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  • Asx 200 | Online Stockmarket Trading Update
    the D2MX Advisory team including Trade ideas and strategies Dividend enhancement strategies Market scans to watch International market analysis and Highlights from the S P ASX 200 To request an obligation free trial call 1300 610 024 or email advisory d2mx com au Also in this series Part 1 Simple Trend Finder Scanning Method Part 2 Going For Gold Part 3 The Gap Trading Method Part 4 The Power of Compounding Part 5 Measuring Your Trading Performance Michael Hevern Investment Adviser D2MX Trading This report was prepared by Michael Hevern It represents the views and opinions of the author It is not intended for use by any third party without the approval of Michael Hevern While this report is based on information from sources which are considered reliable its accuracy and completeness cannot be guaranteed Any opinions expressed reflect my judgment at this date and are subject to change Contracting Hevern Pty Ltd is a Corporate Authorised Representative No 408868 of D2MX Pty Limited ABN 98 113 959 596 AFSL No 297950 D2MX and Michael Hevern has been appointed as an Authorised Representative of Contracting Hevern Pty Ltd Opinions conclusions and other information expressed in this report are not given or endorsed by D2MX unless otherwise indicated The information contained in this Report is General Advice only as the information or advice given does not take into account your particular objectives financial situation or needs Disclaimer Using leverage to invest can be a two edged sword as it can magnify your returns when the stock price rises but will in turn magnify the losses if the trade does not perform as expected Tags asx 200 index put options investment portfolio options strategies stock trading tips Trading Strategies Posted in Trading Strategies No Comments Weekly Market Wrap Traders Green With Anticipation Friday July 20th 2012 Markets have had stellar week as traders chose to buy in anticipation of additional central bank easing across the globe from the US China and Europe European markets continue to hold up and are on track to record a seventh straight week of gains while the US markets have reached 2 month highs Asian markets joined in on the party helped by the Chinese market bouncing off 4 year lows and commodities have put in their best weekly performance since February which is supportive for emerging markets US stock markets bounced again this week as traders sent the S P 500 to 2 month highs after a round of strong corporate earnings this week All three benchmark indexes are up by around 2 for the week and the trading volumes have picked up 5 above the 3 month average The gains have been led by the Materials Energy and Technology sectors while the Financials and the Consumer sectors have weighed Positive investor sentiment was boosted by better than estimated earnings and traders are buying in anticipation that the Federal Reserve will add its monetary stimulus because of the recent disappointing domestic economic data European stock markets have climbed again this week and are on track for a seventh consecutive week of gains Germany gave final approval for the EUR100 billion bailout for the Spanish banks which is desperately needed as the Spanish debt crisis remains in focus as their 10 year cost of funding is hovering around 7 which is seen as unsustainable The Spanish market has been under pressure as banks were sold off after Societe Generale cut its earnings estimates for the country s banking sector by 12 on average and said it expects earnings to drop by 47 quarter on quarter Banks in Italy also suffered as Societe Generale estimated Italian banks would see earnings slashed by 75 for the quarter However the northern European markets remain strong with the German market in a confirmed uptrend and markets in London and France are within a whisker of confirmation of their uptrends Asian stock markets have recovered this week with China bouncing off 4 year lows and commodities having a strong week Chinese traders were buoyed by comments from the Chinese Premier Wen Jiabao who said China will increase measures to support growth in the world s second largest economy sparking hopes for global monetary easing and stimulus measures to stop the slowdown in economic domestic growth Analysts are expecting the announcement of a reduction in the Chinese reserve requirement ratio RRR the minimum amount of capital that banks have to keep in reserves However the mood was tempered as the International Monetary Fund IMF has cut its forecast for global growth to 3 5 In commodities crude oil prices bounced again above US92 this past week as US inventories backed off again and there is the geopolitical risk to supplies with tensions in the middle east escalating The gold price has drifted down after QE3 was set aside and is trading around US1 580 again Copper prices have moved higher bouncing off their 200 day moving average The Australian market has traded to the top of its 2 month trading range again and if the global central banks act this would be a catalyst for our market to push higher Sentiment has been positive driven by strong earnings from the US and the eurozone as hopes of stimulus resurfaced The 4200 level is the next pivotal resistance level and 4120 is the critical support level for next week In our market the defensive sectors continue to outperform with banks Telstra Real Estate REITs and health care stocks trading higher as investors seek out stocks that can deliver consistent yield in this low rate environment The industrials materials and energy sectors are bouncing off key short term support levels The banks have surged and are testing 3 month highs as investors turn to dividend yield We are seeing some buying in the energy and materials sectors but would need to see follow through next week to continue the upward momentum for the market Investors should have protection in place for their capital and could look to reduce their risk by using options and warrants strategies Look to pick up value stocks that pay consistently high dividend yields when they reach your buy levels It may be time to start nibbling away at materials and energy stocks if they can hold recent support levels Remain attuned to the news from overseas particularly from the eurozone China and the US as the US reporting season continues Monitor the performance of Italian and Spanish borrowing costs China and the US dollar for a guide to the future direction of commodities and equities prices The S P ASX 200 index is currently trading at 4210 and is trying to close the week above the 2 month trading range Key levels for the index next week will be 4120 and 4280 with 4200 the key short term pivot level We regularly update you on trade recommendations so for Buy and Sell recommendations on ASX listed companies register for a free trial of MDS Financial Research By Michael Hevern D2MX Trading Desk This report was prepared by Michael Hevern It represents the views and opinions of the author It is not intended for use by any third party without the approval of Michael Hevern While this report is based on information from sources which are considered reliable its accuracy and completeness cannot be guaranteed Any opinions expressed reflect my judgment at this date and are subject to change Contracting Hevern Pty Ltd is a Corporate Authorised Representative No 408868 of D2MX Pty Limited ABN 98 113 959 596 AFSL No 297950 D2MX and Michael Hevern has been appointed as an Authorised Representative of Contracting Hevern Pty Ltd Opinions conclusions and other information expressed in this report are not given or endorsed by D2MX unless otherwise indicated The information contained in this Report is General Advice only as the information or advice given does not take into account your particular objectives financial situation or needs Disclaimer Using leverage to invest can be a two edged sword as it can magnify your returns when the stock price rises but will in turn magnify the losses if the trade does not perform as expected For Buy and Sell recommendations on ASX listed companies register for a free trial of MDS Financial Research Tags asx 200 ASX News chinese economy Commodities european banks QE3 US markets Weekly Market Wrap Posted in Stock Market Analysis No Comments Weekly Market Wrap Investors Cautious Ahead Of Eventful Week Friday June 15th 2012 Investors are in for an eventful week next week with the Greek elections the G 20 meeting and the US FOMC meeting Traders are unsure which way the central banks will move near term but no doubt the escalating eurozone debt crisis will be high on the agenda US markets are edging to 3 week highs ahead of next week s FOMC meeting while economic data continues to point to a slowing domestic economy In testimony before Congress recently Federal Reserve Chairman Ben Bernanke stopped short of signaling new stimulus measures and indicated that the EU needs to get its own house in order which disappointed traders However when the Federal Reserve holds its FOMC meeting it is expected to discuss further economic stimulus efforts to follow after Operation Twist which is due to finish at the end of the month The US dollar index has been easing on anticipation of some additional monetary easing near term and next week will be crucial The eurozone markets kicked off the week with news that Spain had requested up to 100 billion euros US125 billion in loans from the European Union to assist its banks However statements about the deal left several open questions including the exact amount of aid the country will need and how the funds will be distributed The aid needs to be provided by the European Financial Stability Facility EFSF and the European Stability Mechanism As the week progressed traders were not convinced that Spain s agreement to seek bailout funds for its banks will restore confidence in the Spanish economy Spanish and Italian bond yields have surged this week as investors queried the terms of the Spanish bank aid deal Adding to the gloomy sentiment in the eurozone Fitch Ratings downgraded 18 Spanish banks long term credit ratings in a move that was linked to its earlier downgrade of Spain s credit rating Moody s Investors Service has downgraded Spain and Cyprus while Switzerland s central bank said that Credit Suisse Group AG must increase its capital this year due to the eurozone debt crisis Also weighing on traders minds are the upcoming elections in Greece as the outcome may well determine the country s future in the 17 nation eurozone bloc According to polls 75 of Greek citizens want to keep the euro Overnight in Greece the market surged with its biggest rally in more than nine months while their banking sector index rocketed 21 amid speculation that New Democracy the party that backs an agreed bailout for the nation may win the June 17 elections Asian markets are backing off 3 week highs and the Chinese market is trying to find support after the Chinese central bank said it would lower benchmark interest rates on loans and deposits by 25 basis points for the first time since 2008 Chinese data showed exports and imports growing but inflation cooling more rapidly than expected amid an economic slowdown Credit Suisse and Deutsche Bank reduced their forecasts for Chinese growth this year citing weakness in exports and in investment dragging on the world s second biggest economy The predictions indicate the weakest Chinese growth since 1999 and compare with a 9 2 expansion last year Credit Suisse cut its estimate to 7 7 from 8 while Deutsche Bank lowered its forecast to 7 9 from 8 2 Credit Suisse suggested that productivity gains and a restoration of the economy s strength will require the Chinese government to break monopolies in banking and utilities open the services industry and deregulate interest rates and the exchange rate and also highlighted that government stimulus could moderate the downside risks to growth The US dollar continued to back off the high levels not seen since mid 2010 which has eased the selling pressure on the commodities which are priced in US dollars Crude oil is hovering around 8 month lows copper is at 7 month lows and silver is hovering around 15 month lows Mining stocks across the globe remain under pressure near term however gold continues to rise and is testing 5 month highs The Australian market has traded sideways this week and is trying to hold around the key 4000 level Sentiment has been mixed driven by news from the eurozone and hopes of central bank easing Major market sectors have been tentatively holding on to the support levels of last week In our market the defensive sectors continue to outperform with Telstra Realestate REITs and health care stocks holding ground as investors seek out stocks that can deliver consistent yield in this low rate environment The materials and energy sectors continue to underperform on the back of lower commodity prices but banks are tentatively looking to find some support as investors turn to dividend yield On the S P ASX 200 the 4120 level will now be a crucial resistance level and the 4080 level is again pivotal for next week We have not seen capitulation by the bulls as yet which could come about if the current weekly support levels are breached at 3985 in which case we could see the 3950 and then the 3850 levels tested Investors should have protection in place for their capital and could look to reduce their risk by using options and warrants strategies With the sustained selling we have endured over the past few weeks we are looking to pick up value stocks that pay consistently high dividend yields when they reach our buy levels Remain attuned to the news from overseas particularly from the eurozone Greece and the G 20 now that China cut interest rates in its move towards policy easing and from the US as those markets test their 3 week highs Monitor the performance of Greece Spain China and the US dollar for a guide to the future direction of commodities and equities prices The S P ASX 200 index is currently trading at 4036 and is testing breakeven levels for the year Key levels for the index next week will be 3930 and 4130 with 4080 the key short term pivot level By Michael Hevern D2MX Trading Desk For Buy and Sell recommendations on ASX listed companies register for a free trial of MDS Financial Research This report was prepared by Michael Hevern It represents the views and opinions of the author It is not intended for use by any third party without the approval of Michael Hevern While this report is based on information from sources which are considered reliable its accuracy and completeness cannot be guaranteed Any opinions expressed reflect my judgment at this date and are subject to change Contracting Hevern Pty Ltd is a Corporate Authorised Representative No 408868 of D2MX Pty Limited ABN 98 113 959 596 AFSL No 297950 D2MX and Michael Hevern has been appointed as an Authorised Representative of Contracting Hevern Pty Ltd Opinions conclusions and other information expressed in this report are not given or endorsed by D2MX unless otherwise indicated The information contained in this Report is General Advice only as the information or advice given does not take into account your particular objectives financial situation or needs Disclaimer Using leverage to invest can be a two edged sword as it can magnify your returns when the stock price rises but will in turn magnify the losses if the trade does not perform as expected Tags Asian Markets asx 200 ASX News australian trading news Commodity prices credit downgrade eurozone debt crisis market wrap US markets Posted in Stock Market Analysis No Comments Weekly Market Wrap Eurozone Debt Contagion Hits France and Germany Friday November 25th 2011 Traders around the world have been held hostage this week to the unfolding train wreck in the eurozone as the debt crisis spreads to the big gorillas of the region France and Germany The global focus has been on the eurozone once again with the Italian and Spanish costs of debt remaining at their highest levels since the inception of the eurozone Across the region banks have again been sold down and the growth sensitive resource firms have also been under pressure due to falling commodities prices European stock markets extended their losing streaks again overnight as eurozone leaders cannot come to an agreement on how to resolve the debt crisis A number of markets have been down for around nine consecutive sessions which means that a relief may be on the cards sooner rather than later and technically many stock markets are at their 61 8 retracement levels from their peaks in October which is often a good level for a potential recovery German Chancellor Angela Merkel has dashed hopes that she could be open to the idea of a joint eurozone bonds issue as a means to easing the region s financial woes saying that a common interest rate for all eurozone borrowers would send the wrong signal Germany does not want to risk its AAA credit rating and instead wants to see commitment from the PIIGS economies regarding their austerity measures The US markets have crashed through their 50 and 200 day moving averages this week succumbing to the deluge of bad news over the global debt crisis The news came as the US super committee responsible for reducing the budget deficit by at least US1 2 trillion over the next 10 years or risk triggering automatic spending cuts found itself deadlocked This triggered a selloff as traders worried about a possible credit rating cut being the fallout of the negotiations However Moody s Investors Service has since reiterated its triple A rating on the US and said the committee s failure to agree would not by itself lead to a rating change The minutes from the Fed s FOMC policy meeting boosted also some hopes that the central bank may embark on more stimulus measures Following that sell off however the losses continued after the government revised third quarter growth to 2 from an initial estimate of 2 5 Another focus in the US this week has been on Black Friday which sounds ominous but it is really a good thing it announces the start of the Christmas shopping season According to Bloomberg 25 of Christmas shopping is done in the week following Black Friday and the Christmas shopping season accounts for over 40 of the total retail shopping sales for the year so it is a critical time for retailers and for Santa Claus The US dollar continued its surge this week in a flight to safety and this has again been weighing on commodities prices The major metals continued to fall with gold breaking through the US1 700 level and is now trading down at US1 690 Crude oil has continued to fall below the US100 per barrel and copper has pulled back to US3 27 per pound Asian markets have been bearing the brunt of the selling driven by the eurozone debt crisis because the eurozone is the major customer for products produced by the Asian economies Another negative for Asian investor sentiment was the concern of the slowing growth in China after a HSBC report out early this week showed Chinese manufacturers have reported the preliminary flash PMI figure dropped to 48 in November compared with a mildly expansionary 51 previously A reading below 50 suggests a contraction in the sector Asian markets have again sold down heavily in the past week with Hong Kong down 3 5 Korea down 2 5 and China has eased 1 5 for the week Technically these stock markets are at their 61 8 retracement levels from their peaks which is often a good level for a potential recovery but traders are still being held hostage by the eurozone crisis Our View for the Australian Market Our market has again succumbed to the negative sentiment from overseas and continues to trade below its 50 day moving average which is a negative sign The line in the sand which we highlighted last week around the 4150 level which had offered support for the past couple of months has now been breached and the market will need to overcome this level in the short term if we are to get a Santa Claus rally this year The 4080 level is crucial in the short term We have continued to see weakness in the banks and the retail and resource stocks have also succumbed to selling pressure In the Analyst s Eye last week we had a timely talk about identifying stocks that have the potential to pullback in the near term After another struggle between the bulls and the bears this week the bears remain in control as we have broken below the 50 day moving average The 200 day moving average which sits around 4 410 still offers significant resistance for any positive momentum into the end of the year and we are sitting around the 61 8 retracement level which is often where we see a relief rally Investors should be looking to utilise options strategies to pick up stocks that are exhibiting value Many stocks are now back at their September levels and you will therefore clearly know if you are trading in the wrong direction Options can be used to protect your profits and manage your risk in this type of market Remain attuned to the news from overseas particularly from China Germany and the US regarding their economic growth and debt issues Monitor the performance of the US dollar for a guide to the future direction of commodities and equities prices The S P ASX 200 is down 4 2 for the week and is currently trading at 4005 and looks to be setting up to test support again around the 3950 level near term Key levels for the index next week will be 3950 and 4150 with 4080 being the key pivot level Expect to see volatility to remain elevated as the market participants look for direction in these uncertain times By Michael Hevern MDS Trading Desk MDS Financial Advisory Services offers general advice on trading options to generate consistent steady income on your investment portfolio Call 1300 610 024 for further information For Buy and Sell recommendations on ASX listed companies register for a free trial of MDS Financial Research Tags ASX asx 200 Commodities European Debt Stock Market Analysis US markets Posted in Stock Market Analysis No Comments Weekly Market Wrap Central Banks Act to Rescue the Eurozone Friday September 16th 2011 Globally markets are recovering from their sell off earlier in the week triggered by problems with eurozone banks and the disjointed approach by the region s leaders to backing the European Financial Stability Fund EFSF These concerns resulted in Moody s downgrading the ratings of two French banks Societe Generale SA and Credit Agricole citing liquidity issues This has prompted German and French leaders to confer and commit to assisting debt laden Greece to remain as part of the eurozone A global equities rally has been triggered on the third anniversary of the Lehman crisis the event that sparked the GFC as authorities have now taken proactive action to address the liquidity issues in the financial system across Europe Five of the world s largest central banks have coordinated their efforts to free up the European banking system by deploying dollars into the system This will take some pressure off European lenders that have had trouble borrowing the US currency but has also highlighted the funding issues those lenders currently face US stock markets have risen for a fourth consecutive session of gains and are attempting to form a base UBS shares dropped 10 after the Swiss bank said it would likely post a third quarter loss after a trader booked US2 billion in losses through what it said was unauthorised trading European stock markets sold off heavily early in the week but are recovering The German and French markets are bouncing off 2 year lows while in London the market is relatively stronger and holding above recent lows similar to the US Many Asian stock markets have had holidays this week The Hong Kong and Chinese markets are trading around 52 week lows suffering from the concerns in the eurozone and additional domestic concerns over further monetary tightening measures by the Chinese government Our View for the Australian Market The Aussie market is ending the week on a positive note as it managed to bounce off a key psychological level around the 4000 mark The news that major central banks are taking action to ensure there is continued liquidity within the eurozone s financial system is significant now all they need to do is agree on the EFSF funding package to bail out the PIIGS economies in the eurozone easier said than done Local economic data has again been mixed this week Robust trade figures failed to spark the market earlier in the week after the Australian Bureau of Statistics ABS reported Australia has posted a trade widening surplus for the fifth consecutive month as mining exports continue to hold weight in the face of a global economic slowdown The balance on goods and services was a surplus of 1 826 billion in July and this compares to the downwardly revised surplus of 1 817 billion in June The Federal Government s Bureau of Resources and Energy Economics BREE also reported that the value of Australia s resources and energy exports surged by 27 percent last financial year to a record 175 billion Iron ore export earnings jumped by 56 percent to 54 billion in 2010 11 The Westpac Melbourne Institute reported that the Consumer Confidence Index rebounded strongly in September up by 8 1 percent showing that a recovery in economic growth and diminishing expectations of an interest rate hike has reassured householders this followed an August reading which had fallen to the lowest level since May 2009 However investor mood was dampened by news that the ABS has revised second quarter inflation lower with core inflation down to 0 6 percent in the second quarter from the 0 9 percent reported in July indicating price growth is not as strong as previously predicted This prompted the National Australia Bank to say it now expects core inflation to remain between 2 5 to 2 75 percent until 2013 taking the pressure off the RBA for further interest rate rises We are definitely in a trader s market and the market looks like it wants to run higher into the end of the quarter as it recovers from its very oversold state The S P ASX 200 index is attempting to swing higher but it needs to trade above the month s high to confirm the momentum The key resistance level remains around 4360 near term and the market held the 4070 key support this week Stock prices will to continue to experience volatility near term but a base appears to be forming in the index near term In commodities the standout performer has again been the gold volatility play as the gold price reached a high above US1 850 but has now retraced all the way back below US1 780 in quick time Gold is currently trading above US1 778 but this volatility could be pointing to a double top Crude oil prices held around US90 per barrel this has provided support for energy stocks near term The other key driver for markets near term will be the performance of the US and Euro dollars The US dollar index is holding above four month highs while the Euro dollar has broken down out of its trading range which could be a negative for equities and commodity prices if this continues Investors will be cheering the coordinated central banks effort to inject liquidity into the eurozone however there is still the issue of eurozone bank solvency to contend with Remain attuned to the news from overseas particularly from China Germany and the US regarding their economic growth and debt issues The S P ASX 200 is currently trading at 4160 having found key support at the 4070 level this week Key levels for the index next week will be 4360 and 4070 Be prepared to use options to protect recent gains Keep that shopping list close at hand be prepared to start accumulating when others are most fearful and remember you can use options to limit your risks Expect to see further volatility going forward as the market participants look for some guidance for the direction of the market By Michael Hevern Head of Research For Buy and Sell recommendations on ASX listed companies register for a free trial of MDS Financial Research MDS Financial Advisory Services offers general advice on trading options to generate consistent steady income on your investment portfolio Call 1300 610 024 for further information Tags Asian Markets ASX asx 200 eurozone Sovereign Debt UBS us stock markets Posted in Stock Market Analysis No Comments Intra Market Relationships the S P ASX 200 Aussie Dollar and US Treasury Bonds Friday September 2nd 2011 I had a nice trade this week in the Aussie 200 trading contracts for difference I ll show you how I made the decisions to enter the trade but first of all a quick lesson in intra market relationships The US Treasury bond is seen as one of the safest places in the world to invest money It is backed by the US government and despite the recent downgrade in its credit rating the US has never defaulted on a payment The market perceives that it is so safe that in the financial crisis of 2008 bonds were pushed up to a level that meant interest rates went negative This means the US government was being paid to borrow by the investors A bond pays interest and the price of the bond changes as the market s expectations of interest rates rise and fall If interest rates rise bonds fall in value and if interest rates fall then bonds rise in value The higher the price is the lower the return on the bond When investors perceive that the market environment is risky money flows into bonds When people are scared by stock market falls they will buy US Treasury bonds and when people are prepared to take on more risk they will sell bonds and buy shares So the normal relationship between Treasury bonds and the stock market is bonds up stock market down bonds down stock market up Adding in another independent variable we can follow the relationship between the Aussie dollar and the stock market If money is flowing into the Aussie dollar then some of it will find its way into the Aussie stock market and if money is moving out of the Aussie dollar then the Aussie market is likely to fall The Australian market and dollar are perceived to be more risky than the US markets so when investors are scared they sell Aussie dollars and Aussie shares and when they are prepared to take on risk they become buyers The normal relationship between the Aussie dollar and stock market is AUD up stock market up AUD down stock market down Now back to the trade from Wednesday morning I was watching the last hour of trading in the US markets and the setup highlighted in the charts below unfolded The charts are hourly charts of Aussie dollar AUD Treasury Bonds Dec Expiry ZBZ1 and the S P ASX 200 AXJO The highlighted setup occurred The Treasury bonds fell sharply and at the same time the Aussie dollar and Aussie 200 both fell away as well This is not normal behaviour remember if bonds are falling then Aussie 200 should be going up The sharp fall in the bond market had me believe that a turnaround in the Aussie 200 was likely I watched the market closely for signs that the Aussie 200 had stopped falling and made my first entry around 4325 as it began to climb higher Instead of rocketing to the upside as I would have liked the market broke to a new low It was still above my stop loss but I was losing a small amount at this stage The bonds were still lower and the AUD now turned up this gave me the conviction to add to the trade near 4315 once the Aussie market began to climb again The trade was supported by simple technical analysis with the market bouncing off an up trend line My first exit came about very quickly as the market climbed to the down trend line There was no guarantee that a breakout would occur so I chose to take some profits early with a gain of about 15 points on the second entry The remainder of the position was exited just below 4350 with a limit order set to take me out when my objective had been reached This was a gain of about 25 points on the second entry and happened to coincide with the market rolling over and falling away from this level This was more likely good luck than good management By combing the view of different markets and understanding the intra market relationships I was able to make a nice profit on this trade By Jeff Cartridge Education Manager Charts from Market Analyser download a free Market Analyser trial and test this trade setup for yourself Tags asx 200 aud Australian Dollar Market Analyser Trading Strategies us treasury bonds Posted in Stock Market Analysis Trading Strategies No Comments Weekly Market Wrap Investors Rejoice Ruling Off a Terrible August Friday September 2nd 2011 Globally markets drifted higher this week as investors ruled off a terrible August for equities However the Chinese market has underperformed and is finishing lower for the week as investors assess whether they are still on track to engineer a soft landing US Markets The news out of the US Jackson Hole economic summit was generally well received though the US Federal Reserve Chairman stopped short of disclosing a fresh round of monetary stimulus QE3 Later in the week the FOMC released the August meeting minutes which actually suggested that QE3 is a possibility and that the September FOMC meeting will be extended to two days The minutes suggested an addition to quantitative easing possibly by extending the average duration of the central bank s existing bond portfolio by selling bonds with short maturities and buying those with longer maturities Data out of the US this week was mixed with the Institute for Supply Management ISM purchasing managers index coming in at 50 6 for August below expectations New orders production and employment were all weak and consumer confidence data disappointed The US government has also downgraded its outlook for the economy forecasting unemployment could average 9 in 2012 and predicting slower than expected growth for the next several years However American consumers increased their spending in July by the most in five months and the ADP weekly employment data was promising August was a tough month for investors as volatility spiked In the US for the month of August the Dow lost 4 4 the index s fourth straight monthly loss In the broader markets the S P 500 fell 5 8 and the tech heavy Nasdaq slumped 6 7 After a busy week for data releases and ahead of their Labor Day weekend investors will now look to the Non Farm payrolls employment report due out tonight

    Original URL path: http://blog.traderdealer.com.au/tag/asx-200/ (2013-02-02)
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  • Australian Shares | Online Stockmarket Trading Update
    continues to be robust and the Bernanke Put remains in play The Federal Reserve policy setting committee reaffirmed its commitment to keeping interest rates low at least through late 2014 and later Chairman Ben Bernanke said the Federal Reserve would not hesitate to support the economy with more easing if required through buying more long term bonds as in Operation Twist which is scheduled to finish in June Economic news has been mixed with manufacturing reports indicating a slowing in activity and the weekly jobs data somewhat disappointing The US earnings season continues to surpass forecasts with Apple reporting a doubling in earnings for the quarter and its market capitalisation surged by nearly US50 billion in a single session Eurozone markets have managed to drift higher this week after the Stoxx Europe 600 index managed its first higher weekly close in 5 weeks The drift higher has come despite a backdrop of negative news but the jury is still out with the eurozone markets as they have bounced but they are now testing key resistance around their 50 day moving averages The German market broke down to 4 month lows early in the week after a preliminary reading of the German manufacturing purchasing managers index by Markit showed business activity contracted at the fastest rate since 2009 however sentiment recovered as the week progressed The French market has recovered from earlier losses sustained after a preliminary vote for their upcoming elections saw Socialist candidate Francois Hollande advance to the next round Hollande is seen as less committed to fiscal austerity than the incumbent President Nicolas Sarkozy France will face an election on May 6 In London market gains have been capped after data showed that the British economy unexpectedly slipped into recession in the first quarter Overnight the S P Ratings Agency downgraded Spanish long term credit rating to BBB from A In Asia key markets are drifting but are holding at or above their 50 day moving averages with the Hong Kong market outperforming The Chinese market held on to recent gains despite Chinese data showing April manufacturing activity continued to contract as the HSBC preliminary flash reading of China manufacturing Purchasing Managers Index showed that activity improved in April from March but remained below the threshold of 50 indicating a contraction Traders were cautious ahead of some key central bank policy setting board meetings in the US and Japan and the French pre election Asian traders continue to bank on the hope that the Chinese government will lean towards monetary easing in the near term In Australia the market continues to drift higher as stocks have benefited from the positive sentiment overseas Defensive stocks are leading the way with Telstra at 2 year highs and the Healthcare sector pushing higher but the materials sector continues to underperform Banking stocks are pushing higher into their dividend and reporting season which begins early next month Typically the market should melt up in the last week of the month and into the start of the new month and at this stage it is going to plan Commodity prices have again been trading sideways this week as the US dollar has eased again Crude oil prices are hovering around the US104 level and copper has again been unable to trade above US4 00 and is holding below its 200 moving average support around US3 60 Gold prices have again found support around US1 640 The Aussie market has held above its 200 and 50 day moving averages and is still testing its 9 month resistance level around 4380 again On the S P ASX 200 the 4280 level is now the crucial support level and 4400 is the key level on the upside Stocks have effectively been drifting higher as we move into the bank reporting and dividend season but we need the materials sector to participate for the market to reach new highs Traders should be looking to protect their recent profits and reduce their risk by using options and warrants strategies In this week s Analyst s Eye we discuss using Warrants to Boost Returns on Dividend Paying Stocks The D2MX Financial Advisory Services team can help with these trades Call me on 1300 610 024 for further information Investors should also be looking to utilise options and warrant strategies to protect their positions and profits Options are a relatively cheap form of insurance as volatility remains low and you can also leverage yourself for breakout trades as they occur Remain attuned to the news from overseas particularly from the eurozone and China in relation to easing policies and the US as their markets again approach their multi year highs Monitor the performance of China and the US dollar for a guide to the future direction of commodities and equities prices The S P ASX 200 index is currently trading at 4368 and is holding above the key 200 day moving average Key levels for the index next week will be 4280 and 4430 with 4300 the key short term pivot level By Michael Hevern D2MX Retail Trading Desk For Buy and Sell recommendations on ASX listed companies register for a free trial of MDS Financial Research This report was prepared by Michael Hevern It represents the views and opinions of the author It is not intended for use by any third party without the approval of Michael Hevern While this report is based on information from sources which are considered reliable its accuracy and completeness cannot be guaranteed Any opinions expressed reflect my judgment at this date and are subject to change Contracting Hevern Pty Ltd is a Corporate Authorised Representative No 408868 of D2MX Pty Limited ABN 98 113 959 596 AFSL No 297950 D2MX and Michael Hevern has been appointed as an Authorised Representative of Contracting Hevern Pty Ltd Opinions conclusions and other information expressed in this report are not given or endorsed by D2MX unless otherwise indicated The information contained in this Report is General Advice only as the information or advice given does not take into account your particular objectives financial situation or needs Tags ASX australian shares commodities prices European Markets german PMI Stock Market Analysis US markets Weekly Market Wrap Posted in Stock Market Analysis No Comments Ho ho ho Tis the Season to Be Jolly Friday December 9th 2011 With Christmas fast approaching the seasonal patterns in the stock market suggest that the markets are likely to be stronger into the end of the year Historically it is normal for the stock market to rally in December This rally is known as the Santa Claus rally and brings Christmas cheer to all investors Seasonal patterns were first discussed by Larry Williams with reference to commodities Larry noted that seasonal price fluctuations occurred in agricultural commodities with prices falling when there was an abundant supply around the harvest times and prices rising when supply was scarce prior to the next harvest These seasonal patterns can also be observed in the stock market as supply and demand for shares fluctuates throughout the year The Australian market is typically strong through March and April as it was this year and then weaker through June before rallying again in July The July rally failed to eventuate in 2011 but the June weakness was certainly visible so much so it carried on through July October has a deservedly bad reputation for falling throughout the month and has become famous for the 1987 crash the 1997 collapse of the Asian economies and the sharp falls during the credit crunch in 2008 A bottom is often formed in November and early December before a strong rally is seen in the final two weeks before the New Year The seasonal odds certainly favour a rally at this time of year In Australia during the last 27 years the Santa Claus rally failed to materialise in just four years 1990 1995 2007 and 2010 The average return over the last two weeks of December is 4 9 If this rate of growth was to be sustained throughout the year we would see annual growth of 119 per annum in the markets Why is it that Christmas only comes once a year While seasonal patterns are not guaranteed to deliver strong profits to investors or traders the patterns do have a high probability of playing out in the future Not all the reasons for these seasonal tendencies are clear but it can be very profitable to follow them through all the same I wish you all a Merry Christmas and I trust that Santa Claus delivers you exactly what you want for Christmas I will certainly be positioned to take advantage of his generosity Jeff Cartridge Education Manager Tags ASX australian shares christmas rally market patterns santa claus rally seasonal trends Posted in Stock Market Analysis Trading Strategies No Comments Stock Market Analysis Stocks Holding Out For EU Summit Results Thursday December 8th 2011 US stock markets traded sideways but there were some moves with the energy sector down around 1 while the financials outperformed up 1 2 Stocks generally held in a holding pattern ahead of the EU summit later in the week European stock markets ended lower overnight as traders focused on the upcoming EU summit and indications by German leaders that they will object to rumoured plans to boost the size of the eurozone s bailout fund EFSF Asian stock markets generally rose yesterday as traders positioned themselves ahead of the pivotal EU summit set for later this week in Brussels Commodities prices traded mixed as Gold prices moved higher to US1 741 and crude oil closed around US100 The SPI Futures is trading above the key pivot level of 4180 ending down 0 2 or 8 points at 4 300 The key levels for our index this week are 4250 to 4350 Yesterday Australian shares recovered from the late session sell off of previous sessions but bank customers are still awaiting action from the big four banks on whether they will pass on the full 25 basis point rate cut The Reserve Bank s rate cut has been welcomed by retailers although some economists believe it has come too late to save Christmas trading season The Australian Bureau of Statistics ABS released GDP figures yesterday which showed gross domestic product GDP increased by 1 percent in the September quarter after an upwardly revised 1 4 percent rise in the June quarter The figures showed that Western Australia accounted for almost half of the GDP growth as the state s final demand soared 8 4 percent in the September quarter Mining business investment surged and household consumption surprised to the upside with investment up 6 percent in the quarter and up 8 7 percent over the year Nationally the GDP grew 2 5 percent in the year to September which is among the highest in the developed world but the breakdown by state was remarkable as for the year to September WA s final demand surged 16 4 percent while growth in the other states was paltry by comparison with NSW growing 1 2 percent and Victoria growth up 1 8 percent Shares in the All Ordinaries XAO generally eased again yesterday closing up 0 7 at 4351 as the S P ASX 200 XJO closed up 0 7 at 4293 Aussie traders are expected to show caution today after the mixed leads from the US and European markets as traders fears over the eurozone debt crisis continue to bubble under the surface See below for ASX listed companies in the news today Economics News Today Nov Australian Unemployment current 5 2 US Markets US stock markets traded sideways but there were some moves with the energy sector down around 1 while the financials outperformed up 1 2 Stocks generally held in a holding pattern ahead of the EU summit later in the week The Dow Jones Index actually finished in the positive for a third straight session while in the broader markets the S P 500 and Nasdaq ended flat Stocks were held captive by news out of Europe both positive and negative There were rumours that the Group of 20 industrialised nations was considering a lending program of budgeting US600 billion for Europe through the International Monetary Fund IMF but they were denied later Economic news out of the US continues to beat expectations with the latest consumer credit figures rising US7 65 billion in October ahead of the 6 5 billion forecast In commodities prices were mixed with crude oil prices lower and gold higher The ten company groups that make up the S P index traded generally modestly higher with Materials up 0 9 Energy down 0 9 Financials outperforming up 1 2 Industrials flat Technology up 0 1 while Consumer Staples were up 0 6 The Dow Jones closed up 0 4 or 46 points at 12 196 the S P 500 index closed up 0 2 or 3 points at 1 261 the Nasdaq ended flat at 2 649 and the smaller cap Russell 2000 was flat European Markets The major European indices generally eased European Union leaders are set to meet late Thursday and Friday in Brussels in yet another critical summit for the eurozone in which the German Chancellor Angela Merkel and French President Nicolas Sarkozy have proposed changes that would result in more robust fiscal rules and impose automatic sanctions on countries that violate budget limits However Germany is now sending mixed signals and is attempting to down play what can be expected to result from the meeting In London the FTSE 100 index closed down 0 4 or 22 points at 5 547 the German DAX was down 0 6 or 34 points at 5 994 while in France the CAC was down 0 1 or 4 points at 3 176 Spain was down 0 8 and Italy ended down 1 2 Asian Markets Asian stock markets generally rose yesterday as traders postioned themselves ahead of the pivotal EU summit set down for later this week in Brussels In Hong Kong the Hang Seng Index rose 1 6 while in China the Shanghai Composite Index rose modestly but continues to languish around 2 year lows The gains were modest across the board with property stocks trading higher and resource stocks staging a minor recovery In China the SSE Composite closed up 0 3 or 7 points at 2 332 while in Hong Kong the Hang Seng Index was up 1 6 or 298 points at 19 240 and in Japan the Nikkei 225 Index closed up 1 7 or 140 points at 8 722 The South Korean KOSPI was up 0 9 for the session while the Indian market was up 0 4 Commodities The Dollar Index was lower at 78 40 on a higher Euro while the Australian Dollar last traded lower at 1 0297 Commodities prices traded mixed For the session the benchmark crude NYMEX for December delivery was down 0 7 or US0 70 to settle at US100 58 Copper prices are seeking a support level as Copper for December delivery was down 0 7 or 2 4 cents at US3 5412 December gold was up 0 8 or U13 00 at US1 741 ASX News Today AZT Aston Resources s billionaire owner Nathan Tinkler says the coal explorer and coal miner Whitehaven Coal have entered into talks about a 5 billion potential merger that analysts say would create a powerful entity BOQ Bank of Queensland BOQ has had its S P issuer credit rating downgraded from BBB to BBB BEN Bendigo and Adelaide Bank had its S P issuer credit rating upgraded from BB to A DJS David Jones the upmarket retailer is now forecasting profit will fall in the first half of this financial year by up to 20 percent ORI Orica says another leak has occurred at the Orica chemical plant near Newcastle saying there was a small overflow of weak ammonium nitrate solution from a tank bund on the site SUN Suncorp Metway s S P issuer credit rating remains steady Local Corporate Reporting Bank of Queensland BOQ Full year AGM Ex dividend Date None Market Summary ASX to open flat US UK Europe consolidated Commodities Stock Index up 1 1 Gold Stocks Index down 0 4 Oil Stocks Index up 1 2 US ADRs Broadly Mixed BHP down 0 6 RIO down 0 6 AWC down 0 2 ANZ up 0 7 NAB up 0 2 NEM up 0 8 JHX up 3 5 NWS down 0 9 By Michael Hevern Head of Research For Buy and Sell recommendations on ASX listed companies register for a FREE trial of MDS Financial Research Tags all ordinaries ASX News australian shares economics news Stock Market Analysis Posted in Morning Wrap Stock Market Analysis No Comments Weekly Market Wrap The Ace In The Hole Friday August 26th 2011 The Ace In The Hole We have experienced another volatile week but investors have remained positive ahead of the Jackson Hole summit Data out of the US continues to point to a slowing economy but the primary focus this week has been on the economic summit which will be held in Jackson Hole Wyoming US investors have been pushing stocks prices higher in anticipation of some news on further quantitative easing In Europe investor sentiment has been on the edge with continuing worries about the debt crisis and the fact that the short selling ban has had to be extended There was some good news as Barclays Capital released a bullish note reiterating their positive stance on European equities and upgrading the European telecommunications sector to overweight Also the euro zone composite PMI for August held steady at 51 1 in August but above expectations of 50 and in Germany the manufacturing PMI was 52 for August above forecasts of 50 8 The rumours about Germany overnight tested investors nerves however European markets are finishing higher

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  • Dividend Yield | Online Stockmarket Trading Update
    nil Dividends are not final and not guaranteed to be paid Terminology The Instalment MINI warrant is made up of three parameters Instalment Value the price at which it trades Final Instalment Price the loan amount Maturity Date the date on which the Instalment ceases to trade or is rolled Case Study Sam wants to trade ANZ for the dividend and franking credits and is looking to boost her returns She planned to trade ANZ on 4 October 2012 when ANZ was trading at 25 20 and Instalment Warrant ANZJOA is trading at 13 84 ANZ is expected to go Ex div 0 82 on 10 November 2012 Note This case study is general in nature and does not incorporate any specific tax or personal circumstances of the investor Investors should not rely on the information and should obtain specific advice before investing in this product Chart ANZ Trade produced in d2mxIRESS platform The Instalment MINI Warrant and Share Trade Comparisons The trade needs to be held for 45 days to qualify for the franking credits and the calculations are done assuming no capital gain that is assuming ANZ pulls back to the original buying price of 25 20 then the trade calculations are as follows assuming traders tax rate is 46 5 Funding Cost Calculation In order to calculate the amount you are paying in funding costs for holding ANZJOA over the 45 days assumed holding period use the following calculation Funding Cost Loan Amount STRIKE Price Entry date Funding Rate Holding Period 365 11 36 8 5 45 365 0 12 So if ANZ pulls back to its original purchase price after the 45 day holding period and the position is closed there would be no capital gain on the holding but Sam would get to collect 3 254 plus 1 389 worth of franking credits for a grossed up yield of 4 6 in 45 days if she traded ANZ using shares However if Sam traded the ANZJOA instalment MINI warrant then she would collect 5 925 in dividends plus 2 529 worth of franking credits for a grossed up yield of 8 5 in 45 days if she traded ANZ using instalment MINI warrant note if ANZ was trading at 25 20 again there would be a funding cost of 0 12 cents per share part of which would be tax deductible Of course if ANZ is trading above the purchase price after the 45 day holding period then there would be an additional capital gain and conversely a capital loss if ANZ was trading below 25 20 The Trade If you want to take advantage of the bank dividend season then the Instalment MINI Warrants are an excellent way to boost your yield Contact us at D2MX on 1300 610 024 and we can help you trade using Instalment MINI Warrants to boost your returns Each Instalment Warrant has a PDS document which details all the features of the specific warrant For more trade ideas and recommendations sign up for a free trial of the D2MX Daily Trading Report which provides a daily serving of insightful market analysis from the D2MX Advisory team including Trade ideas and strategies Dividend enhancement strategies Market scans to watch International market analysis and Highlights from the S P ASX 200 To request an obligation free trial call 1300 610 024 or email advisory d2mx com au Michael Hevern Investment Adviser D2MX Trading More in This Series Part 1 Shorting With Limited Risk Using MINIs Part 2 Boosting Dividend Yield Using Warrants This report was prepared by Michael Hevern It represents the views and opinions of the author It is not intended for use by any third party without the approval of Michael Hevern While this report is based on information from sources which are considered reliable its accuracy and completeness cannot be guaranteed Any opinions expressed reflect my judgment at this date and are subject to change Contracting Hevern Pty Ltd is a Corporate Authorised Representative No 408868 of D2MX Pty Limited ABN 98 113 959 596 AFSL No 297950 D2MX and Michael Hevern has been appointed as an Authorised Representative of Contracting Hevern Pty Ltd Opinions conclusions and other information expressed in this report are not given or endorsed by D2MX unless otherwise indicated The information contained in this Report is General Advice only as the information or advice given does not take into account your particular objectives financial situation or needs Disclaimer Using leverage to invest can be a two edged sword as it can magnify your returns when the stock price rises but will in turn magnify the losses if the trade does not perform as expected Tags dividend yield Dividends instalment MINI warrants MINIs Trading Strategies warrants Posted in Trading Strategies No Comments Boosting Dividend Yield Using Warrants Part 2 of Warrant Trading for All Types of Market Environments Friday April 27th 2012 Market cycles drive portfolio performance and one of the more reliable recurring cycles in the market is the cycle that is driven by banks and their dividend payment cycles Banks tend to outperform the overall market in the six weeks prior to going ex dividend and as the bank dividend season is fast approaching we thought it timely to discuss how you can boost your dividend yield by trading bank shares using instalment warrants Instalment warrants allow investors to generate higher franked dividend income compared to a direct share investment and can be traded in your self managed super fund SMSF Instalment Warrants Instalment warrants have been around for a while and are traded on the ASX Instalment warrants are a geared investment which give the investor all the benefits of share ownership including access to the full cash dividend amount and the associated franking credits SMSF investors can gain the economic benefit of the share ownership for a fraction of the cost of purchasing the underlying shares outright Instalment warrants have a six letter code eg ANZIOW The first three identify

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  • Stock Recommendations | Online Stockmarket Trading Update
    saw this year in April and October Let s Go Shopping One way to trade into the New Year is to take a more domestic focus trading in stocks with consistent fundamentals that reward shareholders through a strong dividend stream This worked fantastically this year so here are some suggestions for 2013 We have done a quick review using the d2mxIRESS software searching the S P ASX200 stocks that have consistent fundamentals that reward shareholders through a strong dividend stream The shortlist of stocks is summarised in the table and chart below Note we have sorted these stocks by year to date performance There are a number of ways to utilise this information for your investing in 2013 including Choose the stocks that have performed the best in terms of YTD return and Yield such as Telstra Corporation Spark Infrastructure Westpac Bank and Tatts Group This method assumes that these stocks will continue to outperform into 2013 Choose the stocks that offer the best in terms of Dividend Yield such as Tabcorp Holdings Tatts Group Myer Holdings Metcash and National Bank Choose the stocks that have performed the best in terms of Return on Equity and Yield such as Tabcorp Holdings Tatts Group Myer Holding Metcash and National Bank Choose the stocks on a contrarian basis that is those stocks that have been sold off in the past year and are trading on single digit PE on the hope of a recovery into 2012 such as Tabcorp Holdings Metcash and National Bank Note this is a similar methodology to the Dogs of the Dow methodology used by traders in the Untied States to select high yielding underperforming stocks So decide on your selection criteria and add some of these stocks to your Christmas hamper Additionally keep a watchlist of these stocks so that you can start accumulating if there is a pullback in the first quarter of the New Year Wishing you all a Merry Christmas from the D2MX Advisory Team and we trust that Santa Claus delivers you exactly what you want for Christmas and we will return in the New Year Bonus For trade ideas and recommendations on how to trade in this market sign up for a free trial of the D2MX Daily Trading Report which provides a daily serving of insightful market analysis from the D2MX Advisory team including Trade ideas and strategies Dividend enhancement strategies Market scans to watch International market analysis and Highlights from the S P ASX 200 To request an obligation free trial call 1300 610 024 or email advisory d2mx com au Michael Hevern Investment Adviser D2MX This report was prepared by Michael Hevern It represents the views and opinions of the author It is not intended for use by any third party without the approval of Michael Hevern While this report is based on information from sources which are considered reliable its accuracy and completeness cannot be guaranteed Any opinions expressed reflect my judgment at this date and are subject

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  • Stock Tips | Online Stockmarket Trading Update
    The shortlist of stocks is summarised in the table and chart below Note we have sorted these stocks by year to date performance There are a number of ways to utilise this information for your investing in 2013 including Choose the stocks that have performed the best in terms of YTD return and Yield such as Telstra Corporation Spark Infrastructure Westpac Bank and Tatts Group This method assumes that these stocks will continue to outperform into 2013 Choose the stocks that offer the best in terms of Dividend Yield such as Tabcorp Holdings Tatts Group Myer Holdings Metcash and National Bank Choose the stocks that have performed the best in terms of Return on Equity and Yield such as Tabcorp Holdings Tatts Group Myer Holding Metcash and National Bank Choose the stocks on a contrarian basis that is those stocks that have been sold off in the past year and are trading on single digit PE on the hope of a recovery into 2012 such as Tabcorp Holdings Metcash and National Bank Note this is a similar methodology to the Dogs of the Dow methodology used by traders in the Untied States to select high yielding underperforming stocks So decide on your selection criteria and add some of these stocks to your Christmas hamper Additionally keep a watchlist of these stocks so that you can start accumulating if there is a pullback in the first quarter of the New Year Wishing you all a Merry Christmas from the D2MX Advisory Team and we trust that Santa Claus delivers you exactly what you want for Christmas and we will return in the New Year Bonus For trade ideas and recommendations on how to trade in this market sign up for a free trial of the D2MX Daily Trading Report which provides a daily serving of insightful market analysis from the D2MX Advisory team including Trade ideas and strategies Dividend enhancement strategies Market scans to watch International market analysis and Highlights from the S P ASX 200 To request an obligation free trial call 1300 610 024 or email advisory d2mx com au Michael Hevern Investment Adviser D2MX This report was prepared by Michael Hevern It represents the views and opinions of the author It is not intended for use by any third party without the approval of Michael Hevern While this report is based on information from sources which are considered reliable its accuracy and completeness cannot be guaranteed Any opinions expressed reflect my judgment at this date and are subject to change Contracting Hevern Pty Ltd is a Corporate Authorised Representative No 408868 of D2MX Pty Limited ABN 98 113 959 596 AFSL No 297950 D2MX and Michael Hevern has been appointed as an Authorised Representative of Contracting Hevern Pty Ltd Opinions conclusions and other information expressed in this report are not given or endorsed by D2MX unless otherwise indicated The information contained in this Report is General Advice only as the information or advice given does not take into

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  • Calendar Call Strategy: Part 11 of Options Trading for All Types of Market Environments | Online Stockmarket Trading Update
    NAB shares had suffered a 15 slide since its recent peak when it was trading at over 27 00 The share price had fallen to around 23 00 and was trying to establish support around this level The 22 50 support level has held for the past 18 months and this was a trade for a bounce from these levels While the chart looked oversold there was a chance NAB would just trade sideways around the 23 50 level so the trade was entered to profit from a sideways and bullish move on NAB while helping to reduce the risk To profit from this view we opened a NAB Calendar Call Spread The objective of this trade is for NAB to ideally be below the sold call strike at expiry So instead of trying to profit from a sharp bounce from NAB we were looking to profit from a steady recovery of NAB near term To put it more simply we felt NAB would hold around 23 51 before November options expiry 29 Nov 12 and trade higher from then on The maximum possible profit on this trade would be achieved if NAB held just below the short strike 23 51 level at November options expiry The maximum risk on the trade was the initial debit this would occur if NAB is above 23 51 at November options expiry or significantly below that level CHART 1 National Bank NAB Calendar Call Spread Trade Details In this trade we entered the position when NAB was trading around 23 84 two weeks prior to expiry The trade was established by Buying to Open NAB 2350 DEC12 Call for 58c and simultaneously Selling to Open the NAB 2351 DEC12 Call for 36c The total cost was limited to the initial 23 cents premium paid Payoff Diagram at Expiry CHART 2 Payoff Diagram at Expiry for the NAB Calendar 2351 NOV12 DEC12 CALL Spread Note if your view changed during the trade you could have bought back the short call or closed the trade prior to expiry Risks and Profit Potential The Calender Call Spread profits when the stock price trades sideways or finishes below the short strike price The maximum risk is limited to the initial premium paid for the option spread The maximum profit is also limited In summary the Calendar Call Spread strategy offers limited upside profit while the maximum risk is limited to the Net Debit Paid These risk rewards are shown in the Payoff diagram above Note the Calendar Call strategy can be used in order to gain an exposure to National Bank while limiting the outlay and risk to the premium paid Result NAB shares traded sideways up to expiry and we were of the view that they were likely to push higher for the end of month portfolio rebalancing We were able to buy back the SHORT NAB 2351 DEC12 Call for 29c on the day before expiry We held the LONG NAB 2350 DEC12 Calls until

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  • Options Trading for All Types of Market Environments - Part 1 | Online Stockmarket Trading Update
    resistance at the moment and if for some reason you did not want to sell your News Corp holdings you could by a protective put If you bought the stock at 16 00 you could buy the Aug11 17 00 Put for 0 17 This would protect your position down to 16 83 17 00 0 17 thereby locking in profits on your position and protecting your downside risk at the same time This can be analysed using the Derivative Profiler option in the Market Analyser software The Market Analyser software allows you to modify the prices to reflect the current price and provides Profit Loss diagrams for your strategy If you are more convinced that the News Corp share price is about to fall then you should simply sell the stock and buy the put outright for far more superior returns while only risking the premium you paid for the put The Trade Options can be used to reduce your risk while participating in the profits from a significant move by the underlying stocks The Protective Put is simply buying insurance for your stock position In our next article we will talk about the Covered Calls for generating monthly rental income from your current stock position Utilise the features in Market Analyser to plan your options trades for the particular options strategy using your specific trade selection criteria You will save time and potentially reduce your trading risk By Michael Hevern Head of Research For Buy and Sell recommendations on ASX listed companies register for a FREE trial of MDS Financial Research MDS Financial Advisory Service offers general advice on trading options to generate consistent steady income on your investment portfolio For further information please call 1300 610 024 Tags Financial Advisory Market Analyser MDS Financial MDS Research options Protective Put Trader Dealer Trader Dealer News Trading Strategy Stock Market Analysis U S European Markets Approach 2011 Highs Stock Market Analysis Weekly Market Wrap This entry was posted on Friday July 8th 2011 at 10 24 am and is filed under Trader Dealer News Trading Strategies You can follow any responses to this entry through the RSS 2 0 feed You can leave a response or trackback from your own site Leave a Reply Click here to cancel reply Name required Mail will not be published required Website RSS Feed Twitter Follow Us Sign up to our free weekly e newsletter Feel inspired Start trading Recent Post Markets Cap Best January Performance for Over a Decade Weekly Market Wrap The Covered Call Collar Part 3 1 of Options Trading for All Types of Market Environments Stock Market Analysis Markets Cap Best January for Over a Decade Stock Market Analysis Traders Take Profits Stock Market Analysis Markets Reach Bull Market Territory Stock Market Analysis US Markets Ease Near All Time Highs Markets Higher As Investors Play Catch Up Weekly Market Wrap Investing in 2013 continued Part 9 Stock Trading Tips for All Types of Market Environments Stock Market Analysis Markets

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  • Options Trading for All Types of Market Environments - Part 2 | Online Stockmarket Trading Update
    takeover bid was announced for a tidy 7 profit Investors who took advantage of our High Yield Covered Call strategy actually made 30 on the same trade This strategy will be discussed in a later article or you can call me on 1300 610 024 to talk about it further Chart 1 Fosters Covered Call Trade Took Profits on Takeover Announcement Covered Call Profile You can plan and analyse your trade as shown above using the Derivative Profiler option in the Market Analyser software Trade Note We could have made a higher return on the trade if we just bought the stock 14 return but by using the Covered Call strategy we reduced our risk as we were being paid 0 22 or 5 to wait for the bid to come along At the time we entered the trade Fosters was saying that they had not been approached by any interested party The Trade Options can be used in order to reduce your risk while participating in the profits from a significant move by the underlying stocks Here we ve explained the Covered Call strategy which is used to generate monthly rental income from your current stock position In future articles we will talk about the Covered Call Collar strategy which is similar to the protective put options strategy in that you also buy put options as protection and the Stock Repair strategy which is particularly relevant to this market Utilise the features in the Market Analyser software to trade plan your options trades for the particular options strategy using your specific trade selection criteria You will save time and potentially reduce your trading risk By Michael Hevern Head of Research See Also Options Trading for All Types of Market Environments Part 1 The Protective Put For Buy and Sell recommendations on ASX listed companies register for a free trial of MDS Financial Research MDS Financial Advisory Services offers general advice on trading options to generate consistent steady income on your investment portfolio Call 1300 610 024 for further information Tags covered buy write covered call covered call write MDS Financial options trading Trader Dealer Stock Market Analysis Investors Hunt For Risk On Trades Stock Market Analysis Weekly Market Wrap This entry was posted on Friday July 22nd 2011 at 11 24 am and is filed under Trader Dealer News Trading Strategies You can follow any responses to this entry through the RSS 2 0 feed You can leave a response or trackback from your own site Leave a Reply Click here to cancel reply Name required Mail will not be published required Website RSS Feed Twitter Follow Us Sign up to our free weekly e newsletter Feel inspired Start trading Recent Post Markets Cap Best January Performance for Over a Decade Weekly Market Wrap The Covered Call Collar Part 3 1 of Options Trading for All Types of Market Environments Stock Market Analysis Markets Cap Best January for Over a Decade Stock Market Analysis Traders Take Profits Stock Market

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