Some people asked me. Why there is no post about trading anymore in my blog? Do I already stop trading? The answer is BIG NO. Yes there are several reasons why I never write article or analysis about stocks, forex and options trading in my blog recently. First I have a plan to create a separate website specifically to discuss about investing and trading. I purposely made it like this because if i write all my posts in this blog, the contents of this blog will not focus to a particular topic. The visitor who does not understand about trading would be confused to read the articles about trading. Meanwhile, traders who want to read the articles about feeling a little disturbed with posts that had not related at all with trading. So, therefore for the future, I will just write something about my personal life experiences, blogging tips, and collections of motivational articles in this blog.
Bull still dominates the stock market last week. S&P 500 Index broke out above the upper trendline defining the falling wedge technical pattern. This should be a good signal to buy stock again. But i still aware of the volume on the buying. Buy signal can’t be confirm completely without confirmation of high volume on breakout. Let’s see the chart of S&P 500.
There are two perspective here. For the bull, we see double bottom and a broken falling wedge pattern. But if we see the longer timeframe, we can see that S&P 500 form a Head and Shoulder pattern. So the January high could be potential resistance for the index.
Now, let’s see from fundamental view. Based from Beige Book, the Fed still considers that the growth is slow. Nearly all economic indicators are showing improvement, but still not much.
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The movement of stock market last week was dominated by bullish movement. There are some optimism on the market because of good economic data and positive testimony by Bernanke. After corrected sharply to levels 1040, S&P 500 index bounced and continue to rebound toward 1091.60 level. The second support level I mentioned last week, apparently strong enough to prop up the index from falling further. For now, what deserves attention is the resistance level at 1105 as shown below:
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Life can’t be separated with a thing called money. Some experts even said that 90% of divorces are rooted in financial problems.
There are six warning signs of financial problem based on Federal Deposit Insurance guidelines
- Loan payments, excluding mortgages, but including credit card charges, take up more than 20% of your monthly net income.
- You are close to, or surpass, your credit card limit.
- You must borrow to make payments on existing loans.
- You only pay the minimum amount on your bill.
- Lack of money is forcing you to pay bills late or postpone doctor’s visits.
- You must work overtime, or take a second job, to cover basic living expenses.
So…. Do you have a problem on list above? If you do, that means that you have financial problem
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Ok … starting this week, I’ll start writing regularly on weekly analysis of the currency market, stock and other financial markets every week. As we can see together the last week was a horrible week for financial market. A pesimism dominates the market, while traders play some hit and run trading as mounting worries about the euro region’s debt problems. A strong rebound always followed by massive sell one day after that. Its happen both on stocks market arround the world and euro currency. This is usually not a good sign for economy…
Still same like what i mentioned last week in my post, S&P 500 index will test two major support (you can see on the chart below). But the price already on the first support line. Read more…
This May 2010 was recorded as the second worst May in the history of the stock market (The first is May 1940). The Dow was dropped almost 8% (7.9% exactly). Trader error and downgrade of Spain’s debt rating were the two most shocking thing happened this month. Escalating tensions on the Korean Peninsula triggered a flight from riskier assets.
One of big concern all investor see is the impact of a second slowdown in the global economy. Mark Matthews, equity strategist with Macquarie Capital Securities, tells that European banks will incur large losses on the loans they have extended to peripheral economies in Europe. Read more…
The threat of Europe crisis is coming and spreading… Investors responded by doing panic sell on stocks all arround the world. U.S. consumer confidence does not seem have positive impact to the market today. Whereas U.S. consumer confidence rose for the third straight month in May to the highest in more than two years as concerns about the labor market continued to ease. Index of consumer attitudes rose to 63.3 in May, the best level since March 2008, from a downwardly revised 57.7 in April.
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As I had on my earlier post, May is not the time for holding the position of buy / hold on the stock. Research based on the seasonality Analysis of Stock Trader’s Almanac proves that the strategy of buying stocks in October and sold it in May proved to generate much larger profits than we apply the buy and hold strategy (ala Warren Buffet). I myself have been holding PUT Option positions in the shares. One of mine is the stock AAPL (one of my favorite stocks). Here is a chart of AAPL
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What a crazy weeks. I kinda shocked to what happened in the market recent days. After suprised with 1000 point drops of Dow Jones Index, today i suprised again with the news of $1 trillion package to save euro. Both Currency and Stock move like roller coaster. It’s up and down severely. The best strategy to used in this situation is the follow the first big wave movement and take profit after it reached decent profit. I used this in forex market.
The first big wave of EUR/USD is a buy position. The result i get is not that good. I made 2 losses and the profit couldn’t covered the loss. But the second signal of big wave come again. It’s sell position on EUR/USD. My first trade is bad trade, but the rest are good ones. Read more…
The European Union spearheaded a $1 trillion plan Monday to contain Europe’s spreading debt crisis and keep it from tearing the euro currency apart and derailing the global economic recovery. Central banks around the world joined the coordinated effort to prop up the euro and repel speculative attacks against Europe’s weakest countries. The European Central Bank buying public and private debt to shore up liquidity and lower borrowing costs. Many investors, rattled for weeks by the prospect Greece would default on its mountain of debt. Read more…
