Showing posts with label Market. Show all posts
Showing posts with label Market. Show all posts

Saturday, 12 March 2011

Plan before investing in stock

Since there are risks in investing in most cases, you need to have an investment strategy prepared before you get your money to work for you. It is like a game where you won't know the outcome for sure until it has been decided and most of the time you need a winning strategy. Much like in investing, you will need a winning strategy to be successful.

Having a plan on how to invest your money in various investment vehicles serves as your strategy. You investment strategy will help you achieve your financial goal in time. You must choose from a number of investments from different investment vehicles. The stock market has as one of those investment types have numerous type of stocks from various companies which you can choose to put your money in.

It can become very confusing and difficult if you don't have enough knowledge and haven't yet learn enough since there are so many investment types to choose from. The investment strategy you will develop together with your investment style and risk tolerance should make all the confusion and difficulties be at minimum. If you are new to investing in general, working closely with a good financial planner should be a great benefit to you before making any investment. They should be able to guide and help you create your investment strategy to achieve your financial goals all within the bounds of your risk tolerance and investment style.

It's a waste of time and money to invest without a strategy to reach a specific goal. It is important that you know where your money is going and what your money is doing before you give it away before you expect it to come back with some returns. Always have a plan and a goal before doing anything.
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What does "Above The Market" means

Above the market refers to a strategy used in stock trading in which the investor makes trades only when the price of a security reaches a point somewhere higher than its current level. Both buy and sell orders may be made in this way. The three most common types of above the market orders are a buy stop order, a buy stop-limit order, and a sell limit order. Traders who use this strategy on buy orders are betting on the momentum of the price jump to continue to spur the price upward.

There are many strategies used to play the stock market, but most are variations of the buy-low, sell-high strategy that most investors quote as a motto. Except when it is used to sell stock, trading above the market flies in the face of this motto, as an investor who uses it to buy stock will be buying high. Investors using this strategy attempt to find a level where they can trust that the upward movement is a trend rather than a fluke.

One type of above the market order is a buy stop order. In this type of stock trade, an investor instructs his broker not to buy a stock until it reaches a certain price above where it currently stands. For example, if a stock is trading at $50 US Dollars (USD) per share, the investor may place a buy stop order at $60 USD per share. If the price reaches that level, then the investor makes the purchase. Should the stock fail to reach that level, then the investor does nothing.

A buy stop-limit order is an above the market order often used in conjunction with this. At times, an investor may want to ride the momentum of a stock only so far, fearing that at some point the stock may level out and cause the price to fall. Using the example above, the investor may put the buy order at $60 USD per share but put a limit at $65 USD per share. That means that the buy order will be in effect at $60 USD per share but will be canceled once the price reaches $65 USD per share.

The sell limit above the market order falls in line with the typical stock strategy that holds that investors should sell stocks at a high price. A limit order means that the order is not executed until a certain level is reached, which differs from a market order, which is executed immediately. An investor holding shares of a stock at $25 USD per share may put a sell limit order on the stock once it reaches $35 USD per share. At the point when the stock reaches that price, the investor will sell the shares.
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Thursday, 10 March 2011

Stock market falls - worst week in 3 months

New York - — The stock market recorded its biggest weekly drop in three months as a feeling of malaise took over after the United States failed to rally world leaders to come up with plans to strengthen global growth.
"The G-20 wasn't much of a success for the U.S.," said Kim Caughey Forrest, equity research analyst at Fort Pitt Capital Group. "There's a sense that nobody really has the ideas on how to get us out of here."
On Friday, stocks and commodities took another nosedive on worries that China might put the brakes on its surging economy. Any cooling of China's economy would slow down demand for raw materials, and that possibility sent prices of oil, metals and grains tumbling.
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The Dow Jones industrial average fell 90.52, or 0.80 to 11,192.58, led by sharp losses in energy and materials stocks. Construction giant Caterpillar Inc., which has huge operations in China, fell 1.40 percent to $81.04 and oil company ExxonMobil Corp. fell 0.84 percent to $70.99.
For the week, the Dow was off 2.2 percent, its seventh-largest weekly drop this year and its biggest weekly fall since the week ending Aug. 13.
The Standard & Poor's 500 index fell 14.43, or 1.2 percent, to 1,199.21, while the Nasdaq composite index fell 37.31, or 1.5 percent, to 2,518.21.
The Chinese government said that the pace of inflation hit a more than two-year high in October. The markets took that as a signal that China would raise rates to tamp down inflation. It led to a sell-off in global markets, from China to the United States. The Shanghai composite index plummeted 5.2 percent, while Hong Kong's Hang Seng fell 1.9 percent.
Gold fell $37.80, or 2.7 percent, to $1,365.50 an ounce. Crude oil fell $2.93, or 3.3 percent, to $84.88 a barrel, while soybeans plummeted 70 cents, or 5.2 percent, to $12.69 a bushel.
China's robust economy has helped offset sluggishness in developed markets like the United States and Europe. Many companies, like Caterpillar and McDonald's Corp. have credited international sales, particularly in China, as a reason earnings have been strong.
The speculation about a rate increase in China came as little headway was made on a plan to strengthen global growth. Leaders from the Group of 20, which includes large developed and emerging economies, failed to agree on policies about trade and currency manipulation that could stoke protectionism and a trade war.
Other nations refused to endorse a plan the United States presented to force China to allow the value of its currency to rise. The United States argues that China is keeping the value of its currency artificially low because a weak currency makes exports cheaper and more attractive globally. That, in turn, gives China an unfair advantage in global markets, helping its economy at the expense of others.
The dollar resumed its slide against other major currencies. It had rallied in recent days, particularly against the euro, as Ireland's debt crunch renewed worries about the European financial system. A fiscal crisis in Greece this spring helped bring down stocks around the world, and investors are hoping Ireland can right its own finances without having to seek a bailout as Greece did.
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News and Articles

Traders were looking for a positive session as the market continues to edge higher but in today's session tech lagged.
 
Personal income/ spending report and earnings was in focus as well as oil prices.  Oil prices sunk back down into the mid to upper 90's as traders gear-up for the next move in the March market.
 
The market continues to reward traders that are in stocks with another advance as the two month rally, of the year, continues.
 
 
Traders were looking for a neutral flat start and got a mostly negative day as the Middle East unrest, specifically Libya, and earnings was the focus for the session.
 
The Forecast Models indicated that today could be an important session for the stock market.  All eyes were focused on the close as The Market Barometer afternoon model run changed the Bias to neutral from positive.
 
Libya is the latest worry in the middle East for traders as stocks continued moving lower from yesterdays sell off.  Oil prices skyrocket causing more worries over how the economic recovery can proceed with inflation on a distant horizon and with oil prices surging higher as more Middle East countries could fall to the unrest.
 
The afternoon Market Barometer model run changed the Bias to neutral from positive.  More worries are being conjured up as Libya's unrest appears to be spreading to other countries in the Mideast region taking oil prices even higher and stock markets lower.        Wednesday, February 23, 2011
 
Stocks were sluggish most of the morning, ramping into positive territory in late morning trade, as oil prices began to improve and move higher, on Mideast worries as geopolitical turmoil spreads.
 
Two key economical data points were released today that gauge the economical recovery.  The consumer price index (inflation gauge) rose and jobless first time claims (unemployment) rose as well.  Even though last weeks initial claims rose, the initial claims chart continues to show a job market recovery.
 
The small cap market of stocks posted a nice gain today, while mixed economical data-points and geopolitical worries saw the major indexes eke out a small gain.
 
 
 
Earnings and deal making was the focus today as well as the continuing Egyptian unrest crises.
 
It would appear that nothing can get in front of this fright train that just keeps going.  With 25 sessions completed, five were posted as negative, six as mixed, and fourteen as positive.
 
Today the Dow led stock higher as even China's tightening of monetary policy had little or no effect over the steaming U.S. stock market.  Earnings are good and traders might just feel fine in driving stocks higher with no end in sight.  Traders believe that this positive ness will continue, at least through earnings season.
 
The U.S. stock market will run out of steam sooner or later, the question is will the stock market rally continue.        Tuesday, February 8, 2011
 
The Market Barometer close model changed the Barometer Leading Indicator (BLI) to neutral from positive last Monday, January 31, 2011.
 
Egypt unrest concerns and a not-so-good jobs report had little, if any, effect on stocks.  If we didn't have the Egypt worries and if the jobs report was more in line with expectations, we might have had a ramping stock market instead of the inching along, as we have seen.  One thing is real clear.  A pullback is due and it will happen, sooner or later.
 
The BLI will stay at neutral for the time being.  The forecast at CAUTION with a NEUTRAL BLI and a POSITIVE bias indicates continued upside movement can be expected for the short term. 
 
Remember.  Forecasts are good for market fundamentals;  news can and will change market direction;  forecasting cannot predict events with 100% certainty.        Saturday, February 5, 2011
 
Egypt unrest, jobless new claims, productivity report, and earnings set the tone for a flat session.   On deck is the all important nonfarm jobs report which shows how many jobs were created or lost for the month, as well as the unemployment-rate which is expected to drop slightly.   U.S. stocks are overdue for a pullback and if the jobs report comes in short of expectations, stocks could make a beeline to negative territory.   Last Monday the BLI was downgraded to neutral in anticipation of a pullback.   The BLS released the productivity and cost report for Q-4 2010 and revisions to Q-3 2010.   The Government reported initial jobless claims- unemployment- fell, keeping hopes alive for a continuing improving employment picture.        Thursday, February 3, 2011
 
As goes January, so goes the year.  They say.  So if the next two weeks goes as the first two, that saying could translate into a very profitable year in the stock market.  Earnings outlook and the Consumer Price (inflation) report was the focus today, as well as retail sales data.
 
Starting the year off on the right foot for investors as stocks continue the trip higher as traders pooh pooh the slow, most days, snails pace- traders like volatility.  Some say we can look for more gain in the weeks and months to come but most marketeers are looking for a pullback.
 
Retail sales rose in December as consumers continue to buy stuff, helping the recovering economy.  Core CPI:  shelter, airline tickets, medical, and apparel prices rose in December; while recreation, house furnishings, and communication prices slipped in December.  Headline CPI:  Gas prices at the pump inflated consumer prices in December- food helped.  JPMorgan beat most expectations but didn't move Futures but helped move stocks higher in the regular session.        Friday, January 14, 2011
 
The broader market slipped in trading today while tech stocks continue to outperforming, as has been the case for the past two years.
 
Jobless first time claims and earnings was in focus for the session Thursday.  Friday most likely will be a big day for the markets as job creation and unemployment rate will be the hot ticket for the session.  Nonfarm payroll report for December is scheduled for release at 8:30a ET during the pre market and could cause significant volatility when markets open at 9:30a.
 
Unemployment initial claims continues to improve even though last weeks number increased by 18,000.  The initial claims chart shows a definite trend lower that leads analysts to believe the job market is strengthening.        Thursday, January 6, 2011
 
With North and South Korea concerns in the news, the EU continuing debt problems, a lack of positive or negative sentiment, and not to mention being this is a shortened holiday week with Christmas Saturday, many traders were on or leaving for holiday.
 
Short week saw Monday end flat with a mixed touch.  Model data continues to indicate a mostly positive market going into the new year, albeit an inch at a time.
 
The Bush tax cut extension was signed into law which could help markets over the next couple of sessions.        Monday, December 20, 2010
 
 
With a reasonable jobless new claims number this morning and a good looking chart that spells out jobs recovery in our future, stocks went underwater for most of the day but as usual climbed back to end mixed with the broader market and tech making gains. 
 
Unemployment initial claims and earnings outlook was the focus for the session along with the Bush tax cut extension.  Jobless initial claims chart continues to show progress in the jobs market.
 
New claims data was about the only economic data today which showed that the jobs market could be on the mend.  Traders want more pointed data, the kind that just pops out at you, showing a bigger new claims drop.  But some economist believe that wont happen and that this recovery will be one with a high unemployment rate for some time to come.        Thursday, December 9, 2010
 
 
You need a reserve fund, you also need to save and invest for your future. Get this quick 101 on budgeting. You will thank yourself later when you take control of you finances.
 
New to investing? This article is a 101 on how to invest in these troubled times.
 
Did you know that individual investors can buy shares directly from most U.S. companies? This how to article will get you started. Crude oil prices chart:
 Chart Of Oil Prices With Current Price Line: 1861 to 1944 US Average oil price; 1945-1985 Arabian Light; 1986-1999 Brent Spot Crude
 
1861-1944 US Average oil - 1945-1985 Arabian Light posted at Ras Tanura - 1986-1999 Brent spot |
 
Oil price per barrel
$102.85
price delayed
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