Jan 5, 2010

Daily Markets - Financial News & Opinions

Daily Markets - Financial News & Opinions


How To Monitor The January Effect In 2010

Posted: 05 Jan 2010 04:01 AM PST

Many traders are throwing around the term “January Effect,” especially as we turn the corner into January 2010.  Some are trying to profit from the “January Effect,” but what is this 'effect’ and how can we monitor it?  Let’s find out.

According to Wikipedia, the January Effect is defined as a “calendar-related anomaly in the financial market where financial security prices increase in the month of January. This creates an opportunity for investors to buy stock for lower prices … [visit site to read more]


Stock News Briefs: Kraft Advances Bid For Cadbury; Total Forms Joint Venture With Chesapeake, Cold Snap Drives Oil Higher

Posted: 05 Jan 2010 03:35 AM PST

Total Forms Joint Venture with Chesapeake; Manufacturing Index Jumps; Cold Snap Drives Oil Higher; Car Sales Surge in December; Kraft Advances Bid for Cadbury; New BofA CEO Optimistic for U.S. This Year, But Krugman Shows Caution; WSJ: Banned Chinese Companies Continued to Do Business With U.S. Firms

Total SA (TOT) will pay up to $2.25 billion for a 25% stake in Chesapeake Energy Corp.’s (CHK) assets in the Barnett Shale natural gas field in North Texas, Total said yesterday … [visit site to read more]


Gold Up On The First Trading Day Of The Year, But Is The Bottom In?

Posted: 05 Jan 2010 03:27 AM PST

The precious metals moved higher in the first trading session of 2010, which is traditionally known as a bullish sign for the whole following year. However, this single session does not determine the direction in which metals will head in the following days / weeks - there are other tools that need to be applied in order to find the most probable short-term outcome. In the following essay I will focus on the current situation on the gold market (charts courtesy of http://stockcharts.com) and … [visit site to read more]


Trading 2010 - Current Strategy

Posted: 05 Jan 2010 03:11 AM PST

An update for those of you interested in my current positions for the start of 2010.

Firstly, 2009 ended with a total profit for both ISA and non-ISA portfolios of 150% - how I would love to repeat that this year, but somehow I doubt lightning will strike twice. My main investment of the year was Minerva and this ended up 450% on the year and in the FTSE All-share top ten!

At the moment all those predicting a double dip are off-beam, with QE the stock market will keep on going this … [visit site to read more]


Are Commercial Real Estate ETFs At The Bottom?

Posted: 05 Jan 2010 03:01 AM PST

Investors have been shunning the commercial real estate sectors like the plague as  desolate commercial buildings fail to attract tenants. Some believe, however, that the time is ripe for putting money back into the commercial real estate sector-related exchange traded funds (ETFs).

Commercial real estate is at its nadir, remarks David Fessler for Investment U, or equivalent to how low bank stocks were back in March. That’s why it may be a good time to start looking into this … [visit site to read more]


Indian Stock Market: Party Continues On Dalal Street

Posted: 05 Jan 2010 02:55 AM PST

Even five days after the start of a new year, the celebrations seem to continue in the Indian stock markets. With today’s gains, the markets are nearly at their highest in 21 months. In fact, nothing seems to be giving away as the rally is broad-based, across sectors. The biggest gainers for today were stocks from the metals and realty sectors.

The BSE Sensex and NSE Nifty closed with gains of around 125 points (0.7%) and 45 points (0.9%) respectively. Mid and small cap stocks followed suit. … [visit site to read more]


Singapore Stock Market Updates For 5 January: Watch Out For Possible Market Retracement

Posted: 05 Jan 2010 02:52 AM PST

Morning Highlights
Our Focus For Today Is On Small Cap, Property, Oil and Gas Sector
Banks and property counters led Singapore market higher in opening trade today after US stocks climbed overnight. STI gapped up 20.81 points to open at 2915.36, breaking the 2900 psychological level.
Japan’s benchmark Nikkei 225 Average touched a high of 10,773.14, its strongest intraday level since October 2008, following gains on Wall Street. The index was up 1% at 10,759.15 in early trading Tuesday, … [visit site to read more]


Forex Trading Review For 5 January

Posted: 05 Jan 2010 02:27 AM PST

USD Dollar (USD)

The Dollar weakened versus the Euro and the Yen and gained versus the Pound as more signs of recovery raise demand for higher yielding currencies. ISM Manufacturing PMI came out stronger than expected with 55.9. NASDAQ and Dow Jones jumped by 1.73% and 1.50% respectively on the first trading day of 2010. Crude gained by 2.73% closing at 81.53$ a barrel and Gold (XAU) strengthened by 2.26% closing at 1120$ an ounce on weaker Dollar and higher demand for commodities. Today, … [visit site to read more]


Advance Warning: Danger Of A Bond Market Collapse!

Posted: 05 Jan 2010 02:01 AM PST

If you think 2010 is going to bring investors a carefree, nonstop ride to glory, think again!

Profit opportunities abound, and we intend to be among the first to lead you to them.

But we’re also here to give you advance warnings of threats that can sneak up from behind and catch you by surprise.

Case in point: The danger that Treasury bonds will fall sharply in price, drive up long-term interest rates and ultimately threaten the U.S. recovery.

This is an advance warning … [visit site to read more]


Forex Trading: US Dollar Poised For Acceleration To Downside

Posted: 05 Jan 2010 01:59 AM PST

Monday’s strong rally in global stock indices and break in the Dollar renewed talk of the resumption of the negative correlation between global equity markets and the U.S. Dollar. Aggressive traders appeared to be already placing bets today that the Fed would continue to leave interest rates low for a prolonged period of time. Monday’s action suggests that investors could be getting comfortable with taking on more risky assets once again.
The chart pattern in the U.S. Dollar Cash Index … [visit site to read more]


Correlation Between Canadian Dollar And Canada ETF (EWC)

Posted: 05 Jan 2010 01:01 AM PST

Figure 1 is a weekly chart comparing the Currency Shares Canadian Dollar (FXC) to the i-Shares MSCI Canada Index Fund (EWC). As you can see, these two instruments are highly correlated across multiple time frames.
Figure 1. FXC v. EWC/ weekly

FXC is one of the few currencies that has held up against the Dollar over the past 4 weeks, and by my estimation, price has consolidated as opposed to breakdown like the Australian Dollar or the Japanese Yen. This might make FXC and by … [visit site to read more]


Video: Freescale Designs Smartbook Tablet PC

Posted: 05 Jan 2010 06:00 AM PST

Freescale Semiconductor unveiled a reference design for its tablet computer. Ahead of the 2010 CES, Freescale added to increasing interest in tablet PCs. … [visit site to read more]


Forex Trading: Eurozone CPI Estimate

Posted: 05 Jan 2010 12:56 AM PST

Eurozone CPI Estimate y/y came in at 0.9% as forecasted, an improvement over the prior reading of 0.5%.
Eur/Usd remains to trade at 1.4430 with no market … [visit site to read more]


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