Do You Make These 5 Marketing Automation Mistakes?
Marketing automation has become a vital tool for businesses of every size. It can help you gain and sustain a competitive advantage. Speed up sales results. Plus, enable you to engage more contacts with personalized messages sent at the right time. So you can build good relationships.Yet not each marketing automation system is the same. In fact, very few have all the essential tools in one package of services. If so, that can cause you to integrate system parts from third parties that can cost you time and money, especially when things go wrong down the road.That is why it’s vital to first know what a full all-in-one marketing automation system is all about.Marketing automation is a server-based software that integrates different technologies.4 Automation Technologies Most Vital for Marketing CampaignsFirst, it includes a CRM that allows you to collect, store and use information about your contacts. To be able to segment your contacts by custom fields and tags, behavior – such as opening emails and clicking on links, plus purchases.Second, it includes an automated messaging system for emails, text, postcards and tasks. This allows you to send each message to contacts based on when they opted in, a date, behavior, purchase and more.Third, it has eCommerce functionality. It integrates order pages with a form and payment gateway for one-click purchases. Plus it can allow you to integrate with a shopping cart if you prefer. Most of all, it can automate processes based on successful or failed transactions, subscriptions, trial periods, payment plans, coupons and more.Fourth, it must have a campaign builder that enables you to take each contact on a personalized journey with measurable results. This allows you to create multiple campaigns for opt-in, sales, upsell, downsell and retention.A marketing automation system such as one by Ontraport can provide additional features. These include marketing tracking to help you see which ads, landing pages and emails are generating the most cost-effective results. Affiliate marketing and membership site to help you boost the number of customers and sales. Landing page and form builder to enable you to design professional looking sites in minutes. And a lead router and scoring system to help you and your sales team follow up leads and convert them into customers.Three key benefits of a marketing automation system are that you can customize it for your business. You can have multiple marketing campaigns at the same time that operate 24/7. Plus you can automate processes specific to contacts along their journey. But there are also marketing automation mistakes you can make along the way.Marketing Automation Mistake #1: Sending eMails to Contacts Who Did NOT Opt-in
Marketing automation involves permission based emails. That means you send emails to contacts who give you permission to send them information. You can get permission when each contact opt-in to your system. However, importing a list or manually adding contacts to your marketing automation system is a violation of SPAM rules. If you do this you can compromise the delivery of emails even to those whom give you permission.Marketing Automation Mistake #2: Not Maintaining a Database of Active Contacts
Even after you get a contact to opt-in, you must keep them active. That means, you must continually send them emails with relevant content to engage with at least once per week. Otherwise, they may forget you and not open the few emails you send. Over time, they can become less engaged, diminishing email delivery of your entire database. A re-engagement campaign is an effective method to get non-engaged contacts to interact with your emails again. You get these contacts to tell you if they’d like to remain on your list or opt-out. So you can maintain a consistent and clean contact database.Marketing Automation Mistake #3: Focusing on the Wrong Metrics
Marketing automation allows you to measure the results of your campaigns. This includes opt-ins, sales conversion, email open and click link rates, landing page visits, sales, ROI and more.However, focusing on the wrong metrics can cause you to misinterpret the true results. For example, you may have two campaigns where one has much higher open rates and lower click rates. Yet when you calculate click to open rates you can see an entirely different result. Before starting each campaign, it is vital to know the metric you seek to focus on to determine success.Marketing Automation Mistake #4: Not Split Testing Campaigns
All campaigns differ by the type and number of contacts, content and more. Split testing campaigns is the key to finding what works right. But the key to split testing is to test just one variable at a time. Such as a headline, price, offer, design or target audience. The campaign that wins is the new control. Then you can test other campaigns against the control.Marketing Automation Mistake #5: Not Having a Certified Consultant on Your Team
Marketing automation is both an art and a science. It requires a mix of technology know-how with direct response marketing expertise. Plus an objective mindset that is not biased toward the company or product. These are why it is best to have an independent consultant certified in the use of the marketing automation software on your team. To develop the strategy and build a custom automation system for your business. Plus, to train your team on using the system.
The Current State of 21st Century Education Technology 2011-2012 – Paving a Road to Success
Remember filmstrips, movie reels, overhead projectors and transparencies? These are the “tech tools” that I remember from my school days. Not an interactive anything anywhere. It was simple. Teachers and professors had to decide between blackboards or overheads, black, blue or maybe green ink and that was about it.We’ve come a long way from those days, and in many cases new technologies have quickly replaced the old. There is however a wide variation on how advanced school districts are in terms of their education technology implementations. One thing is clear; no matter how limited resources are, all school districts have formed a set of goals around education technology. If we expect to reach any of these goals, we have to understand the underlying factors that can affect the character and complexity of a problem. These factors will in turn affect how we approach a particular problem and the solutions that are applied to reach our goals.From a 30,000 foot perspective, there are commonly three key components to an education technology solution; Hardware, Software and Training (the often forgotten, but many times most important component).In today’s education tech world, you will not get very far without the three vital components mentioned above. These are however, merely the tools that we will use in reaching our educational goals. If you were to place all of the best hardware, software and training materials in a room, they would not magically yield higher test scores, achievement and graduation rates all by themselves.You might think that what I’ll be saying next will have to do with people and how they can be the difference makers. This of course is true, but the actual focus should be on what these all important people are doing (and unfortunately in many cases not doing) in order to achieve our collective educational goals.Many of us have lost sight on the “education” in education technology. It’s right there in front of our eyes and we still manage forget that this is about properly educating students and enabling them to reach their fullest potential.The following list contains some of the most common pitfalls that we see on a day-to-day basis as education technology integrators. These are the processes and activities that have proven to be inefficient, ineffective or counterproductive to education technology goals.1. Having no goals to begin with – This situation is all too common. A school district is hard-set on implementing and/or upgrading their education technology resources, but nothing is tied back to curriculum goals. The purchase and installation of projectors, interactive whiteboards, response systems, classroom sound systems etc is not the implementation of a solution, it’s simply a purchase. Avoid asking yourself “now what?” once the smoke has cleared. Achieve this by creating a real implementation plan that is tied to long term educational goals and state standards. All of the best education technology hardware manufacturers have researched education requirements in detail and have designed their solutions accordingly in order to help schools reach these goals through the use of their products. Ask your technology provider questions related to your educational goals and only engage with those who understand your goals and can tell you how their products will help you reach them.2. Cookie cutter approach – Let’s outfit every classroom and every teacher with the same exact technology tools. And let’s not stop there, let’s do it all at once so everyone is happy and nobody feels left out. Makes sense – right? Well not exactly. Administrators and Tech Directors don’t want to hear grumblings about inequities or create an environment of haves and have not’s even for a short period of time. This would be disaster – or would it?One of the best examples I can think of is interactive whiteboards or IWB’s. These boards are incredible tools and can greatly enhance a learning environment when implemented properly, but the addition of this technology tool is not always a “no brainer” in all learning environments. Companies like SMART Technologies and Promethean may disagree, but in the end, if the educational goals of their customers are being met, it will be a win-win situation for all involved – especially the kids.This is a trend that is difficult to break. It is fairly easy to understand how this has come about since politics can many times trump logic.Learning activities can vary greatly from room to room and from subject to subject. The learning goals for math will likely vary greatly from the learning goals in science class versus foreign language classes. Science room environments may vary even further based on whether you are dealing with Physics, Chemistry or Biology.The variances can run even deeper based on other district based requirements, room arrangement or teaching style of an individual teacher.Taking a step back to do some real analysis and planning may help you and your schools get on a more accurate track in terms of matching technology tools to actual academic goals. To say that “we’ll figure that out later” adds to the risk that you will leave a critical requirement unaddressed.3. Making all decisions from the Top Down – Not that you would do this, but too many Tech Directors or IT Managers make district wide decisions without gathering any input from the end users of technology. In this case it is of course teachers that would help drive accurate requirements from the bottom up that would complement the decisions being made from above. This will no doubt take more time and effort, but in the end it will likely uncover more detail and accuracy to your requirements that will help minimize risk and decrease the chances that you’ll miss a requirement or waste time and money spent re-working your initial solution with an unplanned “Phase 2″ of your implementation.4. No Training or Professional Development (PD) Plan – You might be lucky enough to have a real go-getter on your staff that takes the ball and runs with it, creating your training program in the process. These self starters do exist, but you can’t count on training and PD taking care of itself. Full adoption and use of new technology tools requires planning AND management of the plan. If done correctly, your educational goals are met and everyone comes out looking and feeling like a champion.5. No metrics – How do you show that your plan has been successful? Part of proper planning is establishing a pre-determined method of measuring success via a set of well chosen metrics. Not everyone loves numbers by nature, but I’m betting that everyone will love them when they definitively show that planning and implementation has led to success.6. Buying solely on price – Hopefully you have not grown completely cynical when it comes to value. If you spend the time talking to your prospective sales people and service providers, you will see a wide range of offerings presented to you. If you want to do what’s best for your schools, you will spend some time calculating the true cost of a solution where the physical hardware is only one component. If you make your decision solely on the price of hardware, you might be doing a great disservice to yourself, your schools, your project team and your students. Some of the most important value differentiators will have to do with service, support, training and professional development. A quality solution provider will not only sell you the hardware, they will pro-actively support it. They will work with you consultatively and open an ongoing dialogue with you and your staff to assist in reaching your goals. Many providers have dedicated Education Consultants on staff that are familiar with state and federal education goals. This further enables you and your team to map education goals to the use of education technology tools in the classroom.7. Thinking your planned solution is “good enough” – This might apply when buying a car or home appliance when added cost is usually associated with “bells and whistles”, but a classroom is not about getting to point A to point B or how white your shirts can be. True adoption of education technology in a classroom can be a tricky goal to meet and adoption must come with real results like increased test scores and graduation rates. If you are heavily constrained by budget, I recommend creating the best solution possible and starting with one room. If you don’t have the funds to complete an entire room, do it in well thought out phases with guidance from your education technology integrator (remember that thing about added value? – A perfect example). If you continue this process over time, you will end up with quality learning environments in every room vs. a watered down “solution” in each room that yields no actual results.8. Thinking you are “done” – This relates directly to #7 above. It’s important to have a mindset of constant improvement. New and improved technology is constantly being developed. This can offer great opportunity, but it can also create confusion. In the ‘one room at a time’ scenario above, it would be of added benefit to re-evaluate your plan as time progresses. This will give you the ability to fine tune your solution over time. For this reason, it will be important to pay attention to feedback from end-users of technology enabled classrooms. There may be a new and improved technology available or you may have realized that you “over-bought” in a particular area and can then adjust your plan accordingly. Ideally, there will be no changes at all and simply a confirmation that your plans and system designs are sound. If you reach the end of an implementation and everything has gone according to plan, you are still far from being done. As with all technology, there are the elements of hardware maintenance, support and an ongoing training/professional development plan. If you have specific plans in place in all of these areas and actively manage to your goals, your chances for success will be greatly improved.
10 Tips for Hiring Children Entertainers
1. The single most important tip we can offer is to check that the entertainer is CRB checked, and that they can prove that it’s up to date. Although a CRB check is not currently a compulsory requirement for any self-employed entertainer, most local authorities and schools now insist that all entertainers they hire must supply the relevant documentation beforehand.2. Do they have public liability insurance? Accidents can happen at anytime, and a room full of excited children bouncing around can be one of the biggest accidents waiting to happen. Regardless of whether you are holding a party in a hall, outdoors or in your home, you should check if the children entertainer holds public liability insurance.3. Check if the entertainer is a member of any magic societies or Equity. (Equity is the Union of Performers and Artists) Being a member of a society does not mean that you are guaranteed a high quality performance, but it may prove their dedication to their job, and it means you can book the entertainer with peace of mind.4. What games do you play? All children want to be involved as much as possible with the entertainment, check if the games played require children to remain out for a long time, you want to avoid bored or upset children stood watching whilst others still compete.5. How varied is the entertainment? If you’re planning on booking someone who is predominantly a magician, then a full hour’s performance is quite hard to keep a small child’s attention. However, if the entertainer breaks it up with use of balloon modelling, some party music or some puppets then even a two-hour show will fly by for the kids.6. Speak to the entertainer, don’t just rely on emails. If you speak to them first, you’ll be able to judge their communication skills and they should install confidence in you that their performance will be great.
If the entertainer sounds hesitant on the phone, imagine what they’ll be like in front of a room of children.7. Find out if they have a website. If they do, then you should find plenty of photos online, hopefully with the children entertainer looking well presented and fun, and even some actual photos from some other kids parties they have performed at.8. How much do they cost? Don’t focus on price too much, you get what you pay for in this world, and a saving of a few quid may end up to be the worst decision you make. Professional children entertainers have costs to pay, insurance and high quality equipment doesn’t come cheap, so shop around and get a good idea of what people are charging.9. Ask for recommendations. A professional children entertainer will have acquired a thank you letter or two if they have been working for a while, testimonials can say an awful lot about the quality of performance.10. Pay a deposit and ask for a booking confirmation, always check with the children entertainers what would happen if they are taken ill. Maybe they have a few friends in the industry who could stand in for them at short notice.
Investing Essentials – Balance Your Risk By Using Varied Investment Vehicles
Investing is such a complicated field that there are literally tens of thousands of books written on the subject. Investing can be quite difficult, depending on the strategy, though it and can also be simple and straightforward if done properly. One of the best pieces of investment advice ever given is to diversify your portfolio into several different investment vehicles. This can help you spread out the risk and achieve a steady return on your investment capital. This is the goal of most investors. This type of investing can be categorized broadly as value investing and with a diversified investment strategy that holds a goal of long term positive returns.Value Investing
On the whole, value investing is generally defined as investing that focuses on buying investments that have good value. This is a fundamentally safe and secure type of investment strategy. The goal is for steady appreciation and consistent yields on capital invested. Value investing is a fundamental and lies at the base of a solid financial investment plan. Buying investments because they are a good value is a mark of a solid investment plan. If you buy companies because they are good value, then chances are you will be in a position to enjoy capital appreciation in the years to come.Stock Market Investing
Stock market investing is one of the fundamentals of value investing. By diversifying investments into the stock market it is possible to spread out investment funds into a wide variety of different companies and their stocks. It is certainly very difficult to choose specific stocks that are going to go up in value immensely in the years to come. The Walmart-like stocks are few and far between and taking them at their outset is almost impossible. This certainly does not mean that you should not try. Buying fundamentally sound stock market investments can be a goal and ticket to a fruitful financial future ahead.Penny Stock Investments
Penny stocks are those that bear their own name. These stocks are often valued very lowly and the costs are often quite low-often times ranging from a few pennies per share up to a couple dollars per share at the most. Some investors believe that there is great potential return in penny stock investments because you can buy for such a low cost a large amount of shares and if there is any appreciation in value this year value will likewise increase. An increase in the share value will yield an increase in the investment return as well.Bonds Investing
Bonds are another core element of a diversified investment strategy. Bonds typically have slow and steady growth patterns and consistent yields year after year. This makes them the ideal investment for slow and steady capital appreciation. There are several different types of bonds available ranging from government-backed bonds to higher risk corporate bonds. Bonds remain one of the best ways of diversifying a portfolio with safe and secure investment returns. Talk with an investment adviser about the different kinds of bond ratings and how the different types of bonds will play an important part in your overall investment portfolio.Mutual Funds Investing
Mutual funds are yet another way of diversifying investment risk and return. Some mutual funds specialize in high risk/high yield type investments, while others mirror segments of the stock market (as in Spider Funds, which buy the exact companies that appear on certain stock indices). Mutual funds are run by a board of directors and a management team in most cases. These individuals have the responsibility of making the investment choices for the entire fund.Mutual funds are traditionally one of the most popular investments options and routes to take. Mutual funds are easier to become involved with than almost any other investment. They are often times the starting place for investors who are looking to have the potential for return while also curving the risks in spreading out the potential downside. One of the challenges with mutual funds, however, is the fact that there are so many and they can be difficult to choose between them. Out of thousands of different mutual funds, finding one that meets your investment requirements can be tricky. It also should be noted that just because a mutual fund has done well in the past that does not mean that it will continue to do well in the future. Very few mutual funds maintain a steady track record over time.Commodities Investing
Commodities are another option for a diversified investment portfolio. Commodities represent certain items like corn, oil, gold, silver, and other such natural items classified as commodities. Commodities can often be used as a ‘hedge’ investment and have a safe and secure track record. Investing in commodities should be done with the help of an experienced investment adviser only or with much experience under your belt. They are not typical investments and should not be viewed as ones that are as easy to invest in as bonds or mutual funds. Typically, commodities investments can be used as a counter-trend type of investment, or in other words, as a protection against loss when other types of investments seem to be falling. Commodities will typically hold their value contrary to the stock market as a whole.All of these different types of investment options should be discussed with a qualified investment adviser or broker. To venture into these investments on your own can be dangerous. It should be mentioned that with any investment there is the potential for loss. Anytime you have the potential for substantial gain, likewise you have the potential for substantial loss. Some of these investments are more secure than others. You should discuss your options and your long-term strategy with your investment adviser to determine the best plan moving forward. You’ll want to create a diversified plan that creates a steady return while minimizing risks.
Millville Delaware Online Education
Although Delaware is small in physical size, it was the first state to ratify the Constitution of the United States on December 7, 1787. Because of this, Delaware is known as the “First State” of the new federal union. Millville, Delaware is a small town itself, with a population of 259 in the year 2000, located about a mile away from Ocean View. For small towns, online education can make earning a higher education much easier.The town of Millville, Delaware is in Sussex County, where the beach resort areas are located. A great deal of development is occurring in this county that was formerly predominantly for farming and home to many chicken farms. People from surrounding area moved here to live in close proximity to the beaches. This makes traffic difficult because people from surrounding states also come to visit these beaches. Rather than confront traffic, folks living in coastal areas can conveniently attend classes online. There are three major colleges within the state that offer local students a variety of Millville Delaware online education options.Delaware Technical and Community College – Jack Owens. This campus is located in Georgetown, Delaware and is about 22 miles away from Millville. This community college system has locations in four cities. The Owens Campus was the first campus to open in September, 1967. Ninety-two percent of the students who attend Delaware Tech are from the state. The enrollment at this college last year was 5,274.Students can take a variety of courses online at Delaware Tech to support career, general and developmental education, as well as gain workforce training. Delaware Tech offers online Office Administration Technology online and is a member of the Electronic Education Campus.Courses at Delaware Tech are entirely web-based and offered on a web site provided by the College. The class consists of a course web site, instruction and student email and various online discussion sessions. Coursework it posted on the course web page and student complete assignments and testing online The courses require students to have access to a computer with a minimum 64 MB RAM and Windows 95, 98, 2000 or XP. Online advisors are available to discuss course offerings and requirements.Delaware State University. The Delaware State university is located about 37 miles away from Millville in Dover, Delaware. This college was established on May 15, 1891 as the State College for colored Students under the Morrill Act of 1890. Today, Delaware State University enrolls 3,722 students who come from 28 states and 31 different countries.Students attending Delaware State University can choose from 66 undergraduate degrees, 16 graduate degrees and 2 doctoral degrees, with options such as education, visual and performing arts, mathematics, accounting and finance, nursing and more. Over the past 115 years, this University has grown into a fully accredited university with a main campus and two satellite sites that consist of six colleges.Delaware State University has a variety of distance learning online education experiences that involve teacher planning, technology and various instructional methods that bring together teachers and students at all different times and places. Their unique approach includes classroom learning combined with online resources, as well as courses that are offered in a totally web-based format.Online education at Delaware State University is presented through a system by Blackboard because it is easy to use for managing courses. Three course categories are offered on websites at Delaware State University with varying levels of web use and importance. Some courses are blended learning experiences, while other classes occur completely through a virtual classroom.University of Delaware. The University of Delaware is in Newark, around 78 miles away from Millville Delaware. The University was founded in 1743 and is a unique, state-assisted institution of higher learning with a charter, making for an interesting mix. Enrollment at the University of Delaware is 15,211.There are over 100 academic majors for undergraduates to choose from at the University of Delaware. The faculty consist of internationally known teachers, scientists and authors. The University of Delaware is one of 222 colleges named a Best Northeastern College by The Princeton Review. Students attending the University of Delaware represent almost every state and several foreign countries.Millville Delaware online education students receive the same course content in a virtual classroom as traditional students get in a face-to-face setting. At the University of Delaware, requirements for online students are the same as those for students attending the campus in person. The only difference between an on-campus degree and a degree obtained through distance learning is the manner in which the course is deliveredMillville, Delaware has no schools and a minimal population. Because of this, it is considered a bedroom community for nearby towns such as Bethany Beach, which is three miles away. Millville Delaware online education offered through outstanding universities give students an opportunity to realistically to attain higher education.
S&P 500 Rallies As U.S. Dollar Pulls Back Towards Weekly Lows
Key Insights
The strong pullback in the U.S. dollar provided significant support to stocks.
Treasury yields have pulled back after touching new highs, which served as an additional positive catalyst for S&P 500.
A move above 3730 will push S&P 500 towards the resistance level at 3760.
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Pfizer Rallies After Announcing A Huge Price Hike For Its COVID-19 Vaccines
S&P 500 is currently trying to settle above 3730 as traders’ appetite for risk is growing. The U.S. dollar has recently gained strong downside momentum as the BoJ intervened to stop the rally in USD/JPY. Weaker U.S. dollar is bullish for stocks as it increases profits of multinational companies and makes U.S. equities cheaper for foreign investors.
The leading oil services company Schlumberger is up by 9% after beating analyst estimates on both earnings and revenue. Schlumberger’s peers Baker Hughes and Halliburton have also enjoyed strong support today.
Vaccine makers Pfizer and Moderna gained strong upside momentum after Pfizer announced that it will raise the price of its coronavirus vaccine to $110 – $130 per shot.
Biggest losers today include Verizon and Twitter. Verizon is down by 5% despite beating analyst estimates on both earnings and revenue. Subscriber numbers missed estimates, and traders pushed the stock to multi-year lows.
Twitter stock moved towards the $50 level as the U.S. may conduct a security review of Musk’s purchase of the company.
From a big picture point of view, today’s rebound is broad, and most market segments are moving higher. Treasury yields have started to move lower after testing new highs, providing additional support to S&P 500. It looks that some traders are ready to bet that Fed will be less hawkish than previously expected.
S&P 500 Tests Resistance At 3730
S&P 500 has recently managed to get above the 20 EMA and is trying to settle above the resistance at 3730. RSI is in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.
If S&P 500 manages to settle above 3730, it will head towards the next resistance level at 3760. A successful test of this level will push S&P 500 towards the next resistance at October highs at 3805. The 50 EMA is located in the nearby, so S&P 500 will likely face strong resistance above the 3800 level.
On the support side, the previous resistance at 3700 will likely serve as the first support level for S&P 500. In case S&P 500 declines below this level, it will move towards the next support level at 3675. A move below 3675 will push S&P 500 towards the support at 3640.
SPDN: An Inexpensive Way To Profit When The S&P 500 Falls
Summary
SPDN is not the largest or oldest way to short the S&P 500, but it’s a solid choice.
This ETF uses a variety of financial instruments to target a return opposite that of the S&P 500 Index.
SPDN’s 0.49% Expense Ratio is nearly half that of the larger, longer-tenured -1x Inverse S&P 500 ETF.
Details aside, the potential continuation of the equity bear market makes single-inverse ETFs an investment segment investor should be familiar with.
We rate SPDN a Strong Buy because we believe the risks of a continued bear market greatly outweigh the possibility of a quick return to a bull market.
Put a gear stick into R position, (Reverse).
Birdlkportfolio
By Rob Isbitts
Summary
The S&P 500 is in a bear market, and we don’t see a quick-fix. Many investors assume the only way to navigate a potentially long-term bear market is to hide in cash, day-trade or “just hang in there” while the bear takes their retirement nest egg.
The Direxion Daily S&P 500® Bear 1X ETF (NYSEARCA:SPDN) is one of a class of single-inverse ETFs that allow investors to profit from down moves in the stock market.
SPDN is an unleveraged, liquid, low-cost way to either try to hedge an equity portfolio, profit from a decline in the S&P 500, or both. We rate it a Strong Buy, given our concern about the intermediate-term outlook for the global equity market.
Strategy
SPDN keeps it simple. If the S&P 500 goes up by X%, it should go down by X%. The opposite is also expected.
Proprietary ETF Grades
Offense/Defense: Defense
Segment: Inverse Equity
Sub-Segment: Inverse S&P 500
Correlation (vs. S&P 500): Very High (inverse)
Expected Volatility (vs. S&P 500): Similar (but opposite)
Holding Analysis
SPDN does not rely on shorting individual stocks in the S&P 500. Instead, the managers typically use a combination of futures, swaps and other derivative instruments to create a portfolio that consistently aims to deliver the opposite of what the S&P 500 does.
Strengths
SPDN is a fairly “no-frills” way to do what many investors probably wished they could do during the first 9 months of 2022 and in past bear markets: find something that goes up when the “market” goes down. After all, bonds are not the answer they used to be, commodities like gold have, shall we say, lost their luster. And moving to cash creates the issue of making two correct timing decisions, when to get in and when to get out. SPDN and its single-inverse ETF brethren offer a liquid tool to use in a variety of ways, depending on what a particular investor wants to achieve.
Weaknesses
The weakness of any inverse ETF is that it does the opposite of what the market does, when the market goes up. So, even in bear markets when the broader market trend is down, sharp bear market rallies (or any rallies for that matter) in the S&P 500 will cause SPDN to drop as much as the market goes up.
Opportunities
While inverse ETFs have a reputation in some circles as nothing more than day-trading vehicles, our own experience with them is, pardon the pun, exactly the opposite! We encourage investors to try to better-understand single inverse ETFs like SPDN. While traders tend to gravitate to leveraged inverse ETFs (which actually are day-trading tools), we believe that in an extended bear market, SPDN and its ilk could be a game-saver for many portfolios.
Threats
SPDN and most other single inverse ETFs are vulnerable to a sustained rise in the price of the index it aims to deliver the inverse of. But that threat of loss in a rising market means that when an investor considers SPDN, they should also have a game plan for how and when they will deploy this unique portfolio weapon.
Proprietary Technical Ratings
Short-Term Rating (next 3 months): Strong Buy
Long-Term Rating (next 12 months): Buy
Conclusions
ETF Quality Opinion
SPDN does what it aims to do, and has done so for over 6 years now. For a while, it was largely-ignored, given the existence of a similar ETF that has been around much longer. But the more tenured SPDN has become, the more attractive it looks as an alternative.
ETF Investment Opinion
SPDN is rated Strong Buy because the S&P 500 continues to look as vulnerable to further decline. And, while the market bottomed in mid-June, rallied, then waffled since that time, our proprietary macro market indicators all point to much greater risk of a major decline from this level than a fast return to bull market glory. Thus, SPDN is at best a way to exploit and attack the bear, and at worst a hedge on an otherwise equity-laden portfolio.
S&P 500 Biotech Giant Vertex Leads 5 Stocks Showing Strength
Your stocks to watch for the week ahead are Cheniere Energy (LNG), S&P 500 biotech giant Vertex Pharmaceuticals (VRTX), Cardinal Health (CAH), Steel Dynamics (STLD) and Genuine Parts (GPC).
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While the market remains in correction, with analysts and investors wary of an economic downturn, these five stocks are worth adding to watchlists. S&P 500 medical giants Vertex and Cardinal Health have been holding up, as health-care related plays tend to do well in down markets.
Steel Dynamics and Genuine Parts are both coming off strong earnings as both the steel and auto parts industries report optimistic outlooks. Meanwhile, Cheniere Energy saw sales boom in the second quarter as demand in Europe for natural gas continues to grow.
Major indexes have been making rally attempts with the Dow Jones and S&P 500 testing weekly support on Friday. With market uncertainty, investors should be ready for follow-through day breakouts and keep an eye on these stocks.
Cheniere Energy, Cardinal Health and VRTX stock are all on IBD Leaderboard.
Cheniere Energy Stock
LNG shares rose 1.1% to 175.79 during Friday’s market trading. On the week, the stock advanced 3.1%, not from highs, bouncing from its 21-day and 10-week lines earlier in the week.
Cheniere Energy has been consolidating since mid-September, but needs another week to forge a proper base, with a potential 182.72 buy point formed on Aug. 10.
Houston-based Cheniere Energy was IBD Stock Of The Day on Thursday, as the largest U.S. producer of liquefied natural gas eyes strong demand in Europe.
Even though natural gas prices are plunging in the U.S. and Europe, investors still see strong LNG demand for Cheniere and others.
The U.K. government confirmed last week that it is in talks for an LNG purchase agreement with a number of companies, including Cheniere.
In the first half of 2021, less than 40% of Cheniere’s cargoes of LNG landed in Europe. That jumped to more than 70% through this year’s second quarter, even as the company ramped up new export capacity. The urgency of Europe’s natural gas shortage only intensified last month. That is when an explosion disabled the Nord Stream 1 pipeline from Russia that had once supplied 40% of the European Union’s natural gas.
In Q2, sales increased 165% to $8 billion and LNG earned $2.90 per share, up from a net loss of $1.30 per share in Q2 2021. The company will report Q3 earnings Nov. 3, with investors seeing booming profits for the next few quarters.
Cheniere Energy has a Composite Rating of 84. It has a 98 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for share price movement with a 1 to 99 score. The rating shows how a stock’s performance over the last 52 weeks holds up against all the other stocks in IBD’s database. The EPS rating is 41.
Vertex Stock
VRTX stock jumped 3.4% to 300 on Friday, rebounding from a test of its 50-day moving average. Shares climbed 2.2% for the week. Vertex stock has formed a tight flat base with an official buy point of 306.05, according to MarketSmith analysis.
The stock has remained consistent over recent weeks, while the relative strength line has trended higher. The RS line tracks a stock’s performance vs. the S&P 500 index.
Vertex Q3 earnings are on due Oct. 27. Analysts see EPS edging up 1% to $3.61 per share with sales increasing 16% to $2.2 billion, according to FactSet.
The Boston-based global biotech company dominates the cystic fibrosis treatment market. Vertex also has other products in late-stage clinical development that target sickle cell disease, Type 1 diabetes and certain genetically caused kidney diseases. That includes a gene-editing partnership with Crispr Therapeutics (CRSP).
In early August, Vertex reported better-than-expected second-quarter results and raised full-year sales targets.
S&P 500 stock Vertex ranks second in the Medical-Biomed/Biotech industry group. VRTX has a 99 Composite Rating. Its Relative Strength Rating is 94 and its EPS Rating is 99.
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Cardinal Health Stock
CAH stock advanced 3.2% to 73.03 Friday, clearing a 71.22 buy point from a shallow cup-with-handle base and hitting a record high. But volume was light on the breakout. CAH stock leapt 7.3% for the week.
Cardinal Health stock’s relative strength line has also been trending up for months.
The cup-with-handle base is part of a base-on-base pattern, forming just above a cup base cleared on Aug. 11.
Cardinal Health, based in Dublin, Ohio, offers a wide assortment of health care services and medical supplies to hospitals, labs, pharmacies and long-term care facilities. The company reports that it serves around 90% of hospitals and 60,000 pharmacies in the U.S.
S&P 500 stock Cardinal Health will report Q1 2023 earnings on Nov. 4. Analysts forecast earnings falling 26% to 96 cents per share. Sales are expected to increase 10% to $48.3 billion, according to FactSet.
Cardinal Health stock ranks first in the Medical-Wholesale Drug/Supplies industry group, ahead of McKesson (MCK), which is also showing positive action. CAH stock has a 94 Composite Rating out of 99. It has a 97 Relative Strength Rating and an EPS rating of 73.
Steel Dynamics Stock
STLD shares shot up 8.5% to 92.92 on Friday and soared 19% on the week, coming off a Steel Dynamics earnings beat Wednesday night.
Shares blasted above an 88.72 consolidation buy point Friday after clearing a trendline Thursday. STLD stock is 17% above its 50-day line, definitely extended from that key average.
Steel Dynamics’ latest consolidation could be seen as part of a larger base going back six months.
Steel Dynamics topped Q3 earnings views with EPS rising 10% to $5.46 while revenue grew 11% to $5.65 billion. The steel producer’s outlook is optimistic despite weaker flat rolled steel pricing. STLD reports its order activity and backlogs remain solid.
The Fort Wayne, Indiana-based company is among the largest producers of carbon steel products in the U.S. It engages in metal recycling operations along with steel fabrication and produces myriad steel products.
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STLD stock ranks first in the Steel-Producers industry group. STLD stock has a 96 Composite Rating out of 99. It has a 90 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for share-price movement that tops at 99. The rating shows how a stock’s performance over the last 52 weeks holds up against all the other stocks in IBD’s database. The EPS rating is 98.
Genuine Parts Stock
GPC stock gained 2.8% to 162.35 Friday after the company topped earnings views with its Q3 results on Thursday. For the week GPC advanced 5.1% as the stock held its 50-day line and is in a flat base.
GPC has an official 165.09 flat-base buy point after a three-week rally, according to MarketSmith analysis.
The relative strength line for Genuine Parts stock has rallied sharply to highs over the past several months.
On Thursday, the Atlanta-based auto parts company raised its full-year guidance on growth across its automotive and industrial sales.
Genuine Parts earnings per share advanced 19% to $2.23 and revenue grew 18% to $5.675 billion in Q3. GPC’s full-year guidance is now calling for EPS of $8.05-$8.15, up from $7.80-$7.95. The company now forecasts revenue growth of 15%-16%, up from the earlier 12%-14%.
During the Covid pandemic, supply chain constraints caused a major upheaval in the auto industry, sending prices for new and used cars to record levels. This has made consumers more likely to hang on to their existing vehicles for longer, driving mileage higher and boosting demand for auto replacement parts.
Fellow auto stocks O’Reilly Auto Parts (ORLY) and AutoZone (AZO) have also rallied near buy points amid the struggling market. O’Reilly reports on Oct. 26.
IBD ranks Genuine Parts first in the Retail/Wholesale-Auto Parts industry group. GPC stock has a 96 Composite Rating. Its Relative Strength Rating is 94 and it has an EPS Rating of 89.