Posts Tagged ‘investment strategy’
China Res-Land: The Big Giant Goes Astray
For the last month and a half, the Chinese giant China Res-Land has been on a very promising road upwards. Exactly at the end of the last month, for some obscure reason, she went off her beaten track and broke her uptrend. In 3 days of trading she lost more than 8%. Quickly the M.A.C.D Histogram made a dive under the zero mark, a clear sell signal. The RSI also shows this with its own sell signal after dipping below 50% to selling territory. This is not however a short-sell yet as she has to pass a strong support at 14.0. But, keep watching this lady, and if she breaks 14.0, the short-sell would then be indicated.
This is way the Chart looks:
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Goldman As Humpty Dumpty
Goldman Sachs’ disastrously unfortunate year is halfway over, and questions about its conduct during the credit crisis linger on Wall Street and in Washington. The firm has made plenty of money, of course, amid the political criticisms and federal investigations questioning its ethics and business practices. But Goldman has lost something money can’t buy, something vital that must be reclaimed. And it isn’t just a big chunk of its reputation that’s at stake. Goldman has lost that special something that has always made its long-term greediness, to use a late chairman’s phrase, seem special, and that made the firm appear smarter than other banks. Indeed, that quality helped Goldman command top dollar, euro and yen for its services. Now, Goldman seems to be in danger of being viewed like any other bank, except somehow suspect for performing too well during the credit crisis. Wall Street knows any investment professional who is any good at what he does encounters potential conflicts, and the expectation is that those conflicts should be handled appropriately. If Goldman proves to have failed in this regard, its stock (ticker: GS), recently at $132, could be taken down a few more notches.
The shares already have been bashed, having fallen 23% during the past two years. They are wilting ahead of the second-quarter earnings release, scheduled for July 20. Analysts are lowering earnings estimates, and expectations suggest even Goldman’s stable of star traders had difficulty, like everyone else, making money in the second quarter.
As this harsh year for Goldman began, the bank seemed unable to extricate itself from a leading role in a polarizing post-credit-crisis news cycle. At the time, Goldman was preparing to pay $16 billion in staff bonuses, which indicated political tone-deafness and an arrogance that seemed to bode poorly as the financial crisis entered the recrimination phase that always occurs after Main Street has lost a lot of money on Wall Street.
There are always rumors that Goldman — which might have done absolutely nothing wrong, remember — will settle some sort of case with federal investigators, which could boost its stock price.
Goldman could say something on its earnings call that makes its troubles seem manageable, or it could even reveal massive profits and an optimistic view of the future that overshadows everything. In the markets, making lots of money always does that.
But, most likely, Goldman will end the call with a reputation that still isn’t commensurate with its distinguished past. Fixing Goldman’s public image is a huge challenge for the company’s chief executive, Lloyd Blankfein. For now, Goldman seems destined to remain Wall Street’s version of Humpty Dumpty, who, as everyone knows, suffered a big fall.
Should all the king’s horses and all the king’s men fail to put Goldman’s reputation together again, Blankfein will preside over a company that has become like any other bank, and that could be quite bad as Wall Street seems more and more like an assembly line.
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How To Minimize Stock Market Risks?
Irrespective of whether you are a beginner or a seasoned stock market investor, there is one universal question that every one is trying to grapple with, ‘How to minimize stock market risks?’
This, in other words tells us that risks are inherent in stock market investments and that we cannot do anything to avoid it completely but only minimize the risk factors. Here are a few tips that will help you minimize your stock market risks.
First take time to learn the basics. When you are new to stock market investments and when you are venturing into the stock market, give yourself enough time to understand how the stock market works and what are the different problem areas, etc. Poor basics in the stock market will always keep you an amateur stock investor. You must also learn different approaches that are used by successful stock marketers.
Secondly, before you go to your desk, do your homework. Never approach your stock investments without first studying the current trends. Many people make the mistake of considering stock markets as a gamble. In gambling you will rely completely on your luck and there is no reasoning involved. Here in stock market trading, reasoning and analysis are the key elements. So Technical Analysis should never be forgotten. You will have to start your analysis of the market from day one. You cannot wait to become an expert trader before you can start learning Technical Analysis because without trying you will never become one.
Thirdly, improve your ability to connect various happenings around your market and deduce your conclusions based on the prevailing trends. Remember, the stock market is affected by many factors. So, depending on the stocks you choose you should know the factors that affect your stocks and you should keep a close tab on such factors.
Fourthly, always make a basis for all your decisions on stock market analysis and not on your emotions. Never make hasty decisions when you are panicked. When you are panicking, your reasoning abilities will be diminished. So decisions made in such situations cannot be sound stock market decisions.
The next and most important factor is finding all the help you can get. To achieve this you should find reliable resources that you can use to make sound stock market decisions. There are number of resources available both on-line and off-line. Try to make use of those resources prudently so that you will have a wider understanding of the stock market. Though there are many resources on the web, not all resources are equally effective in imparting you with the best information. So carefully choose your on-line stock market resources so that you will not be misled in any way.
By following the above basic tips you will be able to minimize your stock market risks to a great extent.
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America’s Retail Markets: Part III
Our next step in this ongoing series is to examine Best Buy Co., Inc. After reviewing Gymboree Company in our next installment we will sum up the Macro Outlook from a fundamental aspect. Economic analysis will guide us mainly, but also the technical analysis which we have done on our chosen market representatives and a look at Market Sector ETF’s that track the US Retail Markets will help us to grasp the subject thoroughly.
Best Buy is currently in a Daily short-term downwards trend as the Daily Chart below shows. There is a good chance that this will continue for the next few weeks or even longer. However, the Monthly long-term trend points us upwards and it is established technically. For the short-term– “easy money”– and less headaches the recommendation is sell-short and set a stop 3% above current market price. That is above daily ATR and the prices aren’t expected to change so drastically overnight and eat this price level stop.
This is the way the Daily Chart looks:
For the long-term investor, the recommendation is the opposite: buy long and buy and hold, watching the weekly charts mainly and not being too confused with the daily activities. There is a strong resistance line above the monthly prices, and it is expected to be a trial for the price-levels. but this is expected only within a few months, though tracking progress in the aforementioned way is necessary and wise.
This is the way the Monthly Chart looks:
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Why Is Technical Stock Market Analysis Crucial For Success?
Whether you are venturing into the Stock Market as a full time endeavor or just planning to use it as your secondary source of income, you need to first understand the basics of the stock market so that you can make the best use of every investment opportunity that comes your way. Added to that, it is important that you approach the Stock Market in a highly professional way so that your investments are fully guarded against risks.
When it comes to personal financial investment in stock market, you cannot expect to be 100% free from risk. However, every successful stock market investor tries to minimize the risks as much as possible. Even the most experienced stock market investor is not completely without risks. The only difference between a professional stock market investor and a rookie is that, the beginner will not know how to minimize his or her risks.
You will be able to minimize your market risks by improving your abilities in Technical Analysis. All your investments should be supported by sound Stock Market analysis. The Stock Markets are not a game of luck. If you are relying on your luck, then the best place for you would be a casino and not the Stock Market.
Before you approached the Stock Market, you should have done your homework. You should assess market trends and make use of all the professional support and help that you can. One of the secrets of making effective market analysis lies in one’s ability to make the right associations. You should be able to associate various happenings across the globe and make intelligent connections. This, of course, is not an easy task but it requires a lot of experience. As a beginner, you are bound to feel overwhelmed with the technical terms and with the jargons. These have made many beginners give up totally on Stock Market Analysis. Such people end up making their investment decisions based upon their gut feelings or on their friend’s advice without fully reviewing their choices.
This will not be the best way to approach the Stock Market as this will only increase your risks. Rather than making random decisions, you should find some reliable help. There are a number of resources on the internet that you can use today readily. You should also constantly update yourself with all the basics required for making sound Technical Analysis. At TechCharts4You.com you will find the best resources available on the internet. All the resources are made available to you here free of coste. By making use of such resources your abilities will gradually improve over a period of time. You will also be able to make accurate Stock Market predictions based on Stock Market Analysis once you learn the game.
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EUR/JPY–The EuroDollar vs. the Japanese Yen
The Euro seems to be doing not so well lately. It has lost ground to the British Pound, Australian Dollar, and this past month the little Yen of Japan, usually held down by its own government, has joined this world wide upside down rally, if you will. Check out the perfectly symmetric tunnel it is taking on its downwards trend. The RSI shows the trend clearly. It is approaching a rather significant support line that may cool off the strong downwards fall it has taken to the Yen lately. This resistance may indeed break this strong trend as it has broken the long downwards trend before it as shown in the left side of the Chart below. The Chart shows the strong support extending just below the current market price. Add to this the fact that the RSI is getting close to being oversold and is approaching, at this rate, oversold territory, and you have a picture of a possible trend reversal that is worth looking at for investment as close as a few days from now.
This is how the Chart looks:
