Well Is It?

| By admin In Editors comments | Comments Off

A Dead Cat Bounce I mean
Its 11.30pm I just finished watching to footy, cant help but think that investing on the stock market ^(http://www.ucontext.com/cbhop.php/4314/0/f19b18f69dfcc10a12850cdfaf93a2b0/stock+market) is a bit like a game of footy. One minute the crowd is cheering like made, then subdued, then the opposing teams fans pick up the cheer as the game ebbs and flows. Just like the Bears and the Bulls.
The market in Austalia went up today after a very hesitant start, even though the Dow was down. Now I don’t claim to be an expert or a seer or fortune teller or anything like that, but it looks like a decision is close to being made re the election, and I feel that could be the reason why the market trended up, but just in case I’ll be ready to take profit as soon as it appears, just in case I’ve got this wrong.

MR Ed
For free information on stock market technique visit ExpandingWealth.com

Filed under: Editors comments

Dead Cat Bounce

| By admin In Editors comments | Comments Off

Funny title, not so funny if you get caught. The dead cat bounce is a term used in the stock trading world to explain a sudden upswing in the market, that seemingly comes for no real purpose. If you are not on your toes it can cost you big time, and we have all newbie traders will eventually get caught by one, yours truly included. I will never forget my first experience and can claim a little bit of my self respect back because it was early in my career and I was still ignorant.

Be honest we have all rushed in when we thought the market was turning bullish and it looked like easy pickings. Only to come up short a day or two later when the market plunged. My gut tells me that today’s upswing in the market is just that a dreaded “Dead Cat Bounce”. It usually refers to a particular stock, but it can also apply to the whole market.

It was used first back in 1985 when a Financial Times reporter Christopher Sherwell reported that a stock broker whilst referring to a bounce back after a fall in the Singaporean and Malaysian stock markets after they had experienced a fall during a recession period of that year. I found this information on Wikipedia (More) ^(http://en.wikipedia.org/wiki/Dead_cat_bounce)
I am a little suspicious that we are seeing just that in today’s market rise. So I have one of my computers watching the market continuously today to see what happens.

Be Cautious
MR. Ed

Filed under: Editors comments

OOPS

| By admin In Editors comments | Comments Off

Well the Aussies haven’t sorted yet who will govern the country. As I said in my previous post my latest investment depends on who gains power; Labour or Liberal. I backed the liberals only because I felt that the peoples sympathies lay in that direction and would make the difference in this play. So you see when it comes to investing on the stock market you really have a lot to think about, and a lot of factors come into play.

All is not lost yet, it is now down to a few seats and who the three independents will side with. So at this point I am a little behind but…. lets see what happens tomorrow.

Cheers

Mr Ed.

Filed under: Editors comments

Cliff Hanger In Oz Election,

| By admin In Editors comments | Comments Off

Well the Australian Elections were held on the weekend and my prediction has not been fulfilled yet. It looks like there will be a hung parliament, with the balance of power going to independents. I am still tipping that the vote will go to the  conservative opposition party. What it has meant is that the stocks I bought on the strength of the election outcome, have increased today, as I thought they would. Adding strength to my theory, that people as a group tune into certain stocks and are influenced by the same events.

That said the trick is to get ahead of the crowd and try to be in before they all start buying or selling. Here at Expanding Wealth for today at least we are a little happy.

Cheers

Mr Ed

Filed under: Editors comments

| By admin In Editors comments | Comments Off

Sorry people I’ve been absent for quite a while and I apologies for that.

We are going through a bit of a topsy turvey type market and have been for a couple of months, if you’ve been able to handle it then congratulations. My returns have been quite modest.

Luckily I’ve been able to get into rhythm with some of my favourite stocks. Let me explain. It is an old technique that lots of traders use, but it is so difficult to click in with the feelings of the market towards any one stock. Over the past couple of years I have been concentrating on just two blue chip stocks and let me tell you it is difficult for an addicted market trader to concentrate on just two stocks.

It is so hard not to go looking for that next rising star. I have caught a couple of them in my career but they are infrequent. Lets get back to what I was saying. I have come to the conclusion that most stocks have a following. That’s right just like any celebrity; pop stars authors and the like.

People being what we are tend to make things flavour of the month so to speak and stocks are no different. I have seen by my observations that when stocks are trending the followers of that stock are all thinking with a like mind. All sorts of things influence them, for instance; in Australia just now there is a general election being held this weekend and consequently the market has dropped considerably. That is today being Friday and the ballot is taking place tomorrow.

Of course the general feeling is one of uncertainty, and this is having quite an affect on the market, that coinciding with the DOW falling significantly yesterday. Yesterday I placed a buy order on one of those favourite stocks believing that it would fall to a significant level. I was right it did, but it went a little way past what I thought. At this point in time I am not worried because I feel that the result of this election will be beneficial to that stock. Yes I even have an opinion on that and I am predicting against the incumbent government. The experts say it will be a close call.

There are lots of things that impact on the price of stock and the way the market reacts, and they are not all associated with facts and figures and statistics. Well that’s just my observations.

Can’t do this justice in just one post so will visit it again soon.

Good trading

Cheers

MR Ed.

Filed under: Editors comments

« Previous Page — Next Page »

Page optimized by WP Minify WordPress Plugin

WordPress Mobile