Tuesday, November 30, 2010

Daily Dow Jones Comment, 30/11/2010

Amid knee-jerk reaction from the European debt crisis and rising geopolitical tensions in Korean peninsula,The Dow plunged as much as 163 points (and below the 11,000 level) before narrowing the losses to 39 points at 11052 as a wave of downbeat news gave investors little to be thankful coming back from the Thanksgiving holiday weekend.

Renewed fears about Europe's debt crisis, the Korean peninsula tensions and a Wikileaks release of controversial diplomatic files all weighed on markets. Investors will take in data on housing, manufacturing and consumer confidence on Tuesday and ISM on Wednesday. On Friday, the government will issue its closely watched monthly jobs report and ISM non-manufacturing data.

However, the Hammer formation and hook up in slow Stochastic and MACD suggest that the market may have temporary found a base and consolidate upward.

Daily Dow Jones closed with a hammer candlestick and a hook-up in slow stochastic could indicate upward consolidation.
DowJones30-11-2010
Source: StockChart

Monday, November 29, 2010

Daily Dow Jones Comment, 29/11/2010

The Dow Jones declined 95 points or 0.9% (-1% week on week) in early trading to end at 11092 despite positive signs on Black Friday sales on worries over the euro zone's sovereign debt crisis and heightened geopolitical risks on Korean peninsula.

Meanwhile, US$ gained the most since August against six major counterparts as concern that Europe’s debt problem will worsen and military action in Korea will escalate boosted demand for the U.S. currency as a refuge. The US$ rose against the yen for a fourth straight week, the longest streak in 20 months, after North Korea shelled a South Korean island and said “escalated confrontation” will lead to war.

The euro fell for a third week versus the US$ as investors speculated Portugal and Spain will be the next European countries needing financial rescue.

In overall, market in jittery mood amid external instability.Asian markets are likely to face persistent selling pressures today despite European governments agreed on an 85 billion Euro lifeline to Ireland and scaled back proposals to saddle bondholders with losses in future budget crises. China has called for emergency talks on the Korean peninsula as the United States and South Korea began their 3-day military drills yesterday.

The persistent geopolitical risks in the Korean peninsula and euro-zone debt crisis should keep investors on their toes as they wait for clearer signs of stability before reentering the market.

Daily Dow Jones is to consolidate within the 10900 to 11200 levels in the short term.
Daily Dow Jones 28-11-2010
Source: StocksChart

Thursday, November 25, 2010

Daily DJIA Reviews, 25/11/2010

The Dow Jones rallied 1.4% or 151 points, recouping 23 November’s 1.3% loss, following better-than-expected economic numbers in weekly jobless claims (the fewest since 2008), Oct consumer spending and personal incomes as well as November consumer sentiment index.

The positive news helped to offset negative economic data such as a drop in new home sales, a dour durable goods order report and ongoing worries about the Eurozone and Korean tensions.

Wall Street will be closed Thursday and will close at 1 pm on Friday.

On Wall Street, recent economic data coming out from the US has been on a positive bias, easing investors’ concerns of a double-dip. Having said, the Fed is not taking any chances, and is embarking on QE2 to further support of US economy. At the same time, China’s recent economic data also suggests stabilization, with tightening by its central bank reflecting its confidence in its economy.

All these have bolstered investor sentiment, reflected by the Dow Jones’s ability to close above 11k in the last few sessions despite facing wild swings from overseas. Immediate support levels are 11000, 10948 (last week’s low) and 10826 (70-d SMA). Upside target remains at 11500-700 points.

Daily Dow Jones is moving within the trading box.
DowJones25-11-2010
Source: StocksChart

Tuesday, November 23, 2010

Daily Dow Jones Comment, 23/11/2010

The Wall Street Dow Jones eases 25 points after tumbling 149 points in an intraday, as strength in technology and consumer shares helped offset concerns about the euro zone.

The euro snapped a three-day rally versus the dollar. Stocks and commodities slid and Treasuries rose as Ireland’s financial bailout failed to assuage contagion worries, with Irish troubles threatening to spill over to other countries such as Portugal and Spain. Meanwhile, banks led U.S. shares lower as federal agents searched hedge funds in an insider trading probe.

The Dow Jones will continue to trade cautiously ahead of the Thanksgiving (November 25) holiday-shortened week. Major economic releases are Oct existing home sales (November 23), October consumer spending, October durable order goods, November consumer sentiment (November 24). Immediate support levels are 11021 (50-day SMA) and 10948 (last week’s low). Upside target remains at 11500-11700 points.

Daily Dow Jones is to consolidate above the 11000 psychological level.
DowJones23-11-2010
Source: Stockschart

Wednesday, November 17, 2010

Dow Jones Daily Review, 16/10/2010

The Dow Jones drops 15 points, slightly above the 11000 support level on Wednesday after trading between +19 and -33 points as investors weighed inflation and housing
reports. The Dow Jones fell 15 points after government reports showed consumer prices held near historic lows in October, while new home construction was weaker than expected.

Meanwhile, the Euro Stoxx index rose 0.5% as Britain, which is not part of the 16-nation bloc that uses the euro, offered Wednesday to provide additional support to Ireland beyond what it gets from the European Union or the International
Monetary Fund.

On Wall Street, we maintain our negative view on Dow Jones after the breach of the near term supports of 30-days SMA and 40-days SMA. There could be more downside pressure to 10700-10800 zones should the 11000 level psychological barrier is broken soon, upside target is situated around 11500-700 points.

Daily Dow Jones review show that if it breach through the 11000 level, the index will be falling further to 10700-10800 zones.
DowJones16-11-2010
Source: Stockschart

Monday, November 15, 2010

Daily Dow Jones Comment Reviews, 15/11/2010

The Dow Jones closed flat after rising as much as 88 points following bigger-than-expected jump in September inventories and concerns that Europe is on the edge of another bailout. This dented cheer that prevailed most of the day after a 1.2% jump in retail sales (to a 7-month high) and a US$7.6 billion acquisition deal by Caterpillar. Meanwhile, investors remain jittery as they gear up for more economic data due out later this week such as October industrial production (16 November), October housing starts and CPI (November 17), weekly jobless claims and October leading indicators (November 18).

On the other hand, treasuries slid, sending 10-year yields to 2.91%, the highest in three months amid increased criticism of the Federal Reserve’s plan to stimulate growth and concern that a swelling U.S. deficit will lead to higher borrowing costs.

On Wall Street, we reiterate our view that after hitting a two year high, accompanied by the deteriorating technical indicators, the Dow Jones is expected to mire in profit taking consolidation although the inverted hammer could signal potential technical rebound soon. Upside target is situated around 11500-11700 level whilst 11000 should be a strong near term support floor.

Daily Dow Jones ends with the inverted hammer formation signaling possible technical rebound soon.
DowJones15-11-2010

Source: MarketWatch

Weekly Dow Jones Review, 14/11/2010

Despite the improving November’s consumer sentiment at 69.3(October: 67.7), the Dow Jones fell 91 points to 11192.6 level on speculation China will raise interest rates to fight inflation, concerns about Europeans sovereign debt crisis and no significant
achievement in the G20 summit meeting.

The Dow Jones had stalled in recent sessions after a two-month rally that climaxed at 11506 points, a level not seen since the collapse of Lehman Brothers in September 2008.

Week on week, the Dow Jones ended a five-week winning streak with a 2.2% fall as a string of global worries have prompted investors to reassess their positions.

On Wall Street, we reiterate our view that after hitting a two year high last week, accompanied by the deteriorating technical indicators, the Dow is expected to mired in profit taking consolidation. Upside target is situated around 11500-700
points whilst 11000 level should be a strong near term support floor.

Weekly Dow Jones shows it is targeting middle Up-Trend-Line (UTL) channel around 12000 point after completing recent correction.
Weekly Dow Jones Reviews 14-11-2010
Source: MarketWatch

Friday, November 12, 2010

3 Golden Rules of Investing

I believe everyone of us is working hard to earn a comfortable living. Besides working hard for the hard earned money, we should let our hard earned money works harder for us by investing the money. However, Investing our money does not mean our money will generate positive returns over the long run. Therefore, it is good to know the "3 Golden Rules of Investing" before we kick start our investment journey.

The 3 Golden Rules of Investing

First Golden Rules of Investing - Start With A Financial Goal
Regardless of the types of investments, whether or not it is stocks investment, bonds investment, unit trusts investment, property investment, Forex trading, options or derivatives trading, all these investment should be treated as a business venture. Every investment will need time, knowledge and money to succeed. Our financial goal plan represents our financial road map to success.

First of all, before investing, the golden rules of investing tell us that we should have a financial goal. A financial goal should contain the final targeted amount of money that we want to achieve, the time frame investment horizon, and the types of investment choices in our investment portfolio.

Achieve financial goals that we set in our life is to ensure that our hard earned money work equally hard as we work. Regardless of that financial goal is used to serve our children education, retirement, or lifestyle upgrade, all it takes is just a simple financial goal plan that is possible to make it into a reality. Always remember, a financial goal will succeed if it is investing with a purpose.

Second Golden Rules of Investing - Decide Our Financial Objectives
Basically, investment will give us two types of returns, the dividend payment and capital growth. We will have to decide which financial objectives that we are targeting. For example, retired investors whose age are above 55 prefer to have steady income stream such as dividend payments from their investment portfolio rather than large asset value growth. Whereas, young investors age between 22 to 40 tend to have bigger risk appetite, they are the investors category that seek capital growth rather than dividend payments.

Third Golden Rules of Investing - Understand Our Risk Profile
It is important to understand our investment risk profile because investment with higher return will also has higher risk. Therefore, we have to understand our investment risk appetite, and position ourselves to have the possibility to experience losing money during some market cycles anytime. Especially when we need to liquidate our investment portfolio at the time the market turns out to be not in our favorable economy conditions

It is recommended that investors who are conservative or with low risk profile are better to invest in different types of bonds, bank fixed deposits, or some capital guaranteed securities.

Investors with moderate risk appetite can invest in balanced funds unit trusts, or blue chips stocks. An investment portfolio of 40% bonds and 60% equity investment can be a good investment portfolio for this category of investors.

Aggressive investors are those who can tolerate high investment risk. Forex trading, options and derivatives trading, or second liners stocks trading are those investments that this investors category can consider. Simply saying, they prefer an investment portfolio that contains more than 80% equity, derivatives or indexes investment. They can withstand short term high market volatility compared to conservative investors.

By having the above "3 Golden Rules of Investing", it means that we are investing with confidence. We are able understand our current investment position, and be able to predict how much we can achieve along our investment journey in the long run.

Common Stocks Versus Preferred Stocks

Common Stocks Versus Preferred Stocks, which one will you preferred? Let's see the different between common stocks and preferred stocks below.

Common Stocks
Common stocks or sometimes called ordinary stocks are the same. If an investor holds a common stock of a company, the investor is owing a share of the company. The investor is then hold the right to vote for board members and other important company management matters. Common stocks investors are entitle to receive dividends declared from company earnings. At the same time, they can also participate in the appreciation of the share values. The common stock dividends declared are never guaranteed and may vary from time to time.

Preferred stocks
Preferential Stocks is sometimes called preferred stocks. A preferred stock investor has some degree of ownership in a company but does not entitle the same voting rights. Preferred stocks investors are guaranteed to receive usually a fixed dividend percentage of the share's par value, before dividends on ordinary stocks are announced. A preferred stockholders advantage is that, if the company goes bankrupt and the company were to liquidate their assets, preferred stockholders rank above common stockholders in the distribution of assets. Another feature that may be unique with preferred stock is that, preferred stocks are convertible to common shares at any time. The disadvantage of preferred stockholders is that, preferred stock may be callable, which meas the company has the right to purchase the shares from shareholders at anytime for any reason, but usually with a premium.

Daily Dow Jones Comment Reviews, 11/11/2010

Dow down 74 points for its 3rd straight negative closed. The Dow Jones dropped as much as 126 points as Cisco’s earning warning led a sell down on technology stocks. US$ index rose for the 5th straight days (longest run since August). Bank also
fell on fear that indebted European nations may need bailouts. This was compounded by Walt Disney’s earnings that missed analysts’ estimates and rising concerns about trade imbalances and Forex controls.

However, the Dow Jones managed to bounce off its low and finished 74 points lower at 11283. Meanwhile, material stocks were higher throughout the session as strong industrial production numbers from China gave investors confidence in global demand.

On Wall Street, after hitting a two year high last Friday, accompanied by the deteriorating technical indicators, the Dow Jones is expected to continue its profit taking consolidation to neutralize its overbought positions. Upside target is situated around 11700-11800 points whilst 11000 psychological mark should be a sound support in the near term.

Daily Dow Jones shows good interim supports around 20 SMA and 30SMA.
DowJones11-11-2010
Source:MarketWatch

Saturday, November 6, 2010

How to Get Monthly Dividend Payments from REITs Investment

As an investor, it is good to have a stream of steady and regular monthly dividend payable to us in our investment portfolio. Perhaps, the first thought that comes to many people’s mind on how to get monthly income from investment is through investing in real estate, the monthly rental payments from tenants can be viewed as a stream of steady income.

Ever think of owing a big shopping mall and a corporate tower, leased and renting them out and get regular monthly income? If you don’t have few hundred millions spare cash in hand, don’t even dream about it! However, we do have another alternative on how to get monthly dividend payments from investment via Real Estate Investment Trusts, REITs.

For as little as $1000, a REITs investor can invest and own a little piece of a commercial real estate and able to collect dividend payment from his investment share. REITs is a trust fund that pools investors’ money to purchase a portfolio of properties. It is managed by a group of real estate professionals whose their job scope is to buy and manage real estate on investors behalf. REITs allow investors to invest in real estate without buying property directly. The properties are then leased and rented out, and almost all of its profits or rental incomes are then distributed to investors as dividends.

If a REITs investor is hoping to get consistent and regular dividend payments from his REITs investment portfolio, then some REITs portfolio structuring work need to be done by diversifying their REITs into holding many types of REITs.

On average, most of the REITs are able to pay 7% to 8% dividend yields. If the overall economy continues to recover with a healthy growth, some REITs may tend to pay higher dividends over the years. The dividend payments timing from different types of REITs are not the same. Some REITs will make dividend payments twice per year while some other REITs will pay dividend payments quarterly. Therefore, investors holding different types of REITs which pay dividends in different months throughout the year can receive a stream of dividend income every year. If an investors can build a REITs investment portfolio which make dividend payments almost every months, and buying equal amount into these REITs, that means the investor can receive consistent dividend payments for almost every month.

Therefore, if you are an investor who seek investment assets that can provide a consistent and regular dividend income, REITs investment can be one of your good alternatives. As mentioned earlier, how to get monthly dividend payments from REITs Investment depend on how you look into constructing a REITs investment portfolio.

In this article, investors need to understand that the above investment concept is solely based on the assumption that the invested REITs will reward investors with the same dividend payments and give dividend payments in the same months in the coming years. If the economy is doing well, some REITs may reward investors with even higher dividend payments.

Thursday, November 4, 2010

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Daily Dow Jones Comment, 4/11/2010

Wall Street Dow Jones ended a choppy session, fluctuating between -91 points and +38 points before ending 25 points higher at 11215 amid a widely-anticipated Republican victory and the Fed's announcement of a QE2 of US$600bn. It is the highest since September 2008.

The Fed said it will buy US$600bn in long-term (consensus:US$500bn to $1 trillion) Treasuries by the middle of next year, at the pace of $75 billion a month. Meanwhile, better than expected September factory orders, Oct ISM services index
and Oct ADP reports further lifted market sentiment.

As the Dow already surged 14.7% since end June and the results of the mid-term election and FOMC decision were largely within market expectation, Dow is likely to begin its consolidation with upside potential capped around 11300-11500. Unless the impending release of the Oct nonfarm payrolls this Friday spring some positive surprises following a better than expected ADP job report overnight, the Dow
will still trap within the range bound trading box of 10900-11300 in the near term.

Tuesday, November 2, 2010

Daily Dow Jones Comment, 2/11/2010

Wall Street Dow Jones up 64 points to 11188.7 ahead of election and FOMC outcome. Meanwhile, the Dow is consolidating and still be trapped in a range bound trading pattern in the short term. As investors awaited the results of U.S. midterm elections seen ushering in more Republicans and a two-day Federal Reserve meeting expected to yield more economic stimulus. October payroll numbers will be release out this Friday. Immediate resistance levels are 11300-11500 while immediate support levels are 10800-11000.

Wall Street stocks largely tread water in recent days amid uncertainty over the outcome of midterm election, and over the scope of a second round of quantitative easing expected to be announced tonight by the Fed. According to consensus, Republicans are poised to take control of the U.S. House and a Republican majority could be perceived as pro-business and therefore give a boost to the market.

Monday, November 1, 2010

Daily Dow Jones Review, 1/11/2010

The Dow is moving sideways pending the outcome from ahead of the US mid-term election and FOMC meeting. Investors stay cautious, similar to the wild swings in the last few trading sessions whereby the Dow fluctuated within the 11021 to 11248
level, the Dow will continue to exhibit volatility amid deteriorating technical readings ahead of the major mid week events. Immediate resistance levels are 1300-11500 while immediate support levels are 10500-10700.

The Dow ended a choppy session, fluctuating between -56 points and +126 points before ending +6 points at 11125 as investors remained jittery ahead of the week's three big events. Namely, the mid term elections, the Federal Reserve meeting and the October jobs report.

Stronger-than-expected readings on U.S. and Chinese manufacturing growth sparked an early buying spree but gains were muffled as investors turned their focus back to
the election and the Fed's decision on QE2 coupled with lower-than-expected personal income and spending figures.

Dow Jones Weekly Chart Review, 29/11/2010

Dow Jones ends flat and posts a weekly loss of 0.1%, but managed to record
a second consecutive monthly gain of 3.1% October (September gain 7.7%).
The Dow ended up 5 points at 11,118.5 as investors bided time before this week’s critical mid-term election and FOMC meeting. Microsoft was among the Dow Jones’s best performers with a 1.5% rise on strong earnings outlook but the gains were capped by Chevron and Merck whose earnings fell short of forecasts. Meanwhile, 3Q2010 GDP was in line with expectation at 2% but October consumer sentiment index of 67.7 was below consensus of 68.5.

Other major key economic data this week are September consumer spending, October ISM (1 Nov); September factory orders, ADP report (3 November), October payrolls and unemployment rate (5 November).

For Wall Street, the Dow Jones will continue to exhibit volatility amid deteriorating technical readings ahead of the mid-term elections and the FOMC meeting. Immediate resistance levels are 11300-11500 while immediate support levels are 10500-10700.

Weekly DJIA shows short term consolidation with critical support at Up Trend Line 10500 and immediate resistance at 11300.
DowJones29-10-2010
Source: MarketWatch
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