Here is an example of the last newsletter:
SP500 Last Signal Comment
We just had a new sell signal last Friday on June 10, 2005. As expected we faced strong resistance at 1200 and it ended with a double top as stated in previous cases. We have 36 points profit (3%) that the trade was in line with expectations. A double top should always be taken because we had 90% success in the past very seriously. We still have a strong support between 1140 and 1160. We now expect to fall to the lower band of the market in the coming weeks (see chart below). We just completed our second cycle of this year and we are now waiting for the next buy signal to start a new one. On
ND100 Last Signal Comment
We had our last buy signal on April 21, 2005. Since then, the market tried to consolidate just above the 1400 mark which is now considered as a good foothold. We are lead of 73 points so far. We had just a second week now closed down for the moving average and get. Very close to a sell signal The 1460 opposition was more serious than antcipated. This market has not completed any cycle so far and we have our first cycle as we speak. So this last buy signal is ahead for some good profit.
DOW Last Signal Comment
We had our last buy signal on April 21, 2005. Since then, we had a good swing above 10,400, but the DOW had a set back able to downtrending line breaking force since early March. We had a little up this week in this market. It was the only places of a positive step. We are now 294 points ahead. We are not very far to get a sell signal. I have no great profit to expect from this trade, but we now know it will be a profitable one. The 10,600 resistance continued threat this market. We had so far completed one cycle of this year and we are now in a second. It seems that we have a good support at 10,100 (see chart below).
Special Option Strategy Update
We are now 3 weeks into our SP500 1100 PUT around $ 1.45. So much for the value of this PUT now of $ 0.35. With only one week to go we will definitely money with this trade. Always remember that you need between 11,000 and $ 15,000 margin for each contract.
Current economic conditions
Inflation appears to be less related to the latest economic figures in recent weeks. The industrial activity slowed and the employment number was sharply down as well (see below). We can expect at least another two rate hikes in the coming months. The experts are not so sure that we will reach 4% before we can see a break. On rate hikes The break can now come earlier.
Mr. Greenspan tried to reassure this week on the continuation of the current economic growth investors. Time will tell if he's right.
The U.S. employment was weak in May with only 78,000 new Jons created compared to 275,000 in April. The employment numbers keep coming in in some way inconsistent. In March we had created only 140,000 jobs, which was considered weak.
The SP500 PE ratio is at 19.40 which is considered low. Remember that when the last major economic cycle that began in March 2003 with the PE ratio was about 16. So we are on the low side. The markets are way is overbought and we should not expect any major bear market that for the moment.
The latest revised GDP for the first quarter of 2005 was 3.5 only 0.1 from the expectations compared to the previous reading of 3.8. It starts on a slight slowdown in economic growth, but nothing to show. Worry at this point
This is it for this week and continue each signal change on the Index Trading Signals page monitors
Follow this link to see it. Latest issue Since there are graphics processing I am unable to paste the content in this box.
So follow this link:
Thanks
Richard Bastien
My name is Richard Bastien. I have a computer specialist for over 30 years. I researched and created an Index Trading System with 100% automated trading signals in the past 10 years.
Friday 30 May 2014
Thursday 15 May 2014
Beginning Investor - Investment Terms
Over the past two months, readers have brought to my attention that there is a steep learning curve for investment terminology. Therefore, the focus of Beginning Investor column this month will be investment terminology. The financial world can be complex. This article does not intend to present a comprehensive set of definitions, but rather as a general guide to help you understand the most frequently
used financial terms. There is no way we could cover everything - and I'm sure we will not - but it needs some things clear for those who are new to investing. This month, we will look at stock-related words in particular.
Stock
Let's start with the absolute basics. The
common type of investment is in the form of
stock. Stock has its own security - that is,
When you buy shares, you are buying a
piece of that company. You are co-owner,
and so to help you select the right people
that the business runs from day to day.
Money is made of stocks, either through dividends,
or capital gains.
Annual Report / 10-K
The annual report can come in two forms,
the glossy annual report, which looks nice,
and is relatively easy to read and understand,
and 10-K, which is an official SEC
submit required for listed companies.
The 10-K is a legal document, and is therefore
much more difficult to read, but
can provide much more information.
Gains
The sale price minus the purchase price of
stocks are referred to as capital gains.
Dividend
A dividend is a payment that a per share
company has the option to explain.
Essentially, dividends are a way for a company
to share with the owners, their profits
shareholders. Public companies are not
required to declare dividends.
EPS
The term EPS earnings expectations of a company
per share for the year.
Equity
Equity is simply a term used to indicate that a specific
type of security gives you partial ownership
of a company.
Liabilities
Liabilities are debts of any kind of a business.
Market capitalization
Market capitalization, or market cap, is
the total number of shares outstanding (held
by investors) multiplied by the share price at
a given day.
Mutual Fund
A Mutual Fund is an investment
whose only business is to buy shares in
other companies, and turn a profit for their
own customers. When you buy a share of a
mutual fund, you are essentially buying in
any business that specific
fund holds. Mutual funds can be a good
investment for those who are new to investing.
Quick Net Assets
A company Quick Net Assets, or NQA are
the sum of the debts of a company deducted
the sum of the assets of a company.
P / E
The P / E ratio of their share of a company
price for their earnings for a specific tax
year. This can be used as a good indicator of
financial health of a company and buy
prospects. A good P / E value varies by sector.
Par Value
Par Value is determined by a random number
a company in the issuance of a particular
type stock (i.e., it varies from class to
class). Essentially, nominal value carries no real
significance.
Share Price
Share Price is the price at which a share of
shares of a company is selling.
Short
A short is a method to earn money even
when the price of a share decreases. The way in which a short
works is that a person will get shares of a
stock on margin (loan shares from stock
broker). This person will then sell these
shares, and wait until the price drops before
reimbursement of his broker. If then, you buy 100
shares of the company at x $ 10 per share, and
sell them for that price, you will be $ 1,000.
If the price of the stock drops to $ 5, you
still have to pay for that 100 your broker
shares, but the price will be only $ 5. So
you pay your broker $ 500 for those shares,
and pocket the difference.
Divide
When a stock split is declared, a ratio
picked up by the company. Total company
shares are multiplied by this ratio, while the
share price divided by this ratio. Thus, a
02:01 split in 20 shares of a $ 10 stock
would result in 40 shares of a $ 5 stock.
Stock Classes
Companies can issue several classes of
stock, each with its own voting stock
price and nominal value. Typically, special classes
are available for certain individuals, while only
ordinary shares are traded on public exchanges.
SEC
The SEC or Securities and Exchange
Commission, is a United States government
agency that focuses on the regulation of public
companies and the stock market.
Companies are required to follow. SEC guidelines
Securities
The word safety is just the technical term
for an asset such as a stock or bond. Use it often,
because it will make people think you are
really smart.
Well, that about does. If you
hear about the SEC cracking down on a company
for not accurately their 10-K, or
when someone talks about shorting an equity
security with a terrible P / E, you know exactly
what they are talking about.
used financial terms. There is no way we could cover everything - and I'm sure we will not - but it needs some things clear for those who are new to investing. This month, we will look at stock-related words in particular.
Stock
Let's start with the absolute basics. The
common type of investment is in the form of
stock. Stock has its own security - that is,
When you buy shares, you are buying a
piece of that company. You are co-owner,
and so to help you select the right people
that the business runs from day to day.
Money is made of stocks, either through dividends,
or capital gains.
Annual Report / 10-K
The annual report can come in two forms,
the glossy annual report, which looks nice,
and is relatively easy to read and understand,
and 10-K, which is an official SEC
submit required for listed companies.
The 10-K is a legal document, and is therefore
much more difficult to read, but
can provide much more information.
Gains
The sale price minus the purchase price of
stocks are referred to as capital gains.
Dividend
A dividend is a payment that a per share
company has the option to explain.
Essentially, dividends are a way for a company
to share with the owners, their profits
shareholders. Public companies are not
required to declare dividends.
EPS
The term EPS earnings expectations of a company
per share for the year.
Equity
Equity is simply a term used to indicate that a specific
type of security gives you partial ownership
of a company.
Liabilities
Liabilities are debts of any kind of a business.
Market capitalization
Market capitalization, or market cap, is
the total number of shares outstanding (held
by investors) multiplied by the share price at
a given day.
Mutual Fund
A Mutual Fund is an investment
whose only business is to buy shares in
other companies, and turn a profit for their
own customers. When you buy a share of a
mutual fund, you are essentially buying in
any business that specific
fund holds. Mutual funds can be a good
investment for those who are new to investing.
Quick Net Assets
A company Quick Net Assets, or NQA are
the sum of the debts of a company deducted
the sum of the assets of a company.
P / E
The P / E ratio of their share of a company
price for their earnings for a specific tax
year. This can be used as a good indicator of
financial health of a company and buy
prospects. A good P / E value varies by sector.
Par Value
Par Value is determined by a random number
a company in the issuance of a particular
type stock (i.e., it varies from class to
class). Essentially, nominal value carries no real
significance.
Share Price
Share Price is the price at which a share of
shares of a company is selling.
Short
A short is a method to earn money even
when the price of a share decreases. The way in which a short
works is that a person will get shares of a
stock on margin (loan shares from stock
broker). This person will then sell these
shares, and wait until the price drops before
reimbursement of his broker. If then, you buy 100
shares of the company at x $ 10 per share, and
sell them for that price, you will be $ 1,000.
If the price of the stock drops to $ 5, you
still have to pay for that 100 your broker
shares, but the price will be only $ 5. So
you pay your broker $ 500 for those shares,
and pocket the difference.
Divide
When a stock split is declared, a ratio
picked up by the company. Total company
shares are multiplied by this ratio, while the
share price divided by this ratio. Thus, a
02:01 split in 20 shares of a $ 10 stock
would result in 40 shares of a $ 5 stock.
Stock Classes
Companies can issue several classes of
stock, each with its own voting stock
price and nominal value. Typically, special classes
are available for certain individuals, while only
ordinary shares are traded on public exchanges.
SEC
The SEC or Securities and Exchange
Commission, is a United States government
agency that focuses on the regulation of public
companies and the stock market.
Companies are required to follow. SEC guidelines
Securities
The word safety is just the technical term
for an asset such as a stock or bond. Use it often,
because it will make people think you are
really smart.
Well, that about does. If you
hear about the SEC cracking down on a company
for not accurately their 10-K, or
when someone talks about shorting an equity
security with a terrible P / E, you know exactly
what they are talking about.
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