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ITD – Turn $1000 into $264 Billion with perfect S&P performance in 2013 @stocktwits $SPY

Today’s stock tweet of the day comes from @stocktwits. An article was posted on Stocktwits.com, which is a site dedicated to cash tag tracking (similar to the has tag but uses a “$” rather than a “#” as a pre-pending symbol). This article talks about how if you were to make the best possible move everyday in the S&P 500 you would turn $1000 into just shy of $264 billion.

We chose this simply as an interesting statistic. Performing these types of moves are next to impossible. You have better chances at winning the lottery.

This summary was done by taking the biggest mover in the S&P everyday up until now and theoretically buying at open and selling at close. Notable movers of course have been First Solar ( $FSLR ) and Netflix ( $NFLX ), who both were the biggest movers in the S&P 12 times (see below). Each up 77.28% and 295.63% year to date respectively.

Top S&P Performers

Below is the each day, with the market performer of that day, since January 1st. If you don’t know the company by their ticket name use Google Finance. or another quote service to look them up.

Perfect Performance Per Day

Source: Article, Tweet

HSD – Herbalife Ltd $HLF

Today’s hot stock of the day was Herbalife Ltd (HLF). Herbalife today announced the completion of their reaudited financial statements for the fiscal years ending 2010, 2011, 2012. This caused their stock to jump 9.43% on the day, which did come down a little from their intraday highs.

Herbalife has made a lot of news recently as there are two activists, Bill Ackman and Carl Icahn, who have both been very outspoken about the company. Both have opposing positions in the stock, Icahn has a long position in HLF whereas Ackman has a short position.

The term “activist” is a fairly new term, as this is the group of people who used to be called “corporate raiders”. For those that are not familiar with activists, these are people who hold a large position in a company and are attempting to use their large amount of votes when it comes to shareholder voting, to influence a company to move in a certain direction. These activists can be good and they can be bad for the company, it all depends on the company and the activist and how strong they are. Regardless their main purpose is always to create more value for them and make themselves money. Corporate raider tends to be a more appropriate term for this role, as what they pretty much do is come in and attempt to strongarm the company into doing what they want. Whether it is stock buybacks or dividends to create income for them, getting rid of board members that are detrimental or do not see their vision, restructuring the company to be able to run better, or breaking the company up in order to also create wealth for them.

Herbalife is not a stock that is easily figured out as it is heavily traded and there is a lot of talk about it. Overall, analysts have it rated between a strong buy and a buy, and it has done very well year to date, just shy of 130%.


Disclaimer: I currently do not hold the above mentioned investment. I am not looking to add to a position in the above mentioned investment, within the next 30 days. I am not looking to take a short position in the above mentioned investment within the next 30 days.

Weekly Investment Advice

This coming week will ideally perform much better than last week. What will be a real market mover is the talk of the winding down of the Fed’s bond buying. e expect that this week will see upside, as we believe that there is no tapering coming this month, or even next month for that matter. Still holding our monthly end target of 1820-1825, as well as this week’s end of 1810 for the S&P. These are approximately a 2.4% and 1.8%  gain from Friday’s close. We are expecting a weekly end of 16050-16100 for the DOW as well. These are aggressive numbers, however

For those not familiar will this program, it is refered to as “quantitative easing” which is that the Federal Reserve has been pumping free money into the market. The federal reserve has been buying government issued bonds at a rate of $85 billion a month. This is with the hopes that this stimulus helps to boost the US economy. So far this has seemed to been working., however the potential long term consequences of this program could have consequences, so at some point it needs to be lowered or pulled competely. People think that pulling back this program, or at least lowering the amount per month, will have a very big effect on the economy and global domestic product (GDP) growth, in the short term. However the Fed, has also talked about that they will keep this program going until key economic indicators are hit; unemployment rate, inflation rate, GDP growth. The main one is based upon jobs data, which is the unemployment rate hitting a low point, looking towards 6.5%