| |
| |
|
Investing |
|
|
|
Articles and Information about InvestingNetFinancial | Institutions | LoansColleges and Universities | Search Engines Consolidation Period
The economic data reported Fri showed continued above trend growth with disinflation (at the core level, excluding food and energy) in the second quarter. Real output growth has slowed from about 4% in 2003 & 2004 to just over 3 1/2% so far this year, while a core inflation rate fell from 3% last quarter to 2%. Consumption growth slowed from 3.5% to 3.3%, investment growth jumped 9%, and net exports increased over 12%. Also, business inventories declined. Nasdaq has rallied 310 points in three months, and hit a new four-year high at 2,201 Fri morning. The economic data suggest market pullbacks will be limited, although we've entered the seasonally weak period of Jul-Aug-Sep after a big run-up. Consequently, there may be a consolidation period rather than a correction over the next few months. The first chart below is a Nasdaq monthly chart. The long Price-by-Volume bar (on left side of chart) is a "sticky" area, between 1,750 and 2,250, that's difficult for Nasdaq to break above or below. However, if Nasdaq can break above and hold the 80 month MA at 2,257, then it may sustain a rally to 2,645, the 38.2% Fibonacci level. Nasdaq has an open gap at 1,905, and the monthly Parabolic SAR buy signal (green dots) is currently at 1,904, which are support levels. The second chart is a SPX daily year-to-date chart. SPX has resistance at 1,253, which is a multi-year Fibonacci level. The rising 10 day MA, currently at 1,232, has been recent support. There are many support levels between 1,185 and 1,225. However, the 50 and 200 day MAs are key levels. If SPX closes below the 200 day MA, then it may close the gaps at 1,174, 1,143, and 1,138. It's unlikely Nasdaq will hold 2,200 short-term. However, if it does, then 2,257 is another major resistance level. Also, it's unlikely SPX will hold 1,253 short-term, which is a multi-year resistance level. I expect a more volatile trading range under those levels, since the volatility indices are so low. Consequently, SPX may test the 20 day MA next week, and test lower levels in Aug. Next week economic reports are: Mon: ISM Index, and Construction Spending, Tue: Personal Income, Personal Spending, Factory Orders, and Auto Sales, Wed: ISM Services, Thu: Unemployment Claims, and Fri: Nonfarm Payrolls, Hourly Earnings, and the Unemployment Rate. Notable earnings next week include: Mon: TEVA HUM, Tue: CMCSA SIRI, Wed: PRU NT CI CVS DUK CPN HL TWX SINA, Thu: G OATS VIA UL TOT TOL SLE ONXX GFI CLX CQB, Fri: CBJ I plan to continue trading puts on my "predictable" stocks, including two index ETFs, a biotech, and an internet. If the market rises higher, there are several large cap bank and drug stocks that should outperform, with less risk than most other stocks on pullbacks. See PeakTrader.com Top Stock Picks section for more information. Charts available at PeakTrader.com Forum Index Arthur Albert Eckart is the founder and owner of PeakTrader. Arthur has worked for commercial banks, e.g. Wells Fargo, Banc One, and First Commerce Technologies, during the 1980s and 1990s. He has also worked for Janus Funds from 1999-00. Arthur Eckart has a BA & MA in Economics from the University of Colorado. He has worked on options portfolio optimization since 1998. Mr Eckart has developed a comprehensive trading methodology using economics, portfolio optimization, and technical analysis to maximize return and minimize risk at the same time. This methodology has resulted in excellent returns with low risk over the past three years.
MORE RESOURCES:
Investing - Google News |
|
|
|
RELATED ARTICLES
Which IRA Is Best For You? An Ira is one of the greatest ways to save on taxes currently and accumulate money for the future.For individuals three types of IRA's will normally come under consideration. Stocks: Reduce Risk Yet Maximize Profits It is important to note that every smart investor wants to minimize risk while maximizing profit potential. Yet conventional investment theory tells us that in order to increase returns, you have to increase risk. Success Trading: Some Basic Terminology for New Traders The world of trading can get very complex because the financial markets are complex. There thousands and thousands of successful traders out there today. The Myth of the Earnings Yield AbstractA very slim minority of firms distribute dividends. This truism has revolutionary implications. Direcway & Wildblue Set to Square Off this Fall? There is a cat fight brewing between Direcway LLC, Starband and Wildblue Communications for the large number of people in the U.S. Five Sure Fire Way to Secure Your Financial Future "You can be poor when you're young, but you can't be poor when you're old." That was the tag line used some years ago in a financial services television commercial. Critical Options Investing Tip When Trading Naked Calls and Puts An option is a derivative trading product that is best used by investors as a hedging tool providing investing profit protection and profit enhancement. Although it is a powerful risk management tool, it can also be used effectively as a stand-alone trading vehicle. Making Your Investment Dollars Work for You Investments are scary for some people, especially those who have never invested before. We grow up hearing horror stories about how this person or that person lost everything they had on some bad investment some odd years ago and it builds in us a fear of investing so profound that it is sometimes easier to get a confirmed agoraphobic to march in the Macy's Day Parade than it is to get someone to put a few dollars into stocks or mutual funds. Finding the Perfect Company The perfect company - it's the holy grail of the investment world. The company that will make its initial investment hundreds of times over. Trading Baskets Part I Q. What is a basket?A basket is a group of up to 50 stocks that you can trade, manage and track as one entity. Options Made Easy and Investor Education - Simple Enough for a 10 yr Old Kid How many of you out there think that the market is performing well?How many think the market is performing poorly?And how many feel the markets performance is neutral?Actually none of these answers is correct. You see, learning and reading our options made easy articles, you will realize that the market does not perform, you do. Getting Started In Investing Are you ready to open your pathway to financial independence?Well you should be. The sooner the better. Stock Market Leaders and Laggards Leaders are stocks that breakout immediately when the market confirms a new rally. In the first several weeks, strong stocks with leadership ability will breakout on volume above their 50-day average. Investing in New Zealand - Learn how to Find Unique Investment Opportunities Investing in New Zealand might be much easier than investing in other western countries, thank to the excellent infrastructure, the low taxes and the assistance of the supportive NZ government.Technological Face of New ZealandNew Zealand has a unique reputation within the global market place. Why You Need To Buy and Sell Gold Coins (Part 5) Grading coinsThe condition of a coin is commonly summarized by a grade. Because the value of collectible coins often varies dramatically with grade and overly generous grading is not uncommon, reasonable grading proficiency is an important skill for collectors. Property Investment Just Got Exciting There is an area in Brazil that has lower crime & lower property prices than where your are probably sitting right now!Demand from the increasing retirement population and from those who have benefited from their own property markets are now pushing overseas property prices up. Brazilian property prices are still very low and offer the overseas property buyer quality real estate in stunning locations. Online Trading Options Strategies - Rolling Rolling is defined in options online trading as moving a position from one strike to another either vertically in the same month, horizontally to another month or some combination thereof.Other times, you may have to buy your short call back so that you will not lose your stock. Quit and Retire Three Years Earlier! For most people, there is a direct correlation between how worried they are about retirement income, and how much they can actually do about it. This is because the more worried you are, the closer you probably are to retirement, and the less time you have to do anything - like save up. Investing & Online Stock & Share Trading- The Stock & Share Markets are Booming But Be Warned I had the pleasure of being invited on a friend's yacht to sail in a race on Sydney Harbour yesterday. On board, as one of our motley crew, I met a top ranking corporate executive from one of Australia's largest banks, who we'll call 'Phil' here for the purpose of this article. The Switzerland of Asia Shines In many respects, Singapore is the Switzerland of Asia.Begun in 1819 as a British trading colony, the Republic of Singapore was founded in 1965 under the leadership of the current Prime Minister's father, Mr.
|
|
Currency Trading | Investing | Leadership | Negoatiation | Real Estate | Stocks and Mutual Funds | Taxes home | NetFinancial | Institutions | Loans | Colleges and Universities | site map Search Engines | EZmatic | 0pops | GetSonic | TrafficFish | Health |
| © 2006 |
