Stocks can remain overbought or oversold for a different periods time in a strong trend. What traders need to look for are clues that there is a change in trend and price action at a previously identified support or resistance point. Bollinger Bands can help determine these points. A successful trader must be reality based, not driven by illusion. The reality is that markets are nothing more than pure supply and demand at work and learning charting methods can help in making money when trading.
Bollinger Squeeze
Forex and stock traders are looking for the consistently wrong investor, trader and take the opposite position. This will obviously lead to winning trades for them. All traders have read trading books that point out that increasing volume is good for the continuation of the trend. Many new stock traders will try and fight the trend.
Tuesday, November 12, 2013
Monday, November 11, 2013
Amazon Web Services
Amazon Web Services is the most disruptive threat ever faced by the traditional set of enterprise vendors. Why? AWS allows companies to build and deploy applications with virtually limitless scalability quickly. It's secure, saves a ton of money in data center expenses, provides strong data recovery options and removes the need to install new hardware, set up and configure new software and deal with the typical on premise IT challenges. To make things even more daunting, Amazon is happy with high single digit profit margins in this business, which is dramatically lower than the traditional enterprise margins (30-60%). They are taking the same tact as they have with all their business lines. For those closely following this sector, this isn't new news.
What are Annuities
Do you want guaranteed income for life more then just your retirement. That's why insurance companies are ramping up their marketing of annuities. With such a wide variety of trading tools and methodologies all around the world today, is it any wonder that so many people find it highly confusing when deciding which to use. But before you buy in, you should know what you're getting into. Annuities are not that easy to understand and they may not be right for every retirement situation. Here are some ideas to understand and what to learn. Annuities are financial contracts issued by a life insurance company that offer tax deferred savings and a choice of payout options income for life, income for a certain time period or a lump sum to meet your retirement needs.
Annuities What are Annuities
Social networking stocks TWTR
Social networking
Twitter (TWTR) - headlines said it "Soared" but we all know it failed the "art of the first day". It opened at $45.10 and closed at $44.90 after hitting $50.. Then it drifted lower on Friday.. I don't have much interest here as it could see $32-$35 before it psychologically looks like a better entry. $40.68 is Friday's pivot
LinkedIn (LNKD)- finally found a bit of support after getting beat up post earnings. Some caught a nice Red Dog reversal around $210-- $208.35 is your spot to trade against. If it continues above $216.45 there is a lot of resistance $221.50-$225.
Facebook (FB) - lots can see a head and shoulders top forming here.. sometimes necklines do hold.. So If you are going to play this short, make sure there is a high volume break and close below $46.50-$47. The stock did exceed all our 2013 expectations and does seem a bit vulnerable here.
Yelp (YELP) -stock got hit hard from $70++ down to below $60 and then reversed on Friday thru the $61.40 pivot. IF the bears want to stay in control here.. they won't let the bears take back $66
Twitter (TWTR) - headlines said it "Soared" but we all know it failed the "art of the first day". It opened at $45.10 and closed at $44.90 after hitting $50.. Then it drifted lower on Friday.. I don't have much interest here as it could see $32-$35 before it psychologically looks like a better entry. $40.68 is Friday's pivot
LinkedIn (LNKD)- finally found a bit of support after getting beat up post earnings. Some caught a nice Red Dog reversal around $210-- $208.35 is your spot to trade against. If it continues above $216.45 there is a lot of resistance $221.50-$225.
Facebook (FB) - lots can see a head and shoulders top forming here.. sometimes necklines do hold.. So If you are going to play this short, make sure there is a high volume break and close below $46.50-$47. The stock did exceed all our 2013 expectations and does seem a bit vulnerable here.
Yelp (YELP) -stock got hit hard from $70++ down to below $60 and then reversed on Friday thru the $61.40 pivot. IF the bears want to stay in control here.. they won't let the bears take back $66
Saturday, November 9, 2013
The aluminum industry
The aluminum industry is highly cyclical, with prices subject to worldwide supply and demand so traders need to stay ahead of the curve. In the first quarter of fiscal 2012, Alcoa, Inc. (AA), the world leader in the production of primary aluminum, reported better than expected results on the back of growth in the aerospace and automobile sectors.
The company anticipates that global aluminum demand will go up by seven percent this year. It also expects that burgeoning demand for aluminum along with market related production cutbacks will lead to a global aluminum industry deficit of 600,000 metric tons in 2012. Region , in 2012, China and India are expected to lead with double digit growth. Russia and Brazil are projected to have four to five percent increases in aluminum consumption rates. Alcoa believes that the long term prospects for aluminum remain bright and envisions that global demand for aluminum will double by 2020.
Alcoa's positive outlook prices have been under pressure, prompting companies to cut back on production. Rio Tinto (RIO) plans to sell its aluminium assets and close its smelter in order to cut costs. Alcoa plans to close or curtail 390,000 metric tons, or approximately 12% of its global smelting capacity, in 2012. This will lower the company's cost position by 10 percentage points in smelting and seven percentage points in refining, by 2015 and improve its competitiveness and bottom line.
Aluminum and Copper
The company anticipates that global aluminum demand will go up by seven percent this year. It also expects that burgeoning demand for aluminum along with market related production cutbacks will lead to a global aluminum industry deficit of 600,000 metric tons in 2012. Region , in 2012, China and India are expected to lead with double digit growth. Russia and Brazil are projected to have four to five percent increases in aluminum consumption rates. Alcoa believes that the long term prospects for aluminum remain bright and envisions that global demand for aluminum will double by 2020.
Alcoa's positive outlook prices have been under pressure, prompting companies to cut back on production. Rio Tinto (RIO) plans to sell its aluminium assets and close its smelter in order to cut costs. Alcoa plans to close or curtail 390,000 metric tons, or approximately 12% of its global smelting capacity, in 2012. This will lower the company's cost position by 10 percentage points in smelting and seven percentage points in refining, by 2015 and improve its competitiveness and bottom line.
The world's wealthiest people
The world's wealthiest people, endowments and pensions have been investing this way for centuries and when it comes time for them or their advisors to pick the “best managers”, their preferred choices for public market investing are usually hedge fund managers. That should not come as a surprise. Hedge funds pay the most (the standard fee is 2% management fee annually plus 20% of the profits generated for investors) so they attract the best fund managers in the world and can pay for the best research. There are also less regulatory restrictions on hedge funds. Hedge funds have more latitude on how to hedge risk or use leverage and on what securities they can buy, how they are selected and what proportion of their portfolio is allocated to a certain position. Yet even the world's wealthiest investors also recognize the importance of diversification across managers and never put their eggs with just one manager or one investment style.
Stock market picks investing
Thursday, November 7, 2013
Airline stocks airline industry investments
The global airline industry continues to face challenges in 2012, from rising costs fuel, in particular and economic uncertainties. The condition looks bleaker ahead with a weak outlook for Europe, given its financial problems. The International Air Transport Association (IATA) projects overall airline profits of $3.0 billion for 2012. This is down from the $3.5 billion projected last December and $4.9 billion projected in September. Moreover, the 2012 profit outlook is also below the estimated $7.9 billion in 2011 and $16 billion earned in 2010. This steep decline in the industry's profitability is a function of the overall unfavorable macro backdrop with which the industry must operate this year. Financial advisors should be aware of developments in the geographic location of where the commodities they invest in are produced. The reason being that prices are impacted by factors like weather conditions or when political turbulence in the region causes supply concerns and fuel prices.
Airline stocks
The ADX indicator
The ADX indicator measures the strength of a trend and can be useful to determine if a trend is strong or weak. The Average Directional Index (ADX), Minus Directional Indicator (-DI) and Plus Directional Indicator (+DI) represent a group of directional movement indicators. If you're a swing trader or long term investor, using this type of indicator as part of your technical analysis can help to prevent from entering a new long position into weak trending stocks that may be losing momentum and potentially be on the brink of reversing.The only thing traders use the ADX for is an additional filter in their scans, so that they can find stocks that are in strong trends. Trdaers do not even have the ADX indicator on the charts that they look at when they are looking for setups. Since the ADX is already factored into the charts,you don't need it added to the chart itself.
ADX trading indicator
401(k) Make a plan.
401(k) Make a plan.
Everyone should have a sound plan for achieving their retirement goals. If you don’t know how much money you need for retirement, you can’t possibly know how much to save or how to invest it. And, when times are tough, your plan will help you evaluate the damage to your portfolio.
Keep making regular contributions and increase them if you can. Employer matches come in a wide variety of options depending on the employer’s discretion. Some employers match contributions dollar for dollar. Others match 25 or more cents on the dollar. That means each time you contribute, your employer adds money, for free! Often times your employer will only match up to a certain percent of your salary. But regardless, they’re adding to your retirement for you! The worst time to stop contributing to your 401(k) is when the market is down.
Everyone should have a sound plan for achieving their retirement goals. If you don’t know how much money you need for retirement, you can’t possibly know how much to save or how to invest it. And, when times are tough, your plan will help you evaluate the damage to your portfolio.
Keep making regular contributions and increase them if you can. Employer matches come in a wide variety of options depending on the employer’s discretion. Some employers match contributions dollar for dollar. Others match 25 or more cents on the dollar. That means each time you contribute, your employer adds money, for free! Often times your employer will only match up to a certain percent of your salary. But regardless, they’re adding to your retirement for you! The worst time to stop contributing to your 401(k) is when the market is down.
Small Cap Stocks
10 Small Cap Stocks With Large Insitutional Investors
Torch Energy Royalty Trust
Market cap: $11.61 mill
Institutional percent held: 62.40%
52 week price change: -42.74%
Holders: 5
Largest Holder: Silver Point Capital with 5.365 million shares worth $7.243 million
Share price $1.35
CSP Inc. (NASDAQ:CSPI)
Market cap: $16.29m
Institutional percent held: 31.94%
52 week price change: +35.81%
Holders: 9
Largest Holder: Dimensional Fund Advisors with 293,340 shares worth $1.417 million
Share price: $4.83
Ameriana Bancorp
Market cap: $18.68m
Institutional percent held: 25.45%
52 week price change: +63.64%
Holders: 15
Largest Holder: Jeffrey L. Gendell wtih 279,065 shares worth $1.799 million
Share price: $6.45
Air T, Inc (NASDAQ:AIRT)
Market cap: $20.79m
Institutional percent held: 25.36%
52 week price change: +10.82%
Holders: 14
Largest Holder: FMR LLC with 244,600 shares worth $2.079 million
Share price: $8.50
Educational Development Corporation (NASDAQ:EDUC)
Market cap: $15.71m
Institutional percent held: 19.29%
52 week price change: -29.14%
Holders: 7
Largest Holder: FMR LLC with 386,892 shares worth $947,568
Share price: $4.00
Chicago Rivet & Machine Co (NYSEAMEX:CVR)
Market cap: $17.87m
Institutional percent held: 17.28%
52 week price change: +12.94%
Holders: 11
Largest holder: Dimensional Fund Advisors LP with 77,936 shares worth $1.441 million
Share price: $18.50
Servtronics (NYSEAMEX:SVT)
Market cap: $21.40m
Institutional percent held: 16.02%
52 week price change: +5.53%
Holders: 14
Largest Holder: Dimensional Fund Advisors LP with 85,678 shares worth $769,388
Share price: $8.98
WVS Financial (NYSEAMEX:WVFC)
Market cap: $17.49m
Institutional percent held: 15.71%
52 week price change: -3.85%
Holders: 10
Largest holder: Rodger Brothers Inc with 205,536 shares worth $1.747 million
Share price: $8.50
First West Virginia Bancorp (NYSEAMEX:FWV)
Market cap: $26.97m
Institutional percent held: 14.22%
52 week price change: +18.69%
Holders: 8
Largest holder: Wellington Management Co with 163,629 shares worth $179,949
Share price: $16.32
Electro-Sensors (NASDAQ:ELSE)
Market cap: $13.23m
Institutional percent held: 13.71%
52 week price change: +7.91%
Holders: 6
Largest holder: Whitebox Advisors with 48,204 shares worth $187,995
Share price $3.90
Traders and investors need to stay informed on the following.
Even institutional investors or hedge funds that can run some complicated strategies seem to lack a full understanding of how these products work. In fact it was professional money managers loading up on VIX futures and ETFs that drove the steep premiums and term structure described above. Traders don't think they realized just how much they were overpaying for that supposed "protection."
At any given time, most equity and ETF options offer a multitude of strike prices, which are typically in $5 increments though options in some smaller stocks trade in $1 or $2.50 increments , and at minimum, four expiration dates throughout the year that occur on the third Friday of the month. Thus many different expiration periods such as quarterly, monthly, and even weekly options have been added to popular issues in recent years.
Small Cap Stocks
Torch Energy Royalty Trust
Market cap: $11.61 mill
Institutional percent held: 62.40%
52 week price change: -42.74%
Holders: 5
Largest Holder: Silver Point Capital with 5.365 million shares worth $7.243 million
Share price $1.35
CSP Inc. (NASDAQ:CSPI)
Market cap: $16.29m
Institutional percent held: 31.94%
52 week price change: +35.81%
Holders: 9
Largest Holder: Dimensional Fund Advisors with 293,340 shares worth $1.417 million
Share price: $4.83
Ameriana Bancorp
Market cap: $18.68m
Institutional percent held: 25.45%
52 week price change: +63.64%
Holders: 15
Largest Holder: Jeffrey L. Gendell wtih 279,065 shares worth $1.799 million
Share price: $6.45
Air T, Inc (NASDAQ:AIRT)
Market cap: $20.79m
Institutional percent held: 25.36%
52 week price change: +10.82%
Holders: 14
Largest Holder: FMR LLC with 244,600 shares worth $2.079 million
Share price: $8.50
Educational Development Corporation (NASDAQ:EDUC)
Market cap: $15.71m
Institutional percent held: 19.29%
52 week price change: -29.14%
Holders: 7
Largest Holder: FMR LLC with 386,892 shares worth $947,568
Share price: $4.00
Chicago Rivet & Machine Co (NYSEAMEX:CVR)
Market cap: $17.87m
Institutional percent held: 17.28%
52 week price change: +12.94%
Holders: 11
Largest holder: Dimensional Fund Advisors LP with 77,936 shares worth $1.441 million
Share price: $18.50
Servtronics (NYSEAMEX:SVT)
Market cap: $21.40m
Institutional percent held: 16.02%
52 week price change: +5.53%
Holders: 14
Largest Holder: Dimensional Fund Advisors LP with 85,678 shares worth $769,388
Share price: $8.98
WVS Financial (NYSEAMEX:WVFC)
Market cap: $17.49m
Institutional percent held: 15.71%
52 week price change: -3.85%
Holders: 10
Largest holder: Rodger Brothers Inc with 205,536 shares worth $1.747 million
Share price: $8.50
First West Virginia Bancorp (NYSEAMEX:FWV)
Market cap: $26.97m
Institutional percent held: 14.22%
52 week price change: +18.69%
Holders: 8
Largest holder: Wellington Management Co with 163,629 shares worth $179,949
Share price: $16.32
Electro-Sensors (NASDAQ:ELSE)
Market cap: $13.23m
Institutional percent held: 13.71%
52 week price change: +7.91%
Holders: 6
Largest holder: Whitebox Advisors with 48,204 shares worth $187,995
Share price $3.90
Traders and investors need to stay informed on the following.
Even institutional investors or hedge funds that can run some complicated strategies seem to lack a full understanding of how these products work. In fact it was professional money managers loading up on VIX futures and ETFs that drove the steep premiums and term structure described above. Traders don't think they realized just how much they were overpaying for that supposed "protection."
At any given time, most equity and ETF options offer a multitude of strike prices, which are typically in $5 increments though options in some smaller stocks trade in $1 or $2.50 increments , and at minimum, four expiration dates throughout the year that occur on the third Friday of the month. Thus many different expiration periods such as quarterly, monthly, and even weekly options have been added to popular issues in recent years.
Trading Twitter Stock TWTR
While Twitter's valuation is 'reasonable' compared to social media peers like Facebook (FB) and LinkedIn (LNKD), do not be lulled into believing that expectations are low. Twitter really has to kick butt. But remember, Twitter won't give its first earnings report as a public company until January, so it's got some room to run until then.
The introduction of higher lows and higher highs changed the direction to bullish. Traders needed to shift into buying pullbacks to demand in order to make quality trades. Some of you may have been worried about the larger daily trend and how it would affect the intra-day trends. Even if you were to go through a whole trading day without executing a single trade, you did not waste your time. You gained experience in reading price action and building your trading discipline. Discipline is a major contributor to successful trading and those traders who can be disciplined to not trade when there is high risk are the ones who are more likely to succeed.
Trading Twitter
The introduction of higher lows and higher highs changed the direction to bullish. Traders needed to shift into buying pullbacks to demand in order to make quality trades. Some of you may have been worried about the larger daily trend and how it would affect the intra-day trends. Even if you were to go through a whole trading day without executing a single trade, you did not waste your time. You gained experience in reading price action and building your trading discipline. Discipline is a major contributor to successful trading and those traders who can be disciplined to not trade when there is high risk are the ones who are more likely to succeed.
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