Wall Street sure has a funny way of celebrating. We just wrapped the best quarter since 2003, had a rip-roaring start to the third quarter, and were heading into a long, sun-filled holiday weekend. In response, the S&P 500 lost 2.9% on Thursday with all the major sector groups falling more than 2%.

That's how the market gods like it: Maximum pain at the most unexpected time.

Over the past few weeks I've been waiting for a selloff based on depressed volatility measures and weak supply/demand fundamentals. Today, I had focused short positions among energy and industrial stocks. My portfolio is up 2% over the last two days versus a 1.7% drop in the S&P 500.

Now, let's talk about what happened and what's ahead.   Read More...

The very first Independence Day was celebrated in 1777, six years before the young nation knew it would survive as an independent state. Fireworks were front and center at that celebration.

Perhaps our founding fathers were warding off evil Britain by firing off explosive material back in 1777. As investors, fireworks have a different connotation. We want our stocks to catch fire like a skyrocket in flight.

This year's 4th of July brings investors optimism as we emerge from a tough bear market. Here are 7 firecracker stocks poised to catch fire   Read More...

Want a nine-hole golf course in New Jersey? Talk to General Motors (GMGMQ). The company will soon auction off its unwanted assets as it reinvents itself in bankruptcy court.

One of those assets is the Hyatt Hills Golf Complex, built on a site where a GM factory once made hard rubber steering wheels and door handles, Bloomberg reports. County residents pay $18 to play nine holes there.

GM says it will sell "potentially valuable but peripheral" property it accumulated over 100 years. "Kind of like a big garage sale," said spokesman Tom Wilkinson. "You will see some really good real estate deals come out of this."

And some not so good deals. Like the New York foundry that poisoned   Read More...

Well isn't this interesting: An investor at the Securities and Exchange Commission told her bosses in 2004 that something funny was going on at Bernard Madoff's firm.

One of those bosses would later marry Madoff's niece. And what do you know? The investigator was told to focus on other issues, according to The Washington Post.

The investigator, Genevievette Walker-Lightfoot, sent e-mails to a supervisor saying her review of Madoff's firm raised red flags. But sources tell the Post that the SEC was under pressure to look for fraud in the mutual fund industry, so Walker-Lightfoot had to end her Madoff investigation to focus on mutual funds.

The revelation is just going to be more damaging for the SEC,   Read More...

This just posted at Minyanville!

The month will likely pass with very little mention. Folks will remain uninformed of its importance. The chance for honorary celebrations and time off from work will have elapsed.

So just for your and your family's edification: July is National Bikini Month.

Conveniently timed to coincide with warm weather, family picnics and your child's summer vacation, National Bikini Month commands that the country expresses reverence to the wondrous innovation of dividing feminine swimwear into 2 pieces. An evocative example of liberation, women are no longer a slave to 1890s beach conventions. They are free to remove the swim cap and striped wading jumpsuit and enjoy a tan that doesn't stop at the wrists.

Yes, the bikini is truly a giant leap for mankind.   Read More...

At a time when consumer confidence remains weak, can fast food remain profitable?

Things were starting to look sunny, but then U.S. consumer confidence fell in June, snapping a two-month rally of gains. The Consumer Attitudes Index weighed in at 49.3 -- a decline from the 54.8 it was at in May. Additionally, the Present Situation Index slid to 24.8 from 29.7.

These declines were caused by a weak job market -- note continued layoffs in the private sector -- a less favorable assessment of business conditions, and a weak real estate sector. In addition, higher interest rates are deterring homeowners from refinancing mortgage -- which means no extra cash to spend. Lastly, studies have indicated that US consumers, still anxious about the economy, are saving more and spending less.   Read More...

Several car companies have offered to make monthly payments for new auto buyers who lose jobs. Hyundai even has a program to take some vehicles back if their owners can’t find work.

The Kmart division of Sears (SHLD) is joining the parade of firms hoping to aid those down on their luck. According to the Financial Times, the program will start in Michigan, the hardest-hit state where joblessness is above 14%. It is also the home of Kmart’s former parent.

The paper writes that Kmart will give unemployed people in Michigan a “Smart Assist Savings” card for six months, which gets them 20% off the store’s private label goods.   Read More...

Over the last few months almost every asset class rose at an incredible pace as it looked as though the economy was beginning to stabilize.

Stocks are up 38% as consumer confidence swelled and earnings stabilized. Metals and other basic materials jumped on stockpiling in China and signs the world's factory were about to restart. And of course, oil prices have nearly doubled.

In their excitement, traders forgot all about the impact high energy prices would have on vulnerable and shell-shocked American shoppers. With easy money courtesy of the Federal Reserve and other central banks, the momentum trade was on. No time to think about basic economic relationships. But this is changing now. And as it does, crude oil will suffer. Here's why   Read More...

If you owned or purchased cheap stocks at the beginning of the year, you have been rewarded handsomely for your risk taking. Many of the stocks that were summarily crushed during the credit crisis last fall bounced hard off lows reached in November and March. In fact, some have doubled or tripled in a very short period of time.

But that should come as no surprise to investors -- historically, owning cheap stocks at the end of a recession can deliver big returns. That certainly has been the case so far this year, and the likelihood of more gains is quite promising. Ask any professional trader which approach is working best of late, and you will hear: "Go long on cheap, high beta stocks and do so aggressively."

With so much potential money to be made by speculating on cheap stocks, I'm in the process of launching an exciting new service for investors called Penny Stock Winners that focuses entirely on these low-priced gems.

Take a look at these three cheap stocks for July.   Read More...

This doesn't have a whole lot to do with stocks, but it's important to know before firing up the grill this weekend. A beef recall out last week by JBS Swift Beef has been expanded, and several retail stores are warning their customers.

The recall started out involving 40,000 pounds of beef, but has been expanded to 380,000 pounds. There are worries that the meat might have E. coli contamination.

Kroger is asking customers to check their freezers for the recalled beef (more information here). Hannaford Bros. supermarkets iare replacing JBS Swift beef sold within a specific date range.   Read More...