Posts Tagged ‘technical analysis’

    • Find Price Patterns with Market Analyser

    Friday, March 25th, 2011

    Did you know that Market Analyser allows you to identify chart patterns?

    Not many people are aware of this feature built in to the Market Analyser. Not only can you identify preset patterns, you can define your own patterns to monitor and test, without being a programming wizard. The pattern editor allows you to easily create the pattern that you are looking for and it is automatically converted into code so the Analyser can scan the market for the pattern when it occurs.

    Using the Pattern Editor

    Click on Menu >> Analysis >> Pattern Editor.

    Market Analyser - Pattern Editor

    Predefined Patterns

    There are a range of predefined patterns which you can scan for using Market Analyser, or alternatively you can use these as the basis for creating your own patterns.

    Create Your Own Patterns

    Create your own price pattern with a click on Create a New Pattern. The bars displayed on the screen can now be dragged to the shape you want them to be. Place your mouse on the high price and move the high price to the level you want it. Do the same for the open on the left of the bar, close on the right and the low. As you adjust these levels the bar may change colour if the close is lower than the previous day.

    A new bar can be added, or a bar can be added with a click on Insert a new price bar and a bar can be deleted by selecting the bar and then click on Delete an existing price bar, both located on the toolbar at the top of the Pattern Editor.

    Once you have completed your pattern, remember to click Save and type in a new name.

    The new pattern that you have created is now accessible in the Analyser where you can run searches for this price pattern or combine it with other indicators in the Analyser Wizard.

    Use the power of Market Anlayser to identify the patterns that you are interested in following, combine patterns and scan your watchlists to identify when these patterns occur.

    By Jeff Cartridge

    Take a software tour of the Market Analyser and also sign up for a free trial!

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    Trading Book Review: Technical Analysis From A-Z

    Friday, February 4th, 2011

    Technical Analysis From A-Z

    Steven Achelis
    RRP $75.00

    Trader Dealer Price $50.00

    Trading book review by Janene Murdoch from the Educator Investor Bookshop

    Millions of traders participating in today’s financial markets have shot interest and involvement in technical analysis to an all-time high. This updated edition of Technical Analysis from A to Z combines a detailed explanation of what technical analysis is and how it works with overviews, interpretations, calculations, and examples of over 135 technical indicators and how they perform under actual market conditions.

    Enhanced with more details to make it easier to use and understand, this book reflects the latest research findings and advances. A complete summary of major indicators that can be used in any market, it covers:

    • Every trading tool from the Absolute Breadth Index to the Zig Zag
    • Indicators include Arms Index, Dow Theory, and Elliott Wave Theory
    • Over 35 new indicators

    This book is available from the Educated Investor Book shop. If you would like to order this book please visit The Educated Investor Bookshop website.

    By Janene Murdoch
    Educated Investor Bookshop

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    Stock Market Analysis: Markets Surge On Strong Manufacturing And Jobs Data

    Thursday, December 2nd, 2010

    US markets rose sharply overnight, as fund managers reallocated their books, and as jobs and 3Q productivity rose higher-than-expected. European stock markets rallied overnight with strong manufacturing data from China and Europe which helped push stock prices higher. Asian markets ended higher yesterday, as data shows Chinese factories ramped up production in November (for a 21st consecutive month). Asian markets are set up to follow the US strong move today.

    The SPI Futures is above its key pivot level of 4600 and the ASX is set to open higher as the SPI Futures closed up 1.3% (or 62 pts) at 4,657.  The key levels for our index today are 4700 and 4620. M&A activity continues to drive specific stocks.  The ASX is set to open sharply higher today, with strong positive leads from overseas markets.  The Australian  3Q GDP data reported yesterday show the economy grew slower-than-expected at an annual rate of 2.7%.  However investors will focus on the the strong positive manufacturing data from China and Europe, and the sharp rise in U.S. stocks.  Expect traders to go bargain-hunting today, particularly in the Energy and Mining sectors.

    US Markets

    US markets rose sharply overnight, as fund managers reallocated their books. Investors pushed the markets up over 2 percent as they chose to focus on the positive data from the US, Asia and the U.K. Stocks received a boost from the Chinese PMI report which showed continuing expansion and European data with British manufacturing surprise rise and and Germany’s retail sales jumped higher-than-expected.  A Reuters report that the US will commit more money to the International Monetary Fund (IMF) to help with a broader stabilization package for Europe. Though traders later cast doubt on the versatility of the report, investors remain increasingly upbeat on a solution to the European debt issues, thanks to calming remarks from the European Central Bank (ECB) President Jean-Claude Trichet.

    US data surprised to the upside,with a report from the Labor Department showing 3Q productivity is rising higher-than-expected, as companies boosted output while managing to keep costs down. US spending on construction projects also unexpectedly rose by 0.7% in October for a second straight gain while manufacturing numbers largely fell in line with expectations. The weekly jobs data showed that the US added 93,000 private-sector jobs in November, the 10th consecutive month of gains and the largest monthly gain in three years. This bodes well for the monthly Non-Farm Payroll Report due out on Friday. Goldman Sachs has raised its real gross domestic product growth forecast for 2011 to 2.7% versus a prior prediction of 2.0%, and went on to predict a drop in the jobless rate to 8.5% by the end of 2012.  The rally was broad-based, with all 30 of the Dow Jones component stocks, the S&P500 saw all but 15 of its component stocks and all 10 of the S&P 500′s sectors, trading in the green. The sectors that outperformed included Energy up 3.0%, Materials up 2.7% and Industrials up 2.6%.  The Dow closed up 2.3% (or 250 points) at 11,256, while in the broader market the S&P 500 index up 2.2% (or 26 points) at 1,206 and the tech-heavy Nasdaq ended up 2.0% (or 51 points) at 2,549.

    European Markets

    European stock markets rallied overnight, as strong manufacturing data from China and Europe helped push stock prices higher. Initially the markets opened higher on the back of the strong Chinese PMI report. Further positive economic news helped, with a British manufacturing survey registering its highest reading in 16 years and German retail sales jumped higher than expected in October.  Banks and Insurers across the board surged as sovereign bond yields dropped from recent extreme highs. Spanish stocks in particular posted big gains, as the Prime Minister announced new austerity measures aimed at cutting their sovereign debt. The European Central Bank President Jean-Claude Trichet also helped the rally as he suggested that the ECB could step up purchases of troubled peripheral government bonds.   In London the FTSE 100 index closed up 2.1% (or 114 points) at 5,643, the German DAX up 2.7% (or 178 points) at 6,867, while in France the CAC was up 1.6% (or 59 points) at 3,689.

    Asian Markets

    Asian markets ended higher yesterday, and are set up to follow the U.S. strong move today.  Investors focused on the Chinese purchasing managers’ index (PMI) data which showed Chinese factories ramped up production in November (for a 21st consecutive month), through increasing output and growth in export orders, but they still face pressure from rising input costs. The Official Chinese data showed the PMI  index jumped to a 7-month high of 55.2 in November (up from 54.7 the previous month). Inflation continues to be a problem for the Chinese economy and Chinese shares edged higher despite the PMI data reinforcing worries over fresh tightening. Financial companies rebounded after recent losses.   The Japanese market as bargain hunters went shopping, despite the rising yen.In China the SSE Composite closed up marginally 0.1% (or 3 points) at 2,823, while in Hong Kong the Hang Seng Index was up 1.1% (or 242 points) at 23,250 and in Japan the Nikkei 225 Index was up 0.5% (or 51 points) at 9,988.

    Commodities

    The euro held its ground overnight trading 1.2% higher at $1.3134, from $1.298 in the previous session.  The Dollar Index down -0.6% at 80.68 on higher Euro, while the Australian Dollar last traded at 96.86.  Commodities were generally higher.

    Benchmark crude NYMEX for December delivery was up 3.1% (or $US2.61) to settle at $US86.72. Copper prices backed-off 2-year highs, Copper for December delivery  was up 3.0% (or 11.3 cents) at $US3.9360. Gold prices off all-time highs again, with December gold  was up marginally 0.2% at $US1,387.20.

    Key International News Drivers Today

    US – US markets rose sharply overnight, as fund managers reallocated their books.
    EU – Strong manufacturing data from China and Europe helped push stock prices higher.
    CHINA – Chinese factories ramped up production in November (for a 21st consecutive month). China prospect of implementing further tightening measures.
    JAPAN – Market holding above 10,000 at 5-month highs.

    Markets Overview


    Market

    Movement

    The Dow Jones Industrial Average

    Up 2.3% (or 250 pts)  at 11,256

    The S&P 500

    Up 2.2% (or 26 pts)  at 1,206

    The Nasdaq

    Up 2.0% (or 51 pts)  at 2,549



    The FTSE 100

    Up 2.1% (or 114 pts)  at 5,643

    The German DAX

    Up 2.7% (or 178 pts)  at 6,867

    The Fench CAC

    Up 1.6% (or 59 pts)  at 3,689



    The Dollar Index

    Down -0.64% at 80.68

    The Australian Dollar

    Last traded at 96.86

    The Commodities Index

    Up 2.5% at 308.9



    Crude Oil Futures

    Up 3.1% at $86.72

    Gold Futures

    Up  Marginally 0.2% at $1,387.20

    Copper Futures

    Up 3.0% at $3.9360

    SPI Futures

    Up 1.3% (or 62 pts) at 4,657





    Market

    Movement

    SSE Composite (China)

    Up  Marginally 0.1%  at 2,823

    Hang Seng Index (Hong Kong)

    Up 1.1%  at 23,250

    Nikkei 225 Index (Japan)

    Up 0.5%  at 9,988



    ASX News Today

    The SPI Futures is above its key pivot level of 4600 and the ASX is set to open higher as the SPI Futures closed up 1.3% (or 62 pts) at 4,657.  The key levels for our index today are 4700 and 4620. M&A activity continues to drive specific stocks.  The ASX is set to open sharply higher today, with strong positive leads from overseas markets. The Australian  3Q GDP data reported yesterday show the economy grew slower-than-expected at an annual rate of 2.7%. However investors will focus on the the strong positive manufacturing data from China and Europe, and the sharp rise in U.S. stocks.  Expect traders to go bargain-hunting today, particularly in the Energy and Mining sectors.

    ANZ- UBS says stay underweight Aussie banks.

    BHP- Manufacturing activity in China accelerated in November despite the cost of raw materials hitting a 2-year high,

    IPL- Incitec Pivot the fertiliser and explosives maker has priced a $US500 million debt issue in the U.S. bond market.

    PEM- Perilya Ltd has extended its takeover bid for Canada’s GlobeStar Mining Corporation by 10 days to cleanup the remaining shares.

    ORL- Oroton Group Ltd the luxury retailer, has lifted turnover in a tough trading environment with more shoppers buying online.

    QAN- Qantas is carrying more passengers than a year ago but its revenue seat factor is falling.

    RIO- RIO is likely to raise prices of their key products by around 7%, for the 1Q11. While UBS has upgraded RIO to a preferred BUY for 2011.

    RMS- Ramelius Resources the gold producer has made a high grade gold intersection beneath a pit at its Mt Magnet project.

    SPT- Spotless Group the maintenance and cleaning services company has bought a U.K. based catering company.

    NUF- Nufarm has arranged a new $900 million loan that will refinance the ag company’s existing debts due to expire on 15 December 2010.

    SFR- Sandfire Resources has increased its estimated resources fivefold for its DeGrussa copper-gold project in WA.

    TLS- Telstra to split as the parliament has finished the year by giving approval for legislation to structurally separate Telstra into wholesale and retail divisions.

    TPM- TPG Telecom has upgraded its full year earnings guidance to a range of $215-225 million after a good start to the FY11.

    WPL- Woodside has confirmed costs for its Pluto LNG project have blown out by $900 million (total cost is now up 7% to $13.5 billion) and it will take another 6-months to begin production while it rebuilds equipment that falls short of design specifications.

    VMT- Vmoto Ltd the scooter manufacturer, shares are in a trading halt after it was unable to draw down funds from a new $5 million debt facility and was seeking alternative sources of capital.

    Economic Reports :

    International Trade in Goods & Services Balance for October
    Retail Sales Report for October

    Companies:

    Nufarm Limited (NUF) Full year 2010 AGM

    Ex-Dividends

    Templeton Global (TGG)

    Market Summary
    ASX – to open sharply higher
    US & UK/Europe – Sharply Higher
    US ADRs –  Broadly Higher

    BHP up 3.8% &
    RIO up
    AWC up 4.3%
    ANZ up 1.9% &
    NAB up 2.3%
    NEM up 1.4%
    JHX up 3.3%
    NWS up 3.0%

    Commodities Stock Index up 2.9%
    Gold Stocks Index up 1.3%
    Oil Stocks Index up 2.9%

    By Michael Hevern
    Head of Research

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    Stock Market Analysis: Caution Ahead of Key Data Releases

    Wednesday, December 1st, 2010

    Global markets continued to be sold down overnight as investors questioned the financial stability in the euro zone despite approval of a rescue package for Ireland.  US markets recovered from early sell-off (again), but still ended in the red.  The key US indices month-to-date return concluded in negative territory, breaking a 3-month winning streak.  European stocks ended lower again overnight, while Germany again outperforms for the month. Asian stock markets ended lower, with simmering geopolitical tensions between the two Koreas holding back investors. Investors were also cautious ahead of Chinese PMI data out today. Commodities prices ended the session lower but were mainly positive for the month.

    The SPI Futures is below its key support level of 4600 and the ASX is set to open flat as the SPI Futures closed flat (or -2 pts) at 4,591 (down -1.7% for month).  The key levels for our index today are 4650 and 4550. M&A activity continues to drive specific stocks. The ASX is set to open flat today, with negative leads from overseas markets. Investors will need to monitor the 3Q GDP data out today, as economists are forecasting there was a contraction in 3Q10, with net exports providing a bigger drag than expected. Also of interest will be China re further prospective monetary tightening measures and the release of its Chinese PMI data today. Expect traders to be cautious especially ahead of these data releases.

    US Markets

    US markets recovered from early sell-off (again), but still ended in the red.  The key U.S. indices month-to-date return concluded in negative territory, breaking a 3-month winning streak.  The Euro zone fears of sovereign debt contagion continued to weigh on markets globally.  In the U.S. better-than-expected data on U.S. manufacturing and consumer confidence helped the markets to recover.  The Chicago Purchasing Managers Index (PMI), came in at 62.5 in November (vs expectations of a 60.0), while the Conference Board’s November consumer confidence came in at 54.1 (vs the forecast of 52.5).  The technology sector led the declines, as the European Commission opened an antitrust investigation into allegations that Google has abused a dominant position in online search.  The Healthcare sector was down 0.9% while the Financial and Consumer-discretionary sectors fell 0.5%.  The Dow closed down -0.4% (or -46 points) at 11,006 (down -1.1% for month), while in the broader market the S&P 500 index down -0.6% (or -7 points) at 1,181 (down -0.4% for month) and the tech-heavy Nasdaq ended down -1.1% (or -27 points) at 2,498 (down -0.6% for month).

    European Markets

    European stocks ended lower again overnight.  Germany outperforms again for the month.  The markets contined to see selling pressure, as the Ireland bailout package failed to ease concerns  over debt contagion problems flowing to other European nations.  In London stocks continued to decline, as the cost of insuring the debt of the PIIGS economies (including Portugal, Ireland, Italy, Greece and Spain), has soared to record high levels, desipte the EUR85 billion aid package for Ireland.  On a positive an interesting survey from Bloomberg reported that even though European countries slide deeper into debt, the regions companies are paying off creditors and boosting profits at the fastest pace in seven years.  Liabilities as a percentage of earnings in the benchmark Stoxx Europe 600 Index dropped 22 percent last quarter, the most since 2003. Bloomberg analysts also forecast annual profit growth in Europe will average 46 percent in 2010 and 2011, more than at any time in the previous seven years.  If this happens then European stock valuations will be back at levels not seen since September 2008.  The IMF also provided some interesting data forecasting Europe’s economy to expand by 1.7 percent next year and earnings for Stoxx 600 companies to climb 14 percent in 2011.  So in short if the EU can get its soveriegn debt under control the EU companies could be in for a solid year in 2011.  In London the FTSE 100 index closed down -0.4% (or -23 points) at 5,528 (down -2.7% for month), the German DAX down marginally -0.1% (or -9 points) at 6,688 (up 1.5% for month), while in France the CAC was down -0.7% (or -25 points) at 3,630 (down -5.4% for month).

    Asian Markets

    Asian stock markets ended lower. Simmering geopolitical tensions between the two Koreas held back investors.  Investors were aslo cautious ahead of Chinese PMI data out today, and as concerns about further tightening measures in China continued to weigh on shares on both China and in Hong Kong.  The Chinese market slid to a 7-week low, after 3-sessions of selling.  Interest-rate sensitive plays, such as banks and property developers, extended recent losses.  Tokyo stocks saw some profit-taking on the back of disappointing Japanese jobless figures and as caution ruled over fears of contagion of European sovereign debt in the PIIGS economies,  meant that they yen rose against the euro, weighing o exporters.  In China the SSE Composite closed down -1.6% (or -46 points) at 2,820 (down -5.2% for month), while in Hong Kong the Hang Seng Index was down -0.7% (or -158 points) at 23,008 (down -2.7% for month) and in Japan the Nikkei 225 Index was down -1.9% (or -189 points) at 9,937 (up 7.9% for month).

    Commodities

    The U.S. Dollar Index, which tracks the currency against a basket of six others, rose 0.6% as the euro dropped below $1.30 to a 2-month low intra-day. Crude-oil prices slipped below $85 a barrel while gold futures were also lower. The Dollar Index up 0.6% at 81.34 on lower Euro, while the Australian Dollar last traded at 95.86. Commodities were generally higher for the month.

    Benchmark crude NYMEX for December delivery was down -2.4% (or $US-2.04) to settle at $US83.69 (up  3.0% for month). Copper prices backed-off 2-year highs, Copper for December delivery  was up 1.4% (or 5.2 cents) at $US3.8100 (up 2.0% for month). Gold prices off all-time highs again, with December gold  was up 1.3% at $US1,383.60 (up 2.1% for month).

    Key International News Drivers Today

    US -  Markets recover from sharp initial sell-off. Markets break 3-month winning streak.
    EU –  Investors continue to worry over EU debt contagion in the euro zone.
    CHINA -  PMI data out today. China prospect of implementing further tightening measures.
    JAPAN – Market holding above 10,000 but backs off 5-month highs.

    Markets Overview

    Market

    Movement

    The Dow Jones Industrial Average

    Down -0.4% (or -46 pts)  at 11,006 (up down -0.8% for month)

    The S&P 500

    Down -0.6% (or -7 pts)  at 1,181 (up down -0.7% for month)

    The Nasdaq

    Down -1.1% (or -27 pts)  at 2,498 (up down -1.4% for month)



    The FTSE 100

    Down -0.4% (or -23 pts)  at 5,528 (up down -2.5% for month)

    The German DAX

    Down  Marginally -0.1% (or -9 pts)  at 6,688 (up down -2.3% for month)

    The Fench CAC

    Down -0.7% (or -25 pts)  at 3,630 (up down 9587.8% for month)



    The Dollar Index

    Up 0.63% at 81.34

    The Australian Dollar

    Last traded at 95.86

    The Commodities Index

    Down -0.5% at 301.4



    Crude Oil Futures

    Down -2.4% at $83.69 (up down -0.2% for month)

    Gold Futures

    Up 1.3% at $1,383.60 (up down 1.5% for month)

    Copper Futures

    Up 1.4% at $3.8100 (up down 1.8% for month)

    SPI Futures

    Down  Marginally 0.0% (or -2 pts) at 4,591 (up down 0.3% for month)





    Market

    Movement

    SSE Composite (China)

    Down -1.6%  at 2,820 (up down -1.8% for month)

    Hang Seng Index (Hong Kong)

    Down -0.7%  at 23,008 (up down 0.6% for month)

    Nikkei 225 Index (Japan)

    Down -1.9%  at 9,937 (up down -1.0% for month)




    ASX News Today

    The SPI Futures is below its key support level of 4600 and the ASX is set to open flat as the SPI Futures closed flat (or -2 pts) at 4,591 (down -1.7% for month). The key levels for our index today are 4650 and 4550. M&A activity continues to drive specific stocks. The ASX is set to open flat today, with negative leads from overseas markets. Investors will need to monitor the 3Q GDP data out today, as economists are forecasting there was a contraction in 3Q10, with net exports providing a bigger drag than expected. Also of interest will be China re further prospective monetary tightening measures and the release of its Chinese PMI data today. Expect traders to be cautious especially ahead of these data releases.

    BOQ- ASIC plans to begin legal action against several domestic banks (BOQ, CBA, MQG) in seeking compensation for investors following the collapse of Storm Financial Ltd.

    CBA- CommBank say they will fight the legal action resulting from the Storm Financial collapse.

    FRS- FerrAus the iron ore explorer advised shareholders not to accept an unsolicited $230 million takeover bid from Hong Kong listed Wah Nam International Holdings Ltd.

    GDO- Gold One International has confirmed production guidance of 120,000 ounces of gold and earnings of $60 million in FY11.

    IHF- NorthWest Value Partners has increased its takeover offer for ING Real Estate Healthcare Fund and has won the right to undertake exclusive due diligence on the fund.

    LEI- Leighton has agreed a governance framework with ACS, the Spanish group bidding to take over Leighton’s German parent, Hochtief.

    MCC- Macarthur Coal will defer the announcement of its fourth mine project until early 2011, after it finalises commercial terms.

    MQG- Macquarie Group will acquire a 17.5 percent interest in capital and asset management firm Bluestone Group through the subscription of newly issued ordinary shares.

    MTS- Metcash the independent wholesaler, said its guidance for the 2H11 of its fiscal year is at risk if falling prices and rising business costs continue.

    NAB- National Bank has finally resolved the computing problems which effected millions of customers sice last week.

    NUF- Nufarm has arranged a new $900 million loan that will refinance the ag company’s existing debts due to expire on 15 December 2010.

    SFR- Sandfire Resources has increased its estimated resources fivefold for its DeGrussa copper-gold project in WA.

    TLS- Telstra to split as the parliament has finished the year by giving approval for legislation to structurally separate Telstra into wholesale and retail divisions.

    WPL- Woodside has confirmed costs for its Pluto LNG project have blown out by $900 million (total cost is now up 7% to $13.5 billion) and it will take another 6-months to begin production while it rebuilds equipment that falls short of design specifications.

    Economic Reports :

    Australian PMI for November
    Commodity Price Index for November
    GDP for Q3
    International Trade in Goods & Services Balance for October
    Retail Sales Report for October

    Companies:

    Centennial Coal Ltd (CEY) Full year 2010 AGM
    Consolidated Media (CMJ) Full year 2010 AGM
    Crown Ltd (CWN) Full year 2010 AGM
    Metcash Ltd (MTS) Interim 2011 Results
    Goodman Group (GMG) Full year 2010 AGM
    SEEK Ltd (SEK) Full year 2010 AGM
    White Energy Company (WEC)  Full year 2010 AGM

    Ex-Dividends

    GrainCorp (GNC)

    Market Summary

    ASX – to open lower
    US & UK/Europe – Lower
    US ADRs –  Broadly Lower

    BHP down 1.4% &
    RIO down ;
    AWC down 1.8%
    ANZ down 0.7% &
    NAB down 0.9%
    NEM up 1.3%,
    JHX up 2.9%,
    NWS down 1.9%

    Commodities Stock Index flat
    Gold Stocks Index up 0.4%
    Oil Stocks Index down 0.7%

    By Michael Hevern
    Head of Research

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    Stock Market Analysis: Macro and Technical Analysis of ASX Top 20

    Thursday, November 25th, 2010

    Hello all,

    This morning I’ve posted a recording from last night covering a macro and technical analysis of the Dow, ASX 200 and the ASX Top 20.

    Click here to view.

    Best Regards,

    Leon Hinde.

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    Stock Market Analysis: Macro and Technical Analysis of ASX Top 20

    Monday, November 15th, 2010

    Hello all,

    This morning I’ve posted a recording I made last Thursday covering a macro and technical analysis of the Dow, ASX 200 and the ASX Top 20.  Even though the recording’s from Thursday, I believe that it’s still current and applicable today.

    Click here to view.

    Best Regards,

    Leon Hinde.

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    Stock Market Analysis: Markets Focus on U.S. Earnings

    Tuesday, October 19th, 2010

    Markets Focus on U.S. Earnings

    US stocks closed higher, as corporate earnings reporting begins in earnest. Asian stock markets posted falls yesterday as profit-takers stepped in. European stock markets posted gains overnight, led by financials and the miners.

    The SPI Futures is just below the key resistance level of 4700 the ASX is set to open higher as the SPI Futures closed up 0.9% (or 41 pts) at 4,696. The key levels for our index today are 4750 and 4650. M&A activity continues to drive specific stocks. The ASX is set to trade higher today, led by the miners and financials with positive leads from the Europe and U.S. Options volatility is subdued at the moment, which gives investors access to “cheap” protection, so investors may consider taking this opportunity to protect their portfolios.

    US Markets

    US stocks closed higher, as corporate earnings reporting begins in earnest. The Dow Jones had its highest close since 3 May’10. Corporate earnings reporting starts in earnest this week with 11 of the 30 Dow Jones components and over 100 of  S&P 500 companies are due to report third-quarter results. The National Association of Home Builders (NAHB) said its measure of builder confidence, the housing market index, rose 3 points to 16 in October, the first improvement in the index in five months and other data showed U.S. industrial production slipped 0.2% in September, reflecting a slowdow growth out of the recession, alos capacity utilisation also declined. The markets rose steadily led by the financial sector, which was boosted by Citigroup’s 5.6% jump after they reported third-quarter earnings were better-than-expected.  This has set a positive tone for a busy week of earnings reports. The financial sector rose 2.3 percent and Healthcare also led (up 0.9 percent) for the session.  The Dow closed up 0.7% (or 81 points) at 11,144, while in the broader market the S&P 500 index up 0.7% (or 9 points) at 1,185 and the tech-heavy Nasdaq ended up 0.5% (or 12 points) at 2,481.

    European Markets

    European stock markets posted gains overnight. European investors were still buoyed about the prospect of the US Fed Reserve pursuing quantitative easing measures (QE2). The German DAX rose to its highest levels since September 2008, supported by the Banking sector. In London the FTSE closed to the highest levels in 6-months, led by gains in BHP, RIO and BP. The FTSE has benefited from talk of QE2 in the U.S. and is up around 9 percent since the start of September.  In London the FTSE 100 index closed up 0.7% (or 39 points) at 5,743, the German DAX up 0.4% (or 24 points) at 6,517, while in France the CAC was up marginally 0.2% (or 7 points) at 3,834.

    Asian Markets

    Asian stock markets posted falls yesterday. Japanese shares ended mixed as early gains were on a rally in tech shares, while the ever present concerns over the yen’s strength against the dollar, continued to drag on sentiment later in the session. Hong Kong shares saw profit-taking, as the index has risen 15.3 percent over the past seven weeks. Chinese markets fell as profit-takers stepped in, after the key index hit a 5-month high last week, as metal companies led the fall.  In China the SSE Composite closed down -0.5% (or -16 points) at 2,955, while in Hong Kong the Hang Seng Index was down -1.2% (or -288 points) at 23,469 and in Japan the Nikkei 225 Index was down marginally 0.0% (or -2 points) at 9,498.

    Commodities

    The Dollar Index up marginally 0.1% at 77.12 on lower Euro, while the Australian Dollar last traded at 98.02.  Commodities were generally higher.

    Gold near record levels, trading above $US1,370 an ounce, while oil rose above $US83 a barrel on the back of record imports of oil into China.  Benchmark crude NYMEX for December delivery was up 2.2% (or $US1.82) to settle at $US83.07. Copper prices higher, Copper for December delivery was up 0.4% (or 1.6 cents) at $US3.8500.  Gold prices are around record highs, are around key $US1,380 level, with December gold was up marginally 0.1% at $US1,372.60.

    Key News International Drivers Today

    US – Corporate earnings reporting begins in earnest.
    EU - Germany finishing at a new 52-week high and London rising to near 6-month highs.
    CHINA – Profit-taking led by metal and energy stocks. Government stands firm on access to credit.
    JAPAN – Exporters weigh as Yen at 15-years highs.

    Markets Overview

    Market

    Movement

    The Dow Jones Industrial Average

    Up 0.7% (or 81 pts)  at 11,144

    The S&P 500

    Up 0.7% (or 9 pts)  at 1,185

    The Nasdaq

    Up 0.5% (or 12 pts)  at 2,481

    The FTSE 100

    Up 0.7% (or 39 pts)  at 5,743

    The German DAX

    Up 0.4% (or 24 pts)  at 6,517

    The Fench CAC

    Up  Marginally 0.2% (or 7 pts)  at 3,834

    The Dollar Index

    Up  Marginally 0.11% at 77.12

    The Australian Dollar

    Last traded at 98.02

    The Commodities Index

    Up 0.91% at 298.7

    Crude Oil Futures

    Up 2.2% at $83.07

    Gold Futures

    Up  Marginally 0.11% at $1,372.60

    Copper Futures

    Up 0.42% at $3.8500

    SPI Futures

    Up 0.9% (or 41 pts) at 4,696

    Market

    Movement

    SSE Composite (China)

    Down -0.5%  at 2,955

    Hang Seng Index (Hong Kong)

    Down -1.2%  at 23,469

    Nikkei 225 Index (Japan)

    Down  Marginally 0.0%  at 9,498
    ASX News Today

    The SPI Futures is just below the key resistance level of 4700 the ASX is set to open higher as the SPI Futures closed up 0.9% (or 41 pts) at 4,696. The key levels for our index today are 4750 and 4650. M&A activity continues to drive specific stocks. The ASX is set to trade higher today, led by the miners and financials, with positive leads from the Europe and U.S.  Options volatilty is subdued at the moment, which gives investors access to “cheap” protection, so investors may consider taking this opportunity to protect their portfolios.

    AXA- KKR (Kohlberg Kravis Roberts) may have a tilt for AXA Asia Pacific Holdings (AXA APH) and other wealth managers if they succeed with Perpetual (PPT).

    BHP- The $US116 billion joint venture with Rio Tinto has finally been scrapped.

    CBX- Cape Alumina has cancelled its $1.2 billion Pisolite Hills project because, the Queensland government’s wild rivers declaration renders the project a no-go.

    CFE- Cape Alumina’s will scrap a $1.2 billion dollar bauxite project in Queensland due to environmental laws.

    CGF- Challenger Financial Services Group has unveiled record qarterly sales in its life annuities business, and said funds under management (FUM) for its boutique partnerships reached $12 billion during the September quarter, up 70 percent on the previous quarter.

    DJS- David Jones has settled a legal action brought against the company and its former CEO, Mark McIness, by a staffer Kristy Fraser-Kirk, for $850,000.

    FMG- Fortescue Metals Group is undertaking an international roadshow to offer $2.06 billion worth of senior unsecured notes to fund its iron ore mine expansion plans.

    GNS- Gunns has agreed subject to ACCC approval,will acquire the Bell Bay softwood sawmill formerly operated by Forest Enterprises Australia Ltd (FEA) in Tasmania.

    LEI- Leighton Holdings says any bid for the construction firm by the same Spanish company that is seeking to take over Leighton’s parent entity (Hochtief), must be fully priced.

    PPT- Market players say Kohlberg Kravis Roberts (KKR) may have a tilt for AXA Asia Pacific Holdings (AXA APH) and other wealth managers if the US-based private equity firm succeeds in its $1.75 billion bid for Perpetual.

    SIG- Sigma Pharmaceuticals has extended an exclusivity agreement with Aspen Pharmacare Holdings to 29 Oct’10, to negotiate the details of its sale of its pharmaceuticals division.

    TAH- Tabcorp Holdings the gambling firm, is to demerge its casinos operations from its wagering, gaming and keno businesses to create two separate ASX listed entities.

    Economic Reports :

    RBA – Reserve Bank Board Monetary Policy Meeting Minutes

    Companies:

    Cochlear Ltd (COH) Full year 2010 AGM
    Ansell Ltd (ANN) Full year 2010 AGM
    Stockland (SGP) Full year 2010 AGM
    OZ Minerals (OZL) Q3 2010 Activities Report

    Ex-Dividends

    New Hope Corporation (NHC)

    Market Summary

    ASX – to open higher
    US & UK/Europe – Higher
    US ADRs –  Mixed

    BHP down 0.2% &

    RIO down

    AWC up 0.7%

    ANZ up 0.4% &

    NAB down 0.1%

    NEM up 1.0%

    JHX down 2.0%

    NWS down 1.3%

    Commodities Stock Index up 0.4%
    Gold Stocks Index down 0.5%
    Oil Stocks Index up 1.2%

    By Michael Hevern
    Head of Research

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    Stock Market Analysis: Markets Push Higher to Record Levels

    Thursday, October 14th, 2010

    Stock Market Analysis

    Markets Push Higher to Record Levels

    US stocks rise on better-than-expected earnings from blue chips and a jump in Chinese demand for commodities. Asian markets were higher after encouraging announcements on currency reserves and commodity imports by China. European stock markets closed higher, with Germany finishing at a new 52-week high and London rising to near 6-month high. Gold hit another record, trading above $US1,370 an ounce, Copper prices rallied to a fresh 27-month peak, while oil rose above $US83 a barrel on the back of record imports of oil into China.

    The SPI Futures is just below the key resistance level of 4700 the ASX is set to open higher  as the SPI Futures closed up 0.6% (or 30 pts) at 4,666. The key levels for our index this week are 4700 and 4600. M&A activity continues to drive specific stocks. The ASX is set to trade higher today, led by the miners, with positive leads from the China, Europe and U.S.  Options volatility is subdued at the moment, which gives investors access to “cheap” protection, so investors may consider taking this opportunity to protect their portfolios.

    US Markets

    US stocks closed at 5-month highs. Strong earnings from two blue chips lifted the broader market even though their shares were sold off. JPM reported a 23% rise in third-quarter profit, but revenue and loan balances continued to show hurt from the GFC, JPM shares dropped 1.2%. Chip-related stocks were generally higher after a solid earnings report from Intel, which reported a 59% rise in third-quarter earnings, on the back of increased corporate spending on new technology, however Intel shares fell 1.9%.  Materials stocks were also buoyed by a jump in Chinese demand for commodities and the steadily weakening dollar. Dow Jones Transport stocks rose as shares in railroad operator CSX jumped 4.6% after reporting a better-than-expected 43% rise in third-quarter profits on volume gains. U.S. import prices fell more-than-expected in September, as declining fuel costs offset an increase in food prices, and the overall price of goods imported into the U.S. dropped 0.3% last month. The gains were led by the Industrial (up 1.7%), Mining (up 1.6%), Energy (up 1.2%) and Tech sectors.  The Dow closed up 0.7% (or 76 points) at 11,096, while in the broader market the S&P 500 index up 0.7% (or 8 points) at 1,178 and the tech-heavy Nasdaq ended up 1.0% (or 23 points) at 2,441.

    European Markets

    European stock markets closed higher. European investors were bouyed by the prospect of the US Fed Reserve pursuing quantitative easing measures (QE2) and  a jump in Chinese demand for commodities.  In London stocks climbed to the highest levels in six months, led by the miners after copper hit 27-month highs on the prospect of increased demand from Chinese consumption.  In Germany the index broke out of its trading range, finishing at a new 52-week high, the gains were broad based. In London the FTSE 100 index closed up 1.5% (or 86 points) at 5,747, the German DAX up 2.1% (or 130 points) at 6,435, while in France the CAC was up 2.1% (or 80 points) at 3,828.

    Asian Markets

    Asian stock markets ended higher. Investors were encouraged by positive announcements on currency reserves and commodity imports from China, with Hong Kong’s Hang Seng Index again rising to a 28-month high.  Even Japanese stocks gained after a surprisingly upbeat report on machinery orders data, with a 10% rise in August for core machinery orders. Chinese shares were led higher by developers and cement stocks after a big jump in exports last month. A lower-than-expected September trade surplus had little effect, as the data showed exports rose 25 per cent year-on-year.  In China the SSE Composite closed up 0.7% (or 20 points) at 2,861, while in Hong Kong the Hang Seng Index was up 1.5% (or 336 points) at 23,458 and in Japan the Nikkei 225 Index was up marginally 0.2% (or 15 points) at 9,404.

    Commodities

    The Dollar Index down -0.4% at 77.06 on higher Euro, while the Australian Dollar last traded at 98.34.  Commodities were generally higher.

    Gold hit another record, trading above $US1,370 an ounce, while oil rose above $US83 a barrel on the back of record imports of oil into China. Benchmark crude NYMEX for December delivery was up 1.6% (or $US1.28) to settle at $US82.95. Copper prices higher, Copper for December delivery was up 0.9% (or 3.3 cents) at $US3.8190.  Gold prices are around record highs, are around key $US1,350 level, with December gold was up 1.8% at $US1,370.30.

    Key News International Drivers Today

    US - Materials stocks were also bouyed by a jump in Chinese demand for commodities.
    EU - Germany  finishing at a new 52-week high and London rising to near 6-month highs.
    CHINA – Chinese exports rose 25 per cent year-on-year. Government stands firm on access to credit.
    JAPAN – Exporters weigh as Yen at 15-years highs.

    Markets Overview

    Market

    Movement

    The Dow Jones Industrial Average

    Up 0.7% (or 76 pts)  at 11,096

    The S&P 500

    Up 0.7% (or 8 pts)  at 1,178

    The Nasdaq

    Up 1.0% (or 23 pts)  at 2,441

    The FTSE 100

    Up 1.5% (or 86 pts)  at 5,747

    The German DAX

    Up 2.1% (or 130 pts)  at 6,435

    The Fench CAC

    Up 2.1% (or 80 pts)  at 3,828

    The Dollar Index

    Down -0.39% at 77.06

    The Australian Dollar

    Last traded at 98.34

    The Commodities Index

    Up 0.64% at 299.7

    Crude Oil Futures

    Up 1.6% at $82.95

    Gold Futures

    Up 1.83% at $1,370.30

    Copper Futures

    Up 0.87% at $3.8190

    SPI Futures

    Up 0.6% (or 30 pts) at 4,666

    Market

    Movement

    SSE Composite (China)

    Up 0.7%  at 2,861

    Hang Seng Index (Hong Kong)

    Up 1.5%  at 23,458

    Nikkei 225 Index (Japan)

    Up  Marginally 0.2%  at 9,404

    ASX News Today

    The SPI Futures is just below the key resistance level of 4700 the ASX is set to open higher  as the SPI Futures closed up 0.6% (or 30 pts) at 4,666. The key levels for our index this week are 4700 and 4600. M&A activity continues to drive specific stocks. The ASX is set to trade higher today, led by the miners, with positive leads from the China, Europe and U.S.  Options volatility is subdued at the moment, which gives investors access to “cheap” protection, so investors may consider taking this opportunity to protect their portfolios.

    AVX- Avexa the Melbourne based biotech firm will work to restore shareholder value, after a major shareholder tried to remove the drug developer’s board last month.

    ASB- Austal the boat builder was awarded a contract to build two more high speed boats for the US Navy worth $208 million.

    CNA- Coal & Allied Ltd which is Rio Rio Tinto Ltd-majority owned, has downgraded its full year coal production and sales forecast due to wet weather.

    CEY- Banpu Minerals will proceed with the compulsory acquisition of the remaining shares of Centennial Coal after having achieved 98.5% ownership interest.

    CSE- Copper Strike Ltd says Kagara Ltd’s $14.3 million takeover offer appears to be highly opportunistic and has advised its shareholders to take no action in relation to the bid.

    CSL- CSL the pharmaceuticals developer expects “solid” underlying operational profit growth in 2010/11, with net profit of up to $1.03 billion.

    KZL- Kagara’s $14.3 million takeover bid for Copper Strike seen as opportunistic.

    ERA- Energy Resources of Australia Ltd the uranium miner has downgraded its 2010 production guidance, citing lower-than-expected ore grade in the September quarter.

    FMG- Fortescue Metals Group the iron ore miner, continues talks with several entities regarding financial opportunities after having refinanced $2.08 billion of its debt to fund expansion.

    JBH- JB Hi-Fi Ltd says sales have lifted in the new fiscal year with the discount retailer forecasting a strong Christmas trading season.

    NWS- News Corp’s bid for full control of satellite broadcaster BSkyB, is facing hurdles with British media groups urging the Business Secretary Vince Cable to block the bid.

    QRL – QR National investors will pay $2.50 to $3 a share to get a slice of Queensland’s rail freight business when it is floated 22 Nov’10.  More than $4.2 billion could be raised in the float.

    TSI- Transfield Services Infrastructure Fund expects net profit to be 25 per cent higher than its May 2010 forecast, as the fund’s cash position has improved by $25 million.

    WBC- Westpac Banking has become Carbon Trade Exchange Ltd’s (CTX) banker and will facilitate transactions on CTX’s web-based global carbon credit trading exchange.

    WPL- Woodside Petroleum Ltd says chief executive Don Voelte will retire in 2H11.

    Economic Reports :

    Melbourne Institute Consumer Inflationary Expectations Survey
    AFOM auction for the issue of $1000 million of Treasury Notes

    Companies:

    Rio Tinto Ltd (RIO.AU) Q3 2010 Production Report

    Bank Of Queensland Ltd Full year 2010 Results

    Ex-Dividends

    Ausdrill Limited (ASL)
    Tpg Telecom Limited (TPM)

    Market Summary

    ASX – to open higher
    US & UK/Europe – Higher
    US ADRs –  Broadly Higher

    BHP up 2.2% &

    RIO up 2.0%

    AWC up 1.3%

    ANZ down 0.6% &

    NAB up 0.6%

    NEM up 1.9%

    JHX up 0.6%,

    NWS up 0.8%

    Commodities Stock Index up 1.7%
    Gold Stocks Index up 2.6%
    Oil Stocks Index up 0.9%

    By Michael Hevern
    Head of Research

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    Stock Market Analysis: Macro and Technical Analysis of ASX Top 20

    Thursday, October 7th, 2010

    Hello all,

    This morning I’ve posted a new recording covering a macro and technical analysis of the Dow, ASX 200 and the ASX Top 20.

    Click here to view.

    Best Regards,

    Leon Hinde.

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    Trading Book Review: Technical Analysis – Power Tools For Active Investors

    Friday, September 24th, 2010

    Technical Analysis – Power Tools

    Author: Gerald Appel
    RRP $99.95

    Technical Analysis - Power Tools For Active Investors

    Trading book review by Janene Murdoch from the Educator Investor Bookshop

    Unlike most technical analysis books, Gerald Appel’s Power Tools For Active Investors offers step-by-step instructions that virtually any investor can use to achieve breakthrough success in the market.

    Appel illuminates a wide range of strategies and timing models, demystifying even advanced technical analysis the first time. Among the models he covers: NASDAQ/NYSE Relative Strength, 3-5 Year Treasury Notes, Triple Momentum, Seasonality, Breadth-Thrust Impulse, and models based on the revolutionary MACD techniques he personally invented.

    Appel covers momentum and trend of price movement, time and calendar cycles, predictive chart patterns, relative strength, analysis of internal vs. external markets, market breadth, moving averages, trading channels, overbought/oversold indicators, Trin, VIX, major term buy signals, major term sell signals, moving average trading channels, stock market synergy, and much more. He presents techniques for short-, intermediate-, and long-term investors, and even for mutual fund investors.

    This book is available from the Educated Investor Book shop. If you would like to order this book please visit The Educated Investor Bookshop website.

    By Janene Murdoch
    Educated Investor Bookshop

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