Showing posts with label 5. Fundamental Analysis. Show all posts
Showing posts with label 5. Fundamental Analysis. Show all posts

Monday, August 31, 2009

Make Money Knowing Dow Jones

I have some interesting facts regarding Dow Jones Industrial Indexes. Since 1895 to 2009 the chart lowest low starts to read from 28.66 on August 07, 1896 to present highest high at 14164.53 on October 9, 2007. If you want to know the future the history will probably gives you some clue.

Overall, whenever markets go down they will come up higher highs through the years as proven. The strongest will survive while the weak will say good bye - companies. That happens when new creative stuffs evolve such as in the 1800's when super design and powerful cars appear. In the 1900's technological stuff such computers and mobile phones stuff appear. However, consolidation or stagnation appear when nothing new seems to attract human to trigger the economy. Maybe in the coming late 2000's accessible amphibious crafts for transportation or regular size watches with super computer capabilities might appear to the public at affordable prices and the economy will rush up as it attract more people to buy.

Now let me show some fun facts. Whenever the lowest reading from DJ appears the coming highest reading will be around 2 to 6 times higher. Wow, that shows that we are in for the next really strong bull run after this temporary bear market. Benjamin Graham was right in his studies and was one of the greatest investor in the world. Do not rush into any investment or trade cause lots of studies need to be done. The market might be heading towards the head and shoulder formation 1st for some time before heading north.

Please note that I am not any great economist, analyst or etc. The very real fact that a few great investors or traders make big money, they doesn't follow blindly from hot tips or news. However, I am a strong believer of George Soros 'Theory of reflexivity' , Jesse Livermore 'Follow the tape' and Arthur William Cutten trading style. Ever wonder why 5% do things differently from the 95%? The 5% are very secretive about how they trade too.

I have compiled the decade's low to decade's high DJ readings as below, feel free to comments.
Posted by at No comments:
Labels:

Friday, February 13, 2009

What is G7?

Who is the hottest big player in the forex market? Correct, G7!

G7 or The Group of Seven is composed of the seven largest developed economies in the world. The G7 are Canada, France, Germany, Italy, Japan, the United Kingdom and the United States. The G7 is the primary venue for the major global powers to express their collective will on the currency values and the need for any adjustment.

Forex markets follow the G7 several weeks ahead. The power of the G7 statements lies in the perception that all the participants are in agreement with what is contained in the communique.

Currency values may be on the agenda for their meetings. When G7 comments of certain currencies should reflect economic fundamentals, be prepared that excessive currencies volatility appear. This Sunday there might be a big gap when the market open.
Posted by at No comments:
Labels:

Wednesday, January 21, 2009

Credit Rating Downgrade affects currency ?

The Eurozone refers to a currency union among the European Union member states that have adopted the euro as their sole official currency. The Eurosystem, headed by the European Central Bank, is responsible for monetary policy within the Eurozone.

The Eurozone has sixteen members - Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, Netherlands, Portugal, Slovakia, Slovenia and Spain.

Standard and Poors downgraded the sovereign debt rating of Spain from AAA to AA+. Greece’s rating was downgraded last week and Ireland and Portugal on credit watch negative, this could be the beginning of more downgrades.

Credit rating downgraded means higher costs of borrowing and a greater risk of defaulting on debt. This is because investors shift their money out of Spanish into a country with higher credit rating.

This movement will lead to Euro currency weaker. If you are trading the, EURUSD or EURJPY, do expects it to dive towards south.
Posted by at No comments:
Labels:

Friday, January 9, 2009

Trade non-farm payroll?

Non-Farm payroll usually happens every 1st month of friday. It measures the change in the number of employed people during the previous month, not including the farming industry. During this forex trading time, do expect great volatility. Curreny pairs surges up or down within seconds before moving to a strong direction.

Previous month non-farm payroll was -533k and analysts expect this month to be -520k. However, ADP non-farm payroll previous month was -476k this month was -693k. As both are 90% correlated, rumors that today non-farm payroll might be around -600k to -700k? If this do happens, dollar might be weaker and do expect EURUSD1.40 coming soon.

However, history has shown that during the past 50 years, non-farm payroll rebounded close to 50% once it hits the region of around -500k. This might happen today. If this do happens again dollar will strengthen. EURUSD will be headed south instead.
Posted by at No comments:
Labels:

Tuesday, December 2, 2008

Dollar Rally in December 08?

National Bureau of Economic Research finally admits that the US economy fell into recession in December 2007. Constant news about the global economy have triggered sharp gains in the US dollar and the Japanese yen.Dollar Remains the Safe Haven Play.
This is the week where the problems in the US economy will come to forefront as reality sets in and investors realize the US is still in big trouble. If the economic data of major currency pair is as bad as we expect, the dollar rally should continue.
Will the currency pairs head towards :

EURUSD - 1.2000 ?
GBPUSD - 1.3700 ?
USDJPY - 89.00 ?
USDCHF - 1.2700?

Let's cross our fingers and hope for the best in our forex trading.
Posted by at No comments:
Labels:
Subscribe to: Posts (Atom)