What Is Market Research Why Is It Important to Business Success?
Launching your product? Want to know what the market is all about now? What does the data say about the current market status? Is it a good time for your product to be launched? Will the audiences perceive your product? How different it is from other products? These questions might arise in your mind always. For that there is a solution which is called Market Research.
What is MarketResearch?
It is the process of assessing the market for the launch of new products with conducting a thorough research directly with the consumer. This lets the company to identify its target market and gather statistics and data from the opinions gathered from consumers regarding the product. Market Research are mostly done by the companies itself or through third parties who are experienced in the market research field. A lot of marketing strategies can be used for market research such as surveys, product testing and directly approaching the consumer groups for their opinions regarding the product.
Now the question is What is the need for MarketResearch?
The purpose of doing market research is to assess the market related to the product or service to gather results how the consumers will react to the product. The companies may try to find out what the consumer likes and what not and where does their product stand between these and how to make it better so that the consumer perceives it. They can remodel the product according to that and bring about changes to the actual product so that it fares successfully in the market after its launch.
How is market research done?
MarketResearch requires a lot of strategies and plans to be implemented to bring out fair amount of results for the company. The companies develops variety of steps with proper planning. It gathers information regarding the market and the company must analyze the data that has been collected to look after the relevant data that can be used later on to bring modifications to the product.
What is the use of Market Research results?
The company which is planning to launch its new product must conduct the market research to find out consumers views and also data regarding the product. These data helps the companies bring changes to the new products. If the company thinks that any alterations is required to bring to the product which may result in bringing success to the product right before or after the launch. To catch the consumers eyes the companies use this data and statistics to make sure the product is worth showing interest for and the consumers will be in benefit.What is the Role of GigIndia in MarketResearch?
GigIndia is the ultimate place for finding people for conducting market research because GigIndia specializes in marketing strategies which is helpful for businesses to become successful and get best results in returns as GigIndia has a huge student workforce who can perform the tasks given to them. Apart from that GigIndia plans everything from how to conduct the surveys, provide test samples to the consumers and also gather their thoughts over certain products and they compile all the information regarding the market research programme and sends them to the company to make sure they find it useful in bringing out any changes by the help of these results.
Nowadays market research is one of the most important tools for every business because it ensures you about the market scenario going around nowadays in the market and having consumers thoughts over a product gives you the proper results as what is the good factor and what is the bad factor about the product. So it is always recommended to conduct a market research always before launching a product in the market and for that GigIndia is the best place to work with.
Where to Sell Your SEO
The sale of SEO is definitely applicable to everyone who needs it. Why not? You’re an SEO provider and it’s your obligation to present your business to those who need it. However, with the ubiquitous presence of businesses and websites online, knowing who to call first is a problem for many SEO sellers.My company targets the following prospects:Local businesses. There’s no doubt that there are still thousands of local businesses that need SEO. Start with the small businesses around you. Look for businesses such as fruit shake kiosks, ice cream stands, and tattoo shops. These have a lot to gain from SEO.New sites. These sites are often hard to find yet easy to win over. Finding new websites can be difficult. One way of finding such sites is by going to Google’s last search results pages, or by literally looking over each results page. Some SEO companies have a special ‘search and encoding’ team that looks for new websites through Google Maps. Although these new sites are vulnerable because of their hunger for search engine attention and success, some of them don’t include SEO in their promotion methods. In such cases, you need to use your SEO expertise and marketing skills to convince them.Previous victims of fake SEO companies. Looking for business owners who’ve had experiences with fake SEO companies isn’t that hard. Convincing them to give the method another try is the tough part. These business owners need proof, evidence, and testimonies of your services’ legitimacy.Popular brands with poor online presence. Many say that popular brands do not need SEO. That is absolutely true. However, popular brands that struggle through regular marketing and advertising methods may benefit from SEO. Actually, majority of most brands today use SEO as a marketing strategy.Mobile SEO. There is a high demand for mobile websites today. With the increasing popularity of smartphones, targeting businesses that need mobile versions of their sites is a good move.Related SEO sites. Selling SEO to other SEO companies isn’t illegal. In fact, many SEO companies entrust their own websites to other companies. Some of them say that they need to focus on optimizing their clients’ websites and that it would be time-consuming to optimize their own sites, while others say that they want to separate their own SEO from their main job. I think this is quite reasonable. My company handled SEO campaigns for 10 SEO companies several years ago, and some of them are still my partners!Celebrity websites. Convincing busy celebrities to have their sites optimized is difficult. Even encouraging their assistants and managers is considered as hard labor. However, targeting celebrities as potential clients is a clever act. Target the rising stars, or those who have clothing lines, music labels, and other businesses. I have a friend who has a pool of SEO Resellers that focus on managing SEO for celebrities’ websites.
Business Identity Theft – Three Keys to Protection
Imagine discovering you are the co-owner of your business instead of the sole owner, or that you have a satellite business you didn’t know about operating in a different state, or there is a business with a similar name using a similar address to yours pretending to be your business. How would any one of these scenarios impact your business? This is what business identity theft looks like. It can happen to any business large or small. It could happen to yours, too.Most small to mid-sized businesses don’t understand what identity theft can do to their business until it is too late.Business identity theft doesn’t target individuals, instead, criminals look for ways they can take valuable information fro legitimate businesses. They are looking for bank accounts, credit card numbers and passwords, and sensitive intellectual information.These looters gain access to key accounts and drain them, many times, before the bank is aware of the act. The cost of business identity theft can be enormous. It could take hundreds of hours and a large sum of money to repair the damage. Some businesses never recover and go out of business.Business identity theft is still a relatively new type of crime. Most business owners haven’t heard of it. So there is a temptation to ignore it. Steve Cox of the Better Business Bureau says, “Business identity theft is a very real concern in today’s marketplace. From a criminal’s perspective, it’s significantly more cost-effective to steal business identities than consumer identities.:The criminals act quickly. They know they only have a short period of time before the act is discovered. The Ponemon Institute says that 84 percent of the cases money was stolen before the fraud was detected by the bank.Many small business owners don’t think they have much that a thief can take from them. But the truth is that you don’t have to have more than a good name. The thieves can use it to get loans, order products and ruin the businesses good name. Dun and Bradstreet’s Senior Risk Analyst Robert Strezze states, “What is particularly disturbing about this trend is the significant dollar amount involved. It’s not unusual for the losses to be in the mid-six figures by the time the criminal activity has been detected.”The unfortunate truth is that most businesses don’t take the time or steps to safeguard against the crime. Most are too busy doing the daily activities to keep the business going. It isn’t until the damage is done that a business realizes the trap it fell into.What are the keys to business identity theft prevention?There’s good news for businesses who are willing to put some time and effort into business identity theft prevention. Many times preventative measures can mean big savings and a better image in the community. There are three keys where a business can lessen the likelihood that identity theft will happen:The first key is to establish a position on the leadership team that is in charge of monitoring for business identity theft, establishing procedures for data breach prevention, and protect against other criminal activity. This officer could be called the Chief Security Officer, for example, and should have the power to check banking, credit card and other key accounts. The officer would be wise to establish “best practices” for information security including employee training, password protection and more.The second key is to set up monitoring services that watch your back for you. A businesses personal information is everywhere. It is nearly impossible for one person to keep an eye on every aspect of the business. A business identity theft protection service that includes business credit monitoring and internet surveillance, identity theft alerts, and whole business recovery can be a valuable asset for identity theft protection.The third key is to set up credentials monitoring in the Dark Web. This is where criminals do their business buying-selling-trading stolen information. Credentials monitoring will alert a business when stolen credentials, IP addresses and, for banks, BIN card numbers appear. Businesses can take proactive steps to prevent the stolen information from harming them, their employees and/or customers. Millions of stolen credentials, email and login information, show up every month. Stolen credentials is a major player in all forms of business fraud.Business identity thieves are clever and determined. They can take advantage of businesses and business owners that do not take precautions to protect their business.I ask nearly every business this question: “If someone started representing himself as an owner or officer in your business, how would you know? How soon would you want to know?
Live Entertainment
Using an entertainment agency can take away any headaches sourcing live entertainment can bring.When planning an important event such as wedding receptions, corporate events, birthday parties, school and university parties such as summer balls, it can sometimes feel daunting finding the right entertainment! You may want to look at hiring a soul and funk band, swing band, pop band, rock band, hire a cover band or hire a DJ but haven’t got a clue where to start looking, this is where an entertainment agency can really help. They will have a wide range of live acts available to hire and will also have the knowledge and experience to ensure you find exactly what you are looking for.One of the most popular events to have live entertainment at is weddings. Weddings are a special occasion and one that should be celebrated to the maximum so why not add a bit of spice to the proceedings by including some first class entertainment. Deciding on a wedding band or wedding entertainment can make people feel pressure because you want your guests to have a great time. This is why you may want to consider dealing with an entertainment agency that has a lot of experience in this area. They can come as a great help as they can offer advice and guidance, making sure you find whats right for you and your guests.Other popular events to have live music at are corporate events. Corporate parties including the works Christmas party can be one of the biggest events in a companies calender. You may have been put in charge of organising the event or be a boss that wants to reward all the hard working staff but haven’t got the time to put into making sure you get the right entertainment. After all, we are all busy enough as it is without having to do all the research it takes into ensuring that the works parties entertainment is great – this is why you may want to consider an entertainment agency to do the work for you. The variety of live acts available means that you will be spoilt for choice! Also they will have many reviews and testimonials that will help to reassure you that they have done this all before.Whatever the event an entertainment agency can help and give you advice and guidance you need to make sure you find the live entertainment and wedding band you need!
Legal Protection for Foreign Direct Investments (FDIs) in Nigeria
For healthy and continuous in flow of Foreign Direct Investments (FDIs) to Nigeria, the country has over the years put in place friendly legal framework for Foreign Direct Investments (FDIs) protection.In this Foreign Investors’ Guidelines for Doing Business in Nigeria Series, we shall be examining the legal mechanisms put in place for the purpose of encouraging an increasing FDIs inflow and ensuring foreign investors’ confidence in the country.We shall be discussing foreign investors’ protections ranging from certainty of arbitral proceedings and other dispute resolution mechanisms in the country.The fact with modern economic systems is that no country can be an island economically; Foreign Direct Investment (FDI) protection is very essential to the successful attainment of foreign investors’ business objective(s) and economic development of any economy.There are steps that host countries can lawfully take in the exercise of their sovereignty and power can lead to depriving foreign investors of reaping the fruits of their investments.Host government actions that can affect foreign investment adversely includes nationalization; the act of a government taking control of a private enterprise and converting it to state or public ownership.Expropriation; the act of a government taking possession of or otherwise meddling with privately held assets or property for the use and benefit of the public, or in the public interest.The legislative and administrative acts of the government as government action can also have adverse effects on foreign investors’ businesses in Nigeria.This is the indirect or creeping form of expropriation. The only difference is that, it mode of operation shifted attention from the physical and actual taking-over of an investor’s assets to the legislative and administrative acts of the government.While not depriving a foreign investor of the ownership of an asset in this type of government control, it is capable of significantly reducing the value of properties and investments of the foreign owner.Foreign investors don’t like investing in country’s with risk such as arbitrary revocation of a license; permit or a concession after the investor has made the requisite investments.The advancement and expansion of international business relationships and the importance of foreign direct investment to the economic development of Nigeria has made the country to put in place some foreign business protection laws for the purpose of encouraging foreign investors.Nigeria has performed greatly in providing protections to potential foreign investors.Investment TreatiesIn spite of the provisions of Section 12 of the Nigerian Constitution, investment treaties entered by the country are binding on, and enforceable against Nigeria upon ratification under the principle of ‘pacta sunt servanda’.Also, by a literal application of Article 31 of the Vienna Convention on the Law of Treaties which provides that a treaty shall be interpreted in good faith in agreement with the ordinary meaning to be given to the terms of the treaty.Bilateral Investment Treaties (BITs): Nigeria entered into its first Bilateral Investment Treaty (BIT) with Germany in 1979 which came into force in 1986.According to finding from my investigation Nigeria has entered into 28 Bilateral Investment Treaties (BITs) between 1986 and November, 2015.Of the total number, 13 are currently in force, 14 are signed and 1 repealed. The Bilateral Investment Treaties (BITs) currently in force are the ones entered into with Finland, France, Germany, Italy, Netherlands, Romania, Serbia, Spain, South Korea, Sweden, Switzerland, Taiwan, and United Kingdom.The 14 BITs which have been signed by Nigeria but are yet to enter into operation were signed as far as back as 1996.In addition to the usual investment protection standards, these BITs provide that a contracting state shall not damage by irrational or unfair means the maintenance, management, disposal of investment in its territory of nationals or companies of the other Contracting Party.And the same recompense for losses suffered due to a safety event made to a domestic investor shall be allowed to the investor from the other contracting state.These BITs also provide for the right of subrogation allowing foreign investors to obtain suitable investment insurance and for these investment insurance providers to seek remedy on their behalf from Nigeria.The BITs that are presently in force have also made satisfactory requirements for the standard investment protection. These include fair and equitable treatment, umbrella clauses, most favoured nation status, national treatment, obligations against arbitrary and discriminatory measures and security.Multi-lateral Investment Treaties (MITs): Economic Community of West African States (ECOWAS) treaty is one of the famous MITs Nigeria have entered. The ECOWAS treaty was signed on 28th May 1975; it came in into force on the 20th June, 1975.The treaty currently has 15 signatories who are member states of ECOWAS.Article 2 of the Treaty gives ‘Community Enterprise’ status to businesses whose equity capital is owned by two or more member states, and citizens or institutions of the Community.Article 16 of the Treaty provides that Community Enterprise shall be accorded favourable treatment with regards to incentives and advantages, and shall not be nationalised or expropriated by the government of any member state except for valid reasons of public interest, and subject to the payment of prompt and adequate compensation.Organization of Islamic Conference (OIC) investment treaty is another MIT Nigeria has entered into in relation with providing favourable conditions for foreign investments in the country.OIC is a treaty with an Agreement on Promotion, Protection and Guarantee of Investments among Member States of the Organization of the Islamic Conference, which came into force in September, 1986.Chapter 2 of the Treaty mandates all member states of the Organization of Islamic Countries to provide adequate security and protection to the invested capital of an investor who is a national of another contracting member state.The terms of protection specifically include the enjoyment of equal treatment, undertaking not to adopt measures that may directly or indirectly affect the ownership of the investor’s capital or investment and not to expropriate any investment except it is in the public interest and on prompt payment of adequate compensation.Host states are further obligated to guarantee free repatriation of any capital and returns due to an investor.Conventions to which Nigeria is a Signatory:The country is signatory to a number of Conventions which have been entered into for the purposes of protecting foreign direct investment.The most significant convention in this regard is the Convention for the Settlement of Investment Disputes between States and Nationals of Other States (ICSID Convention).International Centre for the Settlement of Investment Disputes (ICSID) as an arbitral institution under the World Bank Group is a fully integrated, self-contained arbitration institution that provides standard arbitration clauses, arbitration proceedings rules, arrangements for venues, financial arrangements and administrative supporting including the appointment of arbitrators to parties.Convention for the Settlement of Investment Disputes between States and Nationals of Other States (ICSID) primarily provides for the settlement of investment disputes between investors and sovereign host states.It has also taken the necessary legislative measures to make the Convention’s resolution effective in Nigeria by enacting it as a domestic legislature in the International Centre for Settlement of Investment Disputes (Enforcement of Awards) Decree No. 49 of 1967.Another significant investment protection convention Nigeria has entered into is the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards.New York Convention was adopted by the United Nations in June, 1958 and it mandates domestic courts in signatory countries to give effect to arbitration agreements, and to also recognise and enforce valid arbitral awards given in other signatory states.The New York Convention in other words is particularly significant for the enforcement of arbitral awards resulting from non-ICSID investment arbitration proceedings.In an attempt to bring into conscious awareness the legal guidelines to undertaking business in Nigeria to intended foreign investors, we shall specifically be reviewing domestic legislations and investment treaties which collectively make up the legal framework for foreign investment protection in the country.The Domestic Legal Framework:The notable investment legislation in Nigeria is the Nigerian Investment Promotion Commission Act, CAP N117 Laws of the Federation of Nigeria (“NIPC Act”).The NIPC Act provides the fundamental and suitable legal framework for the protection of foreign investors in the country. Part 5 of the NIPC Act provides that foreigners may invest and participate in any enterprise in Nigeria.They are assured unrestricted transfer of funds attributable to the investment such as profits, dividends, payments in respect of loan servicing, and the remittance of proceeds obtained from the sale or liquidation of assets or any interest in the venture through an approved dealer in freely convertible currency.Section 25 of the NIPC Act clearly provides that no enterprise shall be expropriated or nationalised without prompt payment of compensation; the same section also provides a protection clause to an investor to claim “creeping” expropriation by establishing that the acts complained of indirectly results to expropriation or have expropriatory tendency.Lastly, the NIPC Act provides that disputes between a foreign investor and any government in Nigeria arising from an investment shall be submitted to arbitration within the framework of any investment treaty entered into between the government of Nigeria and any state of which the foreign investor is a national.It further provides that where there is a disagreement between the Nigerian government and the foreign investor on the mode of dispute settlement, the dispute shall be submitted to ICSID for arbitration.Foreign investor is thus at liberty in Nigeria to institute arbitration proceedings against a government even after bringing a claim or counterclaim against the government in a court or domestic arbitration.Another domestic legislation that provides protection to foreign investors is the Foreign Exchange (Monitoring and Miscellaneous Provisions Act) CAP F34.Section 15 of this Act provides that any person may invest in any business venture with foreign currency or capital imported into Nigeria through an authorized dealer who will issue a Certificate of Capital Importation to the foreign investor.Sub-section (4) of the same section in addition guarantees unconditional transferability of funds in freely convertible currency of any such monies arising from an investment made in Nigeria with foreign currency, including dividends and profits, payments in respect of loan servicing, and remittances of the proceeds of sale or liquidation of assets.A similar provision on repatriation is also found in Section 18 of the Nigeria Export Processing Zones Act, CAPN107 (“NEPZA Act”).Section 18 of the NEPZA Act provides that foreign investors who invest in outlined businesses within an export zone shall be eligible to remit profits and dividends earned in the zone and repatriate foreign capital investment at any time with capital appreciation of the investments.Other foreign investors’ protection laws are the Arbitration and Conciliation Act. The act gives foreign investors the opportunity to determine the mode of settling disputes that may arise out of their investments without resort to litigation in domestic (Nigeria) courts.With the anticipation that such settlement will unfailingly and efficiently protect and enforce the rights of foreign investors and their investments provides a framework for domestic arbitration it also makes provisions for international commercial arbitration which is more preferable by foreign investors.Section 56(2) (d) defines ‘international arbitration’ to include any arbitration that the parties have expressly agreed in the arbitration agreement to treat as international arbitration. The Act provides that every arbitration award is capable of enforcement under the New York Convention.Nigeria’s entries into these investment treaties and its enactment of the Conventions into domestic legislation have made the protection mechanism part of Nigeria’s legal framework for protection of Foreign Direct Investments (FDIs) friendly and convenient to actual and potential foreign investors.
Health Care Reform – As of Today
It came about last week. I was sitting in a State Conference for insurance professionals. I knew it was coming and I was ready to see if maybe THIS time, I would get more understanding than I had before. There was so much coming at me with regards to health care reform, I seemed to be in a tidal wave of information that seemed to change daily. The good news is, it was not just me. The bad news is, eve n many of those people “in charge” have little to no idea what is the 2,000 + pages of legislation called “health care reform”. A few things I came away with, I will share here…as well as an excellent bit of compiled info on some recent points to keep in mind for the coming months of 2010.1 – Don’t worry if health care reform seems confusing… it is. Many who felt health care reform would be a good thing for the United States, I feel, forgot how many cooks would be in the kitchen on this one. Sure, there were some “head chefs”, but everyone wanted to make it something good for them or the people they represented. Unfortunately, I also feel that all these “chefs” forgot to consider one party of people and that was others. They seemed to forget the masses of people this was supposed to help and instead focused on a plan so riddled with more questions than answers.2 – Health care reform will change even more. If you thought this bill was it, think again. If anything more could go wrong in our political administration I would be shocked. I just don’t see this group of “changers” lasting much past one term in office. With that said, one of the first things that will be adjusted and changed will be health care. No matter who takes over, the bill we currently are so concerned with and the bill that would take until 2014 to completely make itself known will change so dramatically we really won’t know anything until it’s all said and done.3 – We will be the ones to help make sense of it all. I write to many colleagues each and every week and one thing is certain… the insurance professionals will be the ones to be sure that the regular people know what health care reforms will effect the people we get an audience with. We as professional insurance agents and representatives will be the ones on the front lines making sure that our clients understand what is out there and how and/or what to do about it. If we work with companies and their benefits, we will be the ones those human resource professionals and business owners will be turning to for answers. Will you be ready. Start now and take a little each day to be more “up to date” than the agent down the street. It will help you stand out as “the go to” for health care reform answers.4 – We all have to share. If we get some great pieces of information, we need to share it as soon as we can with as many people as we can. The information about health care reform is not meant to be secret, but many have no idea where to get it. If you get a handle on some piece of this legisltation, share it. Share it in an article or a newsletter. Share it in speech or over coffee. When we share information, we keep all the facts on the table and together we can all work this out.Below is a compilation of some items to consider with regards to health care reform. Feel free to pass on any of them that you see fit for you and your situation:- Retiree Health Subsidy. For plans that satisfy various application and submission rules, the federal government will reimburse participating employers 80% of an early retiree’s (age 55 and over but not eligible for Medicare) health claims between $15,000 and $90,000. This program is to be effective as of June 23, 2010, and will cease upon the earlier of exhaustion of its $5 billion in funding or January 1, 2014.- Increased Resources. The Health Reform Bill allocates an additional $300 million to fight health care fraud and abuse over the next 10 years.- Transparency. Effective immediately, physician practices who provide their patients MRI, CT, and PET imaging services are required to inform those patients in writing of other suppliers in the community who can provide those services. The Health Reform Bill also requires disclosure of financial relationships between physicians, hospitals, pharmacists and other providers and manufacturers and distributors of certain drugs, devices, biologicals, and medical supplies.- Community Health Assessment.
Provide Home Health Care
Home health care refers to the process of having a health care provider, usually a nurse or a nurse assistant, come to the home of a person who is elderly or disabled and help them with basic daily activities that due to their age and disability they are unable to perform themselves.It can take many forms, depending on the extent of assistance the patient requires. For some patients, basic assistance with housework and meal preparation is the extent of their need. For others, full medical knowledge may be required.Evaluate the needs of your loved one before contacting the provider and discussing your options. The level of care offered varies greatly, from weekly visits to live-in companion care. The home health care agency can explain your options and discuss pricing with you.Medicare provides coverage for some home health care, depending on the specific needs of the senior involved. Any care you want beyond the coverage offered by Medicare or your own insurance company would have to be paid out of pocket. This can make it difficult to provide the level of care you sometimes want, but most companies are aware of this issue and can help you find a financing plan that works.As the needs of the patient change, so does the providers arrangement. Be prepared for your home health care needs to increase, and be aware of the point where you will be interested in ending home health in favor of looking into a nursing home of some sort. Of course, most seniors prefer to stay in their own home as long as possible.You may be able to keep home health care but may need to change providers. For example, if you start with an untrained companion provider basic cleaning and meal preparation services, you may at some point need to hire a nurse or nurse assistant to take care of the patient’s increased medical needs.This is a good option for seniors who have minor difficulties performing the basic activities of daily living, like bathing and dressing themselves, but otherwise are healthy. For seniors that live far away from their family, they can help provide social interaction and interest to the lives of the senior.Home health care is a good choice for many elderly people. It is, however, a complex decision that requires taking into account the finances available, the needs and wants of the senior, the availability and willingness of the family to provide care, and the potential future needs of the senior. By contacting them and discussing your situation and concerns, you can determine the best course of action for you and your family.
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.