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  • Stock Trading Tips | Online Stockmarket Trading Update
    options by simultaneously selling index call options This strategy is also known as the Index Collar and will be discussed in later articles Alternatively you can use a Put Spread strategy to reduce costs If you want to take advantage of portfolio insurance then the index put options are an excellent strategy that can be used to protect your investment portfolio Contact us at D2MX Advisory on 1300 610 024 and we can help you trade using this strategy 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 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 Measuring Your Trading Performance Part 5 Stock Trading Tips for All Types of Market Environments Friday September 28th 2012 Trading is a business and investors must treat it that way to be successful in the markets One of the keys to running a business is being able to measure performance and profitability As a trader you know that the only thing you can define before entering a trade is the amount of risk you re prepared to accept How much money are you willing to lose per unit of your investment if you are wrong about the direction of the trade Note there will be times when your loss is greater than your initial risk for example when the market gaps on open Systematic traders will risk a predefined amount on each trade and therefore it is possible to rate the performance of your trading by comparing your profits losses with the amount initially risked in the trade Initial Risk R A key principle for both trading and investing success is to always have an exit point before you enter a position a point where you know that you are wrong about the trade Van Tharp in his best selling book Trade Your Way to Financial Freedom says that trading without a pre determined exit point is like driving across town and not stopping for red lights you might get away with it a few times but sooner or later something nasty will happen Van Tharp has championed the use of initial risk and R multiples to measure trade performance The exit point that you have when you enter into a position is the whole basis for determining your risk or R and the R multiples i e reward risk ratios of your profits and losses can then be measured Stops Determine Risk R A stop is a predetermined exit and should be used to preserve your trading capital You can use a trailing stop which adjusts the stop when the market moves in your favour thus giving you a profit taking exit opportunity Trading Using R A couple of golden rules of trading 1 Never open a position in the market without knowing exactly where you will exit that position 2 Cut your losses short and let your profits run Know When to Exit Always have a predetermined exit point before you enter a position The purpose of that exit point is to help you preserve your trading and investing capital And that exit point defines your initial risk 1R in a trade For example you buy a stock at 50 and plan to sell if it drops to 40 Your initial risk or 1R is 10 per share i e 1R 50 40 Now you have a number of possible outcomes on this trade If you exit the trade when the stock reaches say 70 then your reward risk ratio is 2R i e 2R 70 50 10 where 1R 10 If you are using a trailing stop and are stopped out at say 45 then your Reward Risk ratio for the trade would be 0 5R i e 0 5R 45 50 10 where 1R 10 Cutting Your Losses There are many reasons for adjusting or trailing your stops and cutting your losses The way you define your losses or trail your stops will depend on the trading style that you use Just remember you need to know when you are getting out of a position your initial exit point or stop to determine your risk Letting Profits Run Using trailing stops and knowing your Reward Risk ratio for the trade can enhance your confidence in the trade improve your ability to trade and give you the confidence to adjust your position size according to your profitability Risk or R In Dollar Terms We ve provided an example of calculating risk according to the share price but you may like to think about it in a slightly different way through dollar terms If your minimum unit of investment is 10 000 and you decide that you will sell if the value of your investment dropped to 9000 then your initial risk is 1000 and 1R is 1000 R is simply the initial risk per share of stock or per minimum investment unit Trade Example Using Risk or R A trade in CSL demonstrates how to you can use Risk to measure and manage a trade In mid February CSL broke to a new trading range above 32 90 For this trade setup we entered the trade at 32 90 with initial stop at 29 90 The initial risk 1R was 3 00 1R 32 90 29 90 If you were trading on a weekly system the trade would be still active with a 4 1R open profit i e 45 20 32 90 3 00 where 1R 3 00 So if you initially risked 1 000 you would be in profit to the tune of 4 100 at this time Managing Risk or R Investors and traders tend to be overly optimistic about the trades that they make particularly in the early days They often don t understand their worst case risk or even think about such factors as slippage gapping and the like Using initial risk or R to measure your trading performance can help build your confidence and improve your trading In subsequent articles we will use IRESS Trader to demonstrate how to determine position sizing and discuss measuring portfolio performance using R multiples Investment returns over a long period are not so much dependent on the amount of money you have to invest but rather they are more a function of managing your trade risk and letting compounding work its magic by starting to invest as early as possible refer to the article on The Power of Compounding 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 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 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 measuring risk risk in trading stock trading tips Trading Strategy Posted in Trading Strategies No Comments The Power of Compounding Part 4 Stock Trading Tips for All Types of Market Environments Friday September 14th 2012 Compounding can be used to great effect in your day to day trading I ve had a number of people ask how to use compounding to improve investment returns so today we will discuss this in more detail The Greatest Mathematical Discovery Ever Made Albert Einstein once remarked that the most powerful force in the universe is compound interest He came up with a formula called the Rule of 72 It states that if you take 72 and divide it by the annual percentage return it will give you the number of years it would take for your investment to double For example say you invested 100 into a stock that gave you an annual return of 20 At the end of one year you would have 120 Instead of taking out the 20 profit you leave it inside for another year at the same 20 At the end of the second year your investment would grow to 144 The next year it would grow to 172 80 and on the fourth year it would grow to 207 36 Using the Rule of 72 you can quickly do the maths In this example if you calculate 72 divided by 20 you get 3 6 ie in 3 6 years your investment of 100 will have doubled Warren Buffett Compounding is one of the wonders of the world and Warren Buffet has used it to great effect in getting the value of his investments to grow at spectacular rates He has heralded compounding as his secret weapon in creating the second biggest fortune in the world purely by investing in US stocks Warren Buffett achieved an average annual return of 24 7 for 49 years This means that his money doubled every 2 9 years 72 24 7 He turned an investment of 100 000 in 1956 into 4 200 000 000 4 2 billion today To put it simply over longer time frames the impact of compounding becomes dramatic Compounding and Retained Earnings Warren Buffett Warren Buffett has referred to the use by a company of its retained earnings as a test of company management He says that if a company can earn more money on retained earnings than the shareholder can the shareholder is better off taxation aside if the company retains profits and does not pay them out in dividends If the shareholder can achieve a higher rate of return than the company the shareholder would be better off if the company paid out all its profits in dividends taxation situation again excluded so that they could use the money themselves In summary if a company can retain earnings to grow shareholder wealth at better than the market rates available to shareholders it should do so If it cannot it should pay the earnings to shareholders and let them do with them what they wish In the book The Snowball Warren Buffett and the Business of Life there are some great revelations including realising the power of compounding Compounding is like a snowflake that rolls into a snowball with time 10 000 invested at 7 is worth over 20 000 in 10 years time In 50 years time that 10 000 is worth more than 300 000 Of course this does not take into account inflation eating away at your capital but with many stocks offering a 7 yield the capital growth could mitigate the effect of inflation and in fact beat it Applying Compounding in Day to Day Trading The average investor can follow the path of the investing icons like Warren Buffet if they have the time and the patience to implement his methodology There are a couple of additional rules that Warren Buffet adheres to in investing Rule 1 Do not lose money and Rule 2 Do not forget Rule 1 Active Investors and Compound Returns Active investors can apply the same compounding philosophy into their trading plan through the utilisation of compound returns Compound returns are achieved when you invest a sum of money at a particular rate of return Instead of removing the monies that you have accumulated from the investment you add it back to the principal sum and reinvest this larger sum So the next time the rate of return is on a larger principal sum This continues until the returns become greater and greater Compound return is return that is paid earned on both the principal and also on any accumulated monies from past years It is often used when someone reinvests any interest earnings they gained back into the original investment Over time compound returns will make much more money than simple returns because the interest is earned on larger and larger amounts The formula used to calculate compound return is M P 1 i N M is the final amount including the principal P is the principal amount i is the rate of return per year N is the number of years invested Let s say you had 10 000 to invest for 3 years at rate of 5 compound interest Using the above formula your 10 000 would be worth 11 576 after 3 years Using a Microsoft Excel spreadsheet you could simply enter 10 000 1 05 3 and Excel will return the answer Practical Application of Compounding Returns We have done some analysis of how you can use compounding returns to improve your trading performance Active traders can use this in their Trading Plan to increase their capital invested by reinvesting their winnings In the chart below we have started with a 10 000 initial investment and calculated possible returns at varying investment returns We have calculated the returns weekly with investment returns of between 2 and 10 per week These returns would be your net returns after any costs For example if we had a 10 000 initial investment and reinvested monies earned at 2 per week after 10 weeks you would have 12 190 to invest If your investment return improved to 4 per week after 10 weeks you would have 14 802 to invest After 20 weeks of consistently earning 2 and 4 per week you would have 14 859 and 21 911 respectively From the chart you can see the returns are magnified if you can consistently grow your investments at a steady rate of return Returns generated on an initial investment of 10 000 compounding weekly on various rates of returns Note the lognormal chart axis The secret is consistency time and the power of compounding I have also supplied the table used for this chart for your reference Keys To Success For compounding to work you need to generate consistent returns Be realistic about your goals for investment returns Requires a systematic approach to your trading We have used 30 weeks in the chart example provided because there will be weeks when your trading produces a loss There are 222 trading days for the year which equates to 44 4 trading weeks So you can improve your results if your are consistently profitable Manage your losses and keep them small We will discuss how to accomplish this in later articles Conclusion The power of compounding is one of the greatest wonders of the world It works especially well for wealth generation and investing icons like Warren Buffett have used it to dramatic effect on the growth rate of portfolio returns The example given in this article clearly highlights the magic that the process of compounding works on one s trading By generating consistent returns and letting your money compound over time you have the potential to improve your returns Investment returns over a long period are not so much dependant on the amount of money you have to invest but rather they are more a function of letting

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  • Where To Invest | Online Stockmarket Trading Update
    again trade over US150 Expect iron ore prices to drive our materials sector again this year This chart also illustrates that commodity prices have begun 2013 with continued momentum Gold is holding its long term uptrend as long as the US1 600 support level holds the price should be support by all the central bank easing that is happening world wide Copper has been crawling higher in the past eighteen months and the 320 level needs to hold to support the current drift higher Silver has been crabbing sideways for the past couple of years and looks set for a major move medium term Crude oil is trapped within a range between US80 and 110 with US100 the key pivot level this year The positive trader sentiment has continued into 2013 as seen by the green bars on the above chart Investment Themes For 2013 Investors will need to be nimble again this year in managing their portfolio and trading positions Buy and hold has not worked in the past few years resulting in investors having to become more active Next week we will analyse the market by sector and identify some interesting trends If you can t wait till next week then request the bonus below which also highlights investments themes and how to invest for 2013 Bonus We have compiled a Special Report on Investing in 2013 where we cover Evaluation of the Australian market and what to expect in 2013 Evaluation of commodities prices Top down sector analysis on the Australian market Sectors to focus on this year Investing for Yield and our view on interest rates Investment themes How to survive 2013 For a free BONUS report email advisory d2mx com au or call 1300 610 024 You can also request the trading results from our Advisory service which performed well in excess of the overall market return in 2012 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 Contact me at D2MX Trading on 1300 610 024 and I can help you trade using a number of strategies that will give you the tools to navigate this market and help you boost your returns on investment 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

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  • Stock Market Analysis: Markets Higher As Investors Play Catchup | Online Stockmarket Trading Update
    level since May 2008 as unemployment unexpectedly fell and the PM pledged to hold a referendum on Britain leaving the European Union In Germany the market rose on the back of reports that showed eurozone manufacturing and services contracted at a slower pace in January as a Markit Economics composite index based on a survey of purchasing managers in both industries rose to 48 2 up from 47 2 in December a reading below 50 indicates contraction In other economic news the International Monetary Fund IMF cut its global growth forecasts and now projects a second year of contraction in the eurozone as progress in resolving the European debt crisis fails to produce an economic recovery The IMF forecast that the world economy will expand 3 5 percent this year down from the 3 6 percent forecast in October In London the FTSE 100 was up 1 1 at 6 265 in Germany the DAX closed up 1 1 at 7 748 while in France the CAC closed up 0 6 at 3 752 and Spain closed up 0 6 Asian Markets Asian stock markets traded lower yesterday with the regional benchmark index backing off levels not seen since August 2011 The IMF has cut its global growth predictions however it is maintaining its forecast for China forecasting growth of 8 2 percent growth this year and 8 5 percent in 2014 The MSCI Asia Pacific Index fell 0 4 but the index is still on track to extend its rally for a third consecutive month on the back of news that showed the Chinese economy is recovering and Japanese shares pulled back after the central delayed the start of an aggressive asset purchase program In Japan the market rose for the first time in four days The Bank of Japan BoJ said it would pursue an aggressive asset buying program in at attempt to reverse the stagnation of the past two decades and is now targeting an inflation rate of 2 However Japan s central bank said it would delay buying until next January when it will buy about YEN13 trillion US145 billion in Japanese government bonds and treasuries per month Chinese shares closed lower despite the HSBC s Flash Purchasing Managers Index PMI rising to 51 9 in January above estimates and up from 51 5 in December HSBC now expects growth to improve to 8 4 for 2013 In China the SSE Composite down 0 8 at 2 302 while in Hong Kong the Hang Seng Index closed down 0 2 at 23 599 and in Japan the Nikkei 225 Index was up 1 3 at 10 620 South Korean KOSPI closed down 0 4 for the session Commodities The Dollar Index was at lower 79 97 on a higher Euro while the Australian Dollar last traded lower at 1 045 Commodities prices traded lower For the session the Benchmark crude NYMEX for February delivery was up 0 7 settled at US95 96 Copper prices are looking

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  • Stock Market Analysis: Markets Cautious Ahead Of Chinese Data | Online Stockmarket Trading Update
    indexes all ended close near their recent highs and are up over 10 from their November lows In the UK the market climbed to its highest level since May 2008 as unemployment unexpectedly fell and the Prime Minister pledged to hold a referendum on Britain leaving the European Union In economc news the International Monetary Fund IMF cut its global growth forecasts and now projects a second year of contraction in the eurozone as progress in resolving the European debt crisis fails to produce an economic recovery The IMF forecat that the world economy will expand 3 5 percent this year down from the 3 6 percent forecast in October In London the FTSE 100 was up 0 3 at 6 197 in Germany the DAX closed up 0 2 at 7 707 while in France the CAC closed down 0 4 at 3 726 and Spain closed down 0 2 Asian Markets Asian stock markets traded lower yesterday with the regional benchmark index backing off levels not seen since August 2011 ahead of the Chinese Flach PMI numbers due out today The MSCI Asia Pacific Index fell 0 5 but the index is still on track to extend its rally for a third consecutive month on the back of news that showed the Chinese economy is recovering and Japanese shares pulled back after the central delayed the start of an aggressive asset purchase program In Japan shares fell for a third day its longest losing streak since before its elections back in early November The Bank of Japan BoJ said it would pursue an aggressive asset buying program in at attempt to reverse the stagnation of the past two decades and is now targeting an inflation rate of 2 Japan s central bank said it will buy about YEN13 trillion US145 billion in Japanese government bonds and treasuries per month but would not start bying until next January Chinese shares closed higher for the third session in the past four as traders held their nerve ahead of the Flash PMI figures as HSBC now expects growth to improve to 8 4 for 2013 and will release Preliminary PMI data today Miners were the worst performers in the US overnight In China the SSE Composite up 0 3 at 2 320 while in Hong Kong the Hang Seng Index closed flat at 23 635 and in Japan the Nikkei 225 Index was down 2 1 at 10 487 South Korean KOSPI closed down 0 8 for the session Commodities The Dollar Index was at lower 79 87 on a higher Euro while the Australian Dollar last traded lower at 1 057 Commodities prices traded lower For the session the Benchmark crude NYMEX for February delivery was up 0 6 settled at US96 62 Copper prices are looking for key support level as Copper for February delivery was up 0 7 at US3 70 while FebruaryGold was up 0 3 or US4 80 at US1 691 80 ASX News Today BHP

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  • Trader Dealer Blog - Part 2
    for unemployment insurance payments fell more than forecast last week to the lowest level in five years another positive for the labour market The Dow Jones closed up 0 4 at 13 649 the S P 500 index up 0 3 at 1 486 the Nasdaq ended flat at 3 135 and the smaller cap Russell 2000 was up 0 3 European Markets European stock markets gained modestly for a week as the US debt ceiling concerns overshadowed the better than expected economic data from China and the US The Stoxx 600 was ended flat for the session and is now at levels not seen since February 2011 trader sentiment was boosted by Chinese economic growth data that accelerated for the first time in two years as government efforts to revive demand drove a rebound in industrial output and retail sales The index is up 2 9 for the year Across the region the mining and financials sectors provided support on the markets The three benchmark indexes all ended close to their highs for the week and are up over 10 from their November lows Traders shrugged of the news from the World Bank that it had cut its global growth forecast for this year to 2 4 percent citing austerity measures high unemployment and low business confidence likely to weigh on economies in developed nations down from last year s forecast of 3 percent and after global growth of 2 3 percent in 2012 In London the FTSE 100 was up 0 4 at 6 154 in Germany the DAX closed down 0 4 at 7 702 while in France the CAC closed down 0 1 at 3 741 and Spain closed down 0 3 Asian Markets Asian stock markets traded higher again last week up eight of the past nine weeks with the the regional benchmark index now trading around levels not seen since August 2011 The MSCI Asia Pacific Index rose 0 7 last week and the index is still on track to extend its rally for a third consecutive month on the back of news that showed the Chinese economy is recovering and Japanese shares gaining after the new leadership promoted a new stimulus package In Japan shares found support after pulling back 2 6 earlier in the week as a weaker yen boosted Japanese exporters This index has now recorded its longest winning streak since 1986 This market has had a stellar run of ten straight weeks higher and is trading around 32 month highs after the Bank of Japan BoJ Governor Masaaki Shirakawa said the central bank will pursue powerful monetary easing Chinese shares closed at their highs for the week despite a a report showing the nation s foreign direct investment declined for the first full year since 2009 as economic growth slowed and manufacturers relocated to markets with cheaper labour The big driver in China on Friday was the GDP figures were better than expected with the Chinese gross domestic product rising 7 9 from a year earlier in the final quarter of 2012 up from 7 4 growth in the third quarter and HSBC now expected growth to improve to 8 4 for 2013 In China the SSE Composite up 1 4 at 2 317 while in Hong Kong the Hang Seng Index closed up 1 1 at 23 601 and in Japan the Nikkei 225 Index was up 2 9 at 10 913 South Korean KOSPI closed up 0 7 for the session Commodities The Dollar Index was at lower 80 12 on a higher Euro while the Australian Dollar last traded lower at 1 051 Commodities prices traded higher For the session the Benchmark crude NYMEX for December delivery was up 0 1 settled at US95 56 Copper prices are looking for key support level as Copper for December delivery was up 1 7 at US3 679 while December Gold was down 0 2 or US3 80 at US1 6870 00 ASX News Today BLD Boral the building products maker will cut 700 people from its workforce with most of the reduction coming from its head office is in Sydney FMG Fortescue Metals decision to walk away from a deal to invest in a small unconventional gas exploration company in WA could be the result of rising iron ore prices ILU Iluka Resources the mineral sands miner has generated nearly one third less revenue in 2012 than the previous year as Chinese demand and prices plummeted MAH Macmahon said shareholders will vote on the 23 9 million sale of the company s construction assets to Leighton Holdings on 26th February in Perth PSH Penrice the chemicals company Penrice is to stop soda ash production in Adelaide with the loss of up to 60 jobs QAN Qantas has cut its order for Boeing 787 Dreamliners for its Jetstar subsidiary Qantas says travellers will soon know how much it will cost to fly on a combined Qantas Emirates network after their alliance received interim authourisation from the competition watchdog RIO Rio Tinto says 14 billion in writedowns loom and announced the resignation of Tom Abalnese on Thursday STO Santos the oil and gas company is on track to meet its 2013 production forecasts after enjoying a 10 percent rise in 2012 SYD Sydney Airport served a total of 36 9 million passengers during 2012 a record for the airport WPL Woodside Petroleum has achieved a record 2012 production result and hopes to do even better this year as it develops more projects overseas Ex dividend Date None Market Summary ASX to open higher US UK Europe higher US ADRs Broadly higher By Michael Hevern D2MX Investment Advisor For Buy and Sell recommendations on ASX listed companies register for a FREE trial of FREE trial of D2MX Financial Research Michael ASX Company News Morning Wrap Stock Market Analysis Asian Markets ASX ASX News Business News Commodities Crude Oil European Markets Ex Dividend gold price Nasdaq Stock Market Analysis stockmarket trading US Market wrap Global Markets Get a Jump Start in 2013 January 18th 2013 0 Traders globally have pushed markets higher as Santa Clause delivered in the final few weeks of 2012 In today s Analyst s Eye we review 2012 and give some guidance for Investing in 2013 The Australian market has now traded higher for eight of the past nine weeks even though trading volumes have been well down for the month The Aussie market is due for a some consolidation near term which would be healthy Stock prices have risen consistently since the November lows in the US and the European markets as well US stock markets have been on the rise for the past couple of months and are now around 5 year highs and are just 5 below all time highs The gains have been broad based in the financials industrials and the materials sectors The positive trader sentiment is being driven by better than expected data on the economic housing and employment fronts However near term investors are focusing on corporate earnings and the impending US debt ceiling which needs to be resolved in February President Obama has warned Republicans in Congress not to use the need for a debt limit increase to force through new spending cuts and insisted he will not negotiate on raising the debt ceiling because the US is obliged to pay for spending it has authorized Of the 52 S P500 companies that have reported 34 have exceeded expectations European stock markets have continued higher since last November but are beginning to show some loss of momentum near term The Europe Stoxx 600 is up nearly 3 for the year and trading volumes are picking up Traders have shrugged of the news from the World Bank that it had cut its global growth forecast for this year to 2 4 percent citing austerity measures high unemployment and low business confidence likely to weigh on economies in developed nations down from last year s forecast of 3 percent and after global growth of 2 3 percent in 2012 Asian stock markets have had a great start to 2013 China has just released GDP figures today with the Chinese gross domestic product rising to 7 9 from a year earlier in the final quarter of 2012 up from 7 4 growth in the third quarter Japanese shares have surged after the new leadership promoted a new stimulus package and is now up nine straight weeks higher and is still trading around 32 month highs Australia The Australian market has had another strong week and is looks set to test the 4850 level near term The market held above the 4680 level and is now hovering above the 4750 level having broken above the highs of l May 2011 Our market has rebounded strongly since the November lows on the back positive sentiment around the globe and the Aussie banks continued higher in the chase for yield but we have also seen money pour into resource stocks as investors look for a turnaround in the materials sector for 2013 Key levels for the index next week will be 4700 and 4830 with 4750 the key short term pivot level Be aware that we may see some short term resistance in the market in next few weeks so be ready to protect your positions and or take profits Traders appear to be oblivious to the impending US debt ceiling and continue to be optimistic on the back of positive news flow regarding the state of the US economy Chinese leadership are being more accommodative in promoting growth this year as is the new leadership in Japan Protection is still relatively cheap and investors should have protection in place for their capital and could look to put their money to work while reducing their risk by using options and warrants strategies Remain attuned to the news from overseas particularly from the eurozone Chinese monetary easing and the US debt ceiling Monitor the US dollar for a guide to the future direction of commodities and equities prices Contact me at D2MX Advisory on 1300 610 024 and we can help you trade using a number of strategies that will give you the tools to navigate this market and help you improve your returns on investment For a report on the D2MX Advisory 2012 Trading Recommendations Performance click here Michael Hevern Investment Adviser D2MX Advisory 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 Michael ASX Company News Morning Wrap Stock Market Analysis Asian Markets ASX ASX News Business News Commodities Crude Oil European Markets Ex Dividend gold price Nasdaq Stock Market Analysis stockmarket trading US Market wrap Investing in 2013 Part 8 Stock Trading Tips for All Types of Market Environments January 18th 2013 0 Investing in 2013 promises to be less challenging than it was in 2012 There is still plenty of money on the sidelines and given the RBA cash rate is expected fall even lower than the current 3 percent investors will be looking to make their money work for them and the share market is a logical avenue to achieve better returns than the dwindling cash rate Yield and capital growth will be a recurring theme again this year As 2013 gets underway it is a good time to reflect on what happened in the markets last year and try to assess what may be ahead for us in 2013 Markets in 2011 In 2011 the global markets had dismal year click here to review 2011 with all the major markets with the exception of the US S P 500 up 0 6 recording a negative year with the average down around 15 summarised in the chart at end of this article In 2011 the Australian market closed down 15 delivering a second consecutive year of negative returns for only the second time since the 1980s in 1981 the index fell 16 4 followed by a 18 5 fall in 1982 In 2011 commodities prices were mixed with gold and crude oil rounding out the year with gains of 13 and 9 respectively while base metal prices plunged as the eurozone debt crisis dragged on with aluminium iron ore copper and lead all plunging around 20 while other metals such as nickel and tin closed the year even worse off down by around 25 Markets in 2012 Markets are said to climb the wall of worry as they recover from bear market territory and that is exactly what transpired in 2012 Although it was a roller coaster ride as markets were very shaky in April May due to the eurozone debt crisis and again in October November when major world powers went through their election processes Early in the 2012 calendar year traders were faced with myriad headwinds including the euorzone financial debt crisis instability in the global financial system which was getting worse slowing growth in China and the US Fiscal Cliff Additionally a number of countries were facing changes in their political leadership including Japan the US and the once in a decade change in China Fortunately Santa Claus came to the rescue pushing a number of markets as high as 10 to 15 from their November lows with Japan outperforming now up around 23 from those lows and China up 17 in the same timeframe 2012 Global Market Performances Markets globally have recorded a stellar performance in 2012 with few exceptions see China as illustrated in the chart below CHART Share Market Performances in 2012 The Australian market s performance again sits around the middle of the performances of the other major world markets in 2012 as highlighted in this chart The European powerhouse Germany surged higher in 2012 up almost 30 for the year and you can see from the European STOXX 600 performance up 18 for the year that the eurozone markets climbed the wall of worry even though their economies are still suffering from the eurozone debt crisis The World MSCI Index finished up 13 for the year In the US markets were up over 13 as President Obama was re elected and is spite of the Fiscal Cliff In Asia the major economies Japan and India rebounded sharply finishing up over 23 while the Chinese market was up only 3 for the year suffering from the slowing economy the uncertainty around the once in a decade change in leadership and the lowest levels of foreign investment since 2009 The positive trader sentiment has continued into 2013 as seen by the green bars on the above chart Investment Themes For 2013 Investors will need to be nimble again this year in managing their portfolio and trading positions Buy and hold has not worked in the past few years resulting in investors having to become more active Bonus We have compiled a Special Report on Investing in 2013 where we cover Evaluation of the Australian market and what to expect in 2013 Evaluation of commodities prices Top down sector analysis on the Australian market Sectors to focus on this year Investing for Yield and our view on interest rates Investment themes How to Survive 2013 For a free BONUS report email advisory d2mx com au or call 1300 610 024 You can also request the trading results from our Advisory service which performed well in excess of the overall market return 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 Contact me at D2MX Trading on 1300 610 024 and I can help you trade using a number of strategies that will give you the tools to navigate this market and help you boost your returns on investment 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 2011 Market Performances CHART Market Performances in 2011 Go to Top Michael Stock Market Analysis Trading Strategies Stock Market Analysis Global Markets Rebound Despite World Bank Growth Forecasts January 18th 2013 0 US stock markets rose overnight with the benchmark indexes trading around 5 year highs European stock markets gained the most in a week Asian stock markets traded lower again yesterday but are expected to recover today Commodities prices were higher Gold prices are trading around US1 686 while crude oil closed around US95 The Australian market is looking to open higher today as stock prices rose in the US and the European markets overnight due better news ut of the US The markets are being driven by US earnings season with a number of major financial companies reporting this week while the impending US debt ceiling is weighing on sentiment China will release GDP figures today The big news of the overnight was Rio Tinto s 14 billion in writedowns and the resignation of Tom Albanese however Rio shares were only down 0 4 by the close in the US The SPI Futures is trading above the key level of 4600 ended up 0 2 or 8 points at 4713 The key levels for our index this week are 4670 to 4730 See below for ASX listed companies in the news today US Markets US stock markets rose overnight with the Dow Jones Index around 5 year highs after better than expected housing and initial jobless claims The three benchmark indexes all ended higher for the session up around 0 6 with for the Dow Jones Index and the S P500 index trading around 5 year highs and just 5 below all time highs The S P500 sectors ended in the green except for financials which ended flat with the gains led by by the materials energy and industrial sectors all up over 0 7 The positive trader sentiment was driven by the home builders after news of greater housing starts in December than forecast sealing the best year for the housing industry since 2008 which is a great sign for a boost US economic expansion In other news the number of Americans filing first time claims for unemployment insurance payments fell more than forecast last week to the lowest level in five years another positive for the labour market Near term investors are focusing on corporate earnings but the impending debt ceiling needs to be resolved in February President Obama warned Republicans in Congress not to use the need for a debt limit increase to force through new spending cuts and insisted he will not negotiate on raising the debt ceiling because the US is obliged to pay for spending it has authorized Of the 52 S P500 companies that have reported 34 have exceeded expectations The Dow Jones closed up 0 6 at 13 596 the S P 500 index up 0 6 at 1 480 the Nasdaq ended up 0 6 at 3 136 and the smaller cap Russell 2000 was up 0 9 European Markets European stock markets gained the most in a week with the gains led by the retailers as increased revenue and better than expected US housing starts The Europe Stoxx 600 was up 0 6 for the session recovering from early losses as trading volumes were up 7 above the monthly rolling average The index is up 2 9 for the year The three benchmark indexes all ended higher for the session up over 0 6 after struggling for direction early Traders shrugged of the news fomr the World Bank that it had cut its global growth forecast for this year to 2 4 percent citing austerity measures high unemployment and low business confidence likely to weigh on economies in developed nations down from last year s forecast of 3 percent and after global growth of 2 3 percent in 2012 In London the FTSE 100 was up 0 5 at 6 132 in Germany the DAX closed up 0 6 at 7 735 while in France the CAC closed up 1 0 at 3 744 and Spain closed up 0 6 Asian Markets Asian stock markets dropped again yesterday but the regional benchmark index is still trading around levels not seen since August 2011 The MSCI Asia Pacific Index fell 0 7 but the index is still on track to extend its rally for a third consecutive month on the back of news that showed the Chinese economy is recovering and Japanese shares gaining after the new leadership promoted a new stimulus package In Japan shares found support after pulling back 2 6 in the previous session its biggest session fall since last May This market has had a stellar run of nine straght weeks higher and is still trading around 32 month highs after the Bank of Japan BoJ Governor Masaaki Shirakawa said the central bank will pursue powerful monetary easing Chinese shares extended their losses in the session after a report showed the nation s foreign direct investment declined for the first full year since 2009 as economic growth slowed and manufacturers relocated to markets with cheaper labor China will release GDP figures today and with the Chi nese gross domestic product expected to rise 7 8 from a year earlier in the final quarter of 2012 up from 7 4 growth in the third quarter according to the median forecast of economists surveyed by Bloomberg In China the SSE Composite down 1 1 at 2 248 while in Hong Kong the Hang Seng Index closed down 0 1 at 23 339 and in Japan the Nikkei 225 Index was up 0 1 at 10 609 South Korean KOSPI closed down 0 2 for the session Commodities The Dollar Index was at lower 79 68 on a higher Euro while the Australian Dollar last traded lower at 1 055 Commodities prices traded higher For the session the Benchmark crude NYMEX for December delivery was up 0 9 settled at US95 17 Copper prices are looking for key support level as Copper for December delivery was up 1 5 at US3 6595 while December Gold was up 0 2 or US3 60 at US1 686 60 ASX News Today BLD Boral the building products maker will cut 700 people from its workforce with most of the reduction coming from its head office is in Sydney FMG Fortescue Metals decision to walk away from a deal to invest in a small unconventional gas exploration company in WA could be the result of rising iron ore prices ILU Iluka Resources the mineral sands miner has generated nearly one third less revenue in 2012 than the previous year as Chinese demand and prices plummeted QAN Qantas says travellers will soon know how much it will cost to fly on a combined Qantas Emirates network after their alliance received interim authorisation from the competition watchdog RIO Rio Tinto says 14 billion in writedowns loom and announced the resignation of Tom Albanese STO Santos the oil and gas company is on track to meet its 2013 production forecasts after enjoying a 10 percent rise in 2012 WPL Woodside Petroleum has achieved a record 2012 production result and hopes to do even better this year as it develops more projects overseas Ex dividend Date None Market Summary ASX to open higher US UK Europe higher US ADRs Broadly rebounded By Michael Hevern D2MX Investment Advisor For Buy and Sell recommendations on ASX listed companies register for a FREE trial of FREE trial of D2MX Financial Research Michael ASX Company News Morning Wrap Stock Market Analysis Asian Markets ASX ASX News Business News Commodities Crude Oil European Markets Ex Dividend gold price Nasdaq Stock Market Analysis stockmarket trading US Market wrap Stock Market Analysis Markets Weaken Due To Slowing Global Growth Forecast January 17th 2013 0 US stock markets were under pressure overnight but rebounded from early losses European stock markets ended flat for the session overnight as the World Bank cut its global growth forecast Asian stock markets generally dropped yesterday Commodities prices were lopwer Gold prices are trading around US1 679 while crude oil closed around US94 The Australian market is looking to open lower today as stock prices fell in the US and the European markets overnight as the World Bank cut its global growth forecast The markets are being driven by US earnings season is underway with a number of major financial companies reporting this week while the impending debt ceiling and the technology sector are weighing on sentiment Remember it is index options expiry today so expect volatility on the open The SPI Futures is trading above the key level of 4600 ended up 0 2 or 8 points at 4713 The key levels for our index this week are 4670 to 4730 See below for ASX listed companies in the news today US Markets US stock markets were under pressure overnight but rebounded from early losses caused by the World Bank downgrading global growth forecasts The three benchmark indexes all ended higher for the session except for the Dow Jones Index The S P50 index is up nearly 9 from its November lows and is trading around 5 year highs The S P500 sectors ended in the red except for technology and energy sectors up around 0 4 while the laggards were led by the materials and industrial sectors down over 0 4 Near term investors are focusing on corporate earnings but the impending debt ceiling needs to be resolved in February President Obama warned Republicans in Congress not to use the need for a debt limit increase to force through new spending cuts and insisted he will not negotiate on raising the debt ceiling because the US is obliged to pay for spending it has authorized Of the 36 S P500 companies that have reported 28 have exceeded expectations The Dow Jones closed down 0 2 at 13 511 the S P 500 index up 0 3 at 1 472 the Nasdaq ended up 0 2 at 3 117 and the smaller cap Russell 2000 was down 0 3 European Markets European stock markets ended flat for the session overnight as the World Bank cut its global growth forecast The Stoxx 600 was down 0 1 for the session recovering from early losses as trading volumes were up 20 above the monthly rolling average The index is up 2 3 for the year Across the region the mining sector weighed on the markets Stock prices fell early after the World Bank cut its global growth forecast for this year to 2 4 percent citing austerity measures high unemployment and low business confidence likely to weigh on economies in developed nations down from last year s forecast of 3 percent and after global growth of 2 3 percent in 2012 In London the FTSE 100 was up 0 2 at 6 103 in Germany the DAX closed up 0 2 at 7 691 while in France the CAC closed up 0 3 at 3 708 and Spain closed down 0 2 Asian Markets Asian stock markets generally dropped yesterday but the regional benchmark index is still trading around levels not seen since August 2011 The MSCI Asia Pacific Index fell 0 7 but the index is still on track to extend its rally for a third consecutive month on the back of news that showed the Chinese economy is recovering and Japanese shares gaining after the new leadership promoted a new stimulus package In Japan shares pulled back 2 6 its biggest session fall since last May This market has had a stellar run of nine straght weeks higher and is still trading around 32 month highs after the Bank of Japan BoJ Governor Masaaki Shirakawa said the central bank will pursue powerful monetary easing Chinese shares fell after a report showed the nation s foreign direct investment declined for the first full year since 2009 as economic growth slowed and manufacturers relocated to markets with cheaper labor In China the SSE Composite down 0 7 at 2 309 while in Hong Kong the Hang Seng Index closed down 0 2 at 23 357 and in Japan the Nikkei 225 Index was dopwn 2 6 at 10 600 South Korean KOSPI closed down 1 2 for the session Commodities The Dollar Index was at higher 79 80 on a lower Euro while the Australian Dollar last traded higher at 1 057 Commodities prices traded lower For the session the Benchmark crude NYMEX for December delivery was up 0 9 settled at US94 17 Copper prices are looking for key support level as Copper for December delivery was down 0 6 at US3 617 while December Gold was down 0 3 or US4 30 at US1 679 60 ASX News Today BBG Billabong shares eased a day after the stock rallied 16 percent as traders braced for a potential bidding war for the troubled surfwear company BLD Boral the building products maker will cut 700 people from its workforce with most of the reduction coming from its head office is in Sydney CTY Country Road expects total group sales to have increased by 50 percent in the half year ending 31 December 2012 after the acquisition of fashion retailer Witchery and accessories brand Mimco in August FMG Fortescue Metals decision to walk away from a deal to invest in a small unconventional gas exploration company in WA could be the result of rising iron ore prices NAM Namoi Cotton shares surged after it agreed to partner with global commodities company Louis Dreyfus in a deal that will deliver it more than 34 million QAN Qantas says there is no change to its order of 15 Boeing 787 aircraft after Japaness Airlines grounded all their Dreamliners following a series of incidents in recent days RIO Rio Tinto says predictions of falls in iron ore prices should not impact it posted record annual production and indicated its massive expansion plans are on track STO Santos will release its fourth quarter production report today Ex dividend Date Katana Capital Market Summary ASX to open lower US UK Europe lower US ADRs Broadly eased By Michael Hevern D2MX Investment Advisor For Buy and Sell recommendations on ASX listed companies register for a FREE trial of FREE trial of D2MX Financial Research Michael ASX Company News Morning Wrap Stock Market Analysis Asian Markets ASX ASX News Business News Commodities Crude Oil European Markets Ex Dividend gold price Nasdaq Stock Market Analysis stockmarket trading US Market wrap Stock Market Analysis Global Markets Ease Focus Is On Asia In 2013 January 16th 2013 0 US stock markets ended just in the green overnight after rebounding from early losses European stock markets eased for a fourth session overnight Asian stocks generally rose yesterday with the regional benchmark at levels not seen since August 2011 Commodities prices were mixed Gold prices are trading around US1 678 while crude oil closed around US93 The Australian market is looking to open lower today as stock prices drifted in the US and the European markets overnight The markets are being driven by US earnings season is underway with a number of major financial companies reporting this week while the impending debt ceiling and the technology sector are weighing on sentiment The SPI Futures is trading above the key level of 4600 ended down 0 1 or 6 points at 4686 The key levels for our index this week are 4660 to 4700 See below for ASX listed companies in the news today US Markets US stock markets ended just in the green overnight after rebounding from early losses The three benchmark indexes all ended flat for the session but the S P50 index is up nearly 9 from its November lows and is trading around 5 year highs while the Dow Transportation index was up 0 7 and is at record highs The S P500 sectors ended in the green except for technology which was down 0 7 while the gains were led by the financials industrials and consumer staples sectors all up over 0 3 Near term investors are focusing on corporate earnings but the impending debt ceiling needs to be resolved in February President Obama warned Republicans in Congress not to use the need for a debt limit increase to force through new spending cuts and insisted he will not negotiate on raising the debt ceiling because the US is obliged to pay for spending it has authorized The Dow Jones closed up 0 2 at 13 534 the S P 500 index up 0 1 at 1 472 the Nasdaq ended down 0 2 at 3 110 and the smaller cap Russell 2000 was up 0 1 European Markets European stock markets eased for a fourth session overnight as a report showed weaker than expected German growth which offset Spain s better than targeted sale of debt The Stoxx 600 was down 0 1 for the session as trading volumes week up 17 above the monthly rolling average The index is up 2 3 for the year Across the region the technology sector weighed on the markets In economic news the Federal Statistics Office in Wiesbaden in a preliminary report said the German economy probably shrank in the final quarter of 2012 and Gross domestic product GDP may have dropped as much as 0 5 percent from the third quarter In 2012 German growth slowed to 0 7 percent down from 3 percent the previous year While in Spain the Treasury which set an upper goal for the sale of EUR5 5 billion sold EUR 5

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  • 2013 February | Online Stockmarket Trading Update
    profiting beyond the strike price of the short call options should the stock stage a further rally That is you are opting to forego gains from a strong rally in exchange for putting on the protection of the put options for next to no cost apart from commissions of course Use a Covered Call Collar when you expect the share price to move modestly higher or pull back significantly from current levels Recent Trade ANZ Bank ANZ A recent trade which is yet to pay off is ANZ Bank We initially entered the share position when the stock price found support above the 200 day moving average and broke above the 13 day moving average around 24 25 It shot up soon after we entered the trade and ANZ has now had another surge towards the 27 00 level At this point we decided that it is now prudent to protect the near 10 gains achieved in just over 2 months We considered a covered collar was appropriate for this position Based on technical analysis you can see from the chart that the 27 50 resistance level has held since 2008 So we bought protection at 26 50 by buying 2650 MAR13 Put for 0 365 and then wrote the 2750 MAR13 Calls for 0 27 We paid 9 5c contract insurance for this trade and the position remains open We are protected until March expiry below 26 50 and profits will be capped at 27 50 Chart 1 ANZ Bank ANZ Covered Call Collar Trade Chart 2 The payoff diagram for the ANZ Bank ANZ Covered Call Collar trade Trade Note ANZ Bank ANZ is still trading between the 26 50 and 27 50 option strike levels and only time will tell whether the share price will end up at expiry but we are protected until March expiry down to 26 50 and profits will be capped at 27 50 for a cost of 9 5c contract Note you can close either side of the trade before expiry if you believe the insurance is no longer necessary Trading Software Utilise the features in the d2mxIRESS software to plan your trades for the options strategy using your specific trade selection criteria You will save time and potentially reduce your trading risk Sign up for a free 14 day software trial here 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 Good luck in your investing and please give us a call if you would like assistance in boosting protecting your investment returns 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 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 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 covered call collar Derivatives options strategies options trading trading ANZ Trading Strategies Posted in Trading Strategies No Comments Stock Market Analysis Markets Cap Best January for Over a Decade Friday February 1st 2013 US stock markets eased overnight backing off near their all time highs and recording their best January since 1994 European stock markets fell for a second session capping their biggest monthly gain since last July Asian stock markets eased yesterday with the regional benchmark index recording a third consecutive month of gains Commodities prices were lower Gold prices are trading around US1 660 while crude oil closed around US97 The Australian market has capped its longest winning streak since 2003 up ten straight days and is in bull market territory up over 22 from its June lows and up over 13 from its November lows The ASX was up 5 1 in January and bodes well for the rest of the year as goes January so goes the year which has born out in the past 40 years when the ASX was up 1 8 or more the index continued higher on average around 7 for the year The Aussie market is looking to open lower today as stock prices saw profit taking in the US and European markets overnight The markets are still being driven by US earnings season in another been a busy week with S P500 corporates reporting their quarterly results Volatility remains subdued and affords cheap protection as the market are moving higher SPI Futures is trading above the key level of 4800 ended up 0 1 or 0 1 points at 4850 The key levels for our index today

    Original URL path: http://blog.traderdealer.com.au/2013/02/ (2013-02-02)
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  • 2013 January | Online Stockmarket Trading Update
    lower at 1 041 Commodities prices traded mixed For the session the Benchmark crude NYMEX for February delivery was up 0 6 settled at US96 44 Copper prices are looking for key support level as Copper for February delivery was up 0 3 at US3 6615 while February Gold was down 0 2 or US3 70 at US1 653 ASX News Today AGO Atlas Iron could beat its full year sales guidance after shipping more lower grade iron ore than expected in the December quarter BPT Beach Energy is expected to release its first half report on Tuesday LEI Leighton Holdings subsidiary Thiess has won a 175 million maintenance contract with Sydney Water MIN Mineral Resources says Gina Reinhart has sold her stake at 10 share OSH Oil Search is expected to release its fourth quarter production report on Tuesday RMD ResMed the Sleep disorder specialist has lifted its second quarter net profit by 24 percent to 74 8 million ahead of market expectations SFH Specialty Fashion Group teh womenswear retailer says a major reason behind a huge jump in projected first half profit is that it no longer sells cheap China made copies of overseas designs WHC Whitehaven Coal has won state planning approval for its Tarrawonga Coal Mine Expansion Project in north west NSW Ex dividend Date None Market Summary ASX to open flat US UK Europe mixed US ADRs Broadly higher By Michael Hevern D2MX Investment Advisor For Buy and Sell recommendations on ASX listed companies register for a FREE trial of FREE trial of D2MX Financial Research Tags Asian Markets ASX ASX News Business News Commodities Crude Oil European Markets Ex Dividend gold price Nasdaq Stock Market Analysis stockmarket trading US Market wrap Posted in ASX Company News Morning Wrap Stock Market Analysis No Comments Markets Higher As Investors Play Catch Up Weekly Market Wrap Friday January 25th 2013 Traders globally have continued to push markets higher as they charge into 2013 Read today s Analyst s Eye for our review of 2012 and guidance for investing in 2013 The Australian market has now traded higher for nine of the past ten weeks and trading volumes are picking up The Aussie market is likely to trade higher into the end of month next week Stock prices continue to rise consistently as they have done since the November lows in the US and the European markets as well US stock markets continue to rise as the earning season gets underway in earnest Of the 134 S P500 companies that have reported 97 have exceeded expectations The markets are now pushing beyond their 5 year highs and are now just 4 below all time highs The next near term target for the S P500 is 1525 The US House voted to temporarily suspend the nation s borrowing limit as they lifted the government s US16 4 trillion borrowing limit until 19 May This move is seen as eliminating the risk that House Republicans would be blamed for a default in the short term Positive trader sentiment was driven by the better than expected weekly jobs data and an index of leading economic indicators a gauge of the outlook for the next three to six months climbed 0 5 percent last month Also Chinese manufacturing expanded at the fastest rate in two years according to a survey of companies European stock markets have continued higher since last November The Europe Stoxx 600 is up 3 3 for the year and trading volumes are picking up Traders have shrugged off news that the World Bank had cut its global growth forecast for this year to 2 4 percent down from last year s forecast of 3 percent and after global growth of 2 3 percent in 2012 The World Bank said austerity measures high unemployment and low business confidence were likely to weigh on economies in developed nations The European earnings season has begun with nine companies listed on the Europe Stoxx 600 due to report earnings this week while 41 report next week The three benchmark indexes are all close near their recent highs and are up over 10 from their November lows In the UK the market climbed to its highest level since May 2008 as unemployment unexpectedly fell and the PM pledged to hold a referendum on Britain leaving the European Union In Germany the market is higher on the back of reports that showed eurozone manufacturing and services contracted at a slower pace in January as a Markit Economics composite index based on a survey of purchasing managers in both industries rose to 48 2 up from 47 2 in December A reading below 50 indicates contraction Asian stock markets have had a great start to 2013 but eased back this week with the regional benchmark indexes backing off levels not seen since August 2011 The IMF has cut its global growth predictions however it is maintaining its forecast for China expecting growth of 8 2 percent this year and 8 5 percent in 2014 The MSCI Asia Pacific Index is still on track to extend its rally for a third consecutive month on the back of news that showed the Chinese economy is recovering Chinese shares closed lower despite the HSBC s Flash Purchasing Managers Index PMI rising to 51 9 in January above estimates and up from 51 5 in December HSBC now expects growth to improve to 8 4 for 2013 The Australian market has had another strong week and looks set to test the 4850 level near term The market held above the 4750 level and is now hovering above the 4800 level having broken above the highs of May 2011 Our market has rebounded strongly since the November lows on the back positive sentiment around the globe and as the Aussie banks continue higher in the chase for yield We have also seen money pour into industrial and resource stocks as investors look for a turnaround in these sectors for 2013 Key levels for the index next week will be 4750 and 4850 with 4800 the key short term pivot level Be aware that we may see a short term top in the market in the next couple of weeks so be ready to protect your position and or take profits Traders continue to be optimistic and were right to ignore the impending US debt ceiling which has been pushed back to mid May on the back of positive news flow regarding the state of the Chinese US and European economies Remain attuned to the news from overseas particularly from the eurozone China and the US jobs and earnings Monitor the US dollar for a guide to the future direction of commodities and equities prices Investors can have cheap insurance for their portfolio and look to put their money to work while reducing their risk by using options and warrants strategies Contact me at D2MX Advisory on 1300 610 024 and we can help you trade using a number of strategies that will give you the tools to navigate this market and help you improve your returns on investment Michael Hevern Investment Adviser D2MX Advisory 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 News debt ceiling earnings season eurozone market news us market news Weekly Market Wrap XJO Posted in Stock Market Analysis No Comments Investing in 2013 continued Part 9 Stock Trading Tips for All Types of Market Environments Friday January 25th 2013 Last week we wrote about Investing in 2013 suggesting that 2013 promises to be less challenging than 2012 Given there is still plenty of money on the sidelines and that the RBA cash rate is expected to fall even lower than the current 3 percent the share market is a logical avenue to achieve better returns than the dwindling cash rate And the markets pushed even higher this week Yield and capital growth will be a recurring theme again this year In today s article we do a top down analysis of the Australian market as 2013 gets underway in an attempt to assess what may be ahead for us in 2013 Australia in 2012 The Aussie market rebounded strongly in the first quarter of 2012 and again in the latter quarter of the year The gains were led by the stellar performance of the banks and other high yielding sectors throughout the year and were eventually joined by the materials and industrials sectors with money moving from the sidelines as the RBA cash rate fell to 3 0 percent All in all many investors will be ruing not participating in the eventual returns in equities for the year but even as late as the end of November the ASX was looking at subdued returns for the year CHART ASX200 Performance for 2012 2013 has begun with a bang as investors who have been heavily weighted in cash over the past couple of years scramble to get on board the equities train The ASX 200 has jumped 3 5 year to date YTD and is up a whopping 11 from its November lows refer to the chart below We may see the market trade even higher near term if the market does not consolidate which is what the bulk of the retail investors are waiting for There is an old adage about the market in that it will go in the direction that causes most pain to the vast majority of investors At the moment it is very painful for those investors who continue to sit on piles of cash as the share market runs away CHART Recent Market Performances Commodities The Australian economy is heavily dependent on the commodity cycle so let s check out what s happening with commodities Commodities had a roller coaster ride throughout 2012 Gold silver and copper prices shone but aluminium and crude oil prices underperformed Crude oil prices actually finished in the red for the year as illustrated in the chart below Base metals had another tough year weighed down by the slowing economic growth in China CHART Commodity Price Performance for 2012 and 2013 YTD Moves Iron ore was a major driver for the materials sector on the ASX with spot prices ranging from over US140 down to below US90 and then recovering over 60 from their September lows to once again trade over US150 Expect iron ore prices to drive our materials sector again this year This chart also illustrates that commodity prices have begun 2013 with continued momentum Gold is holding its long term uptrend as long as the US1 600 support level holds the price should be support by all the central bank easing that is happening world wide Copper has been crawling higher in the past eighteen months and the 320 level needs to hold to support the current drift higher Silver has been crabbing sideways for the past couple of years and looks set for a major move medium term Crude oil is trapped within a range between US80 and 110 with US100 the key pivot level this year The positive trader sentiment has continued into 2013 as seen by the green bars on the above chart Investment Themes For 2013 Investors will need to be nimble again this year in managing their portfolio and trading positions Buy and hold has not worked in the past few years resulting in investors having to become more active Next week we will analyse the market by sector and identify some interesting trends If you can t wait till next week then request the bonus below which also highlights investments themes and how to invest for 2013 Bonus We have compiled a Special Report on Investing in 2013 where we cover Evaluation of the Australian market and what to expect in 2013 Evaluation of commodities prices Top down sector analysis on the Australian market Sectors to focus on this year Investing for Yield and our view on interest rates Investment themes How to survive 2013 For a free BONUS report email advisory d2mx com au or call 1300 610 024 You can also request the trading results from our Advisory service which performed well in excess of the overall market return in 2012 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 Contact me at D2MX Trading on 1300 610 024 and I can help you trade using a number of strategies that will give you the tools to navigate this market and help you boost your returns on investment 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 2011 Market Performances CHART Market Performances in 2011 Go to Top Tags ASX Commodities interest rates investing in shares stock trading tips where to invest XJO Posted in ASX Trading News Stock Market Analysis Trading Strategies No Comments Stock Market Analysis Markets Higher As Investors Play Catchup Friday January 25th 2013 US stock markets rose again overnight as the benchmark indexes pushed past 5 year highs European stock markets continued higher overnight on the back of better than expected manufacturing data Asian stock markets traded lower yesterday despite the Chinese Flash PMI numbers improving Commodities prices were lower Gold prices are trading around US1 667 while crude oil closed around US96 The Australian market is looking to open higher again today as stock prices rose in the US and European markets overnight Note it will be busy this morning with options settlements The Chinese HSCBC Preliminary PMI data showed Chinese manufacturing expanded at the fastest rate in two years The markets are still being driven by US earnings season and it has been a busy week with a fifth of the S P500 corporates reporting their quarterly results The SPI Futures is trading above the key level of 4700 ended up 0 3 or 16 points at 4797 The key levels for our index today are 4770 to 4830 See below for ASX listed companies in the news today US Markets US stock markets rose again overnight as the benchmark indexes pushed past 5 year highs despite falls in technology stocks The three benchmark indexes ended higher except for the tech heavy Nasdaq overnight with for the Dow Jones Index and the S P500 index trading at 5 year highs and just 4 below all time highs The S P500 closed just below 1500 with all sectors ended in the green except for Technology down 1 7 with the gains led by the Healthcare Consumer related and Financials sectors all up over 0 6 Next target for the S P500 is 1525 in the near term Near term investors are focusing on corporate earnings with a fifth of the S P500 corporates are due to release their quarterly results by week s end The US House voted to temporarily suspend the nation s borrowing limit removing the debt ceiling as a driver for seeking deeper spending cuts in the near term They lifted the government s US16 4 trillion borrowing limit until 19 May This move is seen as eliminating the risk that House Republicans would be blamed for a default in the short term Positive trader sentiment was driven by the better than expected weekly jobs data where claims for jobless benefits in the US unexpectedly dropped elsewhere a report showed the index of leading economic indicators a gauge of the outlook for the next three to six months climbed 0 5 percent last month Also Chinese manufacturing expanded at the fastest rate in two years according to a survey of companies Of the 134 S P500 companies that have reported 97 have exceeded expectations according to a Bloomberg survey The tech sector was dragged down by Apple down 12 after reporting its slowest profit growth since 2003 The global financial and business leaders are meeting in Davos Switzerland for their annual conference The Dow Jones closed up 0 3 at 13 825 the S P 500 index up 0 1 at 1 495 the Nasdaq ended down 0 7 at 3 130 and the smaller cap Russell 2000 was up 0 4 European Markets European stock markets continued higher overnight on the back of better than expected manufacturing data and relief as the US debt ceiling deadlines is pushed back The Stoxx 600 was ended rose 0 2 for the session and is still at levels not seen since February 2011 The index is up 3 3 for the year The index is trading at a price earnings multiple of 19 3 times reported earnings which is the highest since March 2010 as the earnings season begins with 9 companies listed on the Europe Stoxx 600 are due to report earnings this week while 41 report next week The three benchmark indexes all ended close near their recent highs up around 1 and are up over 10 from their November lows In the UK the market climbed to its highest level since May 2008 as unemployment unexpectedly fell and the PM pledged to hold a referendum on Britain leaving the European Union In Germany the market rose on the back of reports that showed eurozone manufacturing and services contracted at a slower pace in January as a Markit Economics composite index based on a survey of purchasing managers in both industries rose to 48 2 up from 47 2 in December a reading below 50 indicates contraction In other economic news the International Monetary Fund IMF cut its global growth forecasts and now projects a second year of contraction in the eurozone as progress in resolving the European debt crisis fails to produce an economic recovery The IMF forecast that the world economy will expand 3 5 percent this year down from the 3 6 percent forecast in October In London the FTSE 100 was up 1 1 at 6 265 in Germany the DAX closed up 1 1 at 7 748 while in France the CAC closed up 0 6 at 3 752 and Spain closed up 0 6 Asian Markets Asian stock markets traded lower yesterday with the regional benchmark index backing off levels not seen since August 2011 The IMF has cut its global growth predictions however it is maintaining its forecast for China forecasting growth of 8 2 percent growth this year and 8 5 percent in 2014 The MSCI Asia Pacific Index fell 0 4 but the index is still on track to extend its rally for a third consecutive month on the back of news that showed the Chinese economy is recovering and Japanese shares pulled back after the central delayed the start of an aggressive asset purchase program In Japan the market rose for the first time in four days The Bank of Japan BoJ said it would pursue an aggressive asset buying program in at attempt to reverse the stagnation of the past two decades and is now targeting an inflation rate of 2 However Japan s central bank said it would delay buying until next January when it will buy about YEN13 trillion US145 billion in Japanese government bonds and treasuries per month Chinese shares closed lower despite the HSBC s Flash Purchasing Managers Index PMI rising to 51 9 in January above estimates and up from 51 5 in December HSBC now expects growth to improve to 8 4 for 2013 In China the SSE Composite down 0 8 at 2 302 while in Hong Kong the Hang Seng Index closed down 0 2 at 23 599 and in Japan the Nikkei 225 Index was up 1 3 at 10 620 South Korean KOSPI closed down 0 4 for the session Commodities The Dollar Index was at lower 79 97 on a higher Euro while the Australian Dollar last traded lower at 1 045 Commodities prices traded lower For the session the Benchmark crude NYMEX for February delivery was up 0 7 settled at US95 96 Copper prices are looking for key support level as Copper for February delivery was down 0 3 at US3 675 while February Gold was down 1 2 or US19 90 at US1 667 ASX News Today BHP BHP Billiton is on track to lift its full year iron ore production after enjoying a better than expected result in the final three months of 2012 BLD Boral the building products maker has upgraded its underlying 1H13 profit forecast after ramping up cost cuts and enjoying better trading conditions before Christmas CWN The NSW Greens say there are conflict of interest concerns about a firm helping to assess James Packer s 1 billion Barangaroo proposal which they say is another blow to the government s transparency claims LNC Linc Energy shares surged as they estimate its shale resource in South Australia is up to 223 billion barrels of oil equivalent OZL Oz Minerals says its full year gold production will be down as much as 12 NUF Nufarm has warned that the hot and dry conditions on the east coast weaken demand for its products Ex dividend Date None Market Summary ASX to open higher US UK Europe higher US ADRs Broadly higher By Michael Hevern D2MX Investment Advisor For Buy and Sell recommendations on ASX listed companies register for a FREE trial of FREE trial of D2MX Financial Research Tags Asian Markets ASX ASX News Business News Commodities Crude Oil European Markets Ex Dividend gold price Nasdaq Stock Market Analysis stockmarket trading US Market wrap Posted in ASX Company News Morning Wrap Stock Market Analysis No Comments Stock Market Analysis Markets Cautious Ahead Of Chinese Data Thursday January 24th 2013 US stock markets rose again overnight as the benchmark indexes reached 5 year highs led by better than expected reports from technology bellwethers European stock markets generally rose overnight relieved as the US debt ceiling deadlines is pushed back Asian stock markets traded lower yesterday ahead of the Chinese Flach PMI numbers due out today Commodities prices were lower Gold prices are trading around US1 685 while crude oil closed around US95 The Australian market is looking to open higher again today as stock prices rose in the US and were mixed in the European markets overnight The markets are still being driven by US earnings season and it is a frantic week this week as a fifth of the S P500 corporates are due to release their quarterly results with technology companies surprising to the upside The ABS released the CPI figures yesterday which provided a weaker than expected reading of inflation which raisesd the chances of the Reserve Bank RBA cutting interest rates when it meets in February but economists are saying there is only a 30 chance of a cut at this stage The Chinese HSCBC Preliminary PMI data is due out today and it is options expiry The SPI Futures is trading above the key level of 4700 ended up 0 2 or 9 points at 4762 The key levels for our index today are 4740 to 4800 See below for ASX listed companies in the news today US Markets US stock markets rose again overnight as the benchmark indexes reached 5 year highs led by better than expected reports from technology bellwethers The three benchmark indexes all ended higher again overnight with for the Dow Jones Index and the S P500 index trading at 5 year highs and just 4 below all time highs The S P500 sectors ended in the red except for technology up 1 1 with the falls led by the materials energy and financials sectors all up down 0 6 Near term investors are focusing on corporate earnings with a fifth of the S P500 corporates are due to release their quarterly results by week s end The US House voted to temporarily suspend the nation s borrowing limit removing the debt ceiling as a driver for seeking deeper spending cuts in the near term They lifted the government s US16 4 trillion borrowing limit until 19 May This move is seen as eliminating the risk that House Republicans would be blamed for a default in the short term The positive trader sentiment was driven by the better than expected earnings from Travellers and Freeport McMoran which were joined by IBM and Google overnight Of the 101 S P500 companies that have reported 76 have exceeded expectations The global financial and business leaders are meeting in Davos Switzerland for their annual forum According to a Bloomberg quarterly survey of investors traders and analysts 53 percent of those surveyed expect equities will offer the highest return this year up 17 percentage from the November poll The Dow Jones closed up 0 4 at 13 779 the S P 500 index up 0 2 at 1 495 the Nasdaq ended up 0 3 at 3 154 and the smaller cap Russell 2000 was down 0 3 European Markets European stock markets generally rose overnight releived as the US debt ceiling deadlines is pushed back The Stoxx 600 was ended rose 0 2 for the session and is still at levels not seen since February 2011 The index is up 3 for the year The index is trading at a price earnings multiple of 19 3 times reported earnings which is the highest since March 2010 as the earnings season begins with 9 companies listed on the Europe Stoxx 600 are due to report earnings this week while 41 report next week The three benchmark indexes all ended close near their recent highs and are up over 10 from their November lows In the UK the market climbed to its highest level since May 2008 as unemployment unexpectedly fell and the Prime Minister pledged to hold a referendum on Britain leaving the European Union In economc news the International Monetary Fund IMF cut its global growth forecasts and now projects a second year of contraction in the eurozone as progress in resolving the European debt crisis fails to produce an economic recovery The IMF forecat that the world economy will expand 3 5 percent this year down from the 3 6 percent forecast in October In London the FTSE 100 was up 0 3 at 6 197 in Germany the DAX closed up 0 2 at 7 707 while in France the CAC closed down 0 4 at 3 726 and Spain closed down 0 2 Asian Markets Asian stock markets traded lower yesterday with the regional benchmark index backing off levels not seen since August 2011 ahead of the Chinese Flach PMI numbers due out today The MSCI Asia Pacific Index fell 0 5 but the index is still on track to extend its rally for a third consecutive month on the back of news that showed the Chinese economy is recovering and Japanese shares pulled back after the central delayed the start of an aggressive asset purchase program In Japan shares fell for a third day its longest losing streak since before its elections back in early November The Bank of Japan BoJ said it would pursue an aggressive asset buying program in at attempt to reverse the stagnation of the past two decades and is now targeting an inflation rate of 2 Japan s central bank said it will buy about YEN13 trillion US145 billion in Japanese government bonds and treasuries per month but would not start bying until next January Chinese shares closed higher for the third session in the past four as traders held their nerve ahead of the Flash PMI figures as HSBC now expects growth to improve to 8 4 for 2013 and will release Preliminary PMI data today Miners were the worst performers in the US overnight In China the SSE Composite up 0 3 at 2 320 while in Hong Kong the Hang Seng Index closed flat at 23 635 and in Japan the Nikkei 225 Index was down 2 1 at 10 487 South Korean KOSPI closed down 0 8 for the session Commodities The Dollar Index was at lower 79 87 on a higher Euro while the Australian Dollar last traded lower at 1 057 Commodities prices traded lower For the session the Benchmark crude NYMEX for February delivery was up 0 6 settled at US96 62 Copper prices are looking for key support level as Copper for February delivery was up 0 7 at US3 70 while FebruaryGold was up 0 3 or US4 80 at US1 691 80 ASX News Today BHP BHP Billiton is on track to lift its full year iron ore production after enjoying a better than expected result in the final three months of 2012 BLD Boral the building products maker has upgraded its underlying 1H13 profit forecast after ramping up cost cuts and enjoying better trading conditions before Christmas CWN The NSW Greens say there are conflict of interest concerns about a firm helping to assess James Packer s 1 billion Barangaroo proposal which they say is another blow to the government s transparency claims LNC Linc Energy shares surged as they estimate its shale resource in South Australia is up to 223 billion barrels of oil equivalent OZL Oz Minerals says its full year gold production will be down 12 NUF Nufarm has warned that the hot and dry conditions on the east coast weaken demand for its products Company News Oz Minerals releases its quarterly production Ex dividend Date None Market Summary ASX to open higher US UK Europe US higher EU mixed US ADRs Broadly mixed By Michael Hevern D2MX Investment Advisor For Buy and Sell recommendations on ASX listed companies register for a FREE trial of FREE trial of D2MX Financial Research Tags Asian Markets ASX ASX News Business News Commodities Crude Oil European Markets Ex Dividend gold price Nasdaq Stock Market Analysis stockmarket trading US Market wrap Posted in ASX Company News Morning Wrap Stock Market Analysis No Comments Stock Market Analysis US Markets Higher as European Markets Ease Wednesday January 23rd 2013 US stock markets rose overnight as the benchmark indexes traded around 5 year highs European stock markets eased overnight Asian stock markets traded higher again yesterday except Japan Commodities prices were higher Gold prices are trading around US1 692 while crude oil closed around US96 The Australian market is looking to open higher again today as stock prices rose in the US but eased the European markets overnight The markets are being driven by US earnings season and it is a frantic week this week as a fifth of the S P500 corporates are due to release their quarterly results and the impending US debt ceiling which may be pushed out The ABS will be releasing the CPI figures out today while the Chinese HSCBC Preliminary PMI data is due out tomorrow along with options expiry Thursday BHP releases its quarterly production today The SPI Futures is trading above the key level of 4700 ended up 0 2 or 11 points at 4753 The key levels for our index today are 4720 to 4780 See below for ASX listed companies in the news today US Markets US stock markets rose overnight as the benchmark indexes traded around 5 year highs The three benchmark indexes all ended overnight with for the Dow Jones Index and the S P500 index trading around 5 year highs and just 5 below all time highs The S P500 sectors ended in the green except for telecoms down 0 1 with the gains led by by the technology and financials sectors all up around 0 3 Near term investors are focusing on corporate earnings and it is a frantic week this week as a fifth of the S P500 corporates are due to release their quarterly results It looks like the impending debt ceiling deadline will be pushed out after Speaker John Boehner said House Republicans plan to vote on a three month extension of US borrowing authority in an effort to force the Democratic dominated Senate to adopt a budget plan The positive trader sentiment was driven by the better than expected earnings from GE and Goldmans joined by Travellers and Freeport McMoran overnight Of the 74 S P500 companies that have reported 52 have exceeded expectations In economic news sales of US existing homes unexpectedly dropped in December restrained by the lowest supply of properties in more than a decade The global financial and business leaders are meeting in Davos Switzerland for their annual forum According to a Bloomberg quraterly survey of investors traders and analysts 53 percent of those surveyed expect equities will offer the highest return this year up 17 percentage from the November poll The Dow Jones closed up 0 5 at 13 712 the S P 500 index up 0 4 at 1 492 the Nasdaq ended up 0 3 at 3 143 and the smaller cap Russell 2000 was up 0 7 European Markets European stock markets eased overnight as the US debt ceiling concerns overshadowed the better than expected economic data from China and the US The Stoxx 600 was ended down 0 1 for the session but is still at levels not seen since February 2011 The index is up 2 9 for the year Across the region the mining and financials sectors provided support on the markets The three benchmark indexes all ended close near their recent highs and are up over 10 from their November lows In economic news the ZEW Center for European Economic Research reported

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  • 2012 December | Online Stockmarket Trading Update
    Chancellor Angela Merkel said the promise of lifting the eurozone out of its debt crisis is worth the pain that is being caused by German inspired austerity In the UK the FTSE remains around 8 month highs In London the FTSE 100 was up 0 4 at 5 936 in Germany the DAX closed up 0 6 at 7 653 while in France the CAC closed up 0 3 at 3 648 and Spain closed up 0 9 Asian Markets Asian stock markets ended higher yesterday with the regional benchmark index remains at its highest levels in over a year while the Chinese market continues to trade above one month highs The MSCI Asia Pacific Index has advanced for the past three weeks recording its longest winning streak in three years on the back of signs of economic growth improving in the world s largest economies The index is up 12 for the year following announcements from central banks globally of added stimulus designed to spur growth and data that is indicating that the Chinese slowdown may be bottoming The Chinese market rose again following last week s strong performance and is up 4 8 for December and is still trading around 1 month highs China has set its initial target for economic growth at 7 5 percent for a second year and tightened its inflation goal to the lowest level since 2010 but the leadership still needs to stimulate the domestic economy in order to push GDP growth back above 8 In Hong Kong the markets backed off 16 month highs The Japanese stock market finished at fresh 8 month highs as the yen weakened following the change of leadership on the weekend and exporters advanced as the yen touched a 9 month low The Bank of Japan is expected to increase its asset purchase plan by Y5 Y10 trillion at Thursday s meeting and there is trade data due out today In China the SSE Composite up 0 1 at 2 162 while in Hong Kong the Hang Seng Index closed down 0 1 at 22 494 and in Japan the Nikkei 225 Index was up 0 9 at 9 923 South Korean KOSPI closed up 0 5 for the session Commodities The Dollar Index was at lower 79 33 on a higher Euro while the Australian Dollar last traded higher at 1 054 Commodities prices traded lower For the session the Benchmark crude NYMEX for December delivery was up 0 8 settled at US87 91 Copper prices are looking for key support level as Copper for December delivery was down 0 5 at US3 647 while December Gold was down 1 6 or US26 50 at US1 671 70 ASX News Today ANN Ansell the gloves and condom maker has increased its exposure to Latin America by buying Brazilian military clothing company Hercules for US77 million ALZ Takeover target Australand says it has not received an approach from property giant Mirvac about a potential merger BBG Billabong the surfwear retailer is in a trading halt after reports said former director has made a 527 million offer for the struggling company CBA CommBank is increasing its stake in John Symond s Aussie Home Loans to 80 percent and extending its position as the country s number one home lender DLX DuluxGroup the paint maker says sales have improved so far in fiscal 2013 and expects a rise in full year net profit CTX Caltex Australia has forecast a return to full year profit in 2012 but a slowdown in its marketing business has raised concerns FMG Fortescue Metals plans to sell a stake in its Pilbara rail and port assets but the move has raised concerns about what the loss of control will mean for its future growth FUN Funtastic the toy distributor has reaffirmed its guidance of 23 25 million in earnings for fiscal 2013 LNG Liquefied Natural Gas Ltd says the cost of building its Fisherman s Landing project in Queensland is on track to cost US 1 1 billion Corporate News Reporting today Integra Mining Limited Full year 2012 AGM Ex dividend Date Singapore Telecomm SGT Market Summary ASX to open higher US UK Europe higher US ADRs Broadly higher By Michael Hevern D2MX Investment Advisor For Buy and Sell recommendations on ASX listed companies register for a FREE trial of FREE trial of D2MX Financial Research Tags Asian Markets ASX ASX News Business News Commodities Crude Oil European Markets Ex Dividend gold price Nasdaq Stock Market Analysis stockmarket trading US Market wrap Posted in ASX Company News Morning Wrap Stock Market Analysis No Comments Stock Market Analysis Global Markets Continue Higher Tuesday December 18th 2012 US stock markets broke a 3 day losing streak overnight as investors were encouraged by the progress on the fiscal cliff negotiations European stock markets eased overnight easing back from 18 month highs overnight as investors took some profits off the table Asian stock markets ended mixed yesterday the regional benchmark index remains at its highest levels in over a year Commodities prices were modestly higher Gold prices are trading around US1 699 while crude oil closed around US87 The Australian market is looking to open higher today as stock prices rebounded in the US and the European markets The markets continue to be driven by news around stimulus and to be very reactive to news flow around the impending US Fiscal Cliff The banks were the biggest drivers in the US but materials stocks also performed well Remember we have index and equities options expiry on Thursday this week The SPI Futures is trading above the key level of 4550 ended up 0 5 or 24 points at 4597 The key levels for our index today are 4580 to 4630 See below for ASX listed companies in the news today US Markets US stock markets broke a 3 day losing streak overnight as investors were encouraged by the progress on the fiscal cliff negotiations The three benchmark indexes ended up around 0 6 The financials sector was the biggest gainer on the S P500 up over 2 are is on track for its highest levels since mid October The Materials and Technology sectors were up over 1 1 for the session The S P 500 is still up 14 percent for the year Since the 1980s the US markets have averaged a gain of 1 5 for December and they are now up 1 1 for the month so far The fiscal cliff negotiations are making progress as the House Speaker Boehner proposed a tax rate increase for the first time in the US budget debate The talks continue US investors have been positioning for a resolution of the fiscal cliff before Christmas so any delays would weigh on equities Expect markets to be news driven until the issues are finally resolved and this could take as late as January next year but investors have factored in a resolution before Christmas In economic news an index of New York area manufacturing showed shrinking activity in for a fifth month in a row in December The Dow Jones closed up 0 8 at 13 235 the S P 500 index up 1 2 at 1 430 the Nasdaq ended up 1 3 at 3 010 and the smaller cap Russell 2000 was up 1 4 European Markets European stock markets eased overnight easing back from 18 month highs overnight as investors took some profits off the table The Stoxx 600 has backed off its highest level since May 2011 and has rallied 14 percent for the year as optimism grew that the US Congress and President Barack Obama would resolve the impasse over the US budget and as the European Central Bank remains committed to an unlimited bond buying plan Across the region the telecoms sector fell 1 1 weighing on the markets Eurozone trade balance figures for October also weighed on sentiment as seasonally adjusted exports fell by 1 4 month on the month further down from the 1 3 drop in September The eurozone banking system was again in focus as the European Central Bank President Draghi said ECB policies and governance reforms in the eurozone have revived confidence that will help encourage a gradual economic recovery in the second half of next year The European financial leaders have agreed to put the ECB in charge of all large eurozone lenders rather than their national regulators Some 200 banks will automatically qualify for oversight by the ECB but there are over 6 000 lenders that may eventually be included The banking system was in focus in Spain as the Banco Santander fell 1 2 after is was announced that Santander would absorb a smaller competitor The German market continues to trade at its highest level in nearly five years and this market is now up 27 percent from its June lows German Chancellor Angela Merkel said the promise of lifting the eurozone out of its debt crisis is worth the pain that is being caused by German inspired austerity In the UK the FTSE remains around 8 month highs In economic news a preliminary reading of Markit s eurozone purchasing managers composite output index rose to a nine month high at 47 3 in December up from 46 5 in November In London the FTSE 100 was down 0 2 at 5 912 in Germany the DAX closed up 0 1 at 7 604 while in France the CAC closed down 0 1 at 3 638 and Spain closed up 0 6 Asian Markets Asian stock markets ended mixed yesterday with the regional benchmark index remains at its highest levels in over a year while the Chinese market is trading around one month highs The Japanese stock market finished at fresh 8 month highs as the yen weakened following change of leadership while stocks in nuclear power generators surged higher as exporters advanced as the yen touched a 9 month low The Bank of Japan is expected to increase its asset purchase plan by Y5 Y10 trillion at this week s meeting The MSCI Asia Pacific Index has advanced for the past three weeks recording its longest winning streak in three years on the back of signs of economic growth improving in the world s largest economies The index is up 12 for the year following announcements from central banks globally of added stimulus designed to spur growth and data that is indicating that the Chinese slowdown may be bottoming The Chinese market rose again following Friday s strong performance and is up 4 8 for December and is still trading around 1 month highs but the leadership still needs to stimulate the domestic economy in order to push GDP growth back above 8 In Hong Kong the markets backed off 16 month highs In China the SSE Composite up 0 4 at 2 160 while in Hong Kong the Hang Seng Index closed down 0 4 at 22 513 and in Japan the Nikkei 225 Index was up 0 9 at 9 828 South Korean KOSPI closed down 0 6 for the session Commodities The Dollar Index was at lower 79 57 on a higher Euro while the Australian Dollar last traded higher at 1 055 Commodities prices traded higher For the session the Benchmark crude NYMEX for December delivery was up 1 0 settled at US87 47 Copper prices are looking for key support level as Copper for December delivery was down 0 7 at US3 676 while December Gold was up 0 1 or US2 20 at US1 699 ASX News Today BBG Billabong the surfwear retailer is in a trading halt after reports said former director has made a 527 million offer for the struggling company CTX Caltex Australia has forecast a return to full year profit in 2012 but a slowdown in its marketing business has raised concerns FMG Fortescue Metals plans to sell a stake in its Pilbara rail and port assets but the move has raised concerns about what the loss of control will mean for its future growth FXJ Fairfax Media announced sale of its remaining stake in the New Zealand based online auction and classifieds site Trade Me PMP PMP the printing and distribution business has received some good news after it retained the contract to print catalogues for Woolworths LLC Lend Lease will carry out a 1 billion revamp of Sydney s convention and entertainment centre precinct in a public private partnership with the NSW government LNC Linc Energy shares have been surging due to continued speculation that Russian billionaire Roman Abramovich is interested in the company LYC Lynas returned from another trading after Malaysian government ministers ordered it to export waste from its local rare earths plant QAN The ACCC has approved plans by Qantas to more closely integrate its operations with that of its low cost airline Jetstar TSE Transfield Services has won several new contracts worth 140 million including work on two major energy projects Corporate News Reporting today DuluxGroup AGM Funtastic AGM Incitec Pivot AGM Ex dividend Date Amadeus Energy AMU Market Summary ASX to open higher US UK Europe higher US ADRs Broadly higher By Michael Hevern D2MX Investment Advisor For Buy and Sell recommendations on ASX listed companies register for a FREE trial of FREE trial of D2MX Financial Research Tags Asian Markets ASX ASX News Business News Commodities Crude Oil European Markets Ex Dividend gold price Nasdaq Stock Market Analysis stockmarket trading US Market wrap Posted in ASX Company News Morning Wrap Stock Market Analysis No Comments Money Magazine s Best of the Best goes to Trader Dealer Monday December 17th 2012 Best of the Best 2013 Cheapest Non Advisory Phone Brokers At Trader Dealer we ve always placed a high emphasis on good customer service so we re proud to have once again been named in Money Magazine s Best of the Best list in the Cheapest Non Advisory Phone Brokers category We don t charge extra fees for trades placed over the phone and we have a trading desk staffed by friendly qualified traders ready to place your orders or answer your questions So if you like the security of having a trader place orders on your behalf or you re caught away from your trading platform when a trade signal hits call 1300 130 545 and we ll be happy to help you out More about brokerage rates More about phone trading with Trader Dealer Tags awards best broker brokerage money magazine phone trading Trader Dealer Posted in Trader Dealer News No Comments Stock Market Analysis Global Markets Finsihed Week In The Green Monday December 17th 2012 US stock markets eased on Friday night but are trading back above the pre election levels European stock markets are continuing on their amazing run but eased back from 18 month highs overnight Asian stock markets ended mixed on Friday but ended higher for the week Commodities prices were modestly higher Gold prices are trading around US1 697 while crude oil closed around US86 The Australian market is looking to open lower today as stock prices eased in the US and the European markets The markets continue to be driven by news around stimulus and to be very reactive to news flow around the impending US Fiscal Cliff The SPI Futures is trading above the key level of 4550 ended down 0 1 or 3 points at 4577 The key levels for our index today are 4540 to 4600 See below for ASX listed companies in the news today US Markets US stock markets eased on Friday night but are trading back above the pre election levels The three benchmark indexes ended modestly lower for the week The technology sector was the biggest drag on the S P500 as Apple shares continued their slide The S P 500 is still up 13 percent for the year Since the 1980s the US markets have averaged a gain of 1 5 for December and they are now up 1 1 for the month so far On Thursday the Federal Reserve Chairman Ben Bernanke said the central bank will buy US45 billion a month of Treasury securities starting in January in addition to US40 billion a month of mortgage debt purchases The easing bias will continue well into 2015 The fiscal cliff negotiations are making progress but at a slower pace The fiscal cliff talks continue US investors have been positioning for a resolution of the fiscal cliff before Christmas so any delays would weigh on equities Expect markets to be news driven until the issues are finally resolved and this could take as late as January next year but investors have factored in a resolution before Christmas The Dow Jones closed down 0 3 at 13 135 the S P 500 index down 0 4 at 1 413 the Nasdaq ended down 0 7 at 2 971 and the smaller cap Russell 2000 was up 0 1 European Markets European stock markets are continuing on their amazing run but eased back from 18 month highs overnight as investors took some profits off the table The Stoxx 600 has backed off its highest level since May 2011 and has rallied 14 percent for the year as optimism grew that the US Congress and President Barack Obama would resolve the impasse over the US budget and as the European Central Bank remains committed to an unlimited bond buying plan In a further step towards financial unification of the eurozone countries the European financial leaders agreed to put the ECB in charge of all large eurozone lenders rather than their national regulators Some 200 banks will qualify for oversight by the ECB In economic news a preliminary reading of Markit s eurozone purchasing managers composite output index rose to a nine month high at 47 3 in December up from 46 5 in November The German market is trading at its highest level in nearly five years and this market is now up 27 percent from its June lows In the UK the FTSE remains around 8 month highs In London the FTSE 100 was down 0 1 at 5 921 in Germany the DAX closed up 0 2 at 7 596 while in France the CAC closed up 0 1 at 3 643 and Spain closed up 0 1 Asian Markets Asian stock markets ended mixed on Friday but ended higher for the week with the regional benchmark index at its highest levels in over a year while the Chinese market is trading around one month highs Investors reacted positively to the news from the US Fed Reserve and the Chinese data that confirmed the economy is bottoming The MSCI Asia Pacific Index has advanced for the past three weeks recording its longest winning streak in three years on the back of signs of economic growth improving in the world s largest economies The index is up 11 for the year following announcements from central banks globally of added stimulus designed to spur growth and data that is indicating that the Chinese slowdown may be bottoming The Chinese market is up 4 3 for December and is still trading around 1 month highs but the leadership still needs to stimulate the domestic economy in order to push GDP growth back above 8 In Hong Kong the markets is at 16 month highs The HSBC s preliminary Purchasing Managers Index for December continued to show an expansion in activity UP at a 14 month high of 50 9 In Japan the market rose again above 7 month highs with exporters advancing as the yen touched a 9 month low The Liberal Democratic Party gained a majority in the election in a landslide Machinery orders have risen for the first time in three months In China the SSE Composite up 0 4 at 2 074 while in Hong Kong the Hang Seng Index closed up 0 8 at 22 503 and in Japan the Nikkei 225 Index was up 0 7 at 9 581 South Korean KOSPI closed up 0 6 for the session Commodities The Dollar Index was at lower 79 54 on a higher Euro while the Australian Dollar last traded higher at 1 056 Commodities prices traded higher For the session the Benchmark crude NYMEX for December delivery was up 1 0 settled at US86 73 Copper prices are looking for key support level as Copper for December delivery was up 0 6 at US3 683 while December Gold was up 0 1 or US0 20 at US1 697 ASX News Today APN APN News Media shares plunged to a record low after announcing a profit warning ALZ Australand has rejected an offer from fellow property company GPT Group for its commercial and industrial and investment property portfolio BHP BHP Billiton has rid itself of looming risks with the controversial 30 billion Browse gas project after deciding to sell its interest to oil and gas giant PetroChina CTX Caltex Australia has forecasti a return to full year profit in 2012 but a slowdown in its marketing business has raised concerns EGP Echo Entertainmen announced John Redmond the former head of major casino groups in the United States has been named the new chief executive of casino owner LLC Lend Lease will carry out a 1 billion revamp of Sydney s convention and entertainment centre precinct in a public private partnership with the NSW government LNC Linc Energy shares have been surging due to continued speculation that Russian billionaire Roman Abramovich is interested in the company LYC Lynas returned from another trading after Malaysian government ministers ordered it to export waste from its local rare earths plant MAH Macmahon Holdings shares plunged to an 8 year low after the mining contract launched a 80 7 million capital raising and sold its ailing construction business QAN The ACCC has approved plans by Qantas to more closely integrate its operations with that of its low cost airline Jetstar SXL Southern Cross Media Group will resume advertising on Sydney radio station 2DayFM but will donate the profits following the controversial prank call to a London hospital TSE Transfield Services has won several new contracts worth 140 million including work on two major energy projects WPL Woodside Petroleum has warned that further cost blowouts in the oil and gas industry could jeopardise future long term investment Corporate News Reporting today JB Hi Fi Ltd JBH Trading statement Ex dividend Date None Market Summary ASX to open flat US UK Europe flat US ADRs Broadly lower By Michael Hevern D2MX Investment Advisor For Buy and Sell recommendations on ASX listed companies register for a FREE trial of FREE trial of D2MX Financial Research Tags Asian Markets ASX ASX News Business News Commodities Crude Oil European Markets Ex Dividend gold price Nasdaq Stock Market Analysis stockmarket trading US Market wrap Posted in ASX Company News Morning Wrap Stock Market Analysis No Comments Weekly Market Wrap Global Markets Continue Their Stellar Run Higher Friday December 14th 2012 Once again markets pushed higher this week with many now testing their October peaks as traders wait for signs that equities prices can push to new highs Markets have a seasonal tendency to trade higher from around now into the year s end however the news around the US fiscal cliff continues to dominate sentiment particularly in the US US stock markets again pushed higher trading back above the pre election levels The three benchmark indexes are on track to finish in the green for the week which bodes well for a push higher into year s end The S P 500 is now up 13 percent for the year Since the 1980s the US markets have averaged a gain of 1 5 for December and they are now up 1 1 for the month so far On Thursday the Federal Reserve Chairman Ben Bernanke said the central bank will buy US45 billion a month of Treasury securities starting in January in addition to US40 billion a month of mortgage debt purchases The easing bias will continue well into 2015 Investor sentiment was initially boosted by optimism that the Fed Reserve would provide additional stimulus and that the fiscal cliff negotiations are making progress However overnight the US House speaker Boehner said the White House is not serious about cutting spending and needs to implement higher taxes in its plans The fiscal cliff talks continue US investors have been positioning for a resolution of the fiscal cliff before Christmas so any delays would weigh on equities Expect markets to be news driven until the issues are finally resolved and this could take as late as January next year but investors have factored in a resolution before Christmas European stock markets are continuing on their amazing run but eased back from 18 month highs overnight as investors took some profits off the table The Stoxx 600 has backed off its highest level since May 2011 and has rallied 14 percent for the year as optimism grew that the US Congress and President Barack Obama would resolve the impasse over the US budget and as the European Central Bank remains committed to an unlimited bond buying plan In a further step towards financial unification of the eurozone countries the European financial leaders agreed to put the ECB in charge of all large eurozone lenders rather than their national regulators Some 200 banks will qualify for oversight by the ECB The German market is trading at its highest level in nearly five years and this market is now up 27 percent from its June lows In the UK the FTSE remains around 8 month highs Asian stock markets have been on the rise again this week with the regional benchmark index at its highest levels in over a year while the Chinese market is trading around one month highs Investors reacted positively to the news from the US Fed Reserve and the Chinese data that confirmed the economy is bottoming The MSCI Asia Pacific Index has advanced for the past three weeks recording its longest winning streak in three years on the back of signs of economic growth improving in the world s largest economies The index is up 11 for the year following announcements from central banks globally of added stimulus designed to spur growth and data that is indicating that the Chinese slowdown may be bottoming The Chinese market is up 4 5 for December and is still trading around 1 month highs but the leadership still needs to stimulate the domestic economy in order to push GDP growth back above 8 In Japan the market rose again above 7 month highs with exporters advancing as the yen touched a 9 month low Polls show that the Liberal Democratic Party looks likely to gain a majority in the upcoming election Machinery orders have risen for the first time in three months In commodities iron ore is up 42 from its September lows copper is up nearly 8 in a month aluminum is up 12 since October lows and gold is up 10 from its lows but crude oil is hovering around its lowest level in three weeks The Australian market has had another strong week but is running up into resistance around the 4620 level The market held above the 4550 level and is now hovering above 4590 having broken above the highs of mid October Our market has rebounded on the back of positive sentiment around the globe and the Aussie banks continued higher in the chase for yield but we also saw money pour into resource stocks as investors look for a turnaround in the materials sector for 2013 Key levels for the index next week will be 4540 and 4630 with 4570 the key short term pivot level Be aware that we may see a short term top in the market in the next couple of weeks so be ready to protect your position and or take profits In today s Analyst s Eye we provide you with a Stocks Shopping List for Christmas Traders remain oblivious to the impending US fiscal cliff and continue to be optimistic on the back of positive news regarding a resolution Greece has now received its bailout funds and the Chinese leadership is hinting at a more accommodative stance to promote growth for next year Remain attuned to the news from overseas particularly from the eurozone China easing and the US fiscal cliff Monitor the US dollar for a guide to the future direction of commodities and equities prices Contact me at D2MX Advisory on 1300 610 024 and we can help you trade using a number of strategies that will give you the tools to navigate this market and help you improve your returns on investment 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 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 Posted in Stock Market Analysis No Comments Stocks for the 2012 Christmas Hamper Friday December 14th 2012 Last Christmas in our end of year note we highlighted high yielding stocks as the place to park your money Christmas Hamper for 2012 and that has proven to be a fantastic strategy for our clients While trading in high yielding stocks is not guaranteed to deliver strong returns to investors or traders dividends do offer a margin of safety which can in turn boost any capital return on the company s shares as evidenced by this year s performance Dividends also offer Super Funds the additional benefit of franking credits which can boost the portfolio s annual performance A review of the stocks we highlighted in last year s note paints a far rosier picture If you had simply constructed a portfolio with the 15 stocks highlighted then you could have returned 14 8 for the year in capital growth plus an additional 6 2 in dividends There were some standout performers with capital returns Perpetual was up 70 and NiB Health was up 40 while Telstra and Tatts were up 30 and Commbank and Westpac returned 25 Note these returns were did not include the dividends There were also a couple of dogs Metcash and Oz Minerals were both down over 23 2013 Outlook At this stage the prospects for 2013 appear to be clearer than they were at the same time last year In the US investors are facing the fiscal cliff in the short term but they are factoring in a resolution to that in the New Year The European markets are now at 18 month highs and the German market which is the European powerhouse is at 5 year highs The Europeans have battled their way through the year without any major catastrophes Greece was bailed out belatedly and the Spanish banks were also provided with bailout funding The eurozone is making progress on a unified banking system with the European financial leaders agreeing to put the European Central Bank in charge of all large eurozone lenders rather than their national regulators Some 200 banks will qualify for oversight by the ECB Germany is even considering the idea that it may allow Greece to write off some of its debt The Asian region as a whole has been underperforming on the world stage led by the Chinese market which went into hibernation as they grappled with stricter corporate governance standards and the once in a decade leadership changes The Chinese market recently hit its lowest levels since the GFC ended in 2009 However data out of China is now indicating that the economy is bottoming which should be positive for a move higher in New Year All in all we are definitely seeing some green shoots in markets globally which bodes well for 2013 The markets look set to move higher next year even though there will no doubt be some setbacks along the way as we 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

    Original URL path: http://blog.traderdealer.com.au/2012/12/ (2013-02-02)
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