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  • Weekly Market Wrap: Global Markets Continue Their Stellar Run Higher | Online Stockmarket Trading Update
    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

    Original URL path: http://blog.traderdealer.com.au/2012/12/14/weekly-market-wrap-global-markets-continue-their-stellar-run-higher/ (2013-02-03)
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  • Stock Market Analysis: Global Markets Take A Breather From Stellar Run | Online Stockmarket Trading Update
    London the FTSE 100 was down 0 3 at 5 929 in Germany the DAX closed down 0 4 at 7 581 while in France the CAC closed down 0 1 at 3 643 and Spain closed up 0 4 Asian Markets Asian stock markets rose again yesterday but are expected to give back gains today The regional benchmark index is at its highest levels in over a year while the Chinese market edged lower backing off one month highs Investors reacted positively to the news from the US Fed Reserve and the Chinese data that confirming that the economy is bottoming The MSCI Asia Pacific Index rose 0 3 for the session advancing in the past 3 weeks and recording its longest winning streak in 3 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 has now only risen three of the past five sessions but is still up 4 5 for December and is still trading around 1 month highs as banks and growth sensitive stocks saw some profit taking as commodities prices declined Data is still confirming that the economy is bottoming but leadership still need to stimulate the domestic economy in order to push GDP growth back above 8 In Japan the market rose again above 7 month highs as exporters advanced as the yen touched a 9 month low with the polls showing that the Liberal Democratic Party looks likely to gain a majority in the upcoming election and machinery orders rising for the first time in three months In China the SSE Composite down 1 0 at 2 061 while in Hong Kong the Hang Seng Index closed down 0 3 at 22 445 and in Japan the Nikkei 225 Index was up 1 7 at 9 742 South Korean KOSPI closed up 1 4 for the session Commodities The Dollar Index was at lower 79 92 on a higher Euro while the Australian Dollar last traded higher at 1 053 Commodities prices traded lower For the session the Benchmark crude NYMEX for December delivery was up 0 5 settled at US86 22 Copper prices are looking for key support level as Copper for December delivery was down 1 3 at US3 669 while December Gold was down 1 2 or US20 30 at US1 697 60 ASX News Today BHP BHP Billiton will sell its interest to oil and gas giant PetroChina avoiding the looming risks with the controversial 30 billion Browse gas project has be plagued with BOQ Bank of Queensland is optimistic about a recovery in its home state s housing market and increasing earnings CCL Coca Cola Amatil says trading conditions in Australia have picked up in the lead into Christmas as the beverage group forecasts a

    Original URL path: http://blog.traderdealer.com.au/2012/12/14/stock-market-analysis-global-markets-take-a-breather-from-stellar-run/ (2013-02-03)
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  • 2012 December | Online Stockmarket Trading Update - Part 2
    to 5 5 and the ASX market had a delayed reaction to the news on Friday The SPI Futures is trading above the key level of 4500 ended up 0 1 or 13 points at 4566 The key levels for our index today are 4530 to 4570 See below for ASX listed companies in the news today US Markets US stock markets rose for a third session as the Nasdaq weighed after Apple had its worst sell off since 2008 and the Non Farm Payroll employment figures were better than expected The three benchmark indexes were around 0 3 higher except for the Tech heavy Nasdaq which ended down 0 4 for the session The 10 S P 500 sectors all ended higher except for Technology down 0 5 while gains were led by Materials Energy Industrials and Financials sectors all trading up around 0 8 for the session The S P500 benchmark is back at pre election levels Investor sentiment was boosted by better than expected jobs data as the unemployment rate fell to 7 7 percent the lowest since December 2008 as size of the labor force contracted and 146 0000 jobs were added in November The gains were tempered in the afternoon session as traders digested news of the Thomson Reuters preliminary index of U S consumer sentiment that showed December confidence fell to 74 5 down from 82 7 well below consensus There was also a lack of progress on the fiscal cliff negotiations which saw the House Republicans reject President Obama s demand for tax rate increases and in turn is proposing US1 4 trillion in spending cuts and US800 billion in new revenue by limiting tax breaks and capping deductions for top earners House Speaker John Boehner ended the week saying no progress had been made in talks Talks continue In commodities prices hovered around multi week lows Crude oil falling to its lowest level in three weeks after the ECB cut its eurozone growth forecasts and in the Us lawmakers struggled to reach agreement over the resolution of the fiscal cliff Gold rebounded from a 4 week low after ECB President Mario Draghi indicated there was room for further interest rate cuts in an attempt to boost the eurozone economy Investors have been positioning for a resolution before Christmas so continued 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 up 0 6 at 13 155 the S P 500 index up 0 3 at 1 418 the Nasdaq ended down 0 4 at 2 978 and the smaller cap Russell 2000 was up 0 3 European Markets European stock markets rose again extending their 18 month highs and continuing their longest winning streak of monthly gains in six years The Stoxx 600 up another 0 1 up 1 2 for the week and closing at its highest level since May 2011 as optimism grew that the US Congress and President Barack Obama would agree resolve the impasse over the US budget stopping automatic tax increases and spending cuts from coming into force early next year and resolution of the Greek bailout The equity benchmark index has rallied 18 percent from its June lows following the European Central Bank s announcement of an unlimited bond buying plan and the Federal Reserve started a third round of asset purchases QE3 Across the region the growth sensitive sectors such as the commodity related chemical and consumer discretionary sectors leading gains over the week Investor sentiment was boosted by reports of China signaling a wider policy support for economic recovery which outweighed disappointing eurozone data as manufacturing and services output shrank for a tenth straight month while retail sales dropped more than forecast in October The ECB cut its eurozone growth forecast for next year saying it expected the economy to shrink by around 0 3 versus previous guidance for growth of 0 5 as it cut expectations on the inflation outlook to around 1 6 next year down from 1 9 The ECB left its key lending rate at a record low 0 75 and indicated that there was room for more cuts if needed In Germany the market fell for the first time in nine straight sessions but still closed around 5 year highs Traders sentiment was dampened after the Bundesbank reduced its forecast for the rate of growth for the German economy next year cutting its projection for 2013 to 0 4 percent down from the 1 6 percent predicted in June Also the German Economy Ministry reported industrial output dropped 2 6 percent in October well below consensus as construction activity and the production of investment goods slumped In a major change of tact earlier in the week the German Chancellor Angela Merkel had opened the possibility that Germany will ultimately accept a write off of Greek debt providing Greece can get into a position of having a budget surplus In London the FTSE 100 was up 0 2 at 5 914 in Germany the DAX closed down 0 2 at 7 517 while in France the CAC closed up 0 2 at 3 605 and Spain closed down 0 8 Asian Markets Asian stock markets rose for a third week with the regional benchmark index having its highest close in 7 months on the back of news that the Chinese leadership is signaling a wider policy support for economic recovery Across the region the financial insurers materials and growth sensitive sectors all saw support The MSCI Asia Pacific Index rose another 0 3 for the session as gainers outnumbered losers by two to one The index is up 14 from its lows in June 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 In Japan the market hit a 7 month high as Japanese exporters outperformed due to a weaker yen and signs from the polls showing that the Liberal Democratic Party looks likely to gain a majority in the upcoming election Chinese stocks staged their biggest weekly rally since October 2011 whit the Shanghai Composite up 4 1 but the market is still down 6 6 for the year The gains primarily cames from the growth sensitive and financials sectors with trading volumes almost double the monthly average The market bounced sharply from its lowest levels since January 2009 as bargain hunters stepped in The catalyst was the news that Chinese banks and insurers restrictions over rules limiting insurers investments in commercial lenders was abolished and the new elected Chinese leaders pledged to expand domestic demand and actively promote urbanisation The Shanghai Composite Index is still underperforming on the world stage but has now bounced above the key psychological level of 2 000 Asian traders cheered the news that Chinese leaders were becoming more accommodative In China the SSE Composite up 1 6 at 2 061 while in Hong Kong the Hang Seng Index closed down 0 5 at 22 191 and in Japan the Nikkei 225 Index was down 0 3 at 9 527 South Korean KOSPI closed down 0 1 for the session Commodities The Dollar Index was higher at 80 56 on a lower Euro while the Australian Dollar last traded lower at 1 049 Commodities prices traded higher For the session the Benchmark crude NYMEX for December delivery was down 0 4 settled at US85 93 Copper prices are looking for key support level as Copper for December delivery was up 0 5 at US3 663 while December Gold was up 0 2 or US3 70 at US1 705 50 ASX News Today BLD Boral the building products maker is cutting 90 jobs as it suspends some manufacturing at a Victorian cement plant in favour of imports LYC Lynas the rare earths miner court decision over action against the operation of its new plant in Malaysia has been delayed until next week MYR Myer chairman Paul McClintock is confident the federal government will agree to demands by local retailers and force offshore online stores to pay GST on low priced goods next year NUF Nufarm pesticide company expects earnings to rise 15 percent in 1H13 due to a stronger performance in South America and an improvement in Europe SOL Washington H Soul Pattinson chairman Robert Millner has defended the investment firm s review of its cross shareholding with Brickworks after major institutional shareholder Perpetual Investments expressed concerns about its independence SXL The chairman of Southern Cross Media has written to the British hospital targeted by a radio station prank phone call saying it is reviewing the broadcast and processes involved TEN Gina Rinehart the mining mogul has given her last minute support to the Ten Network s 230 million capital raising VRL Village Roadshow will sell its distribution centre in Sydney which currently handles more than 36 million DVDs QBE QBE Insurance shares hovers around an 11 month low due to speculation about whether a capital raising may be in the offing but the company deny any need for uch action TEN Ten Network Holdings is in a trading halt as the free to air broadcaster prepares to raise new funds VAH Virgin Australia has won approval from Singapore s corporate regulator to take over regional airline Skywest as it makes a push into budget air travel WHC Whitehaven Coal has applied for emergency approval to truck coal from its Narrabri mine after a train derailment Corporate News Reporting today None Ex dividend Date Metcash Limited Market Summary ASX to open higher US UK Europe higher Commodities Stock Index up 0 6 Gold Stocks Index up 1 1 Oil Stocks Index up 0 6 US ADRs Broadly mixed BHP up 0 4 RIO up 1 0 AWC down 1 5 ANZ up 0 8 NAB up 1 1 NEM up 0 3 JHX 2 8 NWS up 1 1 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 Traders Oblivious to the Cliff as Markets Continue Higher Friday December 7th 2012 Markets pushed higher again this week with many looking to be setting up for a re test of their October 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 where markets pulled back from their 50 retracement levels US stock markets have pulled back this week led by the Nasdaq after Apple had its worst sell off since 2008 The three benchmark indexes are on track to finish in the red for the week which would be the first weekly pullback since the November bounce The technology sector has been the biggest drag on the markets this week Investor sentiment was boosted at the start of the week after a Goldman Sachs report said it expects that stocks will outperform treasuries next year as S P 500 sales and profit growth boost the price earnings multiple Revised figures from the Commerce Department showing that gross domestic product grew at a 2 7 percent annual rate revised up from a prior estimate of 2 percent was also a positive President Barack Obama was upbeat saying that an agreement on budget negotiations could be reached in a week The Republicans have signed a letter calling for exploration of all options on taxes and entitlement programs which is seen as a precursor to more fruitful negotiations Talks continue US investors will be holding out for the Non Farm payrolls employment report due out on Friday in the aftermath of superstorm Sandy the figures are expected to disappoint Investors have been positioning for a resolution to the fiscal cliff before Christmas so delays would weigh on equities Expect markets to be news driven until the issues are finally resolved This could drag on into January next year but investors have factored in a resolution before Christmas European stock markets are continuing on with their amazing run rising again this week and extending to 18 month highs This continues their longest winning streak of monthly gains in six years The Stoxx 600 was up another 1 0 closing overnight at its highest level since May 2011 as optimism grew regarding a resolution to the Greek bailout and hope that the US Congress and President Barack Obama would resolve the impasse over the US budget stopping automatic tax increases and spending cuts from coming into force early next year This equity benchmark index has rallied 18 percent from its June lows following the European Central Bank s announcement of an unlimited bond buying plan and the Federal Reserve starting a third round of asset purchases QE3 Across the region the growth sensitive sectors such as the chemical commodity related and consumer discretionary sectors have led the gains Investor sentiment was also boosted by reports of China signaling a wider policy support for economic recovery which outweighed disappointing eurozone data which showed manufacturing and services output shrank for a tenth straight month and retail sales in October dropped more than forecast On a sour note the ECB cut its eurozone growth forecast for next year saying it expected the economy to shrink by around 0 3 versus previous guidance for growth of 0 5 It also cut expectations on the inflation outlook to around 1 6 next year down from 1 9 The ECB left its key lending rate at a record low 0 75 and indicated that there was room for more cuts if needed Germany the power house of the region has seen its market rise for eight straight sessions and closing near 5 year highs Traders sentiment was boosted by surprisingly strong factory order data that showed factory orders in October jumped 3 9 well above the consensus forecast of 0 9 This added to optimism earlier in the week as the German Chancellor Angela Merkel had opened the possibility that Germany will ultimately accept a write off of Greek debt providing Greece can get into a position of having a budget surplus Asian stock markets have again traded higher this week with the regional benchmark index on track for its highest close in seven months on the back of news that the Chinese leadership is signaling a wider policy support for economic recovery Across the region financial insurers materials and growth sensitive stocks all saw support The MSCI Asia Pacific Index is up 14 from its lows in June 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 In Japan the market hit a 7 month high as Japanese exporters outperformed due to a weaker yen and signs from the polls showing that the Liberal Democratic Party looks likely to gain a majority in the upcoming election Even the Chinese stock market will end up in the green this week after staging its biggest one day rally in three months bouncing sharply from its lowest levels since January 2009 jumping the most since early September as bargain hunters stepped in However the market is still down 7 7 for the year The catalyst was the news that Chinese restrictions over rules limiting insurers investments in commercial lenders were abolished and the newly elected Chinese leaders pledge to expand domestic demand and actively promote urbanisation The Shanghai Composite Index is still underperforming on the world stage but has now bounced above the key psychological level of 2 000 Asian traders cheered the news that Chinese leaders were becoming more accommodative Commodities prices hovered around multi week lows this week with crude oil falling to its lowest level in three weeks after the ECB cut its eurozone growth forecasts and as US lawmakers failed to reach agreement over the resolution to the fiscal cliff Gold rebounded from a 4 week low after ECB President Mario Draghi indicated there was room for further interest rate cuts in an attempt to boost the eurozone economy Copper is bucking the trend and is on track for a higher close for a fourth straight week The Australian market had another strong week holding above the 4500 level It is now hovering above the 4550 level and looks to be setting up for a test of the highs of mid October near term Our market has rebounded on the back of positive sentiment around the globe and the Aussie banks continued higher in the chase for yield There was a plethora of economic data out this week with the RBA cutting rates by another 25 basis points to 3 the lowest level in half a century The September quarter GDP came in at 0 5 QoQ and is now 3 1 YoY indicating a modest downside surprise relative to Bloomberg consensus of 0 6 QoQ The annual rate of growth decelerated to 3 1 YoY from an upwardly revised 2Q12 outcome revised 10bp higher to 3 8 YoY Also the ABS report on unemployment figures yesterday surprised economists with the unemployment rates down to 5 1 est had been for a rise to 5 5 The S P ASX 200 index is currently trading at 4550 having held support above the 4500 level Key levels for the index next week will be 4500 and 4590 with 4530 the key short term pivot level The chase for yield continues with Telstra at levels not seen since 2008 CommBank approaching new all time highs and the same for health care stocks like Ramsay and CSL Traders appear to be oblivious to the impending US fiscal cliff and continue to be optimistic of a positive outcome the resolution of the Greek debt crisis and as the Chinese leadership hints at a more accommodative stance to promote growth for next year 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 China easing and the US fiscal cliff Monitor the performance of Italian and Spanish borrowing costs which have been easing again this week and the US dollar for a guide to the future direction of commodities and equities prices Contact me at D2MX Trading 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 Posted in Stock Market Analysis No Comments Calendar Call Strategy Part 11 of Options Trading for All Types of Market Environments Friday December 7th 2012 Investors who want to participate in this market can use options to limit their risk to an adverse move Today we investigate the simple Calendar Call Option Strategy of buying and selling calls of the same strike price but different expiration months to participate in profits when the underlying stock price trades sideways or modestly rises or falls The S P ASX 200 has had a fantastic couple of weeks since it bounced sharply off its 200 day moving average Markets have a cyclical tendency to drift higher into the end of the year and if you want to participate in this move the Calendar Call Option Strategy is a defined risk way to trade The index is now searching for support around the key medium term pivot level of 4500 and this level has provided support in previous months There are a number of reasons why a long term investor may not want to jump into an outright stock position in this market environment such as the risk of a pullback near term and being exposed to stock price movements ahead of the resolution of the US fiscal cliff Calendar Call Option Strategy The Calendar Call Spread is a cheaper alternative to buying the stock outright and is a neutral to modestly bullish options strategy that profits when the underlying stock trades sideways or trades within a tight price range By using this option strategy you can limit the cost of the exposure to a stock while also limiting the risk in holding this position The downside is a limited exposure to a sharp up move In a Calendar Call Spread the trader buys and writes Call options simultaneously at the same strike price but with different expiration months This is classified as a Horizontal Call Spread A Calendar Call Spread profits primarily from the difference in rate of time decay in the option premium between the near term short options and the longer term option This is possible as near term option premiums decay faster than longer term option premiums You should use a Calendar Call Spread when you want to profit from an underlying asset that is expected to trade sideways or trade within a tight price range and want to take a bullish position on the stock in the longer term The Calendar Call Option Strategy is very flexible and provides a limited risk exposure to the underlying stock The strategy allows you to profit from an underlying stock price which is rising and or falling modestly or trading sideways gaining a leveraged bullish position if the short option expires worthless For the trader the maximum risk is limited to the initial premium paid for the call option while the maximum profit is also limited Profit Potential of Calendar Call Spread The Calendar Call Option Strategy spread reaches its maximum profit when the underlying stock closes just below the strike price of the short call options at expiration of the short call options The value of a Calendar Call Option Strategy during the course of the trade and prior to the expiration of the short call options can only be arrived at using an options pricing model such as the Black Scholes Model which can determine the expiration value of the longer term call options Equally the breakeven point of a Calendar Call Spread is the point below which the position will start to lose money if the underlying stock rises or falls strongly and can only be calculated using an options pricing model In summary the keys to the risk reward of Calendar Call Spread at expiry are the upside maximum profit is limited the maximum loss is limited to the net debit paid Time Decay Time decay is the enemy of most options traders particularly those who are long options Some traders visualise the impact of time decay like PACMAN because it continuously eats away at the value of the option particularly if the underlying stock trades sideways This is where the Calendar Call Spread excels because time decay is working for you Advantages Disadvantages of a Calendar Call Spread The primary advantage of a Calendar Call Spread is that it makes the mathematics of option trading work for you because the Calendar Call Spread profits primarily from the difference in rate of premium time decay between the near term short options and the longer term option This is possible as near term option premiums decay faster than longer term option premiums and this is most profound in the last few weeks of an option s life This strategy will profit if the underlying stock trades sideways or drifts higher and or lower before the short option expiry If the trade acts according to the initial trade plan then the short option position expires worthless and you are then exposed to bullish movements in the underlying asset which can be controlled at a discount for the longer term There are disadvantages in using this type of spread because profits will be limited even if the underlying asset rises strongly Losses can also be sustained if the short call options are assigned when the underlying asset rallies but this risk can be eliminated by using European options which can only be exercised at expiry Additionally you do have the option to adjust your position during the time of the trade by either closing out of the short options position if you consider that either the underlying stock prices is due for a bounce or you expect a strong rally to continue or simply closing out the position Recent Trade National Bank NAB A recent trade taken by our clients was to buy a NAB Calendar Call Spread two weeks prior to the November options expiry National Australia Bank NAB shares had suffered a 15 slide since its recent peak when it was trading at over 27 00 The share price had fallen to around 23 00 and was trying to establish support around this level The 22 50 support level has held for the past 18 months and this was a trade for a bounce from these levels While the chart looked oversold there was a chance NAB would just trade sideways around the 23 50 level so the trade was entered to profit from a sideways and bullish move on NAB while helping to reduce the risk To profit from this view we opened a NAB Calendar Call Spread The objective of this trade is for NAB to ideally be below the sold call strike at expiry So instead of trying to profit from a sharp bounce from NAB we were looking to profit from a steady recovery of NAB near term To put it more simply we felt NAB would hold around 23 51 before November options expiry 29 Nov 12 and trade higher from then on The maximum possible profit on this trade would be achieved if NAB held just below the short strike 23 51 level at November options expiry The maximum risk on the trade was the initial debit this would occur if NAB is above 23 51 at November options expiry or significantly below that level CHART 1 National Bank NAB Calendar Call Spread Trade Details In this trade we entered the position when NAB was trading around 23 84 two weeks prior to expiry The trade was established by Buying to Open NAB 2350 DEC12 Call for 58c and simultaneously Selling to Open the NAB 2351 DEC12 Call for 36c The total cost was limited to the initial 23 cents premium paid Payoff Diagram at Expiry CHART 2 Payoff Diagram at Expiry for the NAB Calendar 2351 NOV12 DEC12 CALL Spread Note if your view changed during the trade you could have bought back the short call or closed the trade prior to expiry Risks and Profit Potential The Calender Call Spread profits when the stock price trades sideways or finishes below the short strike price The maximum risk is limited to the initial premium paid for the option spread The maximum profit is also limited In summary the Calendar Call Spread strategy offers limited upside profit while the maximum risk is limited to the Net Debit Paid These risk rewards are shown in the Payoff diagram above Note the Calendar Call strategy can be used in order to gain an exposure to National Bank while limiting the outlay and risk to the premium paid Result NAB shares traded sideways up to expiry and we were of the view that they were likely to push higher for the end of month portfolio rebalancing We were able to buy back the SHORT NAB 2351 DEC12 Call for 29c on the day before expiry We held the LONG NAB 2350 DEC12 Calls until the day after expiry and were able to sell them for 92c for an overall total CREDIT of 41c a profit of around 180 for a two week trade Note transaction costs have not been included in these calculations The Trade Options can be used in order to gain leveraged exposure with limited risk while still participating in potential profits in the underlying stock The Calendar Call strategy can allow you to participate if a stock is trading sideways or modestly up or down while limiting your loss to the premium paid Please note your may need to refer to a tax professional regarding eligibility of franking credits Bonus There is another trade setting up right now that you could potentially profit from before Christmas If you would like more information please call 1300 610 024 or email advisory d2mx com au 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 Trading See Also Options Trading for All Types of Market Environments Part 1 The Protective Put Options Trading for All Types of Market Environments Part 2 The Covered Call Options Trading for All Types of Market Environments Part 3 The Covered Call Collar Options Trading for All Types of Market Environments Part 4 The Stock Repair Strategy Options Trading for All Types of Market Environments Part 5 Limited Risk Short Selling Strategy Options Trading for All Types of Market Environments Part 7 Dividend Capture Covered Call Collar Options Trading for All Types of Market Environments Part 8 Hedging With a Bear Put Spread Options Trading for All Types of Market Environments Part 9 The Bull Call Strategy Options Trading for All Types of Market Environments Part 10 Dividend Capture Covered Call Collar 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 calendar call spread Derivatives options strategies options trading trading NAB Trading Strategies Posted in Trading Strategies No Comments Webinar Playback The Top Five Fundamental Indicators Friday December 7th 2012 A company s share price can only ignore the fundamentals for so long before reality bites In this webinar we looked at our 5 favourite fundamental indicators and how to use them to identify companies that are fundamentally sound Thanks to everyone who attended we hope you enjoyed it For a free trial of the software used in this presentation visit http www d2mx com au personal trading trading software Tags company fundamentals d2mx fundamental analysis Market Analyser webinar Posted in Market Analyser 7 Trading Software Trading Strategies No Comments Stock Market Analysis Markets Continue Higher Oblivious To The Cliff Friday December 7th 2012 US stock markets rose for a second session as the Nasdaq rebounded and the fiscal cliff debate continues European stock markets rose again extending their 18 month highs and continuing their longest winning streak of monthly gains in six years Asian stock markets ended mixed yesterday with the regional benchmark index on track for its highest close in 7 months and the Chinese market eased Commodities prices were generally lower Gold prices are trading around US1 700 while crude oil closed around US86 The Australian market opened higher today as stock prices recovered in the US and the European markets continued higher There are a number of AGM today see below The markets continue to be very reactive to news flow around the impending US Fiscal Cliff The ABS report on unemployment figures yesterday and surprised economists with the unemployment rates down to 5 1 est had been for a rise to 5 5 however the ASX market had a subdued reaction to the news The SPI Futures is trading above the key level of 4500 ended up 0 3 or 23 points at 4528 The key levels for our index today are 4500 to 4550 See below for ASX listed companies in the news today US Markets US stock markets rose for a second session as the Nasdaq rebounded after Apple recovered from its worst sell off since 2008 The three benchmark indexes were around 0 3 higher The 10 S P 500 sectors all ended mixed with the gains led by Technology up 0 6 while Materials Energy Industrials and Financials sectors all trading up around 0 3 Investor sentiment was boosted by President Barack Obama who said that an agreement on budget negotiations could be reached in a week and economic data was better than expected The latest in the fiscal cliff negotiations saw the House Republicans reject President Obama s demand for tax rate increases and in turn is proposing US1 4 trillion in spending cuts and US800 billion in new revenue by limiting tax breaks and capping deductions for top earners However the Republicans have signed a letter calling for exploration of all options on taxes and entitlement programs which is seen a precursor more fruitful negotiations Talks continue In commodities prices hovered around multi week lows Crude oil falling to its lowest level in three weeks after the ECB cut its eurozone growth forecasts and in the Us lawmakers struggled to reach agreement over the resolution of the fiscal cliff Gold rebounded from a 4 week low after ECB President Mario Draghi indicated there was room for further interest rate cuts in an attempt to boost the eurozone economy Investors will be holding out for the Non Farm payrolls employment report due out on Friday in the aftermath

    Original URL path: http://blog.traderdealer.com.au/2012/12/page/2/ (2013-02-03)
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  • Stock Market Analysis: Markets Push Higher Driven By “Fiscal Cliff” Talks | Online Stockmarket Trading Update
    1 2 at 5 870 in Germany the DAX closed up 0 8 at 7 400 while in France the CAC closed up 1 5 at 3 568 and Italy closed up 2 8 Asian Markets Asian stock markets rose yesterday with a regional benchmark index resuming its 5 day winning streak on the hopes that the US Fiscal Cliff can be avoided The MSCI Asia Pacific Index rose 1 0 The index is up 13 from its lows in June 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 Organization for Economic Cooperation and Development OCED remarked that failure to prevent the US fiscal cliff could result in a global recession Across the region the materials and financials stocks recovered with the risk on sentiment In Japan shares resumed their upward path recovering from profit taking in the previous session Goldman Sachs reported that they expect the Japanese market to surge around 20 percent in 2013 due to compelling valuations and a possible change in political leadership in the upcoming elections Chinese stocks fell yet again dragging the benchmark index to its lowest level since 2009 as trading activity slumped In China the Shanghai Composite Index continues to underperform falling for a fourth session and once again closed below the key psychological level of 2 000 closing at its lowest level since before 2009 These falls come despite news that Chinese industrial profits accelerated and last week s preliminary Chinese PMI figures indicating that growth in the world s second largest economy is rebounding after slowing for the past seven quarters Asian traders are continuing to show caution and want to see some added stimulus measures announced in China before committing funds to the equities market In China the SSE Composite down 0 5 at 1 963 while in Hong Kong the Hang Seng Index closed up 1 0 at 21 922 and in Japan the Nikkei 225 Index was up 1 0 at 9 400 South Korean KOSPI closed up 1 2 for the session Commodities The Dollar Index was lower at 80 19 on a higher Euro while the Australian Dollar last traded lower at 1 043 Commodities prices traded higher For the session the Benchmark crude NYMEX for November delivery was up 1 4 settled at US87 72 Copper prices are looking for key support level as Copper for November delivery was up 1 5 at US3 576 while November Gold was up 0 5 or US8 50 at US1 725 ASX News Today ALL Aristocrat Leisure the poker machine maker says profit has more than doubled and the company expects further growth as it releases new gaming products CSL CSL shares stayed well above the 50 mark after the blood products and vaccine supplier lifted its full year profit guidance BHP BHP Billiton has been forced to defend the size of its dividends and other cash returns at

    Original URL path: http://blog.traderdealer.com.au/2012/11/30/stock-market-analysis-markets-push-higher-driven-by-fiscal-cliff-talks/ (2013-02-03)
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  • OTOC Secures Nauru Processing Plant Construction Contract | Online Stockmarket Trading Update
    its wholly owned operations OTOC Australia and Whelans Established in 2003 OTOC Australia specialises in the installation of mine site accommodation and non process infrastructure for mining and oil and gas projects OTOC Australia has a successful track record of delivering turnkey mining camp solutions for blue chip clients including BHP Billiton Rio Tinto and FMG Whelans is a leading consultancy in the provision of surveying mapping and town planning with a focus on the resources sector Whelans has 110 professional staff operating from offices in Perth Karratha Broome Kununurra and Kalgoorlie Canstruct is a civil engineering and building company which has been engaged by the Federal Government to project manage the construction of the Nauru Processing Centre The Project through the Contractors will be seeking to provide opportunities for local training and employment for the delivery of the Nauru Processing Centre www otoclimited com au Tags Construction Engineering Services Mining Services Nauru Processing Plant OTC OTOC ASX Company News Ridley Corporation To Sell Cheetham Salt Stock Market Analysis Markets Push Higher Driven By Fiscal Cliff Talks This entry was posted on Friday November 30th 2012 at 8 01 am and is filed under ASX Company News You can follow any responses to this entry through the RSS 2 0 feed You can leave a response or trackback from your own site Leave a Reply Click here to cancel reply Name required Mail will not be published required Website RSS Feed Twitter Follow Us Sign up to our free weekly e newsletter Feel inspired Start trading Recent Post Markets Cap Best January Performance for Over a Decade Weekly Market Wrap The Covered Call Collar Part 3 1 of Options Trading for All Types of Market Environments Stock Market Analysis Markets Cap Best January for Over a Decade Stock Market Analysis

    Original URL path: http://blog.traderdealer.com.au/2012/11/30/asx-company-news-otoc-secures-nauru-processing-plant-construction-contract/ (2013-02-03)
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  • Construction | Online Stockmarket Trading Update
    in ASX Company News No Comments ASX Company News FKP Property Group Sells Industroplex Rocklea Thursday November 1st 2012 FKP Property Group FKP managed FKP Core Plus Fund Two a closed end investment fund has sold Industroplex Rocklea in Queensland for 14 0 million against a book valuation of 14 5 million Industroplex Rocklea was acquired in 2008 and fully leased to Iveco Settlement of the transaction will occur in November 2012 The industrial property has been sold as part of the Fund s strategy to return capital to investors FKP holds a 27 7 stake in the Fund FKP is in the process of winding up its non retirement related funds management platform Core Plus Fund One and Core Plus Fund Two as part of the Group s broader strategy to streamline its business lines to focus on FKP s market leading retirement portfolio and substantial property development pipeline With more than 30 years experience in the Australian property industry FKP Property Group FKP is one of Australia s leading diversified property and investment companies FKP successfully operates an integrated business model which includes retirement property investment and funds management land development property development incorporating residential retail industrial and commercial and construction across Australia and New Zealand FKP is an ASX top 200 company www fkp com au Tags Asset Sale Construction FKP FKP Property Property Investment Posted in ASX Company News No Comments ASX Company News Leighton Secures JKC Australia LNG Project Contract Wednesday October 24th 2012 Leighton Contractors LEI has been awarded a 126 million Engineer Procure and Construct EPC contract by JKC Australia LNG Pty Ltd for one of the building packages at the Ichthys LNG Project s Onshore Facilities Operations Complex at Blaydin Point Darwin Northern Territory This is the second package of work to be delivered by Leighton Contractors to support JKC Australia LNG Pty Ltd in the delivery of the facilities on behalf of the Ichthys Joint Venture The Ichthys Project is operated by INPEX in joint venture with major participant Total and Tokyo Gas Osaka Gas and Toho Gas The works package includes a 12 month design and procurement period followed by a 21 month construction period to deliver an Operations Complex area including operations office central control building and fire station training and canteen facility warehouses workshops laboratory guardhouse and associated infrastructure Craig Laslett Managing Director at Leighton Contractors said Leighton Contractors is immensely proud to continue working with JKC to deliver building works which are instrumental in the onshore LNG facilities To be awarded another package on this major project demonstrates our expertise in delivering construction packages in the oil and gas sector Mr Laslett said We have been working in the Northern Territory for some time and we are looking forward to continuing our strong working relationship with JKC to deliver works packages within the Ichthys LNG Project s Onshore Facilities Leighton Contractors a wholly owned subsidiary of Leighton Holdings Limited is one of Australia s leading contracting and project development groups with over 11 6 billion work in hand and employing more than 12 000 people across Australia New Zealand Papua New Guinea and Botswana in Africa The company delivers projects for clients across the infrastructure mining telecommunications civil construction industrial energy health and services sectors Leighton Contractors offers world class capability in the oil and gas sector www leighton com au Tags Construction LEI Leighton Contractors LNG Project Posted in ASX Company News No Comments ASX Company News Nomad Building Solutions Secures Rio Tinto Accommodation Contract Wednesday October 24th 2012 Nomad Building Solutions Limited NOD advises that its wholly owned subsidiary McGrath Homes has been awarded a 28 8 million contract to design manufacture and install 60 modular residential houses for Rio Tinto The contract award is part of the Wickham Accommodation Expansion Project required to support the expansion of the Cape Lambert port and rail facilities Manufacture of the houses at the McGrath Homes Wangara facilities in Perth will commence immediately with the first delivery of houses to the Wickham site expected in April 2013 and completion of the works expected by November 2013 Nomad s Managing Director Mr Peter Hogan said the award of this contract is a significant achievement for the Company and demonstrates McGrath s strength and ability to deliver exceptional quality modular products for major projects in remote and regional areas We are delighted to have Rio Tinto as our client and will be working closely with them to support the timely development of the Wickham project McGrath Homes is a leading Western Australian based manufacturer of modular housing for the mining commercial and residential sectors Rapley is an in situ builder focused on remote and regional areas of Western Australia Nomad Modular QLD is a leading manufacturer of modular buildings for the mining commercial and residential sectors Nomad Rental provides modular buildings for hire to the mining and commercial sectors It operates in QLD and WA www nomadbuildingsolutions com au Tags Accommodation Units Construction NOD Nomad Building Solutiions Rio Tinto Posted in ASX Company News No Comments ASX Company News OTOC To Construct Accommodation For Rio Tinto Tuesday October 23rd 2012 OTOC Limited OTC and it s wholly owned subsidiary OTOC Group Pty Ltd is pleased to announce it has received a Notice of Award for Contract from Rio Tinto for the installation of accommodation units at the Brockman 4 Operations Village The contract is part of the Rio Tinto Nammuldi Below Water Table Project in the West Pilbara region of Western Australia The value of the contract is approximately 32 million with work to commence immediately CEO of OTOC Mr Adam Lamond said The Company is pleased with the award of this contract by Rio Tinto as this contract combined with a solid order book further strengthens the Company s strong competitive position going into 2013 OTOC Limited is a leading provider of resources and infrastructure services through its wholly owned operations OTOC Australia and Whelans Established in 2003 OTOC

    Original URL path: http://blog.traderdealer.com.au/tag/construction/ (2013-02-03)
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  • Mining Services | Online Stockmarket Trading Update
    2012 The Crushing services to be carried out by MACA involve crushing and screening of an all in product MACA anticipates crushing will commence in June 2013 The two proposed contracts in aggregate are expected to generate revenues of circa 200 million over a period of approximately 36 months commencing December 2012 Mining and June 2013 Crushing Operations Director Geoff Baker said We are delighted to have been awarded a further two contracts with Atlas building on the existing relationship with Atlas at its Pardoo and Mt Dove operations We look forward to continuing to support Atlas with their growth objectives MACA has now been awarded including Letter of Intent to award from Regis Resources 600 million in new and extended works over the last 6 months and in excess of 450 million over the past fortnight taking the current work in hand position to in excess of 1 5 billion the highest in MACA s history www maca net au Tags AGO Atlas Iron Civil construction MACA Ltd Mining Services MLD Posted in ASX Company News No Comments ASX Company News MACA Limited Extends Mining Contract With Focus Minerals Wednesday November 14th 2012 MACA Limited MLD is pleased to announce that it has received a Letter of Award from Focus Minerals Laverton Limited Focus which extends MACA s tenure at the Laverton project to May 2014 MACA has been providing mining services to Focus previously Crescent Gold Limited since September 2009 and looks forward to continuing the relationship with Focus The new works under the contract are due to commence by the end of this month and are expected to generate revenues of approximately 45 million MACA will continue to supply drilling and blasting and load and haul services to Focus Managing Director Doug Grewar said we are delighted to have locked away a significant level of new works over the past six months and we look forward to continuing to build on the strong relationships that MACA has developed with its clients Having only recently joined the MACA team I have been most impressed with the hands on approach of the executive team and its unwavering commitment to supporting clients achieve their objectives www maca net au Tags Focus Minerals MACA Limited Mining Services MLD Posted in ASX Company News No Comments ASX Company News Transfield Services Secures Coal Seam Gas Contract Friday November 9th 2012 Transfield Services TSE has been awarded a A 200 million contract to provide maintenance and operations services to QGC Pty Limited s upstream coal seam gas CSG assets in Queensland The contract is for five years with a two year extension option Revenue has the potential to increase The upstream assets form part of QGC s Curtis Liquefied Natural Gas QCLNG Project and include processing plants compression stations approximately 2 000 operational gas wells and connecting infrastructure The contract s scope incorporates all of these assets Services Managing Director and CEO Graeme Hunt It also reflects our track record in the oil and gas sector including the proven capability and safety record of our well servicing subsidiary Easternwell through the life of the contract as project investment increases This award is a direct result of our strategic focus on Queensland s growing CSG industry said Transfield Importantly the win follows shortly after the award of a construction contract with the same client demonstrating our ability to deliver services across the full asset lifecyle a key differentiator for our business said Mr Hunt We look forward to strengthening our partnership with QGC In October Transfield Services together with joint venture partner Clough Limited was awarded an A80 million construction contract with QGC Pty Limited as part of the QCLNG project QCLNG will be one of the world s first projects to convert CSG into LNG It involves expanding QGC s existing coal seam gas production in the Surat Basin of southern Queensland building a 540km natural gas pipeline network and constructing a natural gas liquefaction plant on Curtis Island near Gladstone where the gas will be converted to LNG for export It is a global provider of operations maintenance and construction services to the resources energy industrial infrastructure property and defence sectors It delivers asset management services across all phases of the asset lifecycle from concept and creation to services that sustain optimise and enhance our client s assets www transfieldservices com Tags Coal Seam Gas Mining Services Oil and Gas Transfield Services TSE Posted in ASX Company News No Comments ASX Company News Monadelphous To Construct Coal Plant For BHP Billiton Wednesday November 7th 2012 Leading engineering group Monadelphous Group Limited MND announced it has been awarded a contract valued at approximately 100 million to construct the coal handling plant for BHP Billiton Mitsubishi Alliance BMA Caval Ridge Mine Project south east of Moranbah in Queensland The contract is for the provision of civil structural mechanical piping and electrical and instrumentation works for the coal handling plant Work will commence immediately and is expected to be completed in the fourth quarter of the 2013 calendar year Monadelphous Group Limited is a leading Australian engineering group providing services to the resources energy and infrastructure industry sectors The company has a solid track record in the safe and effective delivery of complex and large scale engineering construction projects and maintenance and industrial services for industry throughout Australia www monadelphous com au Tags BHP BHP Billiton Construction Mining Services MND Monadelphous Posted in ASX Company News No Comments ASX Company News Monadelphous Group Secures New Rio Tinto Contracts Thursday October 25th 2012 Leading engineering group Monadelphous Group Limited MND announced it has been awarded construction and maintenance work with Rio Tinto s iron ore operations in the Pilbara region of Western Australia This work has a combined value of approximately 320 million Monadelphous has received a notice of award for a construction contract that involves structural mechanical and piping works for Rio Tinto s Marandoo Mine Phase 2 expansion project 45 kilometres east of Tom

    Original URL path: http://blog.traderdealer.com.au/tag/mining-services/ (2013-02-03)
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  • Nauru Processing Plant | Online Stockmarket Trading Update
    significant growth in the next few years The Nauru early works along with the recently awarded 32 million Brockman 4 Operations Village further strengthens OTOC S 2013 order book OTOC Limited is a leading provider of resources and infrastructure services through its wholly owned operations OTOC Australia and Whelans Established in 2003 OTOC Australia specialises in the installation of mine site accommodation and non process infrastructure for mining and oil and gas projects OTOC Australia has a successful track record of delivering turnkey mining camp solutions for blue chip clients including BHP Billiton Rio Tinto and FMG Whelans is a leading consultancy in the provision of surveying mapping and town planning with a focus on the resources sector Whelans has 110 professional staff operating from offices in Perth Karratha Broome Kununurra and Kalgoorlie Canstruct is a civil engineering and building company which has been engaged by the Federal Government to project manage the construction of the Nauru Processing Centre The Project through the Contractors will be seeking to provide opportunities for local training and employment for the delivery of the Nauru Processing Centre www otoclimited com au Tags Construction Engineering Services Mining Services Nauru Processing Plant OTC OTOC Posted in ASX Company News No Comments RSS Feed Twitter Follow Us Sign up to our free weekly e newsletter Feel inspired Start trading Recent Post Markets Cap Best January Performance for Over a Decade Weekly Market Wrap The Covered Call Collar Part 3 1 of Options Trading for All Types of Market Environments Stock Market Analysis Markets Cap Best January for Over a Decade Stock Market Analysis Traders Take Profits Stock Market Analysis Markets Reach Bull Market Territory Stock Market Analysis US Markets Ease Near All Time Highs Markets Higher As Investors Play Catch Up Weekly Market Wrap Investing in 2013

    Original URL path: http://blog.traderdealer.com.au/tag/nauru-processing-plant/ (2013-02-03)
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