With US jobs report pending Friday, markets will be more cautious, but today they will definitely go up in the hope of seeing some improvements. However the jobs report is unlikely to be positive tomorrow, in the event of which the markets may go down tomorrow.
So for those of you who want to make some quick bucks in the leveraged etf's like FAS , today might be a good day. Here are some other indicators and stocks that might be good to take a look at:
BAC : Bank of America
S: Sprint
JCP: JC Penny
CSCO: CiSCO
C: Citigroup
Do Note: all these stocks may perform well only today, as they will most likely go down tomorrow in anticipation for a negative jobs report.
Thursday, 6 February 2014
Saturday, 25 January 2014
Applying Technical and market analysis to shortlisted stocks on 24th Jan (Fri)
GEL, SILC, LOGI, TECUA
GEL : Genesis Energy
The price target for this stock ranges from 52 to 60, and considering that it has already broken its low, there is a great likelihood that it will try to reach its median target, given the market is on a positive note on the day. Not from upside from thereof though.
SILC: Silicom Ltd.
the stock skyrocketed on Thursday based on the earnings report. This stock will definitely have more upside, do note that the low target is at 68, and it may definitely try to reach this target, and most probably go above it. People who bought it on Thursday or Friday, will definitely see an upside, and make some quick bucks.
LOGI: Logitech
The company has posted a great earnings, even though the stock price has shot very quickly very high, it did provide some good opportunities for people to buy the share on Friday. There is definitely more upside left, although, this will be very short term and will need continuous monitoring.
TECUA: Tecumseh Products
Slightly risky considering the change in Board, may be prone o a lot of insider trading at this point, but the technical indicators are definitely positive at this stage, so could be a good buy, but would need more in depth analysis
some high level analysis can be found here:
http://seekingalpha.com/article/1857191-another-chance-to-double-your-money-with-tecumseh-products-company?source=yahoo
GEL : Genesis Energy
The price target for this stock ranges from 52 to 60, and considering that it has already broken its low, there is a great likelihood that it will try to reach its median target, given the market is on a positive note on the day. Not from upside from thereof though.
SILC: Silicom Ltd.
the stock skyrocketed on Thursday based on the earnings report. This stock will definitely have more upside, do note that the low target is at 68, and it may definitely try to reach this target, and most probably go above it. People who bought it on Thursday or Friday, will definitely see an upside, and make some quick bucks.
LOGI: Logitech
The company has posted a great earnings, even though the stock price has shot very quickly very high, it did provide some good opportunities for people to buy the share on Friday. There is definitely more upside left, although, this will be very short term and will need continuous monitoring.
TECUA: Tecumseh Products
Slightly risky considering the change in Board, may be prone o a lot of insider trading at this point, but the technical indicators are definitely positive at this stage, so could be a good buy, but would need more in depth analysis
some high level analysis can be found here:
http://seekingalpha.com/article/1857191-another-chance-to-double-your-money-with-tecumseh-products-company?source=yahoo
Friday, 24 January 2014
Stocks for today (7 day direction)
GEL : Genesis Energy
Analysis: Both 20 and 50 day moving average is on an uptrend.
MACD is (26,12) indicating the stock is in a positive direction
14 day Relative Strength is above 70
Slow stochastic indicates there is still some upward trend left
The stock will go further high from here in the next few days
LOGI : Logitech International
Analysis : Both 20 day and 50 day moving averages are on an upward trend
MACD is moving in a positive direction
14 day relative strength is above 70
Slow stochastic indicates there is a definite upward trend from here in following days
Definite uptrend from here
SILC : Silicom Ltd.
Both 20 and 50 day moving average is on an uptrend.
MACD is (26,12) indicating the stock is in a positive direction
14 day Relative Strength is above 90
Slow stochastic indicates there is still some upward trend left
Definite uptrend in the next few days
TECUA : Tecumesh Products company
Both 20 and 50 day moving average is on an uptrend.
MACD is (26,12) indicating the stock is in a positive direction
14 day Relative Strength is at 60
Slow stochastic indicates there is some upward trend left
Analysis: Both 20 and 50 day moving average is on an uptrend.
MACD is (26,12) indicating the stock is in a positive direction
14 day Relative Strength is above 70
Slow stochastic indicates there is still some upward trend left
The stock will go further high from here in the next few days
LOGI : Logitech International
Analysis : Both 20 day and 50 day moving averages are on an upward trend
MACD is moving in a positive direction
14 day relative strength is above 70
Slow stochastic indicates there is a definite upward trend from here in following days
Definite uptrend from here
SILC : Silicom Ltd.
Both 20 and 50 day moving average is on an uptrend.
MACD is (26,12) indicating the stock is in a positive direction
14 day Relative Strength is above 90
Slow stochastic indicates there is still some upward trend left
Definite uptrend in the next few days
TECUA : Tecumesh Products company
Both 20 and 50 day moving average is on an uptrend.
MACD is (26,12) indicating the stock is in a positive direction
14 day Relative Strength is at 60
Slow stochastic indicates there is some upward trend left
Tuesday, 14 January 2014
Day Trading Fundamentals
If you want profits in a single day, and do not want to wait it out for your investments to grow in the market, day trading is a viable option, given that you have significant hours to spend doing research and practicing your trading strategy in advance.
To Day Trade you would need the following :
1. your internet connection has good speed
2. if there is a connection failure at any point you have a backup broker over the phone to assist you
3. a reliable online trading platform
4. a trading platform that has the best plans in terms of trade execution charges(transaction fees). Opt for a firm that will give you the best transaction fee and the most user friendly online software, and charts as well.
5. You have access to real time market data, i.e. no delay in the relay of market data
6. Access to real time charts and stochastic tools
7. A spread sheet application to keep track of the losses and profits you made over a day
Once you have access to the above, you may first need to build your strategy for day trading and test it with filters and regressive cases to make sure that your strategy works in most scenarios.
To build your day trading strategy you will need access to pivot points, MACD, slow and fast stochastic charts, and volume indicators. In addition you may also need to be aware of news triggers and the overall direction of the market, and the time of the day, as most stocks have greater movement in the first half of the day, although this is a trend that is sometimes overpowered by market news and sudden unexpected triggers.
To Day Trade you would need the following :
1. your internet connection has good speed
2. if there is a connection failure at any point you have a backup broker over the phone to assist you
3. a reliable online trading platform
4. a trading platform that has the best plans in terms of trade execution charges(transaction fees). Opt for a firm that will give you the best transaction fee and the most user friendly online software, and charts as well.
5. You have access to real time market data, i.e. no delay in the relay of market data
6. Access to real time charts and stochastic tools
7. A spread sheet application to keep track of the losses and profits you made over a day
Once you have access to the above, you may first need to build your strategy for day trading and test it with filters and regressive cases to make sure that your strategy works in most scenarios.
To build your day trading strategy you will need access to pivot points, MACD, slow and fast stochastic charts, and volume indicators. In addition you may also need to be aware of news triggers and the overall direction of the market, and the time of the day, as most stocks have greater movement in the first half of the day, although this is a trend that is sometimes overpowered by market news and sudden unexpected triggers.
Thursday, 19 December 2013
Pivot Points and their significance in everyday trading
Pivot point is a price level that is calculated for a stock based on its previous days open, close, high and low price. It is basically an average of these prices and helps to predict where the price will more likely be for the day, given no other factors of involvement. If the market, or if the stock itself is bearish, the prices are more likely to be below the pivot point and if the prices are bullish, they are more likely to be above the pivot point.
Pivot points have associated price levels as well, that are referred to as support and resistance levels. On a bullish day, a stock price is highly capable of reaching these support levels or even cross them, depending on the volume and the bulls. On a bearish day, to the contrary, the prices are likely to reach these resistance levels, and once a resistance level is broken, it signals bearish movement.
Support levels are S1, S2, S3 and resistance levels are at R1, R2, R3. Online pivot calculators are available that help calculate the pivot point for a particular stock based on the previous days prices.
I am providing a link below of the 5-day intra-day chart of the SPDR Gold Trust in Wikipedia, that illustrates how pivot points might be helpful in determining entry and exit points for inter-day as well as intra-day trades. http://en.wikipedia.org/wiki/Pivot_point (see the Trading Tool section)
If you analyse the chart more carefully, you will observe the following:
On the first day, the market is directionless, and hence the prices fluctuate more or less around the pivot point. Even though the price tries to reach the first resistance level, it is immediately pulled back, and keeps hovering near the pivot point for the rest of the day. This indicates that the support is not strong enough.
On the second day, it starts near the second support level, indicating, that it is going to remain bearish for the rest of the day.
Note on the fourth day, that even though the stock price falls very close to the pivot point, it is not able to break it and go below it or reach it, indicating a bullish trend ahead. When it crosses the first resistance level, this is further confirmed. If the point at which this happens is used in conjunction with candlestick patterns, it will be even easier to identify the entry and exit points during the five day chart referred to here.
In my next post I will try to illustrate how pivot points when used in conjunction with Fibonacci numbers can act as a helpful tool to determine entry and exit point for trades.
Pivot points have associated price levels as well, that are referred to as support and resistance levels. On a bullish day, a stock price is highly capable of reaching these support levels or even cross them, depending on the volume and the bulls. On a bearish day, to the contrary, the prices are likely to reach these resistance levels, and once a resistance level is broken, it signals bearish movement.
Support levels are S1, S2, S3 and resistance levels are at R1, R2, R3. Online pivot calculators are available that help calculate the pivot point for a particular stock based on the previous days prices.
I am providing a link below of the 5-day intra-day chart of the SPDR Gold Trust in Wikipedia, that illustrates how pivot points might be helpful in determining entry and exit points for inter-day as well as intra-day trades. http://en.wikipedia.org/wiki/Pivot_point (see the Trading Tool section)
If you analyse the chart more carefully, you will observe the following:
On the first day, the market is directionless, and hence the prices fluctuate more or less around the pivot point. Even though the price tries to reach the first resistance level, it is immediately pulled back, and keeps hovering near the pivot point for the rest of the day. This indicates that the support is not strong enough.
On the second day, it starts near the second support level, indicating, that it is going to remain bearish for the rest of the day.
Note on the fourth day, that even though the stock price falls very close to the pivot point, it is not able to break it and go below it or reach it, indicating a bullish trend ahead. When it crosses the first resistance level, this is further confirmed. If the point at which this happens is used in conjunction with candlestick patterns, it will be even easier to identify the entry and exit points during the five day chart referred to here.
In my next post I will try to illustrate how pivot points when used in conjunction with Fibonacci numbers can act as a helpful tool to determine entry and exit point for trades.
Monday, 16 December 2013
Fibonacci Numbers and their Significance in Trading
A lot of the times, when the market is moving at its terrific speed, we are unsure whether the price we are buying or selling at is correct, and if the price of the stock will go further up from here and vice-versa. Since we are not sure of the point of the change in trend, we often either BUY and SELL too late, or BUY and SELL too early. Fibonacci numbers help us at these points to determine what could be the highest range the stock may reach for the day and vice versa.
Fibonacci tools unlike a lot of the other tools in the market are not trailing indicators but leading indicators.
Fibonacci tools allow you to track retracements and extensions. So what exactly is a Fibonacci retracement? A Fibonacci retracement is based on the fact that Stocks will often pull back or retrace a percentage of the previous move before reversing their direction.
Fibonacci retracement is created by taking two extreme points on a chart and dividing the vertical distance between the two by the key Fibonacci ratios. 0.0% is considered to be the start of the retracement, while 100.0% is a complete reversal to the original move. Once these levels are identified, horizontal lines are drawn and used to identify possible resistance and support levels.Fibonacci retracements often occur at the following levels: 23.6%, 38.2%, 50%, 61.8%, 100%.
Even though Fibonacci retracements work best over a longer time-period they can be pretty useful for getting into short term trades as well, when used along with MACD and stochastic oscillators.
Here is a snapshot for LNKD chart which mainly had a downtrend yesterday. For the second wave in the day, the high is at 231.29 and the low is at 227.59 which gives an approximate retracement of 50% at 229.42 and retracement of 61.8% at 229.85%. Since this was a downtrend, the retracements were pulled down before they could reach the 61.8%, indicating a further downtrend in the day. If you notice the next high is at 229.64.
So here even though it is a single day chart, the Fibonacci retracement still helps to more or less predict at which point one should sell, to reduce their losses during a downtrend.
Now lets us look at FB which was on an uptrend yesterday.
It's first high for the day was 54.46, and the subsequent low was 53.77 which gives an approximate retracement of 54.29 at 76.4% and 54.19 at 61.8%. The next subsequent highs were 54.16 and 54.24 which were just below the 76.4% and 61.8% mark indicating that even though it was in an uptrend, it was not strong enough to cross these marks, and hence starting on a downtrend with the next high not able to cross 54.16 again.
So here even though it is a single day chart, the Fibonacci retracement still helps to more or less predict at which point one should sell in a single day trade, to reduce their losses during a downtrend.
Fibonacci tools unlike a lot of the other tools in the market are not trailing indicators but leading indicators.
Fibonacci tools allow you to track retracements and extensions. So what exactly is a Fibonacci retracement? A Fibonacci retracement is based on the fact that Stocks will often pull back or retrace a percentage of the previous move before reversing their direction.
Fibonacci retracement is created by taking two extreme points on a chart and dividing the vertical distance between the two by the key Fibonacci ratios. 0.0% is considered to be the start of the retracement, while 100.0% is a complete reversal to the original move. Once these levels are identified, horizontal lines are drawn and used to identify possible resistance and support levels.Fibonacci retracements often occur at the following levels: 23.6%, 38.2%, 50%, 61.8%, 100%.
Even though Fibonacci retracements work best over a longer time-period they can be pretty useful for getting into short term trades as well, when used along with MACD and stochastic oscillators.
Here is a snapshot for LNKD chart which mainly had a downtrend yesterday. For the second wave in the day, the high is at 231.29 and the low is at 227.59 which gives an approximate retracement of 50% at 229.42 and retracement of 61.8% at 229.85%. Since this was a downtrend, the retracements were pulled down before they could reach the 61.8%, indicating a further downtrend in the day. If you notice the next high is at 229.64.
So here even though it is a single day chart, the Fibonacci retracement still helps to more or less predict at which point one should sell, to reduce their losses during a downtrend.
Now lets us look at FB which was on an uptrend yesterday.
It's first high for the day was 54.46, and the subsequent low was 53.77 which gives an approximate retracement of 54.29 at 76.4% and 54.19 at 61.8%. The next subsequent highs were 54.16 and 54.24 which were just below the 76.4% and 61.8% mark indicating that even though it was in an uptrend, it was not strong enough to cross these marks, and hence starting on a downtrend with the next high not able to cross 54.16 again.
So here even though it is a single day chart, the Fibonacci retracement still helps to more or less predict at which point one should sell in a single day trade, to reduce their losses during a downtrend.
Monday, 9 December 2013
Stocks to watch Today
ADT: has been upgraded to outperform, given a target of $44-49. It is most likely to open high today, however, if you can buy the stock at a range of anywhere between $40 to $42 it is great BUY.
LNKD: has been recently upgraded, and considering that Chinese market has performed so well today, this stock is likely to go up today
CASY: will most likely cross the 75.44 median target today and cross the previous high of 76.21. However this should be short term buy as the upside is not that high for the time being. They are announcing their Q3 earnings today
FCE-A: was recently upgraded, and has an earnings report today. Most likely to go up.
Others : ALOG, STZ, CSCO
Notes:
CSCO(Cicsco): has shown significant volume in the pre-market today
AEO: has been upgraded today to BUY
GIL: has been upgraded today to BUY
KRFT: has been upgraded to a BUY
VLO: has been upgraded to BUY
MPC: has been upgraded to a BUY
PL: upgraded to a BUY
MHK: upgraded to a BUY
LNKD: has been recently upgraded, and considering that Chinese market has performed so well today, this stock is likely to go up today
CASY: will most likely cross the 75.44 median target today and cross the previous high of 76.21. However this should be short term buy as the upside is not that high for the time being. They are announcing their Q3 earnings today
FCE-A: was recently upgraded, and has an earnings report today. Most likely to go up.
Others : ALOG, STZ, CSCO
Notes:
CSCO(Cicsco): has shown significant volume in the pre-market today
AEO: has been upgraded today to BUY
GIL: has been upgraded today to BUY
KRFT: has been upgraded to a BUY
VLO: has been upgraded to BUY
MPC: has been upgraded to a BUY
PL: upgraded to a BUY
MHK: upgraded to a BUY
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