GE Dividends Slashed by Over 90%
It’s hard to believe that such a fabled American conglomerate as General Electric Company (GE) has stumbled to such lows. Tuesday was a particularly bad day for GE, as its stock plunged by more than 10% to a new nine-year low below $10 per share.
Dividend Cut: This extension of the recent sell-off occurred after the company announced on Tuesday morning that it would be slashing its once-prized quarterly dividend payout by over 90% to $0.01 per share, beginning in 2019.
The 2018 quarterly dividend had already been cut in half to $0.12 from 2017’s $0.24. General Electric stands to save close to $4 billion annually as a result of this dividend cut.
General Electric (GE) Q3 Earnings and Revenues Lag Estimates
General Electric (GE) came out with quarterly earnings of $0.14 per share, missing the Zacks Consensus Estimate of $0.21 per share. This compares to earnings of $0.29 per share a year ago.
These figures are adjusted for non-recurring items.
Today's Trade of the Day | 10-31-18
Since it's Halloween, I thought it we could discuss a popular topic: "What should you do if You're afraid to lose money?"
It doesn't matter how long you are trading or how much capital you are trading, we all experience this fear eventually hoping to overcome this crippling emotion. I'll assume you are ok with taking risk or you wouldn't have opened a trading account. And that's where most traders get into trouble.
Taking risk and accepting risk are not the same thing. Placing a trade is taking risk. Accepting you might lose and being ok with that fact are different mindsets.
Let's face it, nobody wants to lose money but it's a part of trading. Like paying rent for any business owner. You will have expenses to run your business. Trading losses are a business expense.
Even if you agree 100% with that statement, for some reason we still hesitate. For some reason we trade without conviction. We hope the stock market moves in our favor. So how do we get rid of hesitation, fear and doubt?
You stop trying to be right. You stop expecting each trade to make money. You start acting like a professional. By the way, you don't need to be a professional to act like one. It's a philosophy, a way to do business. It's how you act.
Professionals try to make money over time, over many trades. It's foolish to believe every trade will and should be profitable. The best part? You don't need each trade to win to be successful. I teach "10 Perfect Trades" because it's easy to judge yourself and your edge over 10 trades. It's easy to know if you traded well.
If you're afraid to trade, or lose money, it's because you don't believe your edge works.Think about it, if you knew for every 10 perfect trades you make, you will come out on top... all you need to do is make good trades and manage them well... you would never hesitate or be afraid... BECAUSE THE OUTCOME is certain... the odds are in your favor.
The problem for most is they don't have an edge, and if they do, they don't follow it. So essentially We mess up a good thing. I can tell you from experience, once you have an edge, trading is easy. There really is no stress because it's not on your shoulders anymore.
You let your edge do the work, your job is to manage risk and the trade.
Stocks to Trade | Wednesday Edition 10-31-18
Bullish Cash Flow: JWN, WELL, INTC, XLNX, TWTR, KSS, MCS, WMT, WBA, JNJ
Bearish Cash Flow: ibm, aptv, ma, tpr
New 20 Day Breakout: UAA, JWN, DKS, PHM, WELL, M, CMCSA, TWTR, KSS, GIS, MCD, VZ, WMT, MO, PEP
New 20 Day Breakdown: ctsh, ibm, stz, ma, tpr, v, kors, adbe, wdc, lyb, bhge
Double Normal Volume: MSFT, NFLX, IBM, MRK, AMZN, LEN, MA, EQT, TTWO, LYB
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Tape Reading the SPY ETF
SPY ETF and the stock market remain a mixed bag, one day of buying doesn't change that. One thing I noticed in many stocks were failed breakdowns of new 20 day lows.
This means short sellers are caught on the wrong side and will need to cover if today's trading stays above the open price for an extended period of time. To exit a short sale you need to buy the stock back, so typically a short-covering rally has 2 players buying, shorts exiting and new longs piling on.
This is why short covering rallies can be fast and vicious.I am looking for a wave of buying into the close if price remains strong after 1pm. ** Again, notice the "If-then" scenario. That is REAL trading. If this happens then I plan to do this...