Posts Tagged ‘Amount Of Money’
Financials and Energies Reviews on The Week of 13-9-10
When we are busy with our daily work in the new week, our experts also begin their weekly works to analyzed the futures markets to make sure that traders and have necessary information supporting their trading. Because of the limited time, this week we will check out the two typical market reviews to see how they work.
First of all, we will stop by the fiancial market since changes from here usually lead to others’ changes. It was reported that banks won’t have to make adjustments until 2019 on the amount of money they have to hold, which is used just in case there are large losses. The credit card industry, mortgages, and other loans will also see unique changes. Do you think that this is a good news or not? Shouldn’t this be done in a year or less? Loans may be more stringent and this may cause more harm than good for the consumers. The reserves will be 8.5% of the balance sheet to meet the requirements. The news may cause different feelings to people with different purposes.
There is a boost in the market this morning because fo the wews of growth in China and bank reform. This may shift trades from treasuries back into stocks. View back the past 2 weeks, the market has risen with hefty gains and seems to have the same attitude today. The bank stocks may gain steam today because companies have time to adjust. The Street takes this banking news as positive since there is a less of a chance that banks can topple the economy, like they did over the past few years.
Go next to the S&P! The S&P was up 9.7 to 1113.80 and the DOW was up 78 points to 10471.00. It can go higher if it goes past 1117.00 as there is resistance at this level. This level is important, especially when economic data comes in. 1030.00 level could be the next target.
For the long term changes we need to care, but first of all, in term of finance, we also cannot neglect changes in the currency exchange rates. Market keep running and we keep chasing.
End of the road of financials, we will turn to go along with the energy road. Let’s see the pipeline leak that the market saw on Thursday is still in effect here as Crude Oil gets bid for above $77 as the structure of the Oil curve rallies with the wti spreads gaining another 20 cents in each of the first two spreads over the weekend. During the time of Oct/Nov and Nov/Dec both trading -70. The Dec10/Dec11 contract is now at -470, as this has rallied +160 points in last week. Around the market, we can see traders are still buying this oil as this key pipeline is still shutdown. To compare, the S&P is above 1100 and the Euro/USD is above $1.28 as the oil market continues to rally. Look to see Oil try and test the $78.50 key resistance level this week with indicators pointing to a rally once again.
Natural Gas is now starting to look comfortable at the $3.70-$3.80 level. This may be a good news to traders in the floor. Our market analyst is looking at long opportunities in this market as he believes it will start to see a swift move to the upside. That Calls in Nov look very attractive right now leads him to think that this will be a great play as this market starts to make its way up.
You have just review how the financials and energies markets will be going on this week. You have noted down key points and may have your own decisions or plans in the next few days. Besides these two reviews, make sure you will not miss the other futures reviews and the daily futures price reports as usuale advised. Markets are changeable and interactive, don’t get any mistake!
- About the Author: I’m a trader in futures trading floor. I’m always eager to learn and share. Reading and searching are my hobbies. Article Source
U.S. Economy Continues to Frustrate Investors
It is Friday, and there is not much to report. Lots of red appears on my watch list and and a sigh of frustration escapes my mouth. Yesterday it was reported that the unemployment rate continues to remain at 9.5% with figures showing less improvement now than earlier in the year, hinting at a slowed recovery. It would seem that each day a new figure is released that swings the market wildly one way or another, making investment decisions very difficult.
One day were climbing out of the recession, and the next, our economy is undoubtedly headed for a double dip. This morning the market dropped drastically, regaining about half of its losses by lunch. International markets continue their decline as confidence in the U.S. economic recovery lessens each day. The FTSE, DAX, and the Nikkei all closed low especially Japan, closing down 183 points. It has also been reported that China has begun to offload our Treasury bills, selling off its stockpile by about 10%. China will not need us if we continue on in this manner. Even the Quants cannot get a firm grip on Wall Street anymore.
In an article by the New York Times, the writer explains that 2008 and 2009 were both bad years for quant investment managers. Quant funds have dropped from $1.2 trillion to $467 billion. The writer goes on to say that the finance world is undergoing a technical arms race to Out Smart and out Trade Wall Street, so don’t feel bad even the rocket scientists are taking a hit. The market remains to defy quant theory and remain anomalous, and it would appear that the golden years of the Quants, where Jim Simmons returned 39% a year, after fees between 2000 and 2007 are over.
Each day it would seem that the news grows more grim. China is at our heels and our government continues to spend an exorbitant amount of money in an attempt to stimulate our economy. It’s not working and we could be in a lot of trouble in the upcoming months. Hopefully some positive news will be released next week to lift the spirit’s of U.S. investors but until then I think traders are just going to step away from their desk and take a long lunch.
For more information visit http://www.worldmarketmedia.com/779/section.aspx/2272/post/us-economy-continues-to-frustrate-investors
- About the Author: WorldMarketMedia.com (The Global Online Investment Community) is a high traffic stock market, news data website providing cutting edge new media products and services to publicly traded companies worldwide. Our Editor’s Desk authors insightful real-time coverage on the economy, the capital markets and their listed companies. Article Source
The Gold & Silver Precious Metals Correction
Thursday May 27th It’s been an exciting week for traders as volatility levels are through the roof and the broad market is moving up and down like a yoyo. You cannot take your eyes off the screen if you have a large amount of money invested as you can quickly find yourself with a large profit or loss in the matter of minutes….
Although we have seen stocks jump around the past few days precious metals have held strong with very little volatility. This is because of the economic fears looming for the US and other countries of possible financial collapse. This fear is helping to boost gold and silver prices because they are seen as the safe haven. Also we are seeing money move in the US dollar because the country is still seen as a leader in many ways helping to boost the US dollar.
Below are a couple charts on Gold and Silver ETF’s showing the end of last years rally and the correction in prices which are now looking to setting up for another leg higher.
GLD – Gold ETF Trading Vehicle – Daily Chart
I called this chart “The Golden Correction” because it literally is. We saw prices rally late in 2009 finishing off with a parabolic spike which we know is not sustainable and almost always results in a VERY sharp drop. This correction unfolded as planned with an ABC retrace which shakes out weak positions. We then we saw a reverse head & shoulders pattern form which again also shakes out weak positions. Once the neckline was broken from the reverse H & S the new up trend was started providing a couple trading opportunities for us along the way. The most recent low risk entry point can be seen on the chart as gold prices dropped back to a key support level.
Gold Futures Price – 60 Minute Day Trading Chart
Gold has been showing some very bullish price action the past week forming several mini bull flags with confirming volume levels. I think we should see gold pop another $5-10 bucks in the very near future if not continue higher for several days.
SLV – Silver ETF Trading Vehicle – Daily Chart
Silver formed much of the same patterns as gold but with much more volatility. Also silver has yet to break the 2009 high which is surprising but with a large part of silver being use for industrial purposes it does make sense as the economy is not as strong as it was thought to be in 2009. Silver carries much more risk when trading because it has more random moves and increased volatility.
Mid-Week Precious Metals Trading Conclusion:
In short, gold and silver are in an uptrend and looking strong. Both are currently trading at short term resistance levels on the daily chart which has caused them to stop moving up today (Wednesday May 26th) but on an intraday basis they look solid and could break though these resistance levels.
That being said buying way up here adds a lot more risk because a good chunk of the move has already been made and if prices do roll over and start heading back down the next support level is several percentage points away for placing a protective stop with the proper amount of wiggle room.
If Trading Gold, Silver and Index Futures and ETFs interested you check out my trading services at www.TheGoldAndOilGuy.com
Chris Vermeulen
- About the Author: Chris Vermeulen is Founder of the popular trading site http://www.thegoldandoilguy.com. There he shares his highly successful, low-risk trading method. Since 2001 Chris has been a leader in teaching others to skillfully trade in gold, oil, and silver in both bull and bear markets. Subscribers to his service depend on Chris’ uniquely consistent investment opportunities that carry exceptionally low risk and high return. Reach Chris at: Chris[at]theGoildAndOilGuy[dot]com Article Source
What Keeps People from Beginning a Career in Trading?
There are an adventurous few who plow headlong into trading with the style and grace of a Brahma bull. These are the brave few who neglect to take the time to develop a trading methodology and personal self-discipline to trade effectively. The end result is almost always the same; complete and utter failure. Of course, this group of people seem to trumpet the pitfalls and difficulties of trading to anyone who’ll listen.
I hear stories like this, and similar stories, on a consistent basis. People tell me they knew “so and so” who tried to trade and lost a fortune. It seems everyone knows someone who has lost a considerable amount of money trading in the futures market. Unfortunately, there is a never ending supply of those adventurous few who plow headlong into trading with the style and grace of a Brahma bull. So the story perpetuates itself over and over.
I’d like to take a moment with these frightened souls and explain to them that there is a controlled and methodical technique for profiting in the futures market. You don’t need to charge into the markets like a mad bull.
But for many, the damage has been done and rumor can be much more powerful than fact. The average American is, by nature, averse to excessive risk. Most individuals work hard for their money and don’t care to fritter it away carelessly. As futures traders, and educators of futures traders, this is the problem we face.
Of course, there are risks associated with trading e mini futures contracts, and deliberate money management techniques must be implemented along with very exacting trading technique in order to be successful. In short, it takes discipline and experience to be a successful futures trader. But it can be done.
There are a large number of successful traders in the United States, but they seem to be a quiet bunch and go about their business without fanfare or accolades. These folks are interested in making a great living and, by and large, do so without braggadocio or drawing excessive attention to themselves. Needless to say, there are a few braggarts out there. I always seem to meet them at cocktail parties and endure hours of explanation on their trading technique and the millions they have made in the market. I seem to attract them. I don’t know why, but cats seem to feel the same way about me. I prefer the cats.
The point of this article is to emphasize that well controlled trading is possible and profitable. Individuals who equip themselves with the proper knowledge, training, and mentoring stand a good chance of success. They just don’t know it because they’ve listened to the crowd of mad bulls who charge into the market. I wish it weren’t so, because trading can be such an enjoyable profession and creates a wonderful sense of self satisfaction. I feel that we, as trading educators, have failed to get the word out on responsible and profitable trading. For this reason, trading is perceived as a risky and foolish endeavor; better suited for mad bulls.
My goal is to responsibly educate the public, whether they trade not, that rational individuals make a living trading in the futures market. Whether people choose to trade not is up to them. But I would like for the public to have a more rational view of the trading profession. We are not the greedy Wall Street types, nor are we excessive risk takers. We are a group of people who have learned to control risk and embrace it to our advantage. In short, we need to dispel the notion that futures traders are mad bulls.
- About the Author: I am a long time retail and institutional trader who now only trades part time, usually in the morning. I enjoy writing informational articles about my style of trading so others may benefit. Would it be convenient to recieve valuable trading tips every night in your email? You can sign up for our free video series by Clicking here These videos contain advanced trading strategies and will enhance your trading knowledge immeasurably. Best of all, they are free! So get your free videos and start trading like the pros. Article Source
