANTA — Don't expect to find a front desk when you walk into an EVEN Hotel, a new wellness-oriented brand set to debut next year.

Guests will instead be directed to a "Well-ness Island," where an employee will hand them either cool or heated hand towels, depending on the season. They'll also get a cup of water with a slice of lemon or lime to sip. When checking in, they can forgo the traditional room key card for a bracelet that serves the same function, which they can wear while running.

"Having a drink and being welcomed in a refreshing way is very important," says Adam Glickman, head of InterContinental Hotels Group's new EVEN Hotels brand.

Near the island, somewhere off the lobby, guests will see a 1,200-square-foot or more athletic studio covered in frosted glass so they can run and lift weights without worrying that they're putting on a show. It will be divided into three zones for cardio, strength training and mat exercises.

Many major hotel chains in recent years have launched programs to appeal to the increasingly health-conscious traveler. But EVEN Hotels stands out as a midpriced chain that is entirely focused on wellness and fitness. IHG's research shows that there are 17 million travelers who want their hotels to help them accommodate their healthy lifestyle needs, Glickman says.

"Wellness isn't a one-size-fits-all," Glickman says. "It's not just about building a super gym or a small spa. Wellness is about balance."

At IHG's Americas headquarters, all the features that EVEN hotels will offer guests to sleep, relax, eat well and exercise are on display in a 3,000-square foot "Brand Experience Space." The space is a glimpse at what guests can expect when they check into the first two EVEN Hotels, scheduled to open next spring in Rockville, Md., and Norwalk, Conn. Three more will debut in New York City in mid-2015.

An area designed to look like a lobby features various types of seating. There's a communal table with electrical outlets and Internet p! orts. For those who want to sink into cushioned chairs, there's a spot that feels more like a lounge.

Guests will be able to grab food to go or have a sit-down meal in any of the public spaces. Menus will feature healthy options in tapas-like portions that can be ordered through an iPad or tablet: think a kale salad with hazelnuts, dates and radishes in a light vinaigrette. Or grilled chicken over quinoa. Recipes were developed over six months in a test kitchen nearby.

The name EVEN was chosen to reflect the balanced lifestyle that guests crave, which means that they should be given the option of ordering dessert or having a cocktail, Glickman says. Desserts will come in small portions, and cocktails will have fresh ingredients.

The two model guestrooms that are available for preview have training zones with yoga mats, balance balls and other equipment. To accommodate the business traveler who doesn't want to work at a traditional desk, there's a clutter-free rolling desk and ergonomic chairs.

Mollie Tregembo, director of marketing and communications of EVEN Hotels, says many customers indicated that they prefer working standing up. Next to the TV, is a pull-down desk with multimedia ports. The hotels will have free high-speed Wi-Fi.

The beds have partially padded headboards and lights on each side for those who like to work in bed. And for those who simply want to sleep, there are blackout shades. "It never gets dark enough in a hotel room," Tregembo says.

Bathrooms have ample lighting, cubby storage areas and spa-like showers.

Little messages — what Glickman calls whispers — were painted on walls throughout the rooms to motivate guests. Above the in-room training zone, a health-conscious traveler can look up and read this: "Pull up or sit up but never give up."

Reducing Risk With Options

Many people mistakenly believe that options are always riskier investments than stocks. This stems from the fact that most investors do not fully understand the concept of leverage. However, if used properly, options can have less risk than an equivalent position in a stock. Read on to learn how to calculate the potential risk of stock and options positions and discover how options - and the power of leverage - can work in your favor.

What Is Leverage?
Leverage has two basic definitions applicable to option trading. The first defines leverage as the use of the same amount of money to capture a larger position. This is the definition that gets investors into trouble. A dollar amount invested in a stock and the same dollar amount invested in an option do not equate to the same risk.
The second definition characterizes leverage as maintaining the same sized position, but spending less money doing so. This is the definition of leverage that a consistently successful trader incorporates into his or her frame of reference.

Interpreting the Numbers
Consider the following example. If you're going to invest $10,000 in a $50 stock, you might be tempted to think you would be better off investing that $10,000 in $10 options instead. After all, investing $10,000 in a $10 option would allow you to buy 10 contracts (one contract is worth one hundred shares of stock) and control 1,000 shares. Meanwhile, $10,000 in a $50 stock would only get you 200 shares.

In the example above, the option trade has much more risk compared to the stock trade. With the stock trade, your entire investment can be lost, but only with an improbable movement in the stock. In order to lose your entire investment, the $50 stock would have to trade down to $0.

In the option trade, however, you stand to lose your entire investment if the stock simply trades down to the long option's strike price. For example, if the option strike price is $40 (an in-the-money option), the stock will only need to trade below $40 by expiration for your entire investment to be lost. That represents only a 20% downward move.

Clearly, there is a large risk disparity between owning the same dollar amount of stocks to options. This risk disparity exists because the proper definition of leverage was applied incorrectly to the situation. To correct this problem, let's go over two alternative ways to balance risk disparity while keeping the positions equally profitable.

Conventional Risk Calculation
The first method you can use to balance risk disparity is the standard, tried and true way. Let's go back to our stock trade to examine how this works:

If you were going to invest $10,000 in a $50 stock, you would receive 200 shares. Instead of purchasing the 200 shares, you could also buy two call option contracts. By purchasing the options, you can spend less money but still control the same number of shares. The number of options is determined by the number of shares that could have been bought with your investment capital.

For example, let's suppose that you decide to buy 1,000 shares of XYZ at $41.75 per share for a cost of $41,750. However, instead of purchasing the stock at $41.75, you could also buy 10 call option contracts whose strike price is $30 (in-the-money) for $1,630 per contract. The option purchase will provide a total capital outlay of $16,300 for the 10 calls. This represents a total savings of $25,450, or about a 60% of what you could have invested in XYZ stock.

Being Opportunistic
This $25,450 savings can be used in several ways. First, it can be used to take advantage of other opportunities, providing you with greater diversification. Another interesting concept is that this extra savings can simply sit in your trading account and earn money market rates. The collection of the interest from the savings can create what is known as a synthetic dividend. Suppose during the course of the life of the option, the $25,450 savings will gain 3% interest annually in a money market account. That represents $763 in interest for the year, equivalent to about $63 a month or about $190 per quarter.

You are now, in a sense, collecting a dividend on a stock that does not pay one while still seeing a very similar performance from your option position in relation to the stock's movement. Best of all, this can all be accomplished using less than one-third of the funds you would have used had you purchased the stock.

Alternative Risk Calculation
The other alternative for balancing cost and size disparity is based on risk.

As you've learned, buying $10,000 in stock is not the same as buying $10,000 in options in terms of overall risk. In fact, the money invested in the options was at a much greater risk due to the greatly increased potential of loss. In order to level the playing field, therefore, you must equalize the risk and determine how to have a risk-equivalent option position in relation to the stock position.

Positioning your Stock
Let's start with your stock position: buying 1,000 shares of a $41.75 stock for a total investment of $41,750. Being the risk-conscious investor that you are, let's suppose you also enter a stop-loss order, a prudent strategy that is advised by most market experts.

You set your stop order at a price that will limit your loss to 20% of your investment, which is $8,350 of your total investment. Assuming this is the amount that you are willing to lose on the position, this should also be the amount you are willing to spend on an option position. In other words, you should only spend $8,350 buying options. That way, you only have the same dollar amount at risk in the option position as you were willing to lose in your stock position. This strategy equalizes the risk between the two potential investments.

If you own stock, stop orders will not protect you from gap openings. The difference with the option position is that once the stock opens below the strike that you own, you will have already lost all that you could lose of your investment, which is the total amount of money you spent purchasing the calls. However, if you own the stock, you can suffer much greater losses. In this case, if a large decline occurs, the option position becomes less risky than the stock position.

For example, if you purchase a pharmaceutical stock for $60 and it gap-opens down at $20 when the company's drug, which is in Phase III clinical trials, kills four test patients, your stop order will be executed at $20. This will lock in your loss at a hefty $40. Clearly, your stop order doesn't afford much protection in this case.

However, let's say that instead of purchasing the stock, you buy the call options for $11.50 each share. Now your risk scenario changes dramatically - when you buy an option, you are only risking the amount of money that you paid for the option. Therefore, if the stock opens at $20, all of your friends who bought the stock will be out $40, while you will only have lost $11.50. When used in this way, options become less risky than stocks.

The Bottom Line
Determining the appropriate amount of money you should invest in an option will allow you to use the power of leverage. The key is keeping a balance in the total risk of the option position over a corresponding stock position, and identifying which one holds the higher risk in each situation.

Jobless claims drop by 10,000

Initial applications for unemployment benefits dropped for the third week in a row, to 340,000 for the week ended Oct. 26, the Labor Department said Thursday. That's 10,000 fewer than the previous week, showing employers aren't laying off as many workers.

However, the four-week average rose 8,000 to 356,250, the highest since April. The 16-day partial government shutdown and backlogs in California due to computer upgrades inflated the average, but didn't affect last week's numbers, a government spokesman said.

Applications are now close to the pre-recession levels that were reached in August, before California's computer problems distorted the data.

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Fewer applications are typically followed by more job gains. But hiring has slowed in recent months.

The shutdown likely negatively affected hiring even further in October. In addition to government contractors, other companies also likely cut jobs, such as restaurants and hotels located near national parks, which were closed. The shutdown ended Oct. 16. Some economists are forecasting that job gains in October could be 100,000 or less.

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Payroll provider ADP said Wednesday that businesses added just 130,000 jobs in October. That's down from ADP's estimate of 145,000 private-sector jobs added in September.

The Federal Reserve said Wednesday that the economy is growing at a moderate pace but still needs its support. Fed policymakers decided to continue purchasing $85 billion a month in bonds. The bond purchases are intended to lower long-term interest rates and encourage more borrowing and spending.

In a statement, the Fed struck a slightly more optimistic tone about the economy. That suggests the Fed might pull back on its stimulus as early as December, economists said.

Contributing: Associated Press

Report: The greatest NFL comeback teams

Last year, the Kansas City Chiefs were the worst team in the NFL, winning just two games and scoring an average of 13 points per game. This year, after hiring long-time Eagles coach Andy Reid, the Chiefs are one of only two undefeated teams and appear on their way to at least a long playoff run, if not the Super Bowl.

Most teams with bad years tend to require a number of years to improve (if they improve at all, that is). If the Chiefs continue their improbable success, they could become one of those rare franchises that bounces back straight to the top — appearing in the Super Bowl. Looking through the history of the modern Super Bowl era, 24/7 Wall St. reviewed the eight teams that managed to come back from a losing season to make it all the way to the Super Bowl.

Sometimes, a disappointing season can actually improve a team's chances of making the Super Bowl. A terrible year, or years, can often lead management to clean house, firing coaches and making trades. In 2002, the Carolina Panthers fired George Seifert after an abysmal 1-15 season. His replacement, John Fox, ended up leading the team on a Super Bowl run two seasons later.

A bad year can also boost a team's chances in the form of new star players. Fans know this because the worst teams are allowed to pick earlier in the draft after a season concludes. So, the 15-loss Panthers were allowed to select second overall. They used this pick to draft future star defensive end Julius Peppers, who became a major part of the following year's Super Bowl team.

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For some of these comeback teams, the Super Bowl run was just the first sign of years of success. Going into the 1999 season, the St. Louis Rams had not had a winning season in nearly a decade. That team, which became known as the "greatest show on turf" for its high-powered offense,! won the Super Bowl that year, played in another two years later, and made the playoffs in four of the next five seasons.

On the other hand, there are comeback teams on this list that ended up being flashes in the pan. The 1998 Atlanta Falcons came back from two losing seasons to go 14-2 and lose Super Bowl XXXIII. Instead of riding on that success, the team then missed the playoffs in each of the next three years.

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8. 1998 Atlanta Falcons
>Year made Super Bowl: 1999
>Previous year record: 7-9
>Super Bowl season record: 14-2
>Won Super Bowl?: no

After the Falcons' remarkably bad 1996 season in which they lost 13 out of 16 games, the team fired head coach June Jones, and veteran Dan Reeves took over the role. The next year, the team started the season by winning only one of its first eight games, but ended the season strong. The 1998 Falcons are the only team in Atlanta's nearly five decade history to make the Super Bowl. That year, they were undefeated at home, scored more points than in any previous season, won more games than in any other season in the franchise's history, and won their first division. Behind running back Jamal Anderson's 1,846 rushing yard season, the Falcons made it to the Super Bowl, where they eventually lost to John Elway's Broncos 34-19.

7. 2003 Carolina Panthers
>Year made Super Bowl: 2004
>Previous year record: 7-9
>Super Bowl season record: 11-5
>Won Super Bowl?: no

The Panthers' 2001 season was the worst in team history up to that point, with the Panthers winning just one game all year. This proved to be the last season of head coach George Seifert's career. That awful season, however, eventually paid dividends for the team, allowing it to select star defensive end Julius Peppers second overall in the 2002 draft. The following year, the team, under coach John Fox, showed some promise despite going on an 8-game losing streak in the middle of th! e season.! In 2003, only two years removed from one of the worst records in NFL history, quarterback Jake Delhomme and the team went on to win 8 of the first 10 games. The Panthers finished the season with an 11-5 record, but lost Super Bowl XXXVIII to the Patriots in an exciting 32-29 close game.

6. 1981 Cincinnati Bengals
>Year made Super Bowl: 1982
>Previous year record: 6-10
>Super Bowl season record: 12-4
>Won Super Bowl?: no

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After three losing seasons, during which the Bengals won a total of only 14 games, the team was headed by three different coaches. But the team started the 1981 season fresh, with brand new uniforms that included the Bengals' distinctive and still in use tiger-striped helmets. Wide receiver Cris Collinsworth, who was drafted in the offseason, proved to be a good target for veteran quarterback Ken Anderson. Together, they had eight touchdown passes and over 1,000 receiving yards during the regular season. Cincinnati finished the season 12-4, the best record in the AFC. The Bengals lost Super Bowl XVI to the San Francisco 49ers, another team making an impressive comeback from the previous year.

5. 1996 New England Patriots
>Year made Super Bowl: 1997
>Previous year record: 6-10
>Super Bowl season record: 11-5
>Won Super Bowl?: no

In the 10 years Prior to the Patriots' 1997 Super Bowl appearance, the team only made the playoffs twice. The Patriots went into the 1996 season after a 6-10 record in 1995, but showed some promise in the form of running back and Offensive Rookie of the Year Curtis Martin. In spite of growing tensions between head coach Bill Parcells, who resigned at the end of the season, and owner Robert Kraft, the Patriots had the second best record in the AFC. The then-underdog team continued to play in the Super Bowl where it was defeated by the Green Bay Packers.

4.1981 San Francisco 49ers
>Year made Super Bowl: 1982
>Pre! vious yea! r record: 6-10
>Super Bowl season record: 13-3
>Won Super Bowl?: yes

In 1978 and 1979, the 49ers had the worst record in the league, winning only two games in both seasons. After the '78 season, the team drafted future Hall of Fame quarterback Joe Montana 82nd overall. In 1980, the 49ers finished the regular season second to last in the NFC West. Draft picks Eric Wright, Carlton Williamson, and 2000 Hall of Fame inductee, Ronnie Lott helped improve the 49ers' defense and turn around the losing team's record for the 1981 season. These players were among the defensive line that performed perhaps the most famous goal-line stand in NFL history to win Super Bowl XVI against Cincinnati. San Francisco's 1981 season was also quarterback Joe Montana's first full season as starter. He went on to lead the 49ers to four Super Bowl wins, and is tied with Terry Bradshaw for the most titles of any NFL quarterback.

3. 2000 New York Giants
>Year made Super Bowl: 2001
>Previous year record: 7-9
>Super Bowl season record: 12-4
>Won Super Bowl?: no

The years leading up to the Giants' comeback season were riddled with inconsistency. This was particularly true in the quarterback position, for which the team had multiple replacements in just a few years. The Giants had only one winning season in the five years before 2000. Even at the beginning of the 2000 season, the team was expected to finish last. Quarterback Kerry Collins, who was picked up by the Giants in 1999, took over from Kent Graham that year and started the next season. Collins, however, could not handle the Ravens' defense in Super Bowl XXXV, which New York lost 34-7.

2. 2001 New England Patriots
>Year made Super Bowl: 2002
>Previous year record: 5-11
>Super Bowl season record: 11-5
>Won Super Bowl?: yes

The 2000 Patriots — led for the first time by new hire, head coach Bill Belichick — finished dead last in the AFC East after the regular season. The 2001 season was not! looking ! to turn much better when quarterback Drew Bledsoe was hospitalized with serious internal injuries early in the season. This was a blessing in disguise, however, for it opened the position for the future hall-of-famer Tom Brady. After winning a controversial victory over the Vikings in the Divisional Playoffs, Brady led the Patriots through one of the biggest Super Bowl upsets in NFL history over the "Greatest Show on Turf" St. Louis Rams.

1. 1999 St. Louis Rams
>Year made Super Bowl: 2000
>Previous year record: 4-12
>Super Bowl season record: 13-3
>Won Super Bowl?: yes

Prior to 1999, the Rams had endured nine losing seasons under four different head coaches. Over this period of time, the Rams underwent numerous transitions, including a home-town change from Los Angeles to St. Louis. The Rams made a number of strong acquisitions for the 1999 season, including new a Marshall Faulk and Trent Green. Faulk would go on to be essential to the Ram's high powered offense that year. Green, however, sustained a crippling knee injury in the preseason and had to be replaced by an unknown and inexperienced Kurt Warner. Warner would excel, however, and During the regular season, the Rams scored nearly 20 points more than their opponents, on average. The team would come to be regarded as one of the most dominant offenses in NFL history. The Rams finished the season with the best record in the NFC, and went on to win the Super Bowl.

24/7 Wall St. is a USA TODAY content partner offering financial news and commentary. Its content is produced independently of USA TODAY.

How To Add 6% Income To Your Portfolio Without Sacrificing Growth

Until the last year or so, I haven't been a fan of preferred stocks, unless they were convertible or had a good chance of being redeemed with a capital gain. Yields available on well-chosen common stocks, real estate investment trusts (REITs) and master limited partnerships (MLPs) were high enough to beat preferred returns, factoring in modest growth in the price of the non-preferreds.

That's not the case anymore. Yields on utilities, REITs, etc., are mostly down in the 4%-5% range, and MLPs also have tax-related inconveniences. Hence, I've revisited preferreds lately and am finding some good buys. I don't expect to get rich from them, but I do expect not to end up in the poorhouse.

The problem with most preferred stocks is the specter of inflation. The dividends that seem high now won't seem so high if we can get 7% on a one-year CD five years from now. That is always a possibility that has to be taken into consideration.

However, with the Fed's interest-rate suppression still in force, we just need to own some gold as a hedge, and we can be covered on both ends of the deflation-inflation spectrum. I think it's much wiser to position ourselves that way than to try to make a bet on one outcome or the other. Will we get a Japan-like several-decades-long period of no growth, or a Weimar Republic decent into the chaos of hyperinflation? Your guess is as good as mine.

Warren Buffett and Jeremy Grantham both think total market returns for the rest of the decade will be in the mid-single digits, albeit with a lot of ups and downs. Today we with discuss a strategy with which we should get a good combination of growth and above-average income, plus the added benefit of low volatility in our personal cash flow.

Numbers Don't Lie (government numbers excluded)

We often hear that buying stocks with dividends that grow is more important than buying stocks with dividends that are high, but don't grow. In principle, I agree with that. We are also told that the big multinationals in the S&P 500 continually grow their dividends. The statistics show that's true. But being a math kind of guy I ran some numbers to see how long it takes for lower dividends to catch up to the total returns for stocks with higher ones, such as the preferreds I'll recommend today. To say I was shocked at the results is an understatement.

The S&P 500 has had an average dividend of 2.66% for the last 10-years. (The median is lower at 2.38%.) The historical average dividend growth rate is about 5.1%.

Of the preferred stocks I'll recommend, the lowest current yield at today's price is 6.36%. In terms of just dividends, it would take a typical S&P stock 32 years to return the same amount of total dividends if it grow at the historical 5.1% average. This, of course, ignores the present value of money, which is highly unlikely to maintain value over those decades. In terms of present value, you could probably tack on another five or so years to recover.

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In addition, I looked at the total return of the S&P over 10 and 20 years with dividends reinvested. In this scenario, after 10 years the index returns finally break even with the lowest paying of the preferreds recommended here, and outperforms it at a widening margin after that. However, returning to the present value issue again, we should note that the dollar has lost 13.8% of its value over the last 10 ten years. This again boosts the relative real (inflation adjusted) returns of the preferred shares.

If you're planning on living longer than 10 or 15 years, this presents a dilemma. Take the money now while its present value is assured, or take it later and hope dividend growth keeps up with inflation?

My solution to this conundrum is a kind of barbell approach. On one side of the bar you have the higher-paying preferred stock. On the other you have the common stock that is likely to overtake the preferred in 10 years or so—maybe sooner if you've picked a stock with above-average growth prospects. The result is a pair of stocks that will provide higher, surer current income than the common stock alone, and a higher total return over 15 or 20 years than the preferred alone.

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Three Great Barbell Buys

First up today is a preferred stock from one of my favorite companies. We've owned the common and two classes of the preferred stock in our portfolios for quite some time and we're very happy with the results. The preferred is Seaspan Corp. 7.95% Series D Cumulative Redeemable Perpetual Preferred Shares (SSW-PD). At its recent price of $25.30 it yields 7.86% (simple rate of return). The shares are redeemable by the company on January 30, 2018. If they are redeemed on that date, the compounded annualized rate of return will be 6.8%. Ex-dividend dates are: January 30, April 30, July 30 and October 30.

The common stock, Seaspan Corp. (SSW) recently sold for $24.87 and yields slightly more than 5%. The dividend has grown nicely over the last few years.

Global Equity Funds Record Biggest Inflows Since 2005

Global equity funds attracted the largest inflows since at least 2005 in the week ended Sept. 18 as investors piled into stocks before the Federal Reserve's decision to maintain monetary stimulus.

The funds lured a net $25.9 billion in the period, Wei Liang Chang, a foreign-exchange strategist at Australia & New Zealand Banking Group Ltd. (ANZ), said by phone from Singapore today, citing data from EPFR Global. Developed markets posted $24.3 billion of inflows, while emerging-nation funds drew $1.6 billion, according to Chang.

The MSCI All-Country World Index climbed to the highest level since 2008 on Sept. 16 after Lawrence Summers withdrew his bid to become the next Fed chairman, easing concerns that he would curtail monetary stimulus. The gauge extended gains after the U.S. central bank unexpectedly maintained its $85 billion monthly bond-purchase program two days later.

"People will find some space to breathe at this point," Wellian Wiranto, an investment strategist at the wealth-management unit of Barclays Plc, which oversees about $217 billion worldwide, said from Singapore today. "In the coming week, we see further inflows given appetite has stabilized quite significantly and tapering was postponed."

Taper Timing

Fed Chairman Ben S. Bernanke first signaled on May 22 that policy makers could reduce the bond purchases, triggering capital outflows from emerging markets and a month-long selloff in global equities. More than $50 billion left global funds investing in developing-nation bonds and stocks, according to EPFR Global.

Bernanke said Sept. 18 that a decision on slowing the pace of asset purchases would depend on economic data, and that the Fed has no set timetable.

"It's hard to see the Fed start to taper at the next meeting in October," said Wiranto. "If they really want confirmation of a recovery, one or two data points won't do it for them."

The MSCI All-Country World Index slipped 0.1 percent to 389.77 at 4:58 p.m. Hong Kong time, paring a third straight weekly gain to 2.6 percent. The measure has added 15 percent this year and trades at about 14 times projected 12-month earnings, the highest level on a weekly basis since April 2010.

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The MSCI Emerging Markets Index also lost 0.1 percent, trimming this week's advance to 3.5 percent. The gauge has declined 3.3 percent this year and is valued at 11 times forecast profits, the highest level since March, according to data compiled by Bloomberg.

Boeing's Fire Sale Sinks the Dow

Stocks have meandered lower today after it was announced that consumer sentiment in the U.S. fell in July. A reading from the University of Michigan and Thomson Reuters shows that the index fell to 83.9 in July from 84.1 a month ago, which is still relatively high from a historical perspective. The Dow Jones Industrial Average (DJINDICES: ^DJI  ) is down 0.25% in late trading, while the S&P 500 (SNPINDEX: ^GSPC  ) sits at breakeven.  

The big mover on the Dow is Boeing (NYSE: BA  ) , which is up in flames again -- literally. A 787 Dreamliner parked at London's Heathrow Airport caught fire today, and Boeing's shares quickly fell 7.4%. As of 3:15 p.m. EDT, shares have recovered to a 5.2% loss, but there will be a lot of pressure on management to explain the fire without causing the stock to crash.  

Boeing has been a leader on the Dow this year, jumping 36.6%, even with the Dreamliner being grounded for several months over a battery issue.

BA Total Return Price data by YCharts.

Investors thought that problem was solved in March when a design fix was approved and flights soon resumed, but now we may have to rethink that. We don't know the cause of the fire in London yet, but Boeing certainly will have to do its best to make passengers and investors feel safe again. The risk now is that shares have priced in too much good news for the Dreamliner and have nowhere to go but down. I would be hitting the sell button today to take gains off the table, if nothing else. The downside risk for investors is too high to ignore now.

JPMorgan (NYSE: JPM  ) is the other big news-maker today, although its stock is only down 0.4%. The company reported a 31% jump in net income to $6.5 billion, or $1.60 per share, on the back of strong investment-banking activity. But the company warned that mortgage applications could fall in the second half of the year if interest rates remain high. This is one of the risks of the Federal Reserve's tapering of its $85 billion-per-month asset purchases, and it shouldn't come as a huge surprise to investors.  

The good news for big banks is that rising home prices should limit loan losses, even if volume falls in coming months. Still, there are a lot of risks for investors, and in a sea of mismanaged and dangerous peers, there's only one company that rises above as "The Only Big Bank Built to Last." You can uncover the top pick that Warren Buffett loves in The Motley Fool's new report. It's free, so click here to access it now.

Facebook Needs Smarter Investors

Facebook (NASDAQ: FB  ) held its first shareholder annual meeting as a public company yesterday, and clearly a lot of investors don't get the social networking giant.

Some of the questions asked during the Q&A, as retold by Financial Times, seemed more along the lines of pointless venting than actual dissection.

Will the stock bounce back? Will Facebook offer phone support for older users confused with the site? Why is the news feed showing ads? Should investors form a committee to review Facebook's stance on public policy issues?

I wasn't there, but I can imagine CEO Mark Zuckerberg's inner monologue as retail investor after retail investor asked unanswerable or ignorant questions.

Why did we have to go public? What have we done wrong? Are our users smarter than our shareholders?

It's true that Facebook has been a dud of an investment. The shares have lost 37% of their value since going public 13 months ago. The market has rallied in that time.

However, it's not Facebook's fault that underwriters -- drunk on hype -- were able to price the social networking website operator's offering at an unjustifiable price.

Facebook has actually done little wrong since going public. Fears of Facebook's popularity peaking have been rebuffed with every passing quarter. It's growing at a heady clip, and that's not going to end anytime soon. Analysts see revenue and earnings per share climbing 26% and 35%, respectively, next year.

Facebook even got a timely analyst nod earlier this week. Stifel's Jordan Rohan points out if we look out to his 2015 estimates, Facebook is trading at a slightly lower EBITDA multiple than Google (NASDAQ: GOOG  ) -- 10 for Google and 9.4 for Facebook -- even though Facebook is expected to be growing a lot faster in the coming years.

He's right, but we also have to remember that Rohan downgraded Google two years ago on fears of the Facebook threat. It's a theme that may come into play eventually, but for now Google's the one trading near last month's all-time high.

Facebook may one day be more powerful than Google if it's able to effectively monetize its growing Rolodex of knowledge on its billion active users without alienating them. However, Zuckerberg also has a higher risk of obsolescence than Big G.

For now, the best bet has to be on Facebook having a merrier shareholder meeting next year. The stock's valuation is still not cheap, but it's no longer ridiculous. Facebook is just starting to monetize mobile and video monetization will inevitably follow. The next few quarters should be strong, and Facebook will naturally get a boost when it's added to the S&P 500 later this year.

Zuckerberg's probably just hoping that a better stock price brings out better questions from its investors next year.

After the world's most hyped IPO turned out to be a dud, many investors don't even want to think about shares of Facebook. But there are things every investor needs to know about this revolutionary company. The Motley Fool's newest premium research report shows that there's a lot more to Facebook than meets the eye. Read up on whether there is anything to "like" about it today to determine if Facebook deserves a place in your portfolio. Access your report by clicking here.

Why the Fed Meeting Ended in a Taper After All

At the Fed meeting today, the U.S. Federal Reserve announced that it will begin tapering its bond-buying program by $10 billion per month starting in January. The policy, which was designed to recharge economic growth, will be scaled back to $75 billion per month from $85 billion per month.

The Fed will reduce its purchases of long-term Treasury bonds from $45 billion a month to $40 billion, and mortgage-backed securities from $40 billion a month to $35 billion.

The move was a surprise after months of intense Federal Open Market Committee (FOMC) meeting anticipation. Fed Chairman Ben Bernanke has been extremely pro-stimulus, and this was his last press conference before he steps down in 2014 and Janet Yellen takes over.

So, why did today's Fed meeting end in a taper, after months of staying the course?

Money Morning Chief Investment Strategist Keith Fitz-Gerald joined us in Baltimore to discuss.

"Bernanke's out of maneuvering room. He doesn't strike me as a 'fall on his sword' kind of guy, but I think what he's doing here is trying to clear the deck for Yellen's tenure," said Fitz-Gerald.

Hot Canadian Stocks To Own For 2014

Bernanke said Yellen "fully supports what we did today."

Fed Meeting Today: The Details

In addition to a taper announcement, the Fed meeting today reiterated commitment to keeping interest rates low. According to the central bank, it will most likely keep its target interest rate near zero even after unemployment dips below 6.5%. That, however, is dependent on inflation (government-reported inflation, that is) staying below 2.5%.

In their economic projections, 12 of the 17 Fed officials expect the target interest rate to stay at or below 1% through 2015.

The Fed officials did express concern with inflation, as it continues to stay below the Fed's target of 2%. The central bank's preferred measure of inflation was up just 0.7% in October. If this measure of inflation does not start approaching the 2% target, the policies set today may not last long.

Following today's announcement, the markets fluctuated greatly. Initially dipping 67 points, the Dow Jones Industrial Average recovered quickly.

Following today's announcement, the Dow closed at 16,167.97, up 292.71 or 1.84%. The S&P 500 jumped 1,810.65, up 29.65 or 1.66%. The Nasdaq was up 46.38 points, or 1.15%, at 4,070.06.

Gold prices were initially down 0.8% to $1,220 an ounce at the time of the statement. However, gold for February delivery was trading up 0.9%, or $11.50, at $1,241.60 a troy ounce later in the day.

So what are investors to do now, with these market moves?

"Never, ever make decisions based on technical moves like this one," said Fitz-Gerald. "Three critical variables - price, risk, and potential - are dramatically out of whack when traders are forced into reactionary mode like they are at the moment. Let the computers duke it out."

The press conference following today's Fed meeting was also the final public appearance for Chairman Ben Bernanke, who will be stepping down at the end of the year. Bernanke's quantitative easing policy has upped the Fed's balance sheet to $3.99 trillion from $869 billion in August 2007.

Stay tuned for Fitz-Gerald's full Fed analysis for investors tomorrow morning.

Don't miss today's top story: They're Planning the First Legal "Bank Robbery" in U.S. History

What Goes Up Comes Down: 2013 Sets Record for Bond Fund Outflows

The Federal Reserve’s Open Market Committee announcement Wednesday that it would begin tapering its QE purchases led to record closes that day for both the S&P 500 and the Dow Jones industrials. As Barry Fennell of Lipper wrote in a commentary on Friday, the fixed income market “largely took the announcement in stride,” as bond investors “appeared to be at ease with the low-inflation, slow-growth environment that will now also be accompanied by a gradual and measured reduction in the Fed’s quantitative easing program going forward.”

Fennell pointed out that “significant capital gains distributions” and investors’ desire to harvest gains in their equity holdings may have “overstated flows data” for many equity and taxable bond funds in the week ending Dec. 18, when equity funds (excluding ETFs) had net outflows of $8.5 billion; equity ETFs had net outflows of $4.5 billion; and nondomestic equity funds (including ETFs) had net outflows of $0.4 billion. On the fixed income side for the week, muni bond funds had $1.7 billion in net outflows, and money market funds saw a whopping outflows of $31.3 billion.

For the full year, however, bond funds saw significant net outflows. TrimTabs reported Dec. 11 that year to date, bond mutual funds posted record outflows of $70.7 billion, breaking the previous annual high for outflows, $62.5 billion in 1994. In a statement, David Santschi of TrimTabs said that bond mutual funds had experienced outflows for “seven consecutive months after they posted inflows in each of the preceding 21 months.” Just since June, investors pulled $164.5 billion out of bond mutual funds, TrimTabs reported; three of the four largest monthly outflows from bond mutual funds have occurred this year.

For all of 2012, according to the Investment Company Institute, a net $304 billion flowed to bond funds, nearly tripling 2011's net inflows to bond funds of $125 billion.

Just because end investors are pulling money out of bond funds doesn’t mean they shouldn’t continue to have a role to play in client portfolios, of course. In an interview Wednesday before the FOMC announcement that the Fed would begin tapering, Krishna Memani, the former chief investment officer for fixed income at OppenheimerFunds and now the firm’s CIO, argued that  “fixed income still offers income and protection in your portfolio.”

Even if rates rise in 2014, he said, “the bottom line from my perspective” is that we are “still a couple of years away from a cyclical rise” in rates. If clients are particularly interested in a “better risk adjusted profile,” that is more likely to come from “credit rather than duration,” he suggested.

In terms of returns, Memani believes that high-yield bonds are “definitely good, but loans are better than high yield.” For Memani, “loans are the best risk-adjusted trade in all of fixed income.”

What the $636 Million Lottery Winners Should Do (and Not Do)

The Mega Millions lottery reached a second-best level ever of $636 million for the December 17, 2013 drawing. It now appears that there are two winning tickets. One was reported to be sold in San Jose, Calif., and one was sold in Georgia.

This Mega Millions lottery had seen more than 20 drawings with no jackpot winner. The prior record for the Mega Millions was $656 million, in March of 2012, and was split among three winners in Illinois, Kansas and Maryland.

The real question is simple, yet complicated: What should the lotto winners do right now? 24/7 Wall St. has created a simple plan of what lotto winners should do (and not do) if they win empire-making money of this magnitude.

Few people will ever win a lottery of any size in their lives. The good news about our lotto winning plan is that it pertains to anyone who suddenly comes into money. This includes those who win big judgments, who unexpectedly inherit large sums of money, who have an unexpected cash surge, athletes who get huge initial signing bonuses or endorsements, and others who get wealth quickly. Our instant wealth tools work almost universally.

Hot Undervalued Companies To Buy For 2014

How ironic is it that winning the lotto also comes with some serious pitfalls? We will have to see what happens down the road for these two who appear to have won $318 million or so.

Many lottery winners have ended up bankrupt in just a few short years after becoming vastly wealthy. We do not want that to happen to you. Many athletes and wealthy entertainers also went belly up. This is just not necessary and can easily be avoided if handled properly from the start.

The 24/7 Wall St. 12-step program for lotto winners is intended to be the first-step to protecting yourself and your newly won empire. We have evaluated what to do and not to do for tax purposes and financial and personal security, as well as what not go splurge on, and many other things.

Lottery winnings have made many millionaires. Again, they have also created many stories of an instant rise and a rapid fall. There is even one that may have ended in a murder. If you are lucky enough to have won this lottery, or any lottery in the past (or future), please do not become one of the bad statistics.

Source: PA Lottery Mega Million

The Deal: Avago Broadens Base, $6.6 Billion Acquisition of LSI

NEW YORK (TheStreet) -- Reuniting with Silver Lake Partners, semiconductor device supplier Avago Technologies Ltd. said Monday, Dec. 16, that it is paying $6.6 billion for LSI Corp.

Silver Point is putting up $1 billion to help fund the deal, which is Avago's largest purhcase ever.

The payout for LSI comes to $11.15 per share. Shares of target rose $3.05, or 38.5%, to $10.96 on Monday following the news. Avago gained $4.34, or about 9.5% , to $49.99.

"First, the LSI position opens up an area where Avago has not been a major player, that is, until now, enterprise storage," said Avago CEO Hock Tan during a conference call pitching the deal to investors. The purchase will also boost Avago's offerings in wired infrastructure, one of the buyer's major product areas. The target has nearly $2.4 billion in sales. "It's a very attractive deal in the sense that Avago has a very nice operating model," said D.A. Davidson & Co. analyst Tom Diffely. LSI's margins are in the high teens to low 20% range, the analyst noted, whereas Avago's margins are around 30%. The buyer is domiciled in Singapore, and has a 5% tax rate. "If they can go in there and cut a couple hundred million on the SGA and R&D side of the business, the accretion is going to be very strong," Diffely said. Silver Lake and Kohlberg Kravis Roberts purchased Agilent Technologies Inc.'s semiconductor products group in 2005 for $2.6 billion, and renamed the business Avago. Silver Lake invested about $392 million in the LBO. The PE firms took Avago public in 2009. Silver Lake exited its investment in Avago in December 2012, but has maintained a board seat. Avago and Silver Lake developed the idea of the transaction with LSI independently, a person familiar with the matter said. The PE firm worked alongside Avago throughout the process. Silver Lake's funding will take the form of a seven-year 2% convertible note or prefered stock. The deal will help Avago diversify its customer base. Currently, Foxconn Electronics Inc. accounts for 17% of Avago's sales. Major customers include Apple Inc. and Cisco Systems Inc. The company has said that the concentration of its clientele put it at risk of quarterly fluctuations. Avago has made acquisitions recently, but on a smaller scale. In April, the company acquired wireless circuit maker Javelin Semiconductor Inc. for an undisclosed sum and paid $400 million for data and telecommunications optical chip company CyOptics Inc. "I'm surprised in the sense that its such a big acquisition," analyst Diffely said of the LSI purchase. "I thought there would be more of these sub-billion dollar bolt-ons over time." Avago plans to fund the deal with $1 billion in cash from the balance sheet of the combined companies, a $4.6 billion term loan and the $1 billion from Silver Lake. The company anticipates leverage of 3.8 times Ebitda, including the Silver Lake securities. The parties expect to close the deal in the first half of 2014.

--By Chris Nolter in New York

Stock quotes in this article: AVGO, KKR, A 

Is Google's Mobile Problem Getting Better?

The following video is from Friday's Motley Fool Money roundtable discussion, with host Chris Hill, and analysts Ron Gross, James Early, and Charly Travers.

Google (NASDAQ: GOOG  ) reported first-quarter profits of $3.9 billion. While making money off of mobile has been a challenge for some time, analyst Ron Gross explains why Google appears to have turned a corner, and the future looks good for monetizing mobile.

As one of the most dominant Internet companies ever, Google has made a habit of driving strong returns for its shareholders. However, like many other web companies, it's also struggling to adapt to an increasingly mobile world. Despite gaining an enviable lead with its Android operating system, the market isn't sold. That's why it's more important than ever to understand each piece of Google's sprawling empire. In The Motley Fool's new premium research report on Google, we break down the risks and potential rewards for Google investors. Simply click here now to unlock your copy of this invaluable resource.

The relevant video segment can be found between 3:19 and 5:06.

For the full video of today's Motley Fool Money, click here.

What You Miss When You Don't Work on Christmas

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PORTLAND, Ore. (TheStreet) -- My stepfather worked for FedEx (FDX) from the mid-'80s until the beginning of this year, when he accepted a buyout and an early retirement. This is the first Christmas Eve he'll spend without clocking in, thus ending a family tradition of working on the holidays.

Only when compared to the FedEx, UPS (UPS) and other delivery service employees working on Christmas Day itself does my stepfather's Christmas Eve routine of the last 25 years look ideal. He'd leave at roughly 2:30 a.m. and either deliver packages or direct those who did until just before the family showed up at 7 p.m. He'd have a glass of egg nog, give the toast at Christmas Eve dinner, have a bit of shrimp, crawfish or pierogi and then head straight to bed. By Christmas morning, he was rested enough to put down a bowl of shrimp and half a jar of cocktail sauce by himself, but it still took a while for him to get up to speed.

While it was clear he'd rather be anywhere but the terminal on Christmas Eve, I get a better understanding of why he went in 1995 -- when I took my first job in journalism as a newspaper sports intern at The Star-Ledger in Newark, N.J. The National Basketball Association results, horse racing picks and transaction listings don't get a day off, and my first Christmas dinner away from home was spent cobbling together the sports section's agate page and failing miserably in doing so. I had only worked as a reporting and filing intern the summer before and got my trial by fire as a means of giving some of the other folks a night off.

It was terrifying, but it was great in its own right. That night the head of our sports desk, former Star-Ledger editor Rich Guenther, introduced me to the Italian Cheeseburger -- a three-patty burger on a hoagie roll coated in provolone cheese and a bit of marinara sauce and stuffed with french fries. It was served in a round aluminum container that caught excess cheese and fries and was a glorious holiday meal. It wasn't my grandmother's manicotti or my grandfather's candied yams, but it remains one of my favorite holiday meals. On and off for the next decade, I was a Christmas worker. I'd willingly take my spot on the copy or pagination desk at the Jersey Journal in Jersey City or Herald News in what's now called Woodland Park, N.J. -- formerly West Paterson, for fairly specious reasons -- and enjoy a relatively light night of pre-packaged stories, the occasional police brief and one of the grandest traditions in newsroom or office holiday culture, the Christmas potluck. I replicated my grandmother's manicotti as best I could and, in return, received a spread of samosas, barbecue ribs, pudding, paella and other treats that would stuff the kitchenette fridge with enough leftovers for the next night's shift. You'd hear stories about people's families, hear some tough phone calls home and occasionally flip on a Turner channel for the last showing of A Christmas Story, but it actually wasn't half bad. Occasionally, something newsworthy would actually happen -- like the Mars lander disappearing in 2003. It was peaceful, but not lonely. A survey by the Workforce Institute at Kronos Inc. and Harris Interactive conducted last year suggested me, my stepfather and our workmates were decidedly not anomalies when it came to working on the holidays. In fact, just 38% of all full-time U.S. workers took off on Christmas Eve last year, with 28% taking Christmas Day off. Then again, a full 26% of full-time workers said their workplaces were closed for the entire span between Christmas and New Year's Day.  Hey, sometimes the money comes in handy. Holiday pay amounted to time and a half in some cases and double time and a half at more generous employers. Those Christmas presents don't pay for themselves and heating bills only get costlier as East Coast winters wear on. Besides, unless it snows -- as it did one year when I tried to brave a sudden storm on Christmas night and nearly wrapped my Ford Taurus around a tree on West Paterson's Garret Mountain -- the commute's a breeze. It also makes those who celebrate the holiday increasingly aware of those who don't and really thankful to have them around. Eventually, though, it started to wear. When my new employers at the newspaper Metro in Lower Manhattan told me I had Christmas Eve and Day off in 2005, it occurred to me that I hadn't spent Christmas dinner with my family in 10 years. I'd missed my grandfather's last Christmas dinner in 2003 and felt that I probably shouldn't let something similar happen again. After transferring to a Metro outpost in Boston in 2007 and learning that I'd have to find a way up from New Jersey on Christmas morning to produce a copy of the paper that a small fraction of the city would read on the day after Christmas, I fell out of love with newspapers and became fond of the idea of holidays off. I haven't worked a Christmas Day since. While on assignment here in Portland recently, however, I found myself in a radio studio in the middle of that station's employee potluck dinner and felt just a bit nostalgic. Those nights and those shared experiences brought me closer to my coworkers than I could have imagined and made clear that, at least for that night, I had a surrogate family who was as willing to make the best out of the situation as I was. The multiple, steaming slow cookers, the disposable plates and the conference room that smelled like a family dining room all brought back experiences that left a bigger mark on me than I'd thought at the time. They're what you miss when you part ways with coworkers for the holidays, but they're not something I miss enough to trade for my first Christmas Eve beer with my stepfather in ages. -- Written by Jason Notte in Portland, Ore. >To contact the writer of this article, click here: Jason Notte. >To follow the writer on Twitter, go to http://twitter.com/notteham. >To submit a news tip, send an email to: tips@thestreet.com. RELATED STORIES: >>Here's Your Thanksgiving Playlist >>Why The NFL Deserves A Thanksgiving Scolding >>Blockbuster's Self-Inflicted Tragedy Is Our Loss

Stock quotes in this article: FDX, UPS 

3 Stocks Under $10 Moving Higher

DELAFIELD, Wis. (Stockpickr) -- At Stockpickr, we track daily portfolios of stocks that are the biggest percentage gainers and the biggest percentage losers.

>>5 Big Trades for Year-End Gains

Stocks that are making large moves like these are favorites among short-term traders because they can jump into these names and try to capture some of that massive volatility. Stocks that are making big-percentage moves either up or down are usually in play because their sector is becoming attractive or they have a major fundamental catalyst such as a recent earnings release. Sometimes stocks making big moves have been hit with an analyst upgrade or an analyst downgrade.

Regardless of the reason behind it, when a stock makes a large-percentage move, it is often just the start of a new major trend -- a trend that can lead to huge profits. If you time your trade correctly, combining technical indicators with fundamental trends, discipline and sound money management, you will be well on your way to investment success.

>>5 Stocks Insiders Love Right Now

With that in mind, let's take a closer look at a several stocks under $10 that are making large moves to the upside today.

Ambit Biosciences

Ambit Biosciences (AMBI) is a development-stage oncology company engaged in the clinical development of novel small molecules for the treatment of cancer. This stock closed up 7.6% to $8.45 in Thursday's trading session.

Thursday's Range: $7.91-$8.79

52-Week Range: $6.22-$21.44

Thursday's Volume: 650,000

Three-Month Average Volume: 93,875

From a technical perspective, AMBI spiked sharply higher here right above some near-term support at $7.77 with heavy upside volume. This stock recently gapped down sharply from $13 to $8 with monster downside volume. Following that gap down, shares of AMBI have trended sideways and tag a recent low of $7.77. Shares of AMBI are now starting to spike higher off that low and it's quickly moving within range of triggering a major breakout trade. That trade will hit if AMBI manages to take out some near-term overhead resistance levels at $9 to its gap down day high of $9.52 with high volume.

Traders should now look for long-biased trades in AMBI as long as it's trending above Thursday's low of $7.91 or above its recent low of $7.77, and then once it sustains a move or close above those breakout levels with volume that hits near or above 93,875 shares. If that breakout triggers soon, then AMBI will set up to re-fill some of its previous gap down zone that started at $13. Some possible upside targets if AMBI gets into that gap with volume are $11 to $11.50.

Alimera Sciences

Alimera Sciences (ALIM) is a biopharmaceutical company engaged in the research, development, and commercialization of ophthalmic pharmaceuticals. This stock closed up 0.89% to $2.26 in Thursday's trading session.

Thursday's Range: $2.14-$2.30

52-Week Range: $1.37-$5.69

Thursday's Volume: 56,000

Three-Month Average Volume: 121,603

From a technical perspective, ALIM spiked modestly higher here with lighter-than-average volume. This stock has been trending sideways and consolidating for the last few weeks, with shares moving between $2 on the downside and $2.83 on the upside. Shares of ALIM are now starting to move within range of triggering a big breakout trade above the upper-end of its recent sideways trading chart pattern. That trade will hit if ALIM manages to take out its 50-day moving average at $2.40, and then once it clears more near-term overhead resistance levels at $2.48 to $2.83 with high volume.

Traders should now look for long-biased trades in ALIM as long as it's trending above some near-term support at $2 and then once it sustains a move or close above those breakout levels with volume that hits near or above 121,603 shares. If that breakout hits soon, then ALIM will set up to re-test or possibly take out its next major overhead resistance levels at $3.50 to $4.

Dendreon

Dendreon (DNDN) is a biotechnology company focused on the discovery, development and commercialization of novel therapeutics that improve cancer treatment options for patients. This stock closed up 4.5% to $3.21 in Thursday's trading session.

Thursday's Range: $3.02-$3.23

52-Week Range: $2.23-$7.22

Thursday's Volume: 5.85 million

Three-Month Average Volume: 4.26 million

From a technical perspective, DNDN spiked sharply higher here and broke out above some near-term overhead resistance at $3.15 with strong upside volume. This stock has been uptrending for the last month and change, with shares moving higher from its low of $2.35 to its intraday high of $3.23. During that uptrend, shares of DNDN have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of DNDN within range of triggering another big breakout trade. That trade will hit if DNDN manages to take out Thursday's high of $3.23 and then once it clears more past resistance at $3.41 with high volume.

Traders should now look for long-biased trades in DNDN as long as it's trending above some near-term support levels at $2.88 or at its 50-day of $2.70 and then once it sustains a move or close above those breakout levels with volume that hits near or above 4.26 million shares. If that breakout triggers soon, then DNDN will set up to re-test or possibly take out its next major overhead resistance level at its 200-day of $3.79. Any high-volume move above that level will then give DNDN a chance to re-fill its previous gap down zone from August that started just above $5.

To see more stocks that are making notable moves higher today, check out the Stocks Under $10 Moving Higher portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

>>Buy the Dips: This Bull Market's Not Over

>>Hedge Funds Hate These 5 Big Stocks -- but Should You?

>>5 Stocks Set to Soar on Bullish Earnings

Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including

CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

Is Hewlett-Packard a Solid Portfolio Play?

With shares of Hewlett-Packard (NYSE:HPQ) trading around $26, is HPQ an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Hewlett-Packard provides products, technologies, software, solutions, and services to individual consumers, small and medium businesses, and large enterprises worldwide. The company offers commercial notebooks and desktops, consumer notebooks, desktops, software, and services for the commercial and consumer markets. The services segment provides consulting, outsourcing, and technology services to infrastructure, applications, and business process domains. The diverse technological products and services offered by Hewlett-Packard make it a leading provider that sees increased demand through global expansion.

In May of 2012, Hewlett-Packard announced its intentions to restructure, projecting savings between $3.0 to $3.5 billion by the end of the 2014 fiscal year. The restructuring was to include job cuts for somewhere around 27,000 HP employees — 8 percent of its total workforce as of October 2011. "While some of these actions are difficult because they involve the loss of jobs, they are necessary to improve execution and to fund the long term health of the company," HP President and Chief Executive Officer, Meg Whitman, said in the company press release. Reuters reports that the tech company will be making 1,124 out of the total 27,000 job cuts in Britain. The Unite union told Reuters that HP has 15,000 to 20,000 employees in the country.

T = Technicals on the Stock Chart are Strong

Hewlett-Packard stock has performed well over the last several months. The stock is currently trading near highs for the year and looks set to continue. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Hewlett-Packard is trading above its rising key averages, which signal neutral to bullish price action in the near-term.

(Source: Thinkorswim)

Taking a look at the implied volatility (red) and implied volatility skew levels of Hewlett-Packard options may help determine if investors are bullish, neutral, or bearish.

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Hewlett-Packard options	34.59%	23%	21%

What does this mean? This means that investors or traders are buying a minimal amount of call and put options contracts as compared to the last 30 and 90 trading days.

	Put IV Skew	Call IV Skew
December Options	Flat	Average
January Options	Flat	Average

As of today, there is an average demand from call buyers or sellers and low demand by put buyers or high demand by put sellers, all neutral to bullish over the next two months. To summarize, investors are buying a minimal amount of call and put option contracts and are leaning neutral to bullish over the next two months.

On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.

E = Earnings Are Decreasing Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on Hewlett-Packard’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Hewlett-Packard look like and more importantly, how did the markets like these numbers?

	2013 Q3	2013 Q2	2013 Q1	2012 Q4
Earnings Growth (Y-O-Y)	-120.93%	-14.00%	-31.25%	-13.70%
Revenue Growth (Y-O-Y)	-2.77%	-8.23%	-10.14%	-5.58%
Earnings Reaction	9.04%	-12.45%	17.09%	12.28%

Hewlett-Packard has seen decreasing earnings and revenue figures over the last four quarters. From these numbers, the markets have been pleased with Hewlett-Packard’s recent earnings announcements.

P = Excellent Relative Performance Versus Peers and Sector

How has Hewlett-Packard stock done relative to its peers, Dell (NASDAQ:DELL), IBM (NYSE:IBM), Apple (NASDAQ:AAPL), and sector?

	Hewlett-Packard	Dell	IBM	Apple	Sector
Year-to-Date Return	90.82%	36.69%	-8.72%	6.30%	40.52%

Hewlett-Packard has been a relative performance leader, year-to-date.

Conclusion

Hewlett-Packard is a software an technology bellwether that provides essential products and services to consumers and companies worldwide. The company announced its intentions to restructure, projecting savings between $3.0 to $3.5 billion by the end of the 2014 fiscal year. The stock has been moving higher in recent months and is now trading near highs. Over the last four quarters, earnings and revenues have been declining. However, investors are pleased with recent earnings announcements. Relative to its peers and sector, Hewlett-Packard has been a year-to-date performance leader. Look for Hewlett-Packard to OUTPERFORM.

5 Stocks Set to Soar on Bullish Earnings

DELAFIELD, Wis. (Stockpickr) -- Short-sellers hate being caught short a stock that reports a blowout quarter. When this happens, we often see a tradable short squeeze develop as the bears rush to cover their positions to avoid big losses. Even the best short-sellers know that it's never a great idea to stay short once a bullish earnings report sparks a big short-covering rally.

>>5 Rocket Stocks to Buy Before 2014

This is why I scan the market for heavily shorted stocks that are about to report earnings. You only need to find a few of these stocks in a year to help enhance your portfolio returns -- the gains become so outsized in such a short time frame that your profits add up quickly.

That said, let's not forget that stocks are heavily shorted for a reason, so you have to use trading discipline and sound money management when playing earnings short-squeeze candidates. It's important that you don't go betting the farm on these plays and that you manage your risk accordingly. Sometimes the best play is to wait for the stock to break out following the report before you jump in to profit off a short squeeze. This way, you're letting the trend emerge after the market has digested all of the news.

>>Buy the Dips: This Bull Market's Not Over

Of course, sometimes the stock is going to be in such high demand that you risk missing a lot of the move by waiting. That's why it can be worth betting prior to the report -- but only if the stock is acting technically very bullish and you have a very strong conviction that it is going to rip higher. Just remember that even when you have that conviction and have done your due diligence, the stock can still get hammered if The Street doesn't like the numbers or guidance.

If you do decide to bet ahead of a quarter, then you might want to use options to limit your capital exposure. Heavily shorted stocks are usually the names that make the biggest post-earnings moves and have the most volatility. I personally prefer to wait until all the earnings-related news is out for a heavily shorted stock and then jump in and trade the prevailing trend.

>>5 Stocks Poised for Breakouts

With that in mind, here's a look at several stocks that could experience big short squeezes when they report earnings this week.

Ciena

My first earnings short-squeeze play is communications networking equipment, software and services provider Ciena (CIEN), which is set to release numbers on Thursday before the market open. Wall Street analysts, on average, expect Ciena to report revenue of $568.51 million on earnings of 24 cents per share.

Recently, FBR Capital's Scott Thompson reiterated his outperform rating and $30 price target on shares of Ciena. Thompson hiked his revenue estimate for the fourth quarter to $580 million from $568 million and raised his EPS estimate by a penny to 25 cents.

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The current short interest as a percentage of the float Ciena is very high at 18.6%. That means that out of the 93.41 million shares in the tradable float, 19.42 million shares are sold short by the bears. If the bulls get the earnings news they're looking for, then shares of CIEN could easily skyrocket post-earning as the bears rush to cover some of their bets.

From a technical perspective, CIEN is currently trending above its 200-day moving average and just below its 50-day moving average, which is neutral trendwise. This stock has been uptrending over the last few weeks, with shares moving higher from its low of $21.25 to its recent high of $24 a share. During that uptrend, shares of CIEN have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of CIEN within range of triggering a big breakout trade post-earnings.

If you're bullish on CIEN, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $24 to its 50-day moving average of $24.12 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 3.25 million shares. If that breakout hits, then CIEN will set up to re-test or possibly take out its 52-week high at $27.94 a share. Any high-volume move above that level will then give CIEN a chance to trend north of $30 a share.

I would simply avoid CIEN or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below some key near-term support levels at $22.50 to $21.50 a share with high volume. If we get that move, then CIEN will set up to re-test or possibly take out its next major support level at its 200-day moving average of $20.35 a share. Any high-volume move below that level will then give CIEN a chance to tag $19 to $18 a share post-earnings.

Lululemon Athletica

Another potential earnings short-squeeze trade idea is technical athletic apparel designer and retailer Lululemon Athletica (LULU), which is set to release its numbers on Thursday before the market open. Wall Street analysts, on average, expect Lululemon Athletica to report revenue $376.15 million on earnings of 41 cents per share.

Just this morning, Credit Suisse said the new CEO hire at Lululemon Athletica of Laurent Potdevin is a solid one given his strong brand management and consumer engagement. The firm has an outperform rating on the stock and a $78 per share price target.

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The current short interest as a percentage of the float for Lululemon Athletica is very high at 17.8%. That means that out of the 134.39 million shares in the tradable float, 17.81 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 4.2%, or by 739,000 shares. If the bears get caught pressing their bets into a bullish quarter, then shares of LULU could soar sharply higher post-earnings as the bears jump to cover some of their short positions.

From a technical perspective, LULU is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending for the last month, with shares moving higher from its low of $65.72 to its recent high of $72.22 a share. During that uptrend, shares of LULU have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of LULU within range of triggering a big breakout trade post-earnings.

If you're in the bull camp on LULU, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $72.22 to $74 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 2.73 million shares. If that breakout hits, then LULU will set up to re-test or possibly take out its next major overhead resistance level at $77.75 a share. Any high-volume move above $77.75 will then give LULU a chance to re-fill some of its previous gap down zone from June that started at $82.50 a share.

I would simply avoid LULU or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below some key near-term support levels at $68 to $67 a share with high volume. If we get that move, then LULU will set up to re-test or possibly take out its next major support levels at $63.50 to $62 a share. Any high-volume move below those levels will then give LULU a chance to tag $59 to $58 a share.

Oxford Industries

One potential earnings short-squeeze candidate is men's apparel player Oxford Industries (OXM) which is set to release numbers on Wednesday after the market close. Wall Street analysts, on average, expect Oxford Industries to report revenue of $199.55 million on earnings of 11 cents per share.

>>4 Stocks Breaking Out on Big Volume

The current short interest as a percentage of the float for Oxford Industries is notable at 4.8%. That means that out of the 14.31 million shares in the tradable float, 824,000 shares are sold short by the bears. This stock has a decent short interest combined with a very low tradable float. Any bullish earnings news could easily spark a sharp short-covering rally for shares of OXM post-earnings.

From a technical perspective, OXM is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong over the last six months, with shares moving higher from its low of $57.55 to its recent high of $75.82 a share. During that move, shares of OXM have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of OXM within range of triggering a near-term breakout trade post-earnings.

If you're bullish on OXM, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $75.13 to its 52-week high at $75.82 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 65,333 shares. If that breakout hits, then OXM will set up to enter new 52-week high territory, which is bullish technical price action. Some possible upside targets off that breakout are $80 to $85, or even $90 a share.

I would avoid OXM or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below some key near-term support levels at $72.55 to its 50-day moving average at $71.27 a share with high volume. If we get that move, then OXM will set up to re-test or possibly take out its next major support levels $66 to its 200-day moving average at $64.07 a share. Any high-volume move below $64.07 will then give OXM a chance to tag $61 to $60 a share.

Vera Bradley

Another earnings short-squeeze prospect is producer, marketer and retailer of functional accessories for women Vera Bradley (VRA), which is set to release numbers on Wednesday after the market close. Wall Street analysts, on average, expect Vera Bradley to report revenue of $129.27 million on earnings of 33 cents per share.

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The current short interest as a percentage of the float for Vera Bradley is extremely high at 62.1%. That means that out of the 21.57 million shares in the tradable float, 12.92 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 3.1%, or by 400,000 shares. If the bears get caught pressing their bets into a strong quarter, then shares of VRA could explode sharply higher post-earnings as the bears rush to cover some of their short bets.

From a technical perspective, VRA is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending over the last three months, with shares moving higher from its low of $17.27 to its recent high of $25.72 a share. During that move, shares of VRA have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of VRA within range of triggering a big breakout trade post-earnings.
If you're bullish on VRA, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $25.25 to $25.72 a share, and then once it takes out its 52-week high at $27.15 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 531,823 shares. If that breakout hits, then VRA will set up to enter new 52-week high territory, which is bullish technical price action. Some possible upside targets off that breakout are $34 to $35 a share.
I would simply avoid VRA or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below both its 50-day at $22.82 and its 200-day at $22.31 a share high volume. If we get that move, then VRA will set up to re-test or possibly take out its next major support levels at $20 to $19 a share. Any high-volume move below those levels will then give VRA a chance to tag its 52-week low at $17.27 a share.

Quiksilver

My final earnings short-squeeze play is men's sports clothing player Quiksilver (ZQK), which is set to release numbers on Thursday after the market close. Wall Street analysts, on average, expect Quiksilver to report revenue of $516.19 million on earnings of 4 cents per share.

The current short interest as a percentage of the float for Quiksilver is very high at 16.3%. That means that out of the 118.02 million shares in the tradable float, 18.21 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 3.3%, or by 608,000 shares. If the bears get caught pressing their bets into a bullish quarter, then shares of ZQK could rip sharply higher post-earnings as the bears jump to cover some of their short positions.

From a technical perspective, ZQK is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending for the last three months and change, with shares soaring higher from its low of $4.81 to its recent high of $9.29 a share. During that uptrend, shares of ZQK have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of ZQK within range of triggering a big breakout trade post-earnings.

If you're in the bull camp on ZQK, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $8.96 to its 52-week high at $9.29 a share with high volume. Look for volume on that move that hits near or above its three-month average volume of 1.68 million shares. If that breakout hits, then ZQK will set up to enter new 52-week high territory, which is bullish technical price action. Some possible upside targets off that breakout are $12 to $13, or even $15 a share.

I would avoid ZQK or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below its 50-day at $8.01 a share to more near-term support levels at $7.85 to $7.33 a share with high volume. If we get that move, then ZQK will set up to re-test or possibly take out its next major support level at its 200-day moving average of $6.86 a share to more support at $6.50 a share. Any high-volume move below $6.50 to $6 will then give ZQK a chance to re-fill a previous gap up zone from September that started at $5.25 a share.

To see more potential earnings short squeeze plays, check out the Earnings Short Squeeze Plays portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

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Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including

CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

Does OPEC Still Have Any Influence on Oil Markets?

The Organization of Petroleum Exporting Companies (OPEC) has lost its mojo. Actually, it's been disappearing for years and most people are just beginning to notice. The cartel has not controlled crude oil prices for at least the last seven or eight years and its position is deteriorating fast.

Last week's meeting of OPEC ministers concluded with the unsurprising decision to maintain the cartel's official production quota of 30 million barrels a day. Iran, though, was very clear that it plans to boost production well above its current level of 2.8 million barrels a day, targeting 4 million barrels a day by the end of next year.

The Saudis are now in the position either of supporting a rise in the quota — and the concomitant drop in prices — or cutting its own production to accommodate Iranian plans. But the Saudis can only do that for so long; the country's economy is built on oil exports and any long-term cut to production raises serious problems for the princes who run the Kingdom.

10 Best Value Stocks To Watch For 2014

And none of the other cartel members has shown the slightest inclination to cut production because their countries' economies likewise depend on crude oil exports. Some, like Libya and Nigeria, want to export more which only adds to the pressure on the rest of the cartel's membership.

OPEC's only remaining leverage on oil markets is its ability to control the amount of its production. Effectively the members can open or close the oil spigot more easily than can either the U.S. or Canada or Russia. But if they tighten the flow of crude, they risk cutting off the revenues most of them depend on.

The source of all these troubles, of course, is booming production in North America. The U.S. is positively swamped with crude and the surfeit has been driving down the price of WTI, except when investors cling to the mistaken notion that an improving U.S. economy and jobs outlook will somehow spark demand for more crude, bidding up prices for no reason related to supply and demand.

As the price of WTI falls in the U.S., the price of Brent has to fall as well because countries that import Brent can buy refined products from the U.S. even if the American ban on crude exports is never lifted. Even if Brent prices don't fall, crude oil that is benchmarked against Brent will be overpriced, opening world markets to U.S. products like gasoline and diesel fuel which will be very price-competitive.

New exploration and development projects outside North America have been delayed or cancelled, reducing reserves replacement that could drive up prices when the U.S. shale boom finally winds down. But that appears to be at least a decade away. On a global scale, OPEC investments have been targeted at replacing falling production, not searching for new fields. When (or if) U.S. production begins to decline, global demand could quickly outstrip supply.

OPEC's leverage is that if it waits to boost production until North American production begins to wane crude will be scarce and very expensive. In other words, some luckless buyers will have to pay a premium price for OPEC crude in order to save the world. Good luck with that idea.

And then there's the politics. The recent agreement by the U.S. and its partners with Iran over that country's nuclear program is particularly worrisome to the Saudis who worry that the deal means a change in U.S. strategy in the Middle East, a strategy that up to now has supported the Saudis and vilified the Iranians.

There are so many moving parts in the global oil machinery that any change can be far more disruptive than its initial impact may lead one to believe. OPEC members seriously underestimated the disruption to global markets that horizontal drilling and fracking would cause. They are now getting the message and they don't like what they hear.

Top 5 Gold Stocks For 2014

Gold in on a course to have the worst quarter on record, and possibly even the worst week on record. With gold dipping below $1,200 per ounce and the SPDR Gold Trust (NYSEMKT: GLD  ) off nearly 30% already this year, the yellow metal has been plagued by a flow of weak economic data. The result of the shifting global macroeconomic environment is that the two primary motivators of gold buying over the last several years have disappeared.

In the following video, Fool.com contributor Doug Ehrman discusses some of the factors affecting gold at current levels and where the commodity might be headed from here.

Gold has outshined the stock market with strong returns since 2000, but more recently has given way to big declines. The Motley Fool's new free report, "The Best Way to Play Gold Right Now," dissects the recent volatility and provides a guide for gold investing. Click here to read the full report today!

Top 5 Gold Stocks For 2014: NEW GOLD INC.(NGD)

New Gold Inc. engages in the acquisition, exploration, extraction, processing, and reclamation of mineral properties. The company primarily explore for gold, silver, and copper deposits. Its operating properties include the Mesquite gold mine in the United States; the Cerro San Pedro gold-silver mine in Mexico; and the Peak gold-copper mine in Australia. The company also has development projects, including the New Afton gold, silver, and copper project in Canada; and a 30% interest in the El Morro copper-gold project in Chile. The company was formerly known as DRC Resources Corporation and changed its name to New Gold Inc. in June 2005. New Gold Inc. was founded in 1980 and is headquartered in Vancouver, Canada.

Advisors' Opinion:

• [By Ben Levisohn]

  One group of stocks not feeling the optimism today: Gold miners. With fewer concerns that a U.S. attack on Syria will be disruptive and more evidence that tapering will begin this month, the price of the precious metal has dropped 1.6% to $1,388.90 an ounce–and gold stocks are falling with it. New Gold (NGD), for one, has dropped 3% to $6.55, while Barrick Gold (ABX) has fallen 1.3% to $19.25.

• [By Ben Levisohn]

  Even bad news has failed to dent the rise in gold stocks today. NewGold (NGD), for instance, has gained 1.8% to $7.49 despite the fact that the wall of one of its mines collapsed. The Wall Street Journal has the details:

• [By Ben Levisohn]

  Bridges favorite stocks include Goldcorp, Newmont, Eldorado Gold (EGO) and New Gold (NGD).

  Note, however, that these recommendations are all qualified in one way or another. Investors should keep that in mind before going all in on the gold miners.

Top 5 Gold Stocks For 2014: Goldcorp Incorporated(GG)

Goldcorp Inc. engages in the acquisition, exploration, development, and operation of precious metal properties in Canada, the United States, Mexico, and Central and South America. It produces and sells gold, silver, copper, lead, and zinc. The company was founded in 1954 and is headquartered in Vancouver, Canada.

Advisors' Opinion:

• [By Rich Smith]

  Bugs of a feather flock together
  Arizona's proposed law was flawed from the get-go, because it fatally misunderstood the philosophy behind precious-metal investors. Stock investors sometimes buy gold stocks such as Yamana Gold (NYSE: AUY  ) or Goldcorp (NYSE: GG  ) in hopes they will rise in value, so they can cash out at a profit. (Although with Yamana shares down 13% so far this year, and Goldcorp down 21%, there have been precious few profits to cash out lately.) They're equally willing to trade one gold-mining stock with a high P/E (Goldcorp costs 16.5 times earnings for example, and Yamana more than 20) for a gold miner that looks cheaper than the competition -- for example, Newmont Mining (NYSE: NEM  ) , which costs only 10 times earnings.

• [By Heather Ingrassia]

  On Friday, shares of PepsiCo -- which currently possess a market cap of $122.80 billion, a P/E ratio of 18.71, a forward P/E ratio of 16.78, and a forward yield of 2.86% ($2.27) -- settled at $79.73. As of June 30, 2013, and from a cash and debt perspective, Goldcorp (GG) had a total of $8.14 billion in cash and a total of $29.51 billion in debt on its books. Based on Friday's closing price of $29.92, shares of PepsiCo are trading 2.50% below their 20-day simple moving average, 3.60% below their 50-day simple moving average, and 3.40% above their 200-day simple moving average. These numbers indicate a short and mid-term downtrend and a moderate long-term uptrend for the stock, which generally translates into somewhat of a buying mode for most traders.

Best Safest Companies To Own In Right Now: First Majestic Silver Corp.(AG)

First Majestic Silver Corp. engages in the production, development, exploration, and acquisition of mineral properties with a focus on silver in Mexico. The company owns interests in La Encantada Silver Mine comprising 4,076 hectares of mining rights and 1,343 hectares of surface land located in Coahuila; La Parrilla Silver Mine consisting of mining concessions covering an area of 69,867 hectares; and San Martin Silver Mine comprising approximately 7,841 hectares of mineral rights and approximately 1,300 hectares of surface land rights located in Jalisco. It also holds interests in Del Toro Silver Mine consisting of 393 contiguous hectares of mining claims and an additional 129 hectares of surface rights located in Zacatecas; Real de Catorce Silver Project comprising 22 mining concessions covering 6,327 hectares located in San Luis Potosi state; and Jalisco Group of Properties consisting of mining claims totalling 5,240 hectares located in Jalisco. The company was founded in 1979 and is headquartered in Vancouver, Canada.

Advisors' Opinion:

• [By Doug Ehrman]

  While many precious-metals companies have been in a slump of late, there is one that belongs perpetually in your portfolio: Silver Wheaton (NYSE: SLW  ) . The company is not like other miners -- including Pan American Silver (NASDAQ: PAAS  ) and First Majestic (NYSE: AG  ) -- in that it has a unique business plan that insulates it against many of the vagaries of the mining business. Moreover, because silver will always have a significant industrial demand component, even with the heightened volatility you see in the silver market, maintaining exposure to silver is appropriate.

Top 5 Gold Stocks For 2014: CME Group Inc.(CME)

CME Group Inc. operates the CME, CBOT, NYMEX, and COMEX regulatory exchanges worldwide. The company provides a range of products available across various asset classes, including futures and options on interest rates, equity indexes, energy, agricultural commodities, metals, foreign exchange, weather, and real estate. It offers various products that provide a means of hedging, speculation, and asset allocation relating to the risks associated with interest rate sensitive instruments, equity ownership, changes in the value of foreign currency, credit risk, and changes in the prices of commodities. CME Group owns and operates clearing house, CME Clearing, which provides clearing and settlement services for exchange-traded contracts and counter derivatives transactions; and also engages in real estate operations. Its primary trade execution facilities consist of its CME Globex electronic trading platform and open outcry trading floors, as well as privately negotiated transact ions that are cleared and settled through its clearing house. In addition, the company offers market data services comprising live quotes, delayed quotes, market reports, and historical data services, as well as involves in index services business. CME Group?s customer base includes professional traders, financial institutions, institutional and individual investors, corporations, manufacturers, producers, and governments. It has strategic partnerships with BM&FBOVESPA S.A., Bursa Malaysia Derivatives, Singapore Exchange Limited, Green Exchange, Dubai Mercantile Exchange, Johannesburg Stock Exchange, and Bolsa Mexicana de Valores, S.A.B. de C.V., as well as joint venture agreement with Dow Jones & Company. The company was formerly known as Chicago Mercantile Exchange Holdings Inc. and changed its name to CME Group Inc. in July 2007. CME Group was founded in 1898 and is headquartered in Chicago, Illinois.

Advisors' Opinion:

• [By Sean Williams]

  Leading the charge higher is CME Group (NASDAQ: CME  ) , which advanced 3.3% after exploring a possible sale of its New York Mercantile Exchange building. CME has considered leasing back a portion of the building to run its energy trading operations out of, or it may just move those operations to another building in Manhattan altogether. This announcement also comes on the heels of news that Treasury futures volume hit an all-time record yesterday. With CME looking for ways to maximize shareholder value in an otherwise tepid trading environment, I'd call today's move encouraging.

• [By Sean Williams]

  Shares of future exchange operator CME Group (NASDAQ: CME  ) advanced 1.5% after being mentioned favorably on CNBC by commentator Simon Baker. While I normally would recommend paying little attention to the opinions of analysts, today's move could have more to do with the increasing volatility, given the move lower, which is very likely to increase futures contract volume. Sometimes, the worst of times brings about the best business for CME Group, and we could be seeing signs of that with today's big move higher.

• [By Matthew Leising]

  The study, commissioned by CME Group Inc. (CME), the Futures Industry Association, the Institute for Financial Markets and the National Futures Association, surveyed private insurance companies to gauge their interest in providing protection to customers if their futures broker goes bankrupt, according to a statement released today.

• [By Laura Brodbeck]

  Monday

  Earnings Releases Expected: Black Hills Corporation (NYSE: BKH), CME Group Inc. (NASDAQ: CME), Leapfrog Enterprises (NYSE: LF), Hill International, Inc. (NYSE: HIL) Economic Releases Expected: eurozone manufacturing PMI, British construction PMI, US factory orders, Chinese services PMI, Indian services PMI

  Tuesday

Top 5 Gold Stocks For 2014: Iamgold Corporation(IAG)

IAMGOLD Corporation, together with its subsidiaries, engages in the exploration, development, and production of mineral resource properties worldwide. It primarily explores for gold, silver, zinc, copper, niobium, diamonds, and other metals. The company holds interests in eight operating gold mines, a niobium producer, a diamond royalty, and exploration and development projects located in Africa and the Americas. Its advanced exploration and development projects include the Westwood project in Canada; and the Quimsacocha project, which consists of 3 mining concessions covering an aggregate area of approximately 8,030 hectares in Ecuador. The company was formerly known as IAMGOLD International African Mining Gold Corporation and changed its name to IAMGOLD Corporation in June 1997. IAMGOLD Corporation was founded in 1990 and is based in Toronto, Canada.

Advisors' Opinion:

• [By Ben Levisohn]

  As a result, Chidley and team upgraded Agnico Eagle Mines (AEM) and�Yamana Gold (AUY) to Neutral from Underweight, and raised Barrick Gold (ABX), Goldcorp (GG) and Iamgold (IAG) to Overweight from Neutral.�Gold Fields (GFI) was downgraded “due to increased risk and also reduced expectations for the South Deep operation,” Chidley says.

• [By Tom Stoukas]

  Air France led airlines lower, falling 4 percent to 7.30 euros. International Consolidated Airlines Group SA (IAG) lost 1.9 percent to 270.7 pence while Deutsche Lufthansa AG slid 2.1 percent to 15.75 euros.