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  • Australian Market | Online Stockmarket Trading Update
    the mineral resources sector Allan is also an Associate Consultant with CRU Group a global independent advisory consultancy serving the mining and metals sector Also by Allan Trench Top Resource Stocks 2007 2008 and 2009 and Insider s Guide to Investing in Australian Mining and Resource Stocks This book is available from the Educated Investor Book shop If you would like to order this book please visit The Educated Investor Bookshop website By Janene Murdoch Educated Investor Bookshop Tags Allan Trench Australian market educated investor Janene Murdoch mining Trader Dealer Trading Book Review Posted in Trader Dealer News Trading Books No Comments Stock Market Analysis Global Market Support Holds Friday March 4th 2011 Globally stock markets sold off early in the week as geopolitical unrest spread in the Middle East with violence escalating in Libya Market volatility is increasing but traders continue to buy the dips and the 50 day moving average support has not been breached The broad early losses came after April NYMEX crude oil futures traded around US103 a barrel for the first time in over 2 years due to the potential disruptions to supplies Brent Crude traded around US120 a barrel The Gold price spiked this week trading at record levels over US1 430 As the week progressed investor nervousness over the potential for elevated crude oil prices derailing the global recovery eased and gold and crude oil prices backed off record levels Also in the news the central banks in Europe and the United States re affirmed their commitment to continuing their stimulus spending at least in the near term Data in the US shows that fund managers are again under performing the S P benchmark index This is adding fuel to buying as the markets pull back with fund managers chasing performance Australian Market Trading in the Australian market has again been dominated by investor sentiment from overseas and by the multitude of stocks that have gone ex dividend this week Stocks sensitive to higher oil prices again weighed on the market and financials have sold down while the miners showed some support The government is revisiting the imposition of a carbon tax which has added to the negative investor sentiment ASX investors took in their stride the forced early closure of the local bourse on the last day of the trading month The problem was due to a technical issue according to the ASX Competition for the ASX came one step closer as the regulator took another step Also on the theme of technical issues Commonwealth Bank ATMs had problems on March 1st that allowed people to withdraw more money than what was actually in their accounts The ASX All Ordinaries held below the 5000 level while the S P ASX 200 remained below 4950 This week we review the gold sector in our Analyst s Eye US Markets The US markets began the week lower but again showed surprising resilience in recovering having once again bounced off their 50 day moving averages The US dollar commodities and jobs have been the focus this week The US dollar has been volatile and trading lower commodities continue to trade at record prices and job growth appears to be improving Jobs data out of the US has boosted optimism that the non farms monthly payroll report due out tonight will confirm that unemployment may be turning around Overnight the Dow closed up 0 1 at 12 067 while in the broader market the S P 500 index was up 0 2 at 1 308 and the tech heavy Nasdaq ended up 0 4 at 2 748 The S P 500 held below key support at 1324 1275 is the next target European Markets European stock markets have had a volatile week having found support on their 50 day moving averages Investors have been wary of the Middle East and North African unrest the resulting crude oil price spike and concerns over the ongoing global economic recovery The Standard Poor s ratings agency has warned that it will keep its credit ratings on debt ridden eurozone pair Greece and Portugal on negative watch However as the week progressed bargain hunters stepped in with traders continuing to buy the dips Germany continues to outperform in the region Overnight in London the FTSE 100 index closed up 1 5 at 6 005 the German DAX was up 0 6 at 7 225 while in France the CAC was up 0 7 at 4 060 Asian Markets Asian markets have generally bounced this week The gains in the Chinese and Hong Kong markets came despite China s downgrade of its medium term growth forecast as Premier Wen Jiabao said the government s official target for average GDP growth over the next 5 years will be 7 annually down from a target of 7 5 in the past 5 years The mining and energy sectors have supported these markets with crude oil and gold prices at record levels The South Korean market sold off heavily early in the week with military training operations in the Korean Peninsular causing tension but foreign bargain hunters again stepped in as the week progressed In India the Sensex index rose sharply after the finance minister said the next financial year s fiscal deficit and government borrowings would be less than the market expected Shares in Coal India surged over 10 after the company said it has raised product prices by up to 30 for select customers Yesterday in China the SSE Composite closed down 0 4 at 2 903 while in Hong Kong the Hang Seng Index was up 0 3 at 23 396 and in Japan the Nikkei 225 Index was up 0 9 at 10 586 Our View Next week we should see the S P ASX 200 index test resistance around 4930 having found support at its 50 day moving average but selling pressure will likely resume if the oil price remains at these elevated levels and unrest in the Middle

    Original URL path: http://blog.traderdealer.com.au/tag/australian-market/ (2013-02-02)
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  • Inicators | Online Stockmarket Trading Update
    70 which is considered overbought The Stochastic Cstats Indicator The stochastic is a fast moving oscillator that identifies whether the share is closing closer to its highs or lows Time frames used can vary but here we use 14 days and the slow stochastic is normally smoothed by a period of 3 days The extremes in the stochastic are typically identified as 20 oversold and 80 overbought from which a reversal is expected Adding this to the chart shows the stochastic is also in overbought territory with a reading of 96 Clearly the market is overbought at current levels but this does not mean we are about to enter a new bear market It simply means the risk reward favours a trade in the downward direction or locking in some profits A similar setup in mid December led to a small decline in early January while the peak that occurred in early November resulted in a more substantial decline through November You can use oscillators in The Bourse to identify overbought conditions These can be a useful guide to assist you to know when to take profits or even to sell short The same indicators can be applied to individual shares as well as the market as a whole By Jeff Cartridge Education Manager Sign up for a 14 day free trial of The Bourse and try using oscillators to identify overbought conditions yourself Tags ASX ASX News ASX200 Australian market Inicators Jeff Cartridge Oscillators Stock Market Analysis the bourse Trader Dealer Trader Dealer News XJO Posted in Stock Market Analysis Trader Dealer News Trading Software 1 Comment 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

    Original URL path: http://blog.traderdealer.com.au/tag/inicators/ (2013-02-02)
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  • Jeff Cartridge | Online Stockmarket Trading Update
    along with the high prices of oil at present could sustain a down trend for some time By Jeff Cartridge Education Manager The charts in the above article are taken from The Bourse charting and market data software You can sign up for a 14 day free trial of The Bourse by visiting the Bourse Data website Tags counter trend Education Jeff Cartridge the bourse Trader Dealer trend trading Woodside Petroleum Posted in Stock Market Analysis Trader Dealer News Trading Software No Comments Stock Market Analysis When is the market most likely to go up Friday June 3rd 2011 This is obviously a question that all traders are attempting to answer using many different forms of analysis but today we will consider this by taking a look at the overall market on a day to day basis To start we will consider days of the week Which day of the week is the market most likely to go up From the chart below we can see that Monday has been the standout performer for the last 10 years with Thursday following along close behind The blue line in the chart shows how often a day is higher or lower with Thursday being up almost 75 of the time As we established last week Thursday has the highest win percentage of the weekdays The two bars show the average return and median return which answers the question how much does the market go up There is a difference between the average return and the median return on Thursday while the two measures are more consistent on a Monday Let me explain how this difference arises The average of a set of numbers is the total of all the numbers divided by the number of items in the set The median of a set of numbers is simply the middle number when the set is arranged from smallest to largest If a set of numbers is normally distributed which means they follow a bell curve around a centre point then the average and the median will be similar However consider the following set of numbers 10 10 10 10 10 10 100 000 the average here is 100 060 divided by 7 14 294 while the median is 10 Obviously there is an enormous difference between these two numbers Stock market returns do not follow a normal distribution as more extremes occur than would be expected A very high number biases the average up while a very low number biases the average down By considering the median and the average we can see whether the data is skewed by an extreme data point In the data above Thursday s performance is being pulled down by some bad Thursdays These occurred in 2000 during the tech crash and if you can remember back then you ll know it wasn t just Thursdays that were affected Moving on to look at the week of the month we can build the following chart from the performance of the S P ASX 200 From this chart we can see the standout performer is week four followed by week one And remember to watch out for week two it is definitely the weekest Expanding the time frame one more time we can consider the strongest month which is a close call between March April August or December August does however come out ahead being higher over 80 of the time during the last 10 years May June and July are all weak which is right now so do not expect a stellar performance from the stock market at this time of the year This does not mean there is no movement but on average the movement at this time of year cancels out making picking the direction far more difficult These historical tendencies are a guide to what may happen in the market but not a guarantee The market is typically strong around the end and the beginning of the month This did not happen last month and provides clues that there may be a larger fundamental movement underway If the market is weak when it is normally strong then it is likely to be very weak when it is normally weak Bu Jeff Cartridge Education Manager Tags ASX ASX200 Jeff Cartridge Monthly Analysis stock market Stock Market Analysis Trader Dealer Trader Dealer News trading Weekly Analysis Posted in Stock Market Analysis Trader Dealer News Trading Strategies No Comments The Power of Probabilities When Trading Friday May 27th 2011 Successful trading is about developing a strategy that skews the odds in your favour There are many different ways of doing this but every successful trading strategy comes down to probabilities What a Difference a Day Makes Consider the following table which shows the returns for different days of the week on the Australian market Thursday is the best day of the week with a favourable risk reward and win So clearly the probability favours entering a trade long on a Thursday though Wednesday and Friday are not far behind The probability also favours going short on a Tuesday These probabilities on their own are not enough to be a robust trading strategy but they could be the base for a trading strategy adding other signals to this or taken into consideration when designing a trading strategy So a successful trader thinks in terms of probability Is the probability higher that the market will move up or down from here If the probabilities are in your favour then take the trade Past performance is certainly no guarantee of future performance however if it doesn t work in the past the probability certainly suggests that it is extremely unlikely the strategy will work in the future The Probability of a Month Extending the analysis of the Australian market to the months of the year uncovers some interesting results Different times of the year present different trading opportunities April and December provide the best opportunities to trade the market long with a probability of 81 that the market will rise during April 74 in December and 70 in August On the short side June is the obvious stand out with the market only rising 37 of the time during this month so it goes down 63 of the time February is also weak with the market lower 52 of the time but losing an average of 0 02 during the month The probabilities definitely favour some months as being better than others when trading Australian shares but once again this is unlikely to be a complete trading strategy It is more likely to be used as the basis of or in conjunction with another strategy for entry and exit There are no guarantees when trading but aligning your positions with the markets can assist you in taking advantages of the probabilities that exist Statistics could become your best friend as a trader Jeff Cartridge Education Manager Tags ASX ASX News Australian market Jeff Cartridge Probabilities Trader Dealer Trader Dealer News trading Trading Strategies XAO Posted in Stock Market Analysis Trader Dealer News Trading Strategies No Comments Ubiquity and Trading Financial Markets Friday May 20th 2011 I recently read an excellent book that has interesting application to the financial markets The book is titled Ubiquity Why Catastrophes Happen This is not a book review instead I will build on one of the key concepts in the book as it relates to trading any market Imagine dropping a single grain of sand onto a table followed by another grain of sand and another and so on and so on Initially a few grains of sand will form a small pile on the table and the addition of a single grain of sand will have very little impact on the pile As the pile builds the grains of sand will start to build up and the slope of the pile will become steeper Now a single grain of sand falling on to the pile may trigger an avalanche The new grain of sand may dislodge one grain of sand or a whole lot of grains of sand and the sand will continue to move until the pile becomes stable again As the pile gets very steep it is possible that a single grain of sand falling onto the pile will result in a complete collapse of the pile There are a few things to note from this simple experiment the triggering condition for any avalanche is always exactly the same a single grain of sand being dropped onto the pile the size of the avalanche can vary dramatically from a single grain of sand moving to total collapse of the sand pile the steeper the pile the more unstable the pile becomes Translating this experiment into a trading context we can get a few things from it Consider that each trading day in the market is like adding a grain of sand to the sand pile Then any trading day could trigger a decline with a down day being the primary trigger You cannot tell the difference between one trigger and the next trigger as you cannot distinguish between two grains of sand It is a human tendency to look for reasons why an event occurred however the why is always exactly the same another trading day A one day drop could then rebound the next day or result in a multi day decline or even the next bear market Any down day could be a suitable trigger and the size of the subsequent move is unpredictable The author did find a core relationship between the size of the event and the frequency that it occurs at While one event was not predictable in size the larger the collapse the less frequently it occurred and this was governed by a power law As the number of grains of sand doubled the avalanche was less likely to occur by a factor of 2 14 As the size of an earthquake doubles it is four times less likely to occur Amazingly this power law holds for earthquakes extinctions storms and many other natural phenomena with different numbers governing the relationship But the most important thing to get from this study is that when the market is set up for a fall it is far more likely to occur and any collapse is likely to be larger The steeper the pile of sand the bigger the avalanches tend to be because of the inherent instability Michael produced an excellent article recently on divergence and showed the current situation in a range of markets The set up for instability exists When you add to that the precarious financial situation of many governments most noticeably Greece high unemployment in the US political unrest in the Middle East the end of Quantitative Easing in the US and high commodity prices the sand pile certainly appears to be unstable The author notes that it is not possible to predict the size or timing of events but it is possible to observe the steepness of the sand pile at any time The death of one species could lead to mass extinctions a small spark in the forest could lead to massive bush fire or a wrong turn could start a world war But for these devastating effects to occur the sand pile must be steep enough to be unstable Focus your study on the set up criteria the events that determine whether the market is currently stable or reaching a critical state where the next down day could be the start of something big By Jeff Cartridge Education Manager Tags Financial Markets Jeff Cartridge MDS Financial Trader Dealer Trader Dealer News trading Ubiquity Why Catastrophes Happen Posted in Stock Market Analysis Trader Dealer News No Comments New Features in Rapid Trader Friday May 13th 2011 In recent months the software development team has been working hard to improve the Rapid Trader online trading platform adding even more functionality and usability enhancements This latest release includes an upgraded menu the addition of customisable search preferences and most importantly the ability to trade Options All of these are designed to assist you with executing your trades even more quickly and efficiently Navigation is available from the left hand menu Choose from the following menu options Home News Watchlist Options Monitor Portfolio Top Companies Fundamental Data or Quick Quote This menu can be expanded or hidden away Click to collapse the menu or Click to expand it When the menu is collapsed you can click on the grey bar on the left hand side of the window to temporarily display the menu The menu will pop out so you can select what you wish to view and it will disappear again when you move the mouse off the menu To display the menu permanently click the button to expand it Settings Accessible from a link in the top right hand corner the Settings tool allows you to customise Rapid Trader to better meet your needs You can choose from One Click or Two Click Trading for your order placement which will determine whether you need to confirm your trade before it gets placed or if you want your orders sent directly to the market Now you can also specify the types of instruments that are displayed when you are searching for the share you want Click the Settings link Click the Trading Preferences tab Select the style of trading you prefer Click OK When you type a symbol in any of the search boxes Rapid Trader automatically provides a list of possible securities If you only want to see shares then in the Search Preferences tab select the Equities box only If you would like to see other choices then select the appropriate boxes you can choose as many or as few as you wish The more options you select the bigger the list you have to choose from when typing in a symbol Options Monitor The Options Monitor enables you to view the current prices for Exchange Traded Options and when you find the option you are looking for you can quickly execute your trade If your side menu is expanded click to collapse the menu This is not essential but will give you more space to view your data Enter the symbol of the underlying share eg BHP ASX Select the expiry month Select the type of option Call Put or both Click Request to display the latest prices With the option prices displayed you can select the option you are interested in and click the Buy or Sell buttons located at the top right of your screen Enter the price you wish to pay note this is a limit price Enter the quantity you wish to buy Click the Buy button Your option order will be executed when your price conditions have been met Make sure you check out the new features available in Rapid Trader and use these to enhance your trading execution All orders are executed through Trader Dealer where you can trade from as little as 19 50 per trade By Jeff Cartridge Education Manager Tags Jeff Cartridge options Rapid Trader Trader Dealer Trader Dealer News Trading Software Posted in Stock Market Analysis Trader Dealer News Trading Software 2 Comments Avoid The Piranha Bites When Trading Thursday April 21st 2011 There are two methods of losing money when trading The first is the shark bite where a large loss on one position causes a dramatic drop in the value of your portfolio The second is a series of piranha bites where a number of small losses add together to cause a dramatic drop in the value of your account The piranha bites consist of a series of small losses that add up to a significant amount and are typically harder for a trader to control There are a few things you can do to overcome the impact of the piranhas on your portfolio Develop a Robust Trading Strategy The key to successful trading and minimising the impact of piranha bites on your account is to develop a robust trading strategy The higher the win of the strategy the less chance of a string of losing trades and consequently the less impact these losses will have on your account Consider a strategy that is right 30 of the time such as a trend following strategy While it is not right very often when it is right it does make very good returns A strategy like this will experience a series of losing trades before getting on to a trade that delivers strong returns On the other hand a scalping type strategy taking small profits on a regular basis can be right as much as 70 of the time or more The chance of a large string of losses is consequently less following a strategy like this than it is following a moving average strategy above A high probability strategy with a high hit rate win will be easier to trade and less susceptible to piranha bites eating into the account Minimise Capital at Risk Regardless of the strategy you use it is essential to manage your risk when the trades do not work out With risk set at 30 of the account balance just two losing trades cut the account in half With risk at 15 it still only takes five losing trades to cut the balance in half With risk set at 2 or less the number of trades expands to beyond 30 consecutive losing trades This is why it is widely recommended that traders risk no more than 2 of their capital on any trade Most traders take on far too much risk based on their account balance and as a consequence a series of losing trades can wipe out their account Every strategy will have winning streaks and losing streaks and it is during the losing streaks that you must preserve your capital to take advantage

    Original URL path: http://blog.traderdealer.com.au/tag/jeff-cartridge/ (2013-02-02)
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  • The Bourse | Online Stockmarket Trading Update
    the recent down trend paused for a few days before continuing on its way recently as the blue line crossed below the black line Oil Search on the other hand saw the MACD turn higher signalling a period of consolidation No trade today for the trend traders in Oil Search Now you might at this point be starting to get confused The counter trend traders are buying Woodside while the trend traders are selling So what is the best approach The answer to this question is both Any strategy that is consistently followed will be profitable over a period of time There is no guarantee that either trader will make money on this trade but by consistently following a strategy you are likely to make money in the long term Right now my personal view is the trend traders may have an edge as the market heads lower The Federal Reserve has halted the printing of money Quantitative Easing or QE2 for short the situation in Greece seems about to reach a crisis point as a bailout package cannot be agreed on and a sharp turnaround in the US dollar is likely as the Euro stumbles There are signs of a slowing economy in the US and China is still attempting to slow down its own economy All of these factors along with the high prices of oil at present could sustain a down trend for some time By Jeff Cartridge Education Manager The charts in the above article are taken from The Bourse charting and market data software You can sign up for a 14 day free trial of The Bourse by visiting the Bourse Data website Tags counter trend Education Jeff Cartridge the bourse Trader Dealer trend trading Woodside Petroleum Posted in Stock Market Analysis Trader Dealer News Trading Software No Comments Stock Market Analysis Is the Australian Market Overbought Friday February 18th 2011 The Australian market has been climbing strongly higher during the last two weeks but is it overbought at the current levels The term overbought simply means it has climbed too high too fast and in this situation there is the possibility of the market pulling back We can use some of the indicators found in The Bourse to answer this question The indicators that are used to show overbought or oversold conditions are known as oscillators These fluctuate backwards and forwards between two extremes often 0 and 100 or 100 and 100 When the indicator is at the lower level it shows an oversold condition and when it is at the top it shows an overbought condition Oscillators that are widely used include Relative Strength Index RSI Stochastic or the Williams R In The Bourse when you click on the IND button at the top of your chart you can select the indicators you want to use from the menu Click on the Oscillators heading to display the indicators available The list includes RSI Williams R Price Oscillator Momentum Stochastic and MACD I personally use the MACD to identify trends and not as an indicator to identify overbought or oversold conditions The Relative Strength Index RSI The RSI shows the relationship between up movements and down movements in the share price The more up days that occur the higher the RSI value Typically the indicator is calculated over 14 days When the RSI hits an extreme which is measured as below 30 oversold or above 70 overbought then look for a reversal in the current trend By applying the RSI on to the chart of the Australian market XJO we can clearly see an overbought condition with an RSI of 84 This is well above 70 which is considered overbought The Stochastic Cstats Indicator The stochastic is a fast moving oscillator that identifies whether the share is closing closer to its highs or lows Time frames used can vary but here we use 14 days and the slow stochastic is normally smoothed by a period of 3 days The extremes in the stochastic are typically identified as 20 oversold and 80 overbought from which a reversal is expected Adding this to the chart shows the stochastic is also in overbought territory with a reading of 96 Clearly the market is overbought at current levels but this does not mean we are about to enter a new bear market It simply means the risk reward favours a trade in the downward direction or locking in some profits A similar setup in mid December led to a small decline in early January while the peak that occurred in early November resulted in a more substantial decline through November You can use oscillators in The Bourse to identify overbought conditions These can be a useful guide to assist you to know when to take profits or even to sell short The same indicators can be applied to individual shares as well as the market as a whole By Jeff Cartridge Education Manager Sign up for a 14 day free trial of The Bourse and try using oscillators to identify overbought conditions yourself Tags ASX ASX News ASX200 Australian market Inicators Jeff Cartridge Oscillators Stock Market Analysis the bourse Trader Dealer Trader Dealer News XJO Posted in Stock Market Analysis Trader Dealer News Trading Software 1 Comment Setting Up Screens and Layouts in The Bourse Software Friday February 4th 2011 During the Traders Café webinar earlier this week I was asked to demonstrate how you would set up a layout in order to actively monitor shares in your watchlist The experienced users of The Bourse told how they valued the ease of looking at multiple shares from a watchlist in different timeframes or using different forms of analysis The View Layout feature of The Bourse can make this a simple task by allowing you to flick quickly between the shares you follow View Layouts View Layouts are a very handy way of storing your screen or desktop arrangements for easy access when you next need to view them Some examples of how to use them are as follows Store the charting analysis on one or multiple charts Store a selection of charts for the same security for example a daily weekly and intraday chart with or without analysis A layout of different windows that you use for your research and market watching Here is a screen shot of an options trader s View Layout Here is a photo of a screen layout across multiple monitors If you have multiple monitors set up on your computer The Bourse desktop can then be stretched across the two screens To Create a New View Layout An easy way is to be in Classical MDI mode You can do this from the Window menu on on The Bourse You can also select one of the pre formatted pane mode layouts to start off with Start by selecting a pane mode layout Select the Window menu and select a view with 2 vertical panes indicated by this icon The screen will look like this Click on the button with the two right arrows we will call this the Menu button This will drop down a menu From here select My Watch Lists Repeat the same on the other pane and select Chart and your screen will look like this Now size the windows to suit Place the mouse pointer on the division between the two panes and move the division to the left to shrink the size of the Watch List and increase the size of the Chart Your final screen will look like this It is now recommended that you change to Classical MDI mode This will restore the screen layout into normal Windows mode and allow you to better control the window position Do this by selecting the Window menu and clicking on Classical MDI You will notice that the Menu button has been replaced To make navigating through ASX codes easier make sure that you have SYNC ON in the status bar at the bottom of The Bourse screen To switch between sync modes just double click on the SYNC status With sync on you can select a code on the watch list and the chart will also change Most importantly you now need to save your layout Click on the File menu and select Save Enter a name for your layout click OK and the layout will be saved To reload your saved layouts use the File menu and select the Open menu item Alternatively if they have been opened recently they will be pinned to the bottom of the File menu You can have multiple charts multiple time frames or a range of indicators set up in your View Layout Take the time to discover how easy The Bourse is to use and how monitoring shares is a simple process of clicking on the next share in your watchlist For video tutorials on how to get the most out of your Bourse software visit the Bourse Data website By Jeff Cartridge Education Manager Tags Jeff Cartridge layout Stock Market Analysis the bourse trading watchlist webinar Posted in Trader Dealer News Trading Software No Comments Trading Software Stay in Touch with Alerts in The Bourse Friday October 29th 2010 Within The Bourse software you can set Alerts based on the last traded price bid or ask values volume and also market reports This frees you up from monitoring the markets all the time as you will be notified when your set criteria have been met You can then do your analysis outside of market hours and set alerts prior to the market open Now instead of watching the screen you can simply wait for your computer to play a sound that alerts you to a trading opportunity The Bourse has a function for allowing you to set audible alarms on ASX shares as well as futures traded on the SFE This allows you to leave your PC running and know that Bourse will alert you if a target is triggered How to set up an alarm 1 Click on the Quotes menu and select My Alarms The following window will be displayed My Alarms The Bourse 2 Enter in the details of a trigger for the alarm as follows Enter Alarm Details The Bourse 3 You can also set alarms on Bid Ask Volume High Low Open and issue of a report 4 When an alarm triggers the message entered will be displayed in the log window You know that an alarm has been triggered as your PC will play a sound through your speakers YES switch them on and have them loud enough to hear it You will also see a small light bulb icon appear near the SYNC status Alarm Icon The Bourse 5 Double click on the Bulb to stop the alarm from ringing and to view the log of which alarm has triggered 6 You can double click on the alarm status even if there is no bulb to view the current alarm log at any time 7 Select the Tools menu and select Alarms Alerts Log to view a complete history of all alarms ever triggered Alerts are a fantastic tool to free up your time and let you get away from the markets It is a great idea to give alerts a trial and then you can phone your broker or place an order when the alert triggers No more sitting watching your trading screen all day Alerts free you up to trade when it is convenient for you Free Software Trial If you haven t used The Bourse charting and stock market analysis software before sign up now for a free trial Free Bourse Webinar Find out more about getting the most from The Bourse with our free webinar on Tuesday November 16 Register now for free When everyone is away on holiday there are some opportunities that pop up for the prepared trader or investor We will take a look at some of the seasonal patterns that exist and how you can use these to profit while you relax Seasonal patterns can be very reliable in fact they can be right up to 90 of the time or more Knowing the key dates each year to trade will go a long way to improving your trading results We will also take a look at automated order systems and how these can execute trades for you as well as using alerts and alarms that could be incorporated into your everyday trading Tags stock market software the bourse trade signals Trading Alerts Posted in Trading Software No Comments Viewing Options through The Bourse Friday September 3rd 2010 In last week s Analyst s Eye article we considered the standardisation of options This standardisation is important so that it is easy to understand exactly what it is that you are trading Every option has an underlying share is a call or a put has an exercise price and an expiry date and the price you pay for the option is the premium With these five pieces of information in mind let s consider a trade on ANZ below We will consider trading a put option in this example however the process of trading a call is identical if you believe a share is going up instead of down Taking Buying a Put You would buy a put if you believe the share is going down Buying a put gives you the right to sell 1000 of the underlying share at an agreed price on or before an agreed date Call or Put We have chosen the share we wish to trade which in our example is ANZ Bank We believe from our analysis that ANZ is likely to fall from its current price ANZ was trading at 23 34 on 2 September 2010 We could therefore buy a put option on ANZ So we now look up the put options available for ANZ As an example through The Bourse charting software on the toolbar and click the red O toolbar icon for Exchange Traded Options We have a choice of expiry dates and exercise prices to make before we can determine the premium cost of the option Type in the code of the share which in our case is ANZ and then select Put to display a list of Put options that are available on ANZ You will see a list with different expiry dates in the month column and different exercise prices in the Strike column The most actively traded options will be near the current price which is around 23 34 Expiry Date For any option position you must choose the expiry date you wish to trade At any given exercise price there is a range of expiry dates The expiry dates start on Oct 2010 which is about three weeks away and go all the way out to 2014 The more time an option has until the expiry the more expensive it will be As a guideline option traders would normally take options with between six weeks and three months until the expiry So on the 21st of July 2010 an options trader would normally consider an expiry date of September the same year Remember you must allow the share time for the expected move to occur Most of the time decay for an option occurs during the last month so let s take a look at the November expiry dates Exercise Price Now we can select the exercise price we wish to trade With ANZ trading at 23 34 the closest exercise price is 23 50 This would be regarded as the at the money option The 23 00 option is out of the money and the 24 00 option is in the money An in the money option costs more than an out of the money option and is lower risk The in the money option already has some intrinsic value while the out of the money option is all made up of time value The different options will behave differently based on the movement in the share Premium It will depend on which option you choose as to the premium that you pay for the option Assuming that you chose the 23 00 November Put option and you bought the option at market price you would pay a premium of 1 12 per share Remember that each option contract is for 1000 shares so the cost of 1 option contract would be 1 12 x 1000 1120 The success of the trade will be determined by the movement of the underlying share but will also be affected by your choice of option We will consider three different options and how they perform in different scenarios Possible Outcomes There are three possible outcomes the share is higher lower or goes sideways The change in the price will be determined not only by the direction of the move but also by how quickly the move occurs The option is a wasting asset and the time value decreases as time passes Share Moves Down All put options will increase in value with the out of the money option increasing the most The out of the money option could move into the money which would result in a sharp increase in value Call options would decrease in value as the share moves down Share Moves Up All put options will drop in value with the sharpest drop shown in the out of the money options The chance of the out of the money option having value on or before the expiry date has become much less and consequently the value of the option will drop dramatically Call options behave in the reverse with prices rising Share Moves Sideways All options drop in value as time passes regardless of whether they are puts or calls Options are decaying assets and lose time value every day they are owned The out of the money

    Original URL path: http://blog.traderdealer.com.au/tag/the-bourse/ (2013-02-02)
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  • Trader Dealer News | Online Stockmarket Trading Update
    RSN displayed in Market Analyser RSN shown in the chart below has a huge volume spike showing in the chart today but it is also a very low priced share which means strong moves are more likely to occur The shape of the candlesticks pattern here shows evidence of a share that normally trades in very low volumes and on some days there is no volume at all Often you will find the biggest movers among these low volume shares or illiquid shares as they are often called but it is usually not practical to trade these shares Buying can be easy but trying to sell when there are no interested buyers can be very costly You can exclude an individual share from the Heat Map with a right click on the box of the share you wish to exclude This way you could drop out RSN and redraw the map to identify other hot shares You can reload the sector to reinstate all the shares There are two other shares in the top right corner of the Heat Map that have had strong moves today Paperlinx PPX and Cougar CGM Taking a look at the charts of these shares with a double click on the appropriate box in the Heat Map provides an interesting perspective Cougar has been climbing higher more rapidly each day resulting in a parabolic move to the upside Buying after such a strong move has a very poor risk reward While the share can continue higher the risk is that the share pulls back sharply resulting in a losing trade Paperlinx would appear to have broken out of a significant down trend and is climbing higher You can do more research on each of these shares by checking out if there were any related announcements made for these companies today The Heat Map can also be applied to any watchlist you have created allowing you to identify the hot shares among the shares you wish to follow Right click on the watchlist and then click Create Heat Map It s that easy to identify which shares are hot and which are not with Market Analyser By Jeff Cartridge Sign up for a free trial of Market Analyser Gold or for more information take a tour of the software Tags Cougar Heat Map Jeff Cartridge Market Analyser Renison shares Trader Dealer Trader Dealer News volume watchlists Posted in Stock Market Analysis Trader Dealer News Trading Software No Comments Using Market Analyser to Identify Some Gems in the Rough Friday June 10th 2011 The overall Australian market has delivered a pretty dismal performance this year and is down 5 percent year to date on the ASX S P 200 Despite these conditions there are ways to find stocks with potential Take A Closer Look at the Energy Sector The latter half of the calendar year is typically good for energy prices so if crude oil can remain above the US95 per barrel mark then this should provide support for our energy sector near term The energy sector has managed to produce some modest gains and with the crude oil price still hovering around the US100 mark stock prices are getting some support This week OPEC The Organization of the Petroleum Exporting Countries met and failed to agree on any increases in production near term which again should be supportive of crude oil prices Market Analyser Can Help You can use the Market Analyser software to identify keys stocks that are exhibiting positive momentum even though the broader market has been in the doldrums Start by using the Watchlist Wizard tool to quickly create a watchlist of stocks from the ASX s Energy GICS sector See below for instructions on using the Watchlist Wizard We can then use a simple moving average scan to identify energy stocks that are showing positive momentum In this sample scan we will look for stocks where the 5 day moving average MAv is above the 13 day moving average which is above the 21 day and the 50 day moving average Set up this scan through the Analyser Wizard a handy tool within the Market Analyser allowing you to easily build custom indicators For help with this tool check this recent post The scan produced the following list These are obviously stocks that are currently in play You may want to research these companies further before entering a trade A sample chart of one of the stocks from the above scan is Linc Energy Summary Utilitse the features in Market Analyser to scan the markets for your specific trade selection criteria You will save time and perhaps identify some gems For Buy and Sell recommendations on ASX listed companies register for a FREE trial of MDS Financial Research Instructions Using the Watchlist Wizard 1 In Market Analyser open a watchlist window by selecting Menu Watchlist 2 Click on the Watchlists item on the top menu bar and select Watchlist Wizard 3 In the Watchlist Wizard window click Next select Australia from the Countries list then select ASX Energy GIC from the Available Watchlists list on the right of the window 4 Click the Update button Your new Energy sector watchlist ASX Energy GIC will now be available from your watchlist window Disclaimer The information provided within this article is not an invitation to trade a specific stock but is intended for educational purposes only By Michael Hevern Head of Research Tags AGL Energy Analyser Wizard ASX ASX News Linc Energy Market Analyser Trader Dealer News Trader Dealer Online Posted in Trader Dealer News Trading Software Trading Strategies No Comments Weekly Market Wrap Bad News Finally Bites Friday June 3rd 2011 The week started with a shaky rally into month end but the bears soon stepped in and sold markets off sharply on the first day of June Investors remain cautious over soft data in the U S and now Asia as well as the spectre of a debt restructure in Greece The month end rally materialised to pare the losses for May however the rally was short lived and a sharp sell off was triggered in the U S which had been holding up quite well in comparison to other global markets Many markets have been testing key resistance and support levels this week as they trade in a falling channel formation With the exception of Wednesday night the falls have been measured As we suggested last week there are plenty of headwinds for investors to mull over as the month of June unfolds All eyes will be on the U S monthly unemployment report tonight which is a key indicator of the sustainability of the global economic recovery Globally markets continue to be plagued with concerns over the sovereign debt issues in Europe Asian markets have also been hindered by reports showing Japan is in a recession and Chinese growth is slowing near term Australian Market The ASX All Ordinaries and the S P ASX 200 have experienced sustained selling this week and no sector was spared The Aussie market again tested key resistance and support levels and was among those trading in a falling channel formation Yesterday investors were pessimistic after data showed GDP fell by 1 2 last quarter as the economy was hit by a series of natural disasters over last summer and giving the worst quarterly performance since 1974 This triggered a sharp sell off where more than 33 billion was wiped from the value of the Australian share market which fell in line with other global markets affected by renewed concerns about a global economic slowdown Among the headwinds confronting investors are the poor GDP figures the mining tax and the spectre of the carbon tax all weighing on sentiment U S Markets U S stock markets look set to close down for a fifth straight week Another round of soft economic data worried investors and there was also caution ahead of tonight s Non Farm jobs report On Wednesday the U S stock markets suffered their biggest declines since August last year with all three major markets plunging after a series of disappointing economic reports sparked fears the economic recovery is faltering The U S markets appear to be following the same script as this time last year Despite the Japanese earthquake disaster throwing a spanner in the works the other issues that are impacting the markets are similar to that of this time last year The jury is out as to whether the Fed will commit to a QE3 in July Economic data continues to disappoint with the latest reports showing weekly jobless claims exceeding 400 000 for an eighth straight week and consumer spending growth and confidence has been revised down Moody s Ratings Agency further dampened the mood after warning that the United States faces a credit review and potentially crippling downgrade if the US14 3 trillion national debt limit is not raised soon Moody s also warned that the credit ratings at Bank of America Citigroup and Wells Fargo could be downgraded Overnight the Dow Jones closed down 0 3 at 12 248 the S P 500 index closed down 0 1 at 1 313 the Nasdaq ended up 0 2 at 2 773 and the smaller cap Russell 2000 was down 0 1 European Markets European stock markets look set to close lower for a fifth week as sovereign debt concerns escalate Europe s main markets had risen earlier in the week on the hopes that debt laden Greece could get a second international bailout but investors took flight after research group Markit reported that eurozone manufacturing registered its steepest fall in May since the height of the GFC in 2008 European stocks have sold off this week as investors digested the weak economic data from the eurozone China and the U S Investor sentiment was not helped by Moody s again cutting the rating of Greek government debt Energy stocks gave back some of their recent gains as crude oil prices for July delivery slipped back below US100 a barrel Overnight in London the FTSE 100 index was down 1 4 at 5 847 the German DAX was down 2 0 at 7 074 while in France the CAC was down 1 9 at 3 890 Asian Markets Asian stock markets also look set to close lower for a fifth week due to concerns over a faltering global economic recovery as many markets have had their biggest string of consecutive losses in two years These concerns have raised fears about the future demand for Asian exports Mid week PMI manufacturing data across Asia pointed to an easing of activity across the region This triggered a sell off across the region and stocks fell across the board News from the U S also hurt sentiment after U S ADP jobs data for May fell far short of market expectations sparking concern about the prospects of the U S Non Farm Employment Report due out tonight Overnight in China the SSE Composite was down 1 4 at 2 705 while in Hong Kong the Hang Seng Index closed down 1 6 at 23 254 and in Japan the Nikkei 225 Index was down 1 7 at 9 555 The South Korean KOSPI closed down 0 4 while the Indian market was down 0 6 Our View The Australian share market has had a sharp sell off this week despite the month end rally As the week progressed investors shunned risk and pared back their positions The S P ASX 200 index once again failed to hold above its 200 day moving average and the recent sell off has pushed the index towards the lower trading range of its falling channel The Aussie market managed a month end rally but its was over in the blink of an eye as we had negative leads from overseas No sector was spared this week in the sell off even commodities prices pulled back The headwinds remain with a strong Aussie dollar and the proposed carbon and mining resource taxes and the end of financial year clean out all weighing on sentiment The S P ASX 200 is currently trading at 4602 and trying to find support at these levels Key levels for the index next week will be 4700 and 4500 Those who took heed of our warning last week about buying insurance when you can not when you have to should be comfortable with their position near term By Michael Hevern Head of Research Tags Asian Markets ASX ASX News European Markets MDS Financial Stock Market Analysis stockmarket Trader Dealer Trader Dealer News trading US Market wrap Posted in ASX Trading News Stock Market Analysis Trader Dealer News No Comments Stock Market Analysis When is the market most likely to go up Friday June 3rd 2011 This is obviously a question that all traders are attempting to answer using many different forms of analysis but today we will consider this by taking a look at the overall market on a day to day basis To start we will consider days of the week Which day of the week is the market most likely to go up From the chart below we can see that Monday has been the standout performer for the last 10 years with Thursday following along close behind The blue line in the chart shows how often a day is higher or lower with Thursday being up almost 75 of the time As we established last week Thursday has the highest win percentage of the weekdays The two bars show the average return and median return which answers the question how much does the market go up There is a difference between the average return and the median return on Thursday while the two measures are more consistent on a Monday Let me explain how this difference arises The average of a set of numbers is the total of all the numbers divided by the number of items in the set The median of a set of numbers is simply the middle number when the set is arranged from smallest to largest If a set of numbers is normally distributed which means they follow a bell curve around a centre point then the average and the median will be similar However consider the following set of numbers 10 10 10 10 10 10 100 000 the average here is 100 060 divided by 7 14 294 while the median is 10 Obviously there is an enormous difference between these two numbers Stock market returns do not follow a normal distribution as more extremes occur than would be expected A very high number biases the average up while a very low number biases the average down By considering the median and the average we can see whether the data is skewed by an extreme data point In the data above Thursday s performance is being pulled down by some bad Thursdays These occurred in 2000 during the tech crash and if you can remember back then you ll know it wasn t just Thursdays that were affected Moving on to look at the week of the month we can build the following chart from the performance of the S P ASX 200 From this chart we can see the standout performer is week four followed by week one And remember to watch out for week two it is definitely the weekest Expanding the time frame one more time we can consider the strongest month which is a close call between March April August or December August does however come out ahead being higher over 80 of the time during the last 10 years May June and July are all weak which is right now so do not expect a stellar performance from the stock market at this time of the year This does not mean there is no movement but on average the movement at this time of year cancels out making picking the direction far more difficult These historical tendencies are a guide to what may happen in the market but not a guarantee The market is typically strong around the end and the beginning of the month This did not happen last month and provides clues that there may be a larger fundamental movement underway If the market is weak when it is normally strong then it is likely to be very weak when it is normally weak Bu Jeff Cartridge Education Manager Tags ASX ASX200 Jeff Cartridge Monthly Analysis stock market Stock Market Analysis Trader Dealer Trader Dealer News trading Weekly Analysis Posted in Stock Market Analysis Trader Dealer News Trading Strategies No Comments The Power of Probabilities When Trading Friday May 27th 2011 Successful trading is about developing a strategy that skews the odds in your favour There are many different ways of doing this but every successful trading strategy comes down to probabilities What a Difference a Day Makes Consider the following table which shows the returns for different days of the week on the Australian market Thursday is the best day of the week with a favourable risk reward and win So clearly the probability favours entering a trade long on a Thursday though Wednesday and Friday are not far behind The probability also favours going short on a Tuesday These probabilities on their own are not enough to be a robust trading strategy but they could be the base for a trading strategy adding other signals to this or taken into consideration when designing a trading strategy So a successful trader thinks in terms of probability Is the probability higher that the market will move up or down from here If the probabilities are in your favour then take the trade Past performance is certainly no guarantee of future performance however if it doesn t work in the past the probability certainly suggests that it is extremely unlikely the strategy will work in the

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  • Stock Market Analysis: Macro and Technical Analysis of Dow Jones, ASX 200 and ASX Top 20 | Online Stockmarket Trading Update
    at 10 18 am and is filed under Stock Market Analysis 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 Higher As Investors Play Catchup Stock Market Analysis Markets Cautious Ahead Of Chinese Data Archives February 2013 January 2013 December 2012 November 2012 October 2012 September 2012 August 2012 July 2012 June 2012 May 2012 April 2012 March 2012 February 2012 January 2012 December 2011 November 2011 October 2011 September 2011 August 2011 July 2011 June 2011 May 2011 April 2011 March 2011 February 2011 January 2011 December 2010 November 2010 October 2010 September 2010 August 2010 July 2010 June 2010 May 2010 April 2010 March 2010 February 2010 January 2010 December 2009 November 2009 October 2009 September 2009 August 2009 July 2009 June 2009 May 2009 April 2009 March 2009 February 2009 January 2009 December 2008 November 2008 October 2008 September 2008 August 2008 July 2008 June 2008 May 2008 April 2008 March 2008 February

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  • DJI | Online Stockmarket Trading Update
    with a new recording covering the Dow XJO and the ASX Top 20 Click here to watch the presentation Best Regards Leon Hinde Tags ASX Top 20 DJI Dow INDU Market Analyser technical analysis Posted in Stock Market Analysis No Comments Recap of ASX Top 20 and Major Indices Friday September 11th 2009 Dear Members I have updated MDS Radio with a new recording recapping on my last entry This recording focuses on the XJO US Dollar Index DJI and some of the ASX Top 20 equities Click here to watch the presentation Best Regards Leon Hinde Tags ASX ASX Top 20 BHP DJI Market Analyser QBE Rio technical analysis TLS USD Index WPL XJO Posted in Stock Market Analysis No Comments 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 Higher As Investors Play Catchup Stock Market Analysis Markets Cautious Ahead Of Chinese Data Archives February 2013 January 2013 December 2012 November 2012 October 2012 September 2012 August 2012 July 2012 June 2012 May 2012 April 2012 March 2012 February 2012 January 2012 December 2011 November 2011 October 2011 September 2011 August 2011 July 2011 June 2011 May 2011 April 2011 March 2011 February 2011 January 2011

    Original URL path: http://blog.traderdealer.com.au/tag/dji/ (2013-02-02)
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  • Dow | Online Stockmarket Trading Update
    or 232 points at 18 310 and in Japan the Nikkei 225 Index was down 1 0 or 90 points at 8 682 South Korean KOSPI was down 2 7 for the session while the Indian market was down 0 9 Commodities The Dollar Index was lower at 76 93 on a higher Euro while the Australian Dollar last traded lower at 1 0245 Commodities prices were sharply lower For the session the Benchmark crude NYMEX for December delivery was down 0 9 or US0 81 settle at US85 98 Copper prices are seeking a support level as Copper for December delivery was down 6 1 or 20 cents at US3 0420 December gold was down 2 1 or US34 10 at US1 609 00 ASX News Today AMC Amcor the packaging maker says it remains confident of achieving earnings growth in the current financial year after its first quarter performance met expectations BOQ Bank of Queensland BoQ dropped 2 9 after its credit rating was placed on review for possible downgrade after the bank reported a rise in bad debts Earlier this month BoQ said natural disasters and three corporate exposures almost doubled its bad debts to 200 million for the year to August 31 CGF Challenger sold a record 509 million of retail annuities in the first quarter putting the company on track to meet its target of a 25 percent increase in retail annuity sales for the year ENV Envestra the natural gas transporter has maintained its guidance for a 33 percent jump in full year net profit underpinned by regulatory mandated gas price increases LEI Leighton Holdings says the Standard Poor s downgrading of its credit rating does not properly reflect the company s credit quality Also Leighton Holdings has closed a six year US600 million Indonesian leasing facility MCC MacArthur Coal says Peabody Energy and ArcelorMittal have extended the offer period for the 4 83 billion takeover NCM Newcrest Mining reported a 16 lower gold production in the September quarter due to maintenance shutdowns at Lihir in PNG but says it still expects to meet production and cost guidance Also cash costs of A594 per ounce were 10 per cent Newcrest Mining plunged 6 4 OMH OM Holdings the manganese miner says production fell in the three months to September and the company has forecast higher production in the final quarter of the year QAN Qantas disruptions The union representing Qantas engineers has called off all protected industrial action for three weeks RIO Rio Tinto has offered C578 million A602 million for Canadian junior uranium explorer Hathor Exploration in an all cash deal STO Santos the oil and gas producer Santos has increased third quarter sales revenue by 27 percent and has maintained full year production guidance WBC Westpac says weak demand for loans is making it tougher for banks but there are still ways of growing profits WES Wesfarmers increased first quarter sales at its Coles supermarket by 8 percent but it faces challenging trading conditions in the lead up to Christmas Local Corporate Reporting SAI Global SAI Full year 2011 AGM PaperlinX PPX Full year 2011 AGM Forge Group FGE Full year 2011 AGM Slater Gordon SGH Full year 2011 AGM Regis Resources RRL September Quarterly Report Gloucester Coal GCL Q1 2012 Results Woodside Petroleum WPL Q3 2011 Activities Report Ex dividend Date Multiplex European MUE Redflex Holdings RDF Market Summary ASX to open higher US UK Europe Mixed Commodities Stock Index up 0 3 Gold Stocks Index down 1 2 Oil Stocks Index up 0 8 US ADRs Broadly Mixed BHP down 0 3 RIO down 6 1 AWC up 0 9 ANZ up 0 9 NAB down 1 3 NEM down 1 1 JHX up 2 0 NW S up 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 Written on 5 September 7 15am Tags Asian Markets ASX News Business News Crude Oil Dow European Markets Stock Market Analysis stockmarket trading US Market wrap Posted in Morning Wrap Stock Market Analysis No Comments ASX Company News Metals Finance And Dow Chemical Enter Mining Joint Venture Monday October 17th 2011 Resources investment company Metals Finance Limited MFC announced it has signed a letter of intent LOI with Dow Chemical Australia relating to the formation of an alliance between the companies to develop mineral processing technologies in specific resource settings The companies will initially team on MFC s Lucky Break nickel project in Queensland which will be used as the base for identifying new process improvements which may be applicable to the treatment of nickel laterite projects on a global basis The two companies intend to negotiate and finalize a definitive agreement which will include Dow providing know how technical and process engineering support for the use of its Ion Exchange Resin IER PLS separations technology at Lucky Break and which may also cover other lateritic nickel projects that MFC may develop including the Barnes Hill project in Tasmania MFC s managing director Mr Tony Treasure said We are proud to team with Dow s innovation and global solutions team for enhanced development of metal recovery processes This agreement is the first step in developing a long term strategic relationship between MFC and Dow which we believe could be very successful for both companies We have been working closely with Dow for some time now on project feasibility studies including Lucky Break and the Palabora nickel sulphate project in South Africa We understand the significant cost benefits that can be achieved by using Dow s ion exchange resin IER technology compared with other traditional means of metal recovery The technology is a key component in the novel flow sheet approach being taken by MFC to develop Lucky Break MFC has an agreement with Metallica Minerals Ltd the owner of the Lucky Break tenements west of Townsville MFC has been undertaking feasibility studies into the development and operation of a mine and processing plant in return for full recovery of its expenditure from project cash flows and 50 of ongoing surpluses Metals Finance develops and operates mineral assets in partnership with other exploration and mining companies rather than purchasing them It applies the extensive experience of its executives board and consultants to establish appropriate treatment processes on geologically defined resources to undertake detailed feasibility studies and to operate projects It is currently working with two ASX listed partners at Lucky Break in Queensland and Barnes Hill in Tasmania MFC is also seeking new opportunities and is reviewing the development of gold and nickel projects in South America and Europe www metalsfinance com www dow com http www traderdealer com au fundamentals mfc http www traderdealer com au fundamentals dow Tags Dow Dow Chemical Metals Finance MFC mining Nickel Posted in ASX Company News No Comments ASX Company News Downer EDI Secures 142 million Instrumentation Contract Wednesday October 5th 2011 Downer EDI Limited DOW announced that it had been awarded an electrical and instrumentation contract valued at over 142 million for works in the Pilbara region Western Australia approximately 1 600 km from Perth The Chief Executive Officer of Downer Grant Fenn said Downer was pleased to be continuing its involvement in the delivery of large scale projects in the region This win extends Downer s position as the leading electrical and instrumentation provider in the west and demonstrates confidence in Downer s ability to deliver on large scale projects Mr Fenn said Work will commence in late 2011 and is expected to be completed by second quarter 2013 www downergroup com http www traderdealer com au fundamentals dow Tags Dow Downer Downer EDI Engineering Services Mining Services Posted in ASX Company News No Comments Stock Market Analysis Investors Are Wary Ahead of US Economic Summit Friday August 26th 2011 US stock markets traded lower throughout the session after early gains faded snapping 3 days of sharp gains as concerns escalate that the US might be slipping back into recession European stock markets closed lower breaking a 3 day winning streak after sellers stepped in after a flurry of rumours about Germany Asian stock markets ended mostly higher yesterday The gains came as US traders provided a positive lead but expect caution today Commodities prices traded higher but gold prices rose above US1 1769 and while crude oil closed around US85 The SPI Futures is trading around the key pivot level of 4000 ending down 1 1 or 46 points at 4 168 The key levels for our index this week are 4200 to 4100 Overnight global stocks traded sharply lower as US and European investors chose caution ahead of the US economic summit at Jackson Hole Euro banks remained under pressure Investors are keenly watching the recent lows for any sign of support near term Price action in the US sold down throughout the session as traders look for an announcement of further quantitative easing on Friday The All Ordinaries XAO was up 1 1 at 4281 yesterday the S P ASX 200 XJO also closed up 1 1 at 4213 Our market is set to follow Europe and the US lower today with mining and financial stocks trading lower overnight providing a negative lead There will be a flurry of activity on open due to the completion of options expiry See below for ASX listed companies in the news today Economics News Today RBA Governor Glenn Stevens appears before House Economics Committee US Markets US stock markets traded lower throughout the session after early gains faded snapping 3 days of sharp gains The Dow Jones Index declined as only two stocks finished in the green Bank of America bucked the trend jumping 9 4 after Warren Buffett disclosed a US5 billion investment in the bank In the broader market the S P 500 stock index lost ground as all 10 sectors finished in the red led lower by energy industrial and consumer discretionary stocks The tech heavy Nasdaq Composite fell the most after the resignation of Apple Chief Executive Steve Jobs weighed on the technology sector Investor caution came as weekly jobs data disappointed and ahead of the Fed speech in Jackson Hole Wyoming and as European stocks underwent selling pressure Over the past couple of weeks the US markets appear to have been building expectations of a QE3 announcement at the Fed s annual conference on Friday in Jackson Hole Wyoming However there is an increasing realisation that Federal Reserve Chairman Ben Bernanke will most likely not hint at additional forms of monetary support for the struggling US economy The view that the economy might be slipping back into recession has sparked renewed demand for safe haven assets In commodities gold rebounded to around US1 770 and crude oil remained around US85 All ten company groups that make up the S P index traded lower Industrials were down 1 9 Materials were down 1 1 Energy was down 2 1 the Financials sector was down 0 3 Technology was down 1 4 while Consumer Staples were down 2 0 The Dow Jones closed sharply down 1 5 or 171 points at 11 150 the S P 500 index closed down 1 6 or 18 points at 1 159 the Nasdaq ended down 1 9 or 48 points at 2 419 and the smaller cap Russell 2000 was down 2 6 European Markets European stock markets closed lower snapping a 3 day winning streak after sellers stepped in after rumours of speculation that Germany would introduce a ban on short selling financial shares and their economy may be downgraded The Stoxx Europe 600 index dropped 1 2 Investors remained on edge overnight when several rumours in Germany sparked selling France Italy and Spain announced they were extending bans on short selling financial shares while in Belgium the stock market regulator said it would lift the short selling ban only when market conditions allow In London the FTSE 100 fell 1 4 but banks found some support with Barclays and Royal Bank of Scotland jumping over 5 5 In Germany the DAX 30 index had slumped 4 at one point in the session hit by several unconfirmed market rumours The market finished well off its lows after German regulator Bafin later said that there are no planned changes to its short selling rules There were also rumours that Germany s credit rating may be downgraded but credit rating firms Standard Poor s Moody s and Fitch all confirmed Germany s AAA rating In London the FTSE 100 index was down 1 4 or 75 points at 5 131 the German DAX was down 1 7 or 97 points at 5 584 while in France the CAC was down 0 7 or 20 points at 3 119 Asian Markets Asian stock markets ended mostly higher yesterday The gains came as the US traders provided a positive lead on optimism that the Federal Reserve will take steps to stimulate the US economy In Japan the Nikkei Stock Index finished higher In Hong Kong the Hang Seng Index advanced while in China the Shanghai Composite Index rose nearly 3 as energy and telecom stocks led the gains The Chinese SSE Composite was up 2 9 or 74 points at 2 615 in Hong Kong the Hang Seng Index was up 1 5 or 286 points at 19 753 and in Japan the Nikkei 225 Index was up 1 5 or 132 points at 8 772 The South Korean KOSPI was up 0 6 for the session while the Indian market was down 0 9 Commodities The Dollar Index was higher at 74 23 on a lower Euro while the Australian Dollar last traded lower at 104 34 Commodities prices were lower For the session the benchmark crude NYMEX for August delivery was down 0 2 or US0 18 to settle at US84 98 Copper prices are still below key pivot level as Copper for August delivery was up 2 1 or 8 2 cents at US4 0860 August gold was up 0 3 or US5 70 at US1 769 80 ASX News Today AGO Atlas Iron has declared its maiden full year profit of 169 million and had cash of 366 million at the end of June and the company remains debt free Cash operating costs for the FY11 year were within the targeted range of 40 43 a tonne The company is looking to build its production to 40 million tons annually on a par with Fortescue Metals Group s 2011 production Atlas Iron closed up 2 2 BHP BHP Billiton has handed down the biggest profit ever delivered by an Australian company and almost double last year s result The result was a record breaking 22 5 billion profit but the CEO has given a blunt warning that rising wages are fuelling inflation and this will negatively impact Australia s productivity due to rising cost pressures The company reported its 2010 11 underlying profit was up 74 percent as Chinese demand continued to push up prices offsetting a fall in production volumes and rising costs The value of the company s sales of iron ore oil and gas copper coal and other minerals last financial year jumped 35 per cent BHP Billiton shares closed up 1 1 COK Cockatoo Coal which is one of the few Australian listed miners with coal production said it has held talks with South Korea s SK Networks Co and other companies on supporting the development of new mines There is no certainty that an agreement will be reached but SK Networks said it has reviewed a possible investment in Cockatoo Coal in order to boost its resource business Cockatoo Coal shares closed up 27 DTE Dart Energy said it plans a Singapore IPO for its international coal seam gas assets in a move to tap rising interest in unconventional energy as climate and safety concerns dent the appeal of rival fuels Dart s international assets are mostly concentrated in Asian markets such as China and India where energy demand is growing rapidly and a traditional reliance on burning coal for power has made cities like Shanghai among the smoggiest in the world Its current international reserves total 16 3 trillion cubic feet of gas in place of which 43 billion cubic feet is in the proven and probable category that is a better indication of how much gas can be recovered profitably from the ground Dart aims to sell its minority stake in the IPO by March 2012 Shares in Dart jumped 11 FKP FKP Property Group FKP has delivered a solid profit result with underlying profit after tax of 121 million for FY11 representing a move up of 11 percent Earnings were in line with guidance but were underpinned by strong contributions from the Residential Communities and Retirement divisions FKP s future growth will be generated from the delivery of the existing development pipeline which is supported by the stability of the recurring income generated from the high quality retirement portfolio IAG Insurance Australia Group Ltd has nearly tripled its full year profit to 250 million and the owner of NRMA and CGU expects insurance margin growth in the year ahead They reported revenues grew 30 percent and insurance margins grew 9 1 percent CEO Mike Wilkins has forecast gross written premium growth of between six and nine percent in the current financial year and an insurance margin of 10 to 12 per cent IFL IOOF Holdings has delivered a 29 percent rise in annual net profit of 99 5 million and flagged it is eyeing acquisitions The company s funds under management FUM administration advice and supervision in FY11 rose 7 1 billion to 106 2 billion and its cost to income ratio was 51 per cent on an underlying basis IOOF Holdings closed up 8 ILU Iluka Resources the mineral sands miner has reported a return to profitability

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