The Power of Dollar-Cost AveragingThe Power of Dollar-Cost Averaging: Building Wealth Gradually
Introduction
In the world of investing, there's a powerful strategy that enables individuals to build wealth over time without the need for market-timing skills or significant capital: dollar-cost averaging (DCA). This method involves investing a fixed amount of money at regular intervals, regardless of market conditions. In this blog post, we will explore the concept of dollar-cost averaging and how it can be a valuable tool for building wealth gradually and with discipline.
Understanding Dollar-Cost Averaging
Dollar-cost averaging is a disciplined investment approach that involves investing a fixed dollar amount in a particular asset or investment vehicle on a scheduled basis, such as weekly, monthly, or quarterly. The key feature of DCA is that the same amount is invested consistently, regardless of whether the asset's price is high or low.
The Power of Consistency
Reducing Market Timing Risk: Dollar-cost averaging eliminates the need to time the market, which is notoriously difficult even for seasoned investors. By investing regularly, you spread your purchases over different market conditions, reducing the risk of making ill-timed investments.
Taking Advantage of Market Volatility: DCA allows you to purchase more shares when prices are lower and fewer shares when prices are higher. Over time, this strategy can lead to a lower average cost per share.
Embracing Disciplined Investing: Dollar-cost averaging promotes disciplined investing habits. It encourages you to stay committed to your investment plan regardless of short-term market fluctuations.
Building Wealth Gradually
Regular Contributions: Set a consistent schedule for investing, such as monthly or quarterly contributions. This habit ensures that you continually add to your investments over time.
Automate Your Investments: Automate the investment process by setting up automatic transfers from your bank account to your investment account. This reduces the temptation to deviate from your plan.
Stay the Course: Remain patient and steadfast during market ups and downs. Stick to your dollar-cost averaging plan, as its true power lies in its long-term impact.
The Magic of Compounding
Dollar-cost averaging harnesses the magic of compounding, where reinvested returns generate additional returns over time. The longer you maintain your dollar-cost averaging plan, the more significant the compounding effect on your wealth.
Conclusion
Dollar-cost averaging is a time-tested and straightforward strategy for building wealth gradually and with consistency. By investing regularly and without the need to time the market, you can overcome the pitfalls of emotional decision-making and take advantage of market volatility.
Embrace the power of dollar-cost averaging as your ally in wealth-building, and watch your investments grow steadily over the years. Remember, the key to success is to start early, stay committed, and let the power of compounding work its magic on your journey toward financial prosperity.
Happy investing, and may your disciplined efforts lead to a brighter financial future!
Growth
The ABCs of Risk Management in Stock TradingThe ABCs of Risk Management in Stock Trading
Introduction
In the exhilarating world of stock trading, mastering the art of risk management is a crucial skill that separates successful traders from the rest. Effective risk management is all about safeguarding your capital and minimizing potential losses while maximizing opportunities for profit. In this blog post, we will explore the ABCs of risk management in stock trading and how it can lead to more sustainable and rewarding trading experiences.
A - Assessing Risk Tolerance
Before delving into the markets, it's essential to evaluate your risk tolerance. Be honest with yourself about how much capital you can afford to put at risk without causing emotional distress. Your risk tolerance will determine your position sizing and the percentage of your portfolio allocated to each trade.
B - Balancing Diversification
Diversification is a key risk management strategy. Avoid putting all your funds into a single stock or sector. By diversifying your portfolio across different assets, industries, and geographic regions, you reduce the impact of any individual investment's adverse performance on your overall portfolio.
C - Cutting Losses with Stop-Loss Orders
Stop-loss orders are a trader's best friend. Implementing stop-loss levels before entering a trade ensures that you automatically exit a position if it goes against you beyond a predetermined point. This helps protect your capital and prevent significant losses.
D - Doing Your Due Diligence
Knowledge is power in the stock market. Thoroughly research and analyze potential trades before executing them. Understand the company's fundamentals, technical indicators, and market trends to make informed decisions and reduce the element of surprise.
E - Emotion Management
Emotions can cloud judgment and lead to impulsive decisions. Successful traders maintain emotional discipline and stick to their trading plans, regardless of market fluctuations. Embrace a rational approach to trading and avoid letting emotions dictate your actions.
F - Focusing on Risk-Reward Ratio
A positive risk-reward ratio is a fundamental aspect of risk management. Aim to take trades with higher potential rewards than the associated risks. This means that even if some trades result in losses, profitable trades should outweigh them over time.
G - Gradual Position Sizing
Avoid going all-in on a single trade. Gradually scale into positions, especially in volatile markets. This way, you can manage risk and adjust your exposure as market conditions change.
Conclusion
As you venture into the exciting world of stock trading, remember that managing risk is paramount to long-term success. By following the ABCs of risk management - assessing risk tolerance, balancing diversification, cutting losses with stop-loss orders, doing due diligence, managing emotions, focusing on risk-reward ratio, and employing gradual position sizing - you can navigate the markets with confidence and achieve your trading goals.
Stay disciplined, stay informed, and let effective risk management be the cornerstone of your stock trading journey. Happy trading and may your endeavors be both rewarding and fulfilling!
Discover the Hottest USA Stock Market Sectors - Get Ready for anI couldn't wait to share the hottest USA stock market sectors set to sizzle this August. Brace yourself for an action-packed month with potential profits and exciting investment opportunities!
1. Technology Titans: The tech sector continues to dominate the market, with innovative companies leading the charge. From cutting-edge software solutions to breakthrough hardware advancements, this sector promises immense growth potential. Stay ahead by closely monitoring tech giants like Apple, Amazon, and Google.
2. Renewable Energy Revolution: The renewable energy sector is rising as the world shifts towards sustainable practices. Solar, wind, and hydroelectric power companies are experiencing a surge in demand, presenting a remarkable chance to invest in a greener future. Keep an eye on industry leaders such as Tesla, First Solar, and NextEra Energy.
3. Biotech Breakthroughs: The biotech sector is witnessing a wave of groundbreaking advancements in healthcare and pharmaceuticals. Companies focused on developing innovative treatments, vaccines, and therapies are gaining substantial attention. Keep a close watch on biotech giants like Moderna, Pfizer, and Johnson & Johnson.
4. E-commerce Explosion: The pandemic has accelerated the growth of the e-commerce sector, and it shows no signs of slowing down. Online retail giants are experiencing exponential growth as consumers embrace the convenience of digital shopping. Keep an eye on industry heavyweights like Amazon, Shopify, and eBay.
Now, here comes the exciting part! To ensure you don't miss any action this August, I encourage you to subscribe to our exclusive newsletter or follow our social media channels. By doing so, you'll receive regular updates, expert insights, timely tips on these hot sectors, and more.
Don't let this opportunity pass you by! Stay ahead of the curve and make informed investment decisions by subscribing or following.
Remember, August is shaping up to be a thrilling month in the stock market, and you don't want to miss out on the potential gains these sectors offer. Subscribe/follow now and get ready for an exhilarating ride!
Dividend Growth InvestingDividend Growth Investing - Building Wealth One Payout at a Time
Introduction
In a world of volatile markets and uncertain returns, dividend growth investing has emerged as a popular strategy for investors seeking steady income and long-term wealth accumulation. This approach focuses on investing in companies with a history of consistent dividend payments and a commitment to increasing those payouts over time. In this blog post, we will delve into the art of dividend growth investing and how it can be a powerful tool for building wealth, one payout at a time.
Understanding Dividend Growth Investing
Dividend growth investing involves selecting and holding shares of companies that not only pay dividends but also have a track record of regularly increasing those dividend payments. These companies typically exhibit financial stability, strong cash flows, and a commitment to rewarding shareholders with a share of their profits.
The Principles of Dividend Growth Investing
Dividend Yield: Dividend yield measures the annual dividend payment as a percentage of the stock's current price. Dividend growth investors often seek companies with reasonable dividend yields, balancing income with growth potential.
Dividend Growth Rate: The dividend growth rate measures the annual percentage increase in a company's dividend payments. Investors look for companies with a history of steadily growing dividends, signaling financial health and shareholder-friendly management.
Long-Term Horizon: Dividend growth investing is a long-term strategy. Investors aim to benefit from the compounding effect of increasing dividends over time.
Benefits of Dividend Growth Investing
Steady Income Stream: Dividend growth investing provides a reliable income stream for investors, which can be especially beneficial during market downturns.
Inflation Hedge: As companies increase their dividends over time, investors can potentially beat inflation and preserve the purchasing power of their income.
Potential for Capital Appreciation: Companies that consistently grow their dividends often attract investors, leading to potential capital appreciation in the stock price.
Key Strategies for Dividend Growth Investing
Research and Analysis: Conduct thorough research on companies' dividend histories, financials, and future growth prospects. Look for companies with sustainable dividend growth potential.
Diversification: Diversify your dividend growth portfolio across different sectors and industries to reduce risks associated with individual company performance.
Reinvestment: Consider reinvesting dividends back into the same dividend growth stocks or other investments to maximize the compounding effect.
Dividend Aristocrats: Explore companies that are part of the "Dividend Aristocrats" or similar lists, which consist of companies with a history of consistently increasing dividends for many years.
Conclusion
Dividend growth investing is a disciplined approach that rewards patient investors with a growing income stream and potential capital appreciation. By selecting companies with a commitment to increasing dividends over time and holding them for the long haul, investors can build wealth, one payout at a time.
Embrace the principles of dividend growth investing, do your due diligence, and let the power of compounding dividends work its magic on your investment journey. With the right mix of dividend growth stocks, you can create a robust and resilient portfolio that supports your financial goals for years to come.
Here's to the journey of building wealth through the steady flow of dividends, and may your investment endeavors be filled with prosperity and success!
Value InvestingValue Investing - Unearthing Hidden Gems in the Market
Introduction
In the world of investing, where trends and market sentiments often drive decision-making, value investing stands out as a timeless strategy embraced by legendary investors. Value investing involves searching for undervalued assets that have the potential to deliver substantial returns in the long run. In this blog post, we will delve into the art of value investing and how it allows investors to uncover hidden gems in the market.
Understanding Value Investing
Value investing is a strategy that seeks to identify assets trading at prices below their intrinsic value. These assets may be temporarily undervalued due to market fluctuations, unfavorable sentiment, or lack of attention from investors. Value investors believe that the market will eventually recognize the true worth of these assets, leading to price appreciation and potential capital gains.
The Principles of Value Investing
Intrinsic Value Assessment: Value investors analyze the fundamental strengths and weaknesses of a company or asset to estimate its intrinsic value. Fundamental analysis involves evaluating financial statements, earnings, cash flows, and competitive advantages.
Margin of Safety: A key principle of value investing is the concept of a margin of safety. Investors aim to buy assets at prices significantly below their calculated intrinsic value to provide a cushion against potential errors in estimation.
Patience and Long-Term Perspective: Value investing requires patience and a long-term perspective. It may take time for the market to recognize the undervalued asset's true potential and drive its price higher.
Benefits of Value Investing
Potential for High Returns: If the market eventually recognizes the true value of an undervalued asset, value investors can reap substantial returns on their investments.
Less Susceptible to Market Fluctuations: Value investing tends to be less affected by short-term market trends and sentiments. Investors focus on the underlying fundamentals, which remain relatively stable over time.
Contrarian Approach: Value investors often take a contrarian approach, going against prevailing market sentiments. This allows them to find opportunities that others might overlook.
Key Strategies for Value Investing
Stock Screening: Use stock screening tools to identify companies with low price-to-earnings (P/E) ratios, low price-to-book (P/B) ratios, and strong financials that indicate potential undervaluation.
Focus on Dividends: Seek out companies with a history of paying dividends, as this may be a sign of financial stability and value.
Avoiding "Value Traps": Be cautious of companies facing structural challenges that may not recover their intrinsic value over time.
Conclusion
Value investing is a time-tested strategy that has proven successful for legendary investors like Warren Buffett and Benjamin Graham. By focusing on the underlying fundamentals of undervalued assets and exercising patience, value investors can unearth hidden gems in the market and build a portfolio with the potential for significant long-term returns.
Embrace the principles of value investing, conduct thorough research, and let your discerning eye lead you to those overlooked opportunities. As you refine your value investing skills, remember that great investment opportunities may sometimes be hidden in plain sight.
Happy hunting for hidden gems in the market, and may the strategy of value investing guide you to prosperous investment decisions!
Displacement Technology Watch: $QSWith a lot of attention ahead of its earnings report, NYSE:QS had a volatile reaction to the report yesterday, but it is one of several companies vying for dominance in Solid State Battery technology. Auto parts are a niche sub-industry of Electric Vehicles to pay attention to for both short term and long term.
From the weekly chart: The stock is building a bottom after a huge speculative run up after it IPO'd and is now in a basing bottom formation.
QuantumScape was on the NASDAQ Private Market before it IPO'd. Plenty of banks underwrote it and many Preferred Clients, aka Giant Buy Side Institutions, invested during its NASDAQ Private Placement. So it had a respectable amount of investment money to start moving forward faster.
On the daily chart, we can see NYSE:QS had a pre-earnings run that hit resistance which was followed by profit-taking ahead of the report. Pro traders started the run up out of what looks to be a Dark Pool Buy Zone and smaller funds chased, which is often a precursor to a volatile earnings reaction. The stock has a low Percentage of the Shares Held by Institutions at this time, which is another factor that contributes to heightened volatility, but it's one to watch as the EV landscape expands.
Mastering Emotional DisciplineMastering Emotional Discipline: The Key to Successful Investment Decision-Making
Introduction
Investing in financial markets can be an emotional rollercoaster. Fear, greed, and euphoria often cloud judgment, leading to impulsive and irrational decisions. One crucial lesson for successful investors is the significance of emotional discipline in investment decision-making. In this blog post, we will delve into the importance of keeping emotions in check and how it can lead to more informed and prudent investment choices.
The Impact of Emotions on Investment Decisions
Emotions can significantly influence how we perceive and react to market movements and financial news. Some common emotional biases include:
Fear of Missing Out (FOMO): Feeling the urge to invest in a rapidly rising asset, driven by the fear of missing out on potential gains.
Loss Aversion: Placing more emphasis on avoiding losses than achieving gains, often leading to holding onto losing positions for too long.
Overconfidence: Being overly confident in one's investment abilities, leading to excessive risk-taking and overconcentration in high-risk assets.
Herding Behavior: Following the crowd and making investment decisions based on the actions of others rather than on individual analysis.
The Importance of Emotional Discipline
Rational Decision-Making: Emotional discipline allows investors to make rational, well-thought-out decisions based on fundamental analysis and research rather than impulsive reactions.
Long-Term Perspective: Emotional discipline helps investors maintain a long-term perspective, enabling them to ride out short-term market volatility and focus on their investment goals.
Avoiding Herding Behavior: By staying emotionally disciplined, investors can avoid the pitfalls of herd mentality and make independent decisions based on their own convictions.
Risk Management: Emotional discipline is essential for effective risk management. It helps investors set and stick to stop-loss levels and position sizes that align with their risk tolerance.
Strategies for Maintaining Emotional Discipline
Investment Plan: Develop a well-defined investment plan based on your financial goals, risk tolerance, and time horizon. Stick to the plan, even during turbulent market conditions.
Avoid Impulsive Actions: Before making any investment decisions, take a step back, and assess the situation objectively. Avoid impulsive actions driven by emotions.
Diversification: A diversified portfolio can reduce the impact of individual asset volatility, reducing emotional stress during market fluctuations.
Focus on Fundamentals: Rely on fundamental analysis and research rather than short-term market movements. Solid research provides a more objective basis for investment decisions.
Conclusion
Emotional discipline is a critical aspect of successful investment decision-making. By recognizing and managing emotional biases, investors can make rational choices aligned with their long-term financial goals. Embrace emotional discipline as your guiding light in the tumultuous world of investing, and let it pave the way to a more confident and rewarding investment journey.
Remember, investing is a journey, not a race. Stay patient, stay disciplined, and stay on track to achieve your financial aspirations.
KRE a banking sector ETF for regional banks LONGWhile tracking regional banks KRE had a bad time in the spring with the
small and regional bank failures/rescues and the federal actions to buttress the faith of
citizens in them. There have been no runs on the banks. Larger banks may be taken
some business from small banks saddled with securities with diminished
value due to rising interest rates and the effect on the face value of those
fixed-rate securities. No matter, things are better now. This is not to say
the whole banking sector stress is resolved. Banks have enjoyed great
returns on credit cards. The 15-minute chart here shows a good overall
uptrend within ascending parallel support and resistance trendlines.
Price is presently at the bottom of that parallel channel. The relative
trend index signal shows bearish trending today providing confirmation of
of a dip which is now available as an entry point. Relative Strength Indicator
which compares with the SPY showing persistent strength
Overall, I see this as a good entry point for a long-swing trade targeting
the top of the channel which I estimate will be about 52 by the
end of next week estimating the trade duration to be 5 trading days.
My reasonable opinion is that next week's volatility will be far less than
this past week and that DPST will do well. I will also take a look at
the KRE and KBE ETFs. I like this as a long setup with a 15% potential
for a very low risk in a stop loss set $.50 below the channel at 47.84
I have uploaded a similar idea on DPST.
ES SPX Futures - Welcome to FOMCmageddonIn reading the title of this post, I'm sure you can tell what I want to say.
Since the new habit is to guffaw and lmao at any thesis that isn't bullish, because "we" all "know" US equities "always go up" and a new all time high is "in store," I'd like to point out the Nasdaq already shows signs of having topped.
That July 20, 2023 candle was some 2%+ in range and on absolutely no news.
And yet the SPX has not yet taken its equivalent intermediate term high.
The significance of the intermediate term highs that the Nasdaq took and the SPX is probably about to take is that they represent the March of 2022 failure swing.
Why does it matter? Because that swing and its destruction was the trumpet-backed announcement that the Coronavirus Disease 2019 stimmie QE bull run had come to an end.
And so coming back to raid it at a time when Big Jerome Powell openly told reporters at the last FOMC meeting that no rate cuts were scheduled AND that inflation would take years, not months, to come back to levels they regard as apropos, is a very dangerous situation.
The thing about tops and bottoms is that whoever calls them is always wrong, because you can only see a top or a bottom on hindsight.
In the interim, as they unfold, you can only anticipate that at a certain key price level, over a certain high or a certain low, that reversal patterns might manifest.
The geopolitical situation is very sharp. I note in a new call that oil is likely headed for a literal 3 handle this year.
Oil - A New Long Leg Down Soon Begins
And I note that the US Dollar Index is due for a rally to at least 108.
DXY - The US Petrdollar And The "Prigozhin Coup" In Russia
The cornerstone of the international chessboard is now, and always has been, Mainland China and its 5,000 year old country and culture, which has been ruined by the Chinese Communist Party over the course of its century of insanity.
What's going on in the equities market is heavily wedded to the "War With Taiwan" narrative being espoused by the propaganda machine, which I discuss in my call on Taiwan Semiconductor TSM, a company that I believe is a significant long hedge during a potential upcoming downtrend.
TSM - Taiwan, Your Semiconductor Long Hedge
So as for this week's call, I would like to note that, unlike the Nasdaq, the SPX has not raided its March '22 intermediate high.
This high at 4,631 happens to coincide with the new "JP Morgan Chase Collar," where one of the SIB's big funds sold calls at 4,665.
I discuss this collar below:
SPX/ES - An Analysis Of The 'JPM Collar'
Something to understand about the big banks' business model is this:
The first thing is that when they sell calls at a certain level, there is a buyer, and that buyer might be their clients.
Their clients may have paid the bank the standard 10% fee in exchange for providing the liquidity.
The reason the client would buy calls that JPM sells at a 10% premium is because they understand that the market will be made, in exchange, for those calls to be made worth more than they paid.
Those calls were purchased at the end of June when the indexes traded circa 4,400.
Why would JPM sell the calls and get themselves underwater? Because by September 29, Q3 end, they won't be underwater anymore, for one.
For two, they're hedged long and are making money on the way up on the hedge.
So they get to make money on the hedge, the calls ultimately expire worthless, and the client is happy because they got a big bag of cheap options at 4,400 to dump on the head of retail and Cathie Wood-style funds at 4,660.
And all of this is to say that the 4,631 failure swing/pivot is very likely to be raided, and it is likely to be raided on Wednesday, FOMC day.
During Monday's trade session, we will find out a lot about the intentions of the MMs.
I believe they will only raid the 4,544 level on Monday market open, making it a buying opportunity to sell 100 points higher.
However, if ES/SPX is to dump significantly to under 4,500 again, it stands to reason that the real target is the 4,800 ATH somewhere early in August.
But I think, for a lot of reasons, this is just so less likely.
Thus, SPX is likely to raid 4,544, which is to say the 4,550 psychological level, and trade over the 4,650 psychological level before Jerome Powell starts yapping.
This FOMC is really significant because there isn't another rate hike until September, the end of Q3.
So the trade is to long 4,540, sell it allllll at 4,650, and the target is under where JPM went long on puts and has been under water all month under 4,200 heading into the end of August and middle of September.
GOLD/ XAUUSD/ LONG/BUY🔰 Pair Name : GOLD/ XAUUSD
🔰 Time Frame : HOUR/DAILY
🔰 Scale Type : MID/LONG SCALE
🔰 Direction: LONG/BUY
Technical View 📈:
Gold has recently broken a significant downtrend, indicating a potential trend reversal. 🔄 Currently, it appears to be undergoing a final retest on the daily supply zone, which has been breached. This suggests that the price may be headed higher to complete the CD leg of a Gartley pattern. 📈 Notably, the price has reached the fib level of 78.6% and is attempting to retest the 61.8% area, approximately around 1973. We expect the price to continue its upward movement after a successful retest in the 1973.9 - 1970 area. 🚀
A key level to monitor closely is the daily supply zone at 1985. If this level is firmly breached to the upside today, it could trigger a significant upward move in the price. 🎯
Fundamental Considerations 📊:
Regarding fundamental factors, there have been recent discussions about higher interest rates, which could impact the U.S. dollar's strength and affect gold prices. 💵 However, the recent Federal Reserve rate hike did not lead to major changes, and some market participants believe it may have been somewhat unnecessary. This has created a sense that we may have seen the last rate hike of this cycle, especially as inflation has eased to 3% and rates have reached their highest levels in 22 years. The Fed's stance appears to be less urgent than in previous meetings, leading to cautious optimism in the markets regarding inflation control and a potential path towards lower rates. 🤞
Please note that trading involves risk, and it's essential to conduct thorough analysis and implement proper risk management strategies when making trading decisions based on technical and fundamental factors. ⚠️🛡️ Happy trading! 🚀💰
The Power of PatienceThe Power of Patience: Long-Term Investing
Introduction
In the fast-paced world of investing, where market volatility and hype can easily sway decisions, there's one timeless lesson that stands the test of time: the power of patience in long-term investing. In this blog post, we will explore the significance of adopting a long-term investment approach and the benefits it offers to investors who embrace patience as their ally in wealth-building.
Understanding Long-Term Investing
Long-term investing is an investment strategy focused on holding assets for an extended period, typically years or even decades, to capitalize on the power of compounding and ride the wave of the market's long-term growth. Unlike short-term trading, which aims for quick gains, long-term investing takes a patient and steady approach, emphasizing fundamental analysis and faith in the underlying value of assets.
The Benefits of Patience in Long-Term Investing
Harnessing the Power of Compounding: Patience allows investors to benefit from the magic of compounding, where investment returns generate additional returns over time. Compounding can significantly amplify wealth accumulation, especially when reinvesting dividends and capital gains.
Weathering Market Volatility: Financial markets are inherently volatile, with short-term fluctuations driven by various factors, including economic news and geopolitical events. By staying patient and maintaining a long-term perspective, investors can ride out market fluctuations without being swayed by short-term noise.
Reducing Transaction Costs: Frequent trading incurs transaction costs, such as brokerage fees and taxes, which can eat into returns. Long-term investors minimize these costs by holding assets for more extended periods, leading to better overall returns.
Opportunity to Invest in Growth: Long-term investors have the luxury of being less concerned about short-term market movements. This freedom allows them to invest in growth-oriented assets and industries with the potential for substantial long-term gains.
Benefiting from Dividends: Patience pays off when it comes to dividend investing. Many established companies offer regular dividends to shareholders. By holding on to these stocks for the long term, investors can enjoy a consistent income stream.
Keys to Successful Long-Term Investing
Invest in Strong Fundamentals: Focus on companies with solid financials, strong management teams, and a competitive advantage in their industries. Fundamental analysis provides insights into the long-term viability of potential investments.
Diversify Your Portfolio: Diversification is a critical risk management tool. Spread your investments across different asset classes, sectors, and geographies to reduce the impact of individual asset volatility on your portfolio.
Avoid Emotional Decision-Making: Emotions can lead to impulsive decisions in the face of market fluctuations. Stay committed to your long-term investment plan and avoid making knee-jerk reactions to short-term market movements.
Regular Portfolio Review: While long-term investing involves holding assets for years, it's essential to periodically review your portfolio's performance and reassess your investment thesis.
Conclusion
Long-term investing with patience as its cornerstone is a time-tested strategy that has proven successful for countless investors over the years. By embracing the power of compounding, weathering market volatility, and staying committed to sound investment principles, patient investors have the potential to build substantial wealth and achieve their financial goals.
So, take a deep breath, adopt a long-term perspective, and let the power of patience work its magic on your investment journey. Happy investing!
DXY | JPY | CREDIT EVENT | DECRYPTERS Hi People Welcome to Team " DECRYPTERS"
SO we Have 3 Main events this Week Lets Get A DEEP DIVE IN TO THEM
1- FED :- FED RATE HIKES ( PRICED IN ) + PRESS CONFERENCE ( HAWKISH )
AS we predicted Last time what Ever Happen Rate hikes will be increased we still stand by our words . Lets go further Either we are Getting 50 BPS This time or We are Getting 25 BPS next time
WHY Is That So ... ??
The Attached Charts shows the overall level of financial conditions in an economy The conditions are on Same levels When FED was ABOUT to hike Rates Meaning .
Further more —Dot plots , Fed curves ,GSUSCFI Index and Bloom Berg Index & Fall in Credit spread "ALL" Indicating ease in financial system Meaning this Data provide Evidence that FED Can increase More Interest Rates As Credit spread also falling to positive signal for economy
— Rise In commodity Prices Like (RBAB Gasoline) Indicates more higher Prices in Energy sectors.
— Lastly Good inflation trading above 20 years average & CPI Also printing higher on Y/Y Basis.
2- EURO RATE HIKES :-
THIS comes With same Expectations Rate hikes + Hawkish Stance with & Lagarde speech.
Lets Discuss JPY NEWS ON FRIDAY
3- BOJ REPORT :-
A surprise can be Expected From Other Side Like
They can Increase the range of "10 -years JGB" 50 BPS TO 75 /100 BPS
( BOND BUYING BACK PROGRAM) This will Cause bonds Prices to Rise / Yields to Fall &
"JPY TO GET WEAKEN"
—Other yield can React Negatively To IT ( LIKE US -10 YEAR)
Breakout of 8 years chartoftheweak considering "MARKSANS PHARMA LTD"
1) studying weakly chart (long term)
2) eight years breakout
3) formation of #cupandhandle #patter
4) July 2015 to July 2023 time taken for pattern breakout
5) Cup bottom is very low 570% down compare breakout line
6) #fibretracement plot on this Cup and handle pattern exactly match breakouts of support and resistance
7) keeping stop loss of 98
8) upside level 153 short term
9) long term 240& 325
No recommendation for buy and sell
I'm not professionalists just Learning
AVAX Will Re-enter Price Discovery - FOREX mkts on Spruce NodeBack in April some news dropped, not sure if any major TA heads noticed. Serious FA (Fundamental Analysis) news: T. Rowe Price Associates, WisdomTree, Wellington Management, and Cumberland are all on Avalanche Testnet "Spruce". Part of the Evergreen Subnet ecosystem. Blockchain settlement, tokenized equity / credit issuance, trading, and fund management are being tested to see whether they can conduct FOREX transactions without losing capital.
Looks like the news got sold.. time to buy.
As always, entertainment only. Not financial advice.
The likelihood of a recession in the US is declining.
Goldman Sachs sees a decline in the likelihood of a recession in the US over the next year from 25% to 20% thanks to encouraging economic data: improving consumer sentiment and slowing inflation, writes Business Insider.
The bank expects only one and the last rate hike by the Fed and is quite optimistic about a "soft landing" for the US economy.
The Fed's sharp rate hike for more than a year has raised fears of a "hard landing" as the economy slumps as it fights to bring inflation down to its 2% target. However, according to the latest data, consumer inflation in the US has already reached 3%, down from 9% a year ago.
At the same time, fundamental signals point to further disinflation: “Used car prices are falling on the back of rising car production and inventories, and rent inflation still has a long way to go before it catches up with the median asking rent, while the labor market continues to recover from continuing downward trend in vacancies, layoffs, labor shortages and rising nominal wages.”
Head and shoulders pattern Elgi equipment company one of the leader in compressor Product Offerings
The Co. manufactures a wide range of oil-lubricated and oil-free air compressors including Screw Compressors, Piston Compressors, Rotary Screw Compressors, Reciprocating Compressors and Centrifugal Compressors. It also offers diesel-powered Portable Screw Compressors, Railway Air Compressors, Heat Recovery Systems, Medical Air Compressors, Dryers, Air Receiver Tank and other Air Accessories.
$MNDY Setting up below a major pivot. MNDY looks healthy and is possibly setting up.
The setup: 52-week high breakout above $187 pivot
Late Jan, it came above the 200dsma and rode the 21-day ema for about a 25%-30% move then started to drifted back in undercutting the 200dsma for four days in early May. This four day undercut traded on above average daily volume without further progress to the downside, this can be interpreted as supporting action. A week later the stock gapped up on 5/15 due to earnings announcement and put in an HV1 (highest volume traded in 1 year).
It hasn't closed the gap and found support at the 50dsma. Relative strength is also lifting nicely.
$187 is a significant pivot when viewed on a higher time frame (look at the weekly).
Breakout traders might consider this actionable above $187, especially if it's followed by volume.
Risks:
There is clear overhead supply from 2021. (obstacle to become a ML)
The company has negative earnings
Revenue growth is decelerating
A breakout might result in a nice 10%+ opportunity with decent risk management below the recent multiday tight consolidation around $174 (~7%).
A pullback and hold of the breakout would be confirmation of a stage 2 uptrend.
US budget.From the report on the execution of the US budget published on Thursday, July 13, it follows that in June its
expenses rose nearly $100bn on a basis yoy (+15% yoy) to $646bn, while revenues
from tax revenues decreased by 9.2% yoy to $418 billion. Against this background, the rolling 12-month
the value of tax revenues to the US budget decreased by 7.3%, which was a record value
since June 2020, when the country plunged into covid lockdowns.
Thus, the US budget deficit in June rose to $228 billion from $89 billion a year earlier.
Economists' consensus forecast suggested that the figure would be "only" $175 billion.
For the nine months of the current fiscal year, the cumulative budget deficit of the United States was $ 1,393
trillion, which is the third record value in history (this figure was higher
only in fiscal 2020 and 2021)
The sharp increase in interest payments on the US government debt also inspires significant concern.
According to the St. Louis Fed, in the first quarter of calendar year 2023, this figure was
$928.93 billion in annual terms. After 12 months, due to the effect of higher interest
interest rates on US government debt could reach $1.3 trillion in annual terms.
In this case, interest payments on public debt will become the largest item of US spending,
ahead of social insurance. All this creates a vicious circle, the way out of which is not obvious:
the rise in the US budget deficit increases the need for new and larger
borrowings. This, in turn, provokes an increase in market interest rates (investors
require a higher risk premium), which in turn raises the risk of a recession. And this,
not to mention the prospects for a long-term destabilization of the dollar and, as a result, the global
financial system.
Sources.
CNN: Bulls and bears clash in a brutal battle on Wall Street.The views and feelings, as well as the understanding of the current situation, are so divided among bulls and bears that it is more and more like a political landscape. The stock market rally has sparked a war of controversy of unprecedented magnitude. The bottom line is that AI-related Big Tech shares are indeed growing faster than the rest of the market. If you take a basket of AI-related stocks and compare it to the rest of the SP500, the lines will move in completely opposite directions. And now the difference between them has become simply huge. The accumulated steam must go somewhere. And the most important question is "when will it happen???".
Source: CNN.
Retail investors did not believe in artificial intelligence.The reason for the revival of the US stock market was the explosion of interest in AI. The market is up nearly 25% since its October low. Most interestingly, retail investors did not show active interest according to sources US retail investors were selling US tech stocks. And even more interesting is that, based on the analysis of historical data, experts draw the following conclusion - the lack of interest of retail investors in new developments is a good sign. Whenever their interest in something new was at a minimum, this "new" had a beneficial effect on the market. That is, we expect further growth.