Government sponsored loan programs, such as FHA loans, have been getting a lot of press lately. But, how does an FHA loan differ from a conventional loan? What are the advantages of each?FHAThe Federal Housing Authority (FHA) was created in 1934 to help potential homeowners gain access to money to boost homeownership rates throughout the United States. FHA loan programs require very little money down on a new purchase (usually only 3% of the purchase price) and will lend up to 95% of the value of a home on a cash out refinance. This high loan-to-value ratio is the primary appeal of an FHA transaction.The FHA is not a lender and does not actually make or guarantee home loans. They insure the loans an online mortgage lender can assist you in obtaining.FHA currently only offers three loan programs:30 year fixed15 year fixed5 year fixed ARMFHA Mortgage Insurance Premiums (MIP)Every FHA loan requires Mortgage Insurance Premiums (MIP) regardless of the down payment amount or loan to value. In addition, FHA loans require Up-front Mortgage Insurance Premiums (UFMIP). The UFMIP can be financed into the loan.Up-front Mortgage Insurance Premium (UFMIP)UFMIP is calculated at 1.50% of the base loan amount on all loans, regardless of the down payment amount. This insurance protects the lender against losses in the event that the borrower defaults on the loan.**The entire amount of the UFMIP can be financed into the loan amount!**For example:If the FHA loan amount is $100,000 (base loan amount)
The mortgage insurance premium would be $1,500 ($100,000 x 1.50%)
The mortgage amount including MIP would be $101,500 ($100,000 + $1,500)What really happens during an FHA mortgage transaction is that the borrower owes FHA a lump sum mortgage insurance premium. The lender making the FHA loan will actually lend the money for the premium to the borrower and send the money to FHA so that the mortgage will be insured.Monthly Mortgage Insurance PremiumIn addition to the UFMIP, there may be a monthly premium due as well. The monthly premium is .50% of the base loan amount.On a 30 year fixed loan, the monthly payment would be calculated as follows:$100,000 x .50% = $500.00 / 12 months = $41.67 per monthMaximum Loan AmountFHA also has maximum loan amount restrictions that differ from county to county. Go to entp.hud.gov/idapp/html/hicostlook.cfm to view the maximum loan amount in your area.Conventional loansThere are two types of conventional loans: conforming and jumbo.Conforming loansA conforming loan requires a loan amount of $417,000 or less. Conforming loans offer a larger variety of loan programs than FHA with a wide array of lending options. A conforming loan generally requires a larger down payment for a purchase (usually at least 5%) and has more restrictive guidelines on getting cash out of the property for a refinance.The big advantage of conforming loans is that they do not require Private Mortgage Insurance (PMI) if the loan amount of the new first mortgage is 80% or less of the value of the home. The elimination of PMI can offer a significant savings over the life of the loan.Additionally, conforming loans offer interest only options. FHA currently does not allow interest only payments.The Economic Stimulus Act of 2008 temporarily expanded the conforming loan limits through 12/31/2008 to as high as $729,750 in an attempt to shore up the slumping housing market. The new conforming loan limits are based on 125% of a city’s median home price. Go to entp.hud.gov/idapp/html/hicostlook.cfm to find the temporary conforming loan limit in your area.Jumbo loansA jumbo loan is any loan amount over $417,000. Jumbo loans generally have slightly tighter lending standards and may require an additional down payment of at least 10% of the purchase price. Jumbo loan programs are as diverse as conforming loan programs and also do not require PMI if the loan amount is less than 80% of the value of the home.SummarySo, to summarize, it is really all about loan-to-value. If you plan on putting down a small down payment, than an FHA loan is most likely your best bet. But, if you are putting down a larger down payment, a conventional loan may be the way to go.

SEO has been around for a decade, and is still somehow lost behind veils of myths and secrecy. I am here to remove the sugar coating that surrounds SEO.The Faith MythIf I build it (a website), they will come? The answer to that is NO. If you create unique content, actively syndicate and promote that content to selected sites, and participate in social, web and user communities – Then they will come.Do I need a SEO guru? The answer to that is NO. Anyone who claims to be a Guru is a normal person with SEO knowledge, but he likes to flaunt it to people who don’t know anything about SEO.Do I need a Technological Wizard? The answer to that is another NO. SEO is based on online branding, marketing and selling strategies, and is not a programming code. Yes, a good website needs a tech wizard for other things, but that will not help with search rankings.Do I need an in-house SEO expert? The answer is YES, if you have the budget to hire the “Best”. But if you don’t have the budget you can outsource to a SEO expert at half the cost (minus the employee benefits).Do I need a top SEO company? Working with a company has its advantages and disadvantages. The main advance is that a team of SEO’s will be working on your project. The main disadvantage is that the team of SEO’s working on your project will probably have just 1 to 2 years of experience. SEO is more about creating constant value for your users, following your intuitions, and keeping a look out for opportunities. Will this company be attentive to these?Do I need a Link Builder? The answer to that is NO. Amazed! The era of paid link building, reciprocal linking, and link building requests is OVER. Natural link building is based on the merit on your content, and syndicating and promoting your content on relevant and popular web, user and social communities.What you need is a SEO expert who is a willing partner with your online success, can assist build a long term SEO / SEM strategy, and take responsibility for the success and failures. It’s a journey to your online success, so partner with someone who is willing to go the distance.The Rate MythAre all SEO services the same? NO they are not. While the foundations principles remain, each SEO expert follows their own process to higher rankings based on their own unique experiences and knowledge. It’s a case of many roads all leading to one. Ask the SEO expert to explain his strategy. If it does not sound like common sense to you, it’s probably nonsense.Hiring a SEO expert is expensive? YES they are expensive, but not as much as the “Losses” you are making right now because your competitors are stealing your business.Cheap SEO services are cheap? NO it’s not necessary. It’s not about the price, it’s about value. A SEO expert who is constantly dedicated to creating value for the users, and actively promoting your products/ services across diverse web, user and social communities is bound to succeed.What you need is to “outsource” to a SEO expert who can “be part” of your core online team. Get the best of both worlds. Find a SEO expert who is ready to work on a fixed monthly remuneration (plus some nice bonus), and if he/she is good, then don’t let go.The Time MythIs 6 months enough for SEO? The answer is NO. Do you plan to be in business for 6 months only? I though not. Then SEO and Internet Marketing needs to be a part of your core marketing activities till the time you plan to be in business.Is 3 to 4 months enough to see results? The answer is NO. The reason is search engines are now valuing consistency and quality over a period of time. In 3 to 4 months you will become a serious contender in the search rankings but emerging a winner (convert your traffic into leads and orders) can take 6 months to a year depending on the keywords and the competition.The faster I build links the better? Speed is not the key here, its consistency that’s the new mantra. Are 500 web directory submissions in 15 days better than say 30 to 40 high quality web directory submissions every month? The answer to that is NO.What you need is to implement a long term SEO strategy, implemented “Weekly”. Create resourceful, unique and informative content EACH WEEK, syndicate to selected 10 to 15 popular article sites EACH WEEK, promote across 10 – 15 relevant social media and bookmarking sites EACH WEEK, and participate in relevant social, web and user communities EACH WEEK.The Link MythI have to pay, beg or trick for links? The answer to that is NO. The days of paid links (unless they are part of a PPC or advertising campaign), reciprocal links and requesting for links are OVER. Natural link building is actively syndicating and promoting your content so that these communities that you participate in link back to your content. These links are based on merit, and are highly valued. In the near future I predict that these may the only links that matter.Is quantity of links the King? NO, it’s quality and diversity of links that’s King. Quality means that credible and relevant websites are linking to your content as they see value in it for their users. Diversity means that it’s better to build a healthy matrix of links from diverse websites (web directories, article submissions, social bookmarking, social media and networking etc) all pointing back to your content, than build thousands of links from say only article sites, or only web directories.What you need is a link strategy that actively encourages the creation of unique content, and then actively promoting and syndication of that content across relevant user, web and social communities. This is a weekly exercise. Other than this create a healthy mix of links from web directories, article sites, social bookmarking sites, education (.edu, .org) sites, PR releases, relevant sites/ blogs, industry sites, blog reviews etc.The Traffic MythIs Traffic = Conversions? The answer is NO. There are various ways to get targeted traffic to your website, but to convert a visitor to a customer requires innovative design, content, services, products, rates, service and business sense. Did I just forget to put in SEO in the list?All traffic is good? The answer is NO. Surprised! To target traffic means to target a keyword. To target a keyword means “time” and “effort” to focus on targeting that keyword. If you create highly targeted keywords then you get targeted traffic. So traffic from keywords that don’t synergize with your product, information or service is useless, so are keywords that don’t lead to a sale.What you need is to identify keywords that will translate into customers. Each keyword had separate competition and traffic potential, and you have to build links to each of these keyword pages. Identify keywords will lesser competition yet higher traffic potential. Start with local keywords (local traffic), then country specific keywords before you try for global keywords. As you attain success with each keyword (on page #1 of search rankings) you will create a funnel of traffic to your website.The Ranking MythI want # 1 ranking for my keywords? Good for you, but it’s not possible for anyone to guarantee #1 rankings unless they own the search engine. Set goals for Page #1 rankings for your keywords. It is wise to start with city centric keywords and after success, move to country specific keywords, and then capture the global keywords.My new site will rank because I am ready to pay? The answer to this is NO. Search engines value sites that have been in business for long, and those that intend to be in business for long. A new site will take 6 months to start ranking well in search listings, but that does not mean you cannot start getting business for your new website via PPC, AdWords, and banner ads etc till then.My SEO efforts and should translate into steady rise of my keywords in Search rankings? I agree it seems reasonable to expect that after 2 months of SEO effort you would see a steady rise in the search listings, but it does not work that way. Search engines update their listings every 2 – 3 months. What you will notice however is a quantum leap after you have been showing consistency in building user value, and building quality links.What you need is to FOCUS on being consistent with creation of quality content, and syndication and promotion of that content, including other link building opportunities that may arise. Don’t worry about rankings, if you build a strong SEO strategy that’s implemented week to week, then your keywords will find way to page #1, and stay there.

Most universities today offer the Masters in Finance as an option within the structure of the MBA program. Schools of business usually have several areas of concentration to choose from in the second year of a two year, full time MBA course of study. At most schools the most popular major for the MBA is Finance. The list of schools below all include finance as an MBA option and in some cases offer additional graduate level options for degrees related to finance, either within the context of corporate operations or as an analytical profession. Some universities offer a Masters in Financial Mathematics for students interested in the complexities of analytics or in a PhD program that specializes in the technology of business finance. The schools listed below all have degree programs designed for career advancement in the business world.New England College of Business and Finance has been in existence since 1909 when it was founded as the New England Banking Institute. Over the years it has evolved from a finance training institution to a full fledged degree granting college accredited by the New England Association of Schools & Colleges. The Master of Finance degree includes eleven advanced courses that cover International Finance, Applied Quantitative Methods, Enterprise Risk Management, Portfolio Management and several other areas of the academic discipline. The college has a solid background in educating aspiring professionals in the banking and finance industries.Baker College offers the online MBA in Finance with a program that includes thirty three credit hours devoted to business studies and an additional twenty credit hours for classes in the finance specialization. Among the business core courses are classes in Research & Statistics for Managers, Accounting for the Contemporary Manager and Management Information Systems, so the analytic tools and IT requirements for a Masters in Finance are covered in the first section of the program. Advanced finance classes include Public Finance and International Business Finance.University of Liverpool has ventured into the international online education field with its online MBA program. Since the program was accredited by the European Foundation for Management Development it has developed a student body drawn from over 175 nations. The MBA in Finance and Accounting is delivered in modules, with each module consisting of classes that increase in complexity. The University provides e-books or printed textbooks at no charge. Finance modules include Investment Strategies, Financial Reporting, Business Finance and Advanced Managerial Accounting.Kaplan University offers an online Masters of Business Administration with specialization in Finance that can be completed in one year of full time study or two years of part time study. The curriculum includes mergers and acquisitions, international business finance, foreign exchange risk, hedging strategies, and global positioning of assets. Kaplan also offers a MBA in Entrepreneurship that delves into the creative sources and uses of capital involved in a startup.Northeastern University offers a MBA in Finance online through its School of Business. This area of concentration covers mergers and acquisitions, licensing, joint ventures, and IPOs from a management perspective. There is also a MBA in Entrepreneurship that includes some of these advanced courses. In addition Northeastern offers an online Master of Science in Finance that focuses entirely on the complexities of accounting and finance, quantitative and modeling methods, and international finance structures for global businesses.

The Good, The Bad And The Indifferent (Entertainment)Sounds like the title of a spaghetti western, and to be honest, it probably, over the years has had as many casualties. So what am I talking about? The answer is bad entertainment.I think most of us can relate to either a personal experience or the experience of a friend, to how the focal point of an event ruined it. The entertainment at an event is probably the most crucial part, if you don’t include inviting the guests, and when it goes wrong everyone notices. Just the other day I was in a conversation and was told about how a DJ failed to turn up at an event, that event being a wedding, and how despite repeated phone calls no one could contact the party involved (this was a privately booked entertainment). This basically ruined what should have been the best day of two peoples lives, a real shame as everything else had gone so smoothly. This is something not just confined to private events, it can also effect corporate ones too. Imagine planning a corporate event, your colleagues will be there, perhaps someone high up within the company is flying in from abroad, or you are trying to make a good impression on future clients and seal a deal worth a lot of money. Everything is in place, or so you think, then out of the blue… nothing, no entertainment. Panic sets in, but in the end there is little you can do, it is too late. Of course the entertainment can arrive, but still let you down. A band in jeans and T shirts at a black tie corporate event, the wrong music, there are so many aspects that to list them all would become boring for those of you reading this.So what is the solution you ask? The best solution is to use an entertainment agency. Allow me to explain. At one time all UK entertainment agencies had to be licensed, which is no longer the case, however all entertainment agencies are required to comply with the employment agencies act and it’s amendments. This gives you, the client, legal recourse, which you can exercise if, need be. Some entertainment agencies are members of professional bodies such as The Agents Association Of Great Britain or the NEAC (National Entertainment Agents Council ), if they are then these should be your first point of contact if you have a problem, which you cannot resolve. Both organisations have a code of conduct for members and also have a disciplinary process available. If an agency is not a member of either, and the complaint is serious enough, then you can make a complaint to the DBERR, formally the DTI, who have powers to act against and impose severe sanctions on rogue agencies.I am sure there are people reading this who are saying to themselves, is this just a plug to get business, the answer is no. Although I run an entertainment agency, I am not saying that everyone should use our services, people should and do have a choice. I am saying make sure you use a reputable entertainment agency, of which there are many. So what can you expect from a reputable entertainment agency, the first is a high level of service, professional people to source entertainment to your needs. The second, if something goes wrong, a reputable agency will do its best to put it right. Third, legally binding contracts between the parties involved.(Make sure you read any terms and conditions before signing)Now I am sure there are some people saying, I have a contract for my DJ/Band, he/they sent me one, or I always use an agency and have a contract. My question to those people is “IS IT LEGAL”? Just because you have a contract it does not mean that it is legal or that in a dispute it will hold up in court. Always make sure that any contract you have complies with the law. If in doubt always ask the person issuing it, or take independent legal advice. The good news is that a legal contract is everybody’s safeguard, and it will detail all the requirements, so you can rest easy knowing that everything is covered.So in conclusion, to make your event memorable for all the right reasons:Always use a reputable agency, to avoid the bad or the indifferent, and just enjoy the good.Good luck with your next event.© Paul Sims 2008

The internet has become quite as unpredictable and ever-changing as it has always been. Moreover, with the advent of new technology, hardware, and applications, the internet is spreading it’s ‘tentacles’ even more in various aspects as it relates to doing business online. If you run a business and you have not yet started searching for a way to benefit from all this, then what are you waiting for? These changes in technology determine many of the far-reaching changes that take place in many businesses around the world. Don’t be misled into believing it’s only small business owners and self-employed web entrepreneurs that are missing out. Some of the largest businesses all over the world with enormous funds and work force are ‘squandering’ their chances to capitalise on these changes which are happening.If you’re reading this, it means you want to keep up with internet trends that affects business online. So, go ahead and shut down your email and ignore your phone for some minutes, and pay serious attention because you’re about to learn some of the crucial changes taking place now and those which are set to take place in the near future, needless to say.1. Video Advertising Will Start to Take OverYou must have seen those small ads on the side of Bing search bar or the Google search bar – the sponsored advertising which are only text based and not always attention-grabbing. Well, it’s safe to say that while they aren’t going to vanish anytime soon, they’re going to be ignored by many marketers who are searching for a better means to connect with their crowd. We are referring to video advertising here. Video advertisements are definitely nothing new, with social stations like YouTube dedicated to hosting billions of videos and marketing platforms such as Bing and Facebook offering video options to advertisers. With IN-SERP video advertisements running on the Google, it looks like everyone will be getting joining this type of promotion before long. The possibilities are endless, so anticipate a substantial increase of video advertising coming from businesses and definitely entrepreneurs looking for a wider reach for their business online.2. Mobile devices will dominate desktop computers This might appear like an empty claim, but you will be very wrong if you ever imagine that, even for a minute! 2015 recorded a substantial growth in the use of mobile browsers to access websites and this growth will keep increasing. Not only was desktop computer traffic taken over by mobile traffic, additionally they released a brand new algorithm upgrade which phased out websites that aren’t optimized for mobile browsing. This is a tremendous move towards mobile sites. More still, Google are saying that, as an online business owner, you must have a mobile friendly website. This tells you how important mobile traffic is for website owners. Google is probably banking on the fact that in the long run, desktop computer traffic will cease to exist and mobile traffic will completely take over. Nevertheless, whichever way things are going at the moment, you have to know that in the coming years, business online will be carried out primarily though mobile devices.3. Indexing of apps will bring about mass app developmentGoogle has provided indexing of apps for quite some time now, however as the search engine position for apps become more sophisticated, many businesses will come to recognise the chances of more exposure for their businesses online. Apps can virtually do anything that any website can do. This is not saying that they are going to replace websites completely, however they’re definitely setting the pace for another medium in 2016 and beyond. You might have to invest in an app as times goes on, because if not, you will be leaving a lot of traffic for your competitors.4. Digital Assistants Will Bring About New OptimizationDigital assistance such as Cortana, Siri and even Google Now were created to assist us when we are trying to find things online, thereby making internet search a breeze. Undoubtedly, traditional SEO techniques and PPC marketing are the most popular right now as it pertains to making your website known to a lot of people from many part of the world. However, the entrant of these assistants will lead to a fresh type of optimization and you need to start considering it. Here is what you have to do – think of ways to make your websites’ contents easily accessible to these digital assistants. Agreed, these assistants do make use of Google search to deliver their search results, however if you want to stay ahead of the pack when it comes to doing business online, you will need to optimize things a little bit different from the way you use to do it.5. Wearable technologyThis may be somewhat farther in the future than the other trends, however, it’s not that far off. Technology like the smart watches will change online business for a long time. The chances to advertise through these smart, wearable devices will be endless. Shortly they are going to become household devices like the desktop computers and laptops before them. Be ready for a whole new world of marketing platform when that finally happens. This might be a little bit further in the future though.

Personal loan is commonly referred as the means of achieving your dreams. Personal loan is one of the simplest of the type of loans. Loans are not appreciated by anybody of us. But, in the present social and economic circumstances, it is pretty hard for a person to arrange money for an additional expenditure other than in the budgeting. And loans are the only possible means to arrange the finance to meet their needs. The widespread popularity of personal loan makes people often comment it as, the dream financer.Personal loan is the kind of loan, which can be used for any purpose. Most of the other loans are approved for a specific purpose such as home equity, student loan, and debt consolidation. The personal loans have gained the acceptance mainly because of the inadequacies of the other loan to cater all the needs. The focused loans can be used for only a particular reason and not for any other, even though the needs may be varied. While personal loan can be used for any purpose such as repairs, hospital expenses, and even for a dream holidays. To obtain the most affordable and adequate personal loan, the different types of the loan has to be evident.Personal loan can be generally categorized into two – secured personal loan and unsecured personal loan. Unsecured personal loan can be arranged without the support of any collateral security. The personal loan can be used for anytime purposes and the unsecured personal loan does not impose any risk about losing your asset, because of the defaults in the loan repayment. The unsecured personal loan can be availed from any sources and it include credit card loan, unsecured loans from banks, private lenders and so on. The cash advances and payday loans can also be viewed as unsecured personal loans. But the lender will not be fully happy with this deal as he will not have any assurance about the loan amount. To compensate the risk in the deal, they will be very stringent in the interest rates of the loan amount and the repayment duration will be decreased.On the other hand, the secured personal loan is more comfortable for the borrowers as well as lenders. If borrowers can provide the collateral security of any asset, such as home, property or any other valuable one, the lenders are always lenient in their conditions. You can avail the best interest rate and long repayment schedule with secured personal loan. The secured personal loan includes home equity personal loans. But the risk is with borrower, you have to be strict in your repayment. If not, you will loss your valuable asset. The lenders can even proceed with foreclosure if you default the payments.As with any other loan, the types of personal loan is also provided based on the credit report of the person. For persons with good credit, certainly it will be easy to locate the best deals. But now, bad credit persons are also given good offers from the specific bad credit lenders. The comparative market search will help everyone to locate the best personal loan. According to the personal preference the appropriate type of personal loan can be selected.

Shopping online for your car loan is a wise move as it can help to save you a lot of money. However shopping and comparing for car loans can be very stressful because of the different loan features, administrative fees, loan policies and loan process which are offered by different lenders.In lieu to reduce the anxiety of many borrowers out there, here are some useful guidelines for one to refer to when it comes to auto loan comparison and here are some of the key elements which will affect your car loan selections,1. The APR ( Annual percentage rate ) is the actual annual cost of the loan. APR is expressed as a percentage of the loan principal. The lower the APR, the better the loan is.2. Total cost of the loan. This is the sum of all the monthly payment plus its fees and interests during the tenure of the loan period that you need to paid to the lender.3. Approved loan tenure duration.
-This is the allowable length of time for the borrower to repay back all the necessary principal plus its chargeable interest on the principal amount over the loan tenure duration of sometime between 48 to 72 months. However, it is recommended that a medium length of tenure is the most preferred.4. Prepayment privileges.
-Some loaners offer discounts on Interest to their borrowers should they payout their loan faster than in agreement. Some lenders allow their customers to have a maximum of 3 extra payments per year only, while some does not allow for any extra payments to be made at all. Please remember to ask for such discounts if you are not sure if your lender has this available or not.5. Early Discharge penalties.
On the contrary, some lenders will impose penalty to their lenders in cases where loan are paid off before the maturity date.6. Loan Interest.
- Even with the same loan company, different applicants will get different rates for their auto loan applications because the Loan interest offered by the lender to the individual applicants will be different based on these few key criteria such as: the credit score of the applicant, the loan amount, the tenure period, the type of vehicle on loan, the borrower’s age, driving records, occupational status and many more.7. Feasibility of discounts.
- Some auto loan company offers ‘Loyalty discounts’ to their loyal customers who had came back for auto loan for their second vehicle within three years time after the first auto loan was approved. The percentage of discount may range from 15% to 25%.8. The availability of securing your auto loan against your home equity.
- This may help in cutting down your auto loan interest payment because the insurer is considered to be in a lower risk now with the home equity.All the above are key factors which need to be taken into consideration for evaluation of loan application. Of course the priority of these eight factors above will not be the same for different individual. It is then appropriate for each of us to rank these factors base on their criticalness in order to arrive at the best auto loan.

Key Insights
The strong pullback in the U.S. dollar provided significant support to stocks.
Treasury yields have pulled back after touching new highs, which served as an additional positive catalyst for S&P 500.
A move above 3730 will push S&P 500 towards the resistance level at 3760.
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Pfizer Rallies After Announcing A Huge Price Hike For Its COVID-19 Vaccines
S&P 500 is currently trying to settle above 3730 as traders’ appetite for risk is growing. The U.S. dollar has recently gained strong downside momentum as the BoJ intervened to stop the rally in USD/JPY. Weaker U.S. dollar is bullish for stocks as it increases profits of multinational companies and makes U.S. equities cheaper for foreign investors.

The leading oil services company Schlumberger is up by 9% after beating analyst estimates on both earnings and revenue. Schlumberger’s peers Baker Hughes and Halliburton have also enjoyed strong support today.

Vaccine makers Pfizer and Moderna gained strong upside momentum after Pfizer announced that it will raise the price of its coronavirus vaccine to $110 – $130 per shot.

Biggest losers today include Verizon and Twitter. Verizon is down by 5% despite beating analyst estimates on both earnings and revenue. Subscriber numbers missed estimates, and traders pushed the stock to multi-year lows.

Twitter stock moved towards the $50 level as the U.S. may conduct a security review of Musk’s purchase of the company.

From a big picture point of view, today’s rebound is broad, and most market segments are moving higher. Treasury yields have started to move lower after testing new highs, providing additional support to S&P 500. It looks that some traders are ready to bet that Fed will be less hawkish than previously expected.

S&P 500 Tests Resistance At 3730

S&P 500 has recently managed to get above the 20 EMA and is trying to settle above the resistance at 3730. RSI is in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

If S&P 500 manages to settle above 3730, it will head towards the next resistance level at 3760. A successful test of this level will push S&P 500 towards the next resistance at October highs at 3805. The 50 EMA is located in the nearby, so S&P 500 will likely face strong resistance above the 3800 level.

On the support side, the previous resistance at 3700 will likely serve as the first support level for S&P 500. In case S&P 500 declines below this level, it will move towards the next support level at 3675. A move below 3675 will push S&P 500 towards the support at 3640.

Summary
SPDN is not the largest or oldest way to short the S&P 500, but it’s a solid choice.
This ETF uses a variety of financial instruments to target a return opposite that of the S&P 500 Index.
SPDN’s 0.49% Expense Ratio is nearly half that of the larger, longer-tenured -1x Inverse S&P 500 ETF.
Details aside, the potential continuation of the equity bear market makes single-inverse ETFs an investment segment investor should be familiar with.
We rate SPDN a Strong Buy because we believe the risks of a continued bear market greatly outweigh the possibility of a quick return to a bull market.
Put a gear stick into R position, (Reverse).
Birdlkportfolio

By Rob Isbitts

Summary
The S&P 500 is in a bear market, and we don’t see a quick-fix. Many investors assume the only way to navigate a potentially long-term bear market is to hide in cash, day-trade or “just hang in there” while the bear takes their retirement nest egg.

The Direxion Daily S&P 500® Bear 1X ETF (NYSEARCA:SPDN) is one of a class of single-inverse ETFs that allow investors to profit from down moves in the stock market.

SPDN is an unleveraged, liquid, low-cost way to either try to hedge an equity portfolio, profit from a decline in the S&P 500, or both. We rate it a Strong Buy, given our concern about the intermediate-term outlook for the global equity market.

Strategy
SPDN keeps it simple. If the S&P 500 goes up by X%, it should go down by X%. The opposite is also expected.

Proprietary ETF Grades
Offense/Defense: Defense

Segment: Inverse Equity

Sub-Segment: Inverse S&P 500

Correlation (vs. S&P 500): Very High (inverse)

Expected Volatility (vs. S&P 500): Similar (but opposite)

Holding Analysis
SPDN does not rely on shorting individual stocks in the S&P 500. Instead, the managers typically use a combination of futures, swaps and other derivative instruments to create a portfolio that consistently aims to deliver the opposite of what the S&P 500 does.

Strengths
SPDN is a fairly “no-frills” way to do what many investors probably wished they could do during the first 9 months of 2022 and in past bear markets: find something that goes up when the “market” goes down. After all, bonds are not the answer they used to be, commodities like gold have, shall we say, lost their luster. And moving to cash creates the issue of making two correct timing decisions, when to get in and when to get out. SPDN and its single-inverse ETF brethren offer a liquid tool to use in a variety of ways, depending on what a particular investor wants to achieve.

Weaknesses
The weakness of any inverse ETF is that it does the opposite of what the market does, when the market goes up. So, even in bear markets when the broader market trend is down, sharp bear market rallies (or any rallies for that matter) in the S&P 500 will cause SPDN to drop as much as the market goes up.

Opportunities
While inverse ETFs have a reputation in some circles as nothing more than day-trading vehicles, our own experience with them is, pardon the pun, exactly the opposite! We encourage investors to try to better-understand single inverse ETFs like SPDN. While traders tend to gravitate to leveraged inverse ETFs (which actually are day-trading tools), we believe that in an extended bear market, SPDN and its ilk could be a game-saver for many portfolios.

Threats
SPDN and most other single inverse ETFs are vulnerable to a sustained rise in the price of the index it aims to deliver the inverse of. But that threat of loss in a rising market means that when an investor considers SPDN, they should also have a game plan for how and when they will deploy this unique portfolio weapon.

Proprietary Technical Ratings
Short-Term Rating (next 3 months): Strong Buy

Long-Term Rating (next 12 months): Buy

Conclusions
ETF Quality Opinion
SPDN does what it aims to do, and has done so for over 6 years now. For a while, it was largely-ignored, given the existence of a similar ETF that has been around much longer. But the more tenured SPDN has become, the more attractive it looks as an alternative.

ETF Investment Opinion

SPDN is rated Strong Buy because the S&P 500 continues to look as vulnerable to further decline. And, while the market bottomed in mid-June, rallied, then waffled since that time, our proprietary macro market indicators all point to much greater risk of a major decline from this level than a fast return to bull market glory. Thus, SPDN is at best a way to exploit and attack the bear, and at worst a hedge on an otherwise equity-laden portfolio.

Your stocks to watch for the week ahead are Cheniere Energy (LNG), S&P 500 biotech giant Vertex Pharmaceuticals (VRTX), Cardinal Health (CAH), Steel Dynamics (STLD) and Genuine Parts (GPC).

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While the market remains in correction, with analysts and investors wary of an economic downturn, these five stocks are worth adding to watchlists. S&P 500 medical giants Vertex and Cardinal Health have been holding up, as health-care related plays tend to do well in down markets.

Steel Dynamics and Genuine Parts are both coming off strong earnings as both the steel and auto parts industries report optimistic outlooks. Meanwhile, Cheniere Energy saw sales boom in the second quarter as demand in Europe for natural gas continues to grow.

Major indexes have been making rally attempts with the Dow Jones and S&P 500 testing weekly support on Friday. With market uncertainty, investors should be ready for follow-through day breakouts and keep an eye on these stocks.

Cheniere Energy, Cardinal Health and VRTX stock are all on IBD Leaderboard.

Cheniere Energy Stock
LNG shares rose 1.1% to 175.79 during Friday’s market trading. On the week, the stock advanced 3.1%, not from highs, bouncing from its 21-day and 10-week lines earlier in the week.

Cheniere Energy has been consolidating since mid-September, but needs another week to forge a proper base, with a potential 182.72 buy point formed on Aug. 10.

Houston-based Cheniere Energy was IBD Stock Of The Day on Thursday, as the largest U.S. producer of liquefied natural gas eyes strong demand in Europe.

Even though natural gas prices are plunging in the U.S. and Europe, investors still see strong LNG demand for Cheniere and others.

The U.K. government confirmed last week that it is in talks for an LNG purchase agreement with a number of companies, including Cheniere.

In the first half of 2021, less than 40% of Cheniere’s cargoes of LNG landed in Europe. That jumped to more than 70% through this year’s second quarter, even as the company ramped up new export capacity. The urgency of Europe’s natural gas shortage only intensified last month. That is when an explosion disabled the Nord Stream 1 pipeline from Russia that had once supplied 40% of the European Union’s natural gas.

In Q2, sales increased 165% to $8 billion and LNG earned $2.90 per share, up from a net loss of $1.30 per share in Q2 2021. The company will report Q3 earnings Nov. 3, with investors seeing booming profits for the next few quarters.

Cheniere Energy has a Composite Rating of 84. It has a 98 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for share price movement with a 1 to 99 score. The rating shows how a stock’s performance over the last 52 weeks holds up against all the other stocks in IBD’s database. The EPS rating is 41.

Vertex Stock
VRTX stock jumped 3.4% to 300 on Friday, rebounding from a test of its 50-day moving average. Shares climbed 2.2% for the week. Vertex stock has formed a tight flat base with an official buy point of 306.05, according to MarketSmith analysis.

The stock has remained consistent over recent weeks, while the relative strength line has trended higher. The RS line tracks a stock’s performance vs. the S&P 500 index.

Vertex Q3 earnings are on due Oct. 27. Analysts see EPS edging up 1% to $3.61 per share with sales increasing 16% to $2.2 billion, according to FactSet.

The Boston-based global biotech company dominates the cystic fibrosis treatment market. Vertex also has other products in late-stage clinical development that target sickle cell disease, Type 1 diabetes and certain genetically caused kidney diseases. That includes a gene-editing partnership with Crispr Therapeutics (CRSP).

In early August, Vertex reported better-than-expected second-quarter results and raised full-year sales targets.

S&P 500 stock Vertex ranks second in the Medical-Biomed/Biotech industry group. VRTX has a 99 Composite Rating. Its Relative Strength Rating is 94 and its EPS Rating is 99.

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Cardinal Health Stock
CAH stock advanced 3.2% to 73.03 Friday, clearing a 71.22 buy point from a shallow cup-with-handle base and hitting a record high. But volume was light on the breakout. CAH stock leapt 7.3% for the week.

Cardinal Health stock’s relative strength line has also been trending up for months.

The cup-with-handle base is part of a base-on-base pattern, forming just above a cup base cleared on Aug. 11.

Cardinal Health, based in Dublin, Ohio, offers a wide assortment of health care services and medical supplies to hospitals, labs, pharmacies and long-term care facilities. The company reports that it serves around 90% of hospitals and 60,000 pharmacies in the U.S.

S&P 500 stock Cardinal Health will report Q1 2023 earnings on Nov. 4. Analysts forecast earnings falling 26% to 96 cents per share. Sales are expected to increase 10% to $48.3 billion, according to FactSet.

Cardinal Health stock ranks first in the Medical-Wholesale Drug/Supplies industry group, ahead of McKesson (MCK), which is also showing positive action. CAH stock has a 94 Composite Rating out of 99. It has a 97 Relative Strength Rating and an EPS rating of 73.

Steel Dynamics Stock
STLD shares shot up 8.5% to 92.92 on Friday and soared 19% on the week, coming off a Steel Dynamics earnings beat Wednesday night.

Shares blasted above an 88.72 consolidation buy point Friday after clearing a trendline Thursday. STLD stock is 17% above its 50-day line, definitely extended from that key average.

Steel Dynamics’ latest consolidation could be seen as part of a larger base going back six months.

Steel Dynamics topped Q3 earnings views with EPS rising 10% to $5.46 while revenue grew 11% to $5.65 billion. The steel producer’s outlook is optimistic despite weaker flat rolled steel pricing. STLD reports its order activity and backlogs remain solid.

The Fort Wayne, Indiana-based company is among the largest producers of carbon steel products in the U.S. It engages in metal recycling operations along with steel fabrication and produces myriad steel products.

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STLD stock ranks first in the Steel-Producers industry group. STLD stock has a 96 Composite Rating out of 99. It has a 90 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for share-price movement that tops at 99. The rating shows how a stock’s performance over the last 52 weeks holds up against all the other stocks in IBD’s database. The EPS rating is 98.

Genuine Parts Stock
GPC stock gained 2.8% to 162.35 Friday after the company topped earnings views with its Q3 results on Thursday. For the week GPC advanced 5.1% as the stock held its 50-day line and is in a flat base.

GPC has an official 165.09 flat-base buy point after a three-week rally, according to MarketSmith analysis.

The relative strength line for Genuine Parts stock has rallied sharply to highs over the past several months.

On Thursday, the Atlanta-based auto parts company raised its full-year guidance on growth across its automotive and industrial sales.

Genuine Parts earnings per share advanced 19% to $2.23 and revenue grew 18% to $5.675 billion in Q3. GPC’s full-year guidance is now calling for EPS of $8.05-$8.15, up from $7.80-$7.95. The company now forecasts revenue growth of 15%-16%, up from the earlier 12%-14%.

During the Covid pandemic, supply chain constraints caused a major upheaval in the auto industry, sending prices for new and used cars to record levels. This has made consumers more likely to hang on to their existing vehicles for longer, driving mileage higher and boosting demand for auto replacement parts.

Fellow auto stocks O’Reilly Auto Parts (ORLY) and AutoZone (AZO) have also rallied near buy points amid the struggling market. O’Reilly reports on Oct. 26.

IBD ranks Genuine Parts first in the Retail/Wholesale-Auto Parts industry group. GPC stock has a 96 Composite Rating. Its Relative Strength Rating is 94 and it has an EPS Rating of 89.