How can we participate in the rise and fall of interest rate? Firstly, we need to understand the difference between interest rate and yield. Interest rates are a benchmark for borrowers whereas yield is for investors or lenders. • Interest rates are the fees charged, as a percentage from a lender for a loan. • Yield is the percentage of earnings a person...
How to use related markets to complement each other? Definitely you can apply this technique to other related markets. In this tutorial, I am seeing Nasdaq as a leading indicator for the rest may likely to follow. i) Nasdaq bear trend was nicely formed, but not yet for the Dow Jones, S&P and Russell. ii) Nasdaq in the short-term has also a confirmation for a...
When the market range, it is telling us they are lost with the main direction. And we are seeing that between all the US major stock indices and many stocks since the second week of May. Prices basically still trading around the same price since then. In today’s tutorial, we will discuss: • How to identify when market started to enter into a range and • Which...
U.S Bonds market is larger than the largest American companies combined, therefore it is important to also track the health of the bonds market. • U.S Bonds size - market value estimated $46 trillion • Largest American companies size - market capitalization estimated $42 trillion The bonds market moves in tandem with the stock markets, meaning when the general...
One of the ways to determine U.S. stocks and indices’ direction in the long-term is to also know where the U.S. bonds markets are heading. Why? This is because the US bonds, its market capitalization can be as large as all the U.S. stocks market combined; therefore, it is also as important to also track its direction. In the macro trend over generations, the...
Instead of waiting for NBER to officially declare the confirmation of recession, an alternative way to identify is using the U.S. indices quarterly chart, especially the S&P. Typically, economists call a recession when GDP has declined for two consecutive quarters. A committee at the National Bureau of Economic Research (NBER) is responsible for officially...
A buying strategy in a downtrend. How to identify buying opportunity in a downtrend? Not my preference to buy in a downtrend, but that does not mean we should avoid it when buying opportunity arises. Recognizing it is a downtrend, we keep our buy position short-term; as we are going against the trend. Discussion: Rules in constructing a downtrend parallel...
Discussion: 1. Example on Natural Gas - breaking away from its range 2. Beginning stage of a “Growth” stage 3. Identifying and trading in its uptrend with multiple timeframes Disclaimer: • What presented here is not a recommendation, please consult your licensed broker. • Our mission is to create lateral thinking skills for every investor and trader, knowing...
A typical characteristic of a bull market as seen is its significant highs are higher and its lows are higher. However, the market has confirmed moving into bear when the market broke below the major uptrend on the 3rd week of 2022. Now we could see the Bear is in-charge. And a typical characteristic of a bear market as seen is its significant highs are lower...
Common mistake made using trendline Discussion: 1. 2 rules to draw an uptrend line 2. Primary % secondary uptrend line 3. Common mistake made using trendline 4. Where is its trend now? Disclaimer: • What presented here is not a recommendation, please consult your licensed broker. • Our mission is to create lateral thinking skills for every investor and...
2 Rules for Trendline: 1. Identify the significant lows. At least three points 2. Find the best fit among the significant lows We can apply the 2 points to a down trendline analysis as well. Looking-out for the significant highs instead. Gold started its rally after year 2000. We could see it started forming its primary trendline since 2006. Primary...
Discussion: 1. 2 rules to draw an uptrend line 2. Primary uptrend line 3. Secondary uptrend line 4. Time for buy Gold? Disclaimer: • What presented here is not a recommendation, please consult your licensed broker. • Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and...
Discussion today: 1. Set up with MACD 2. How to tell if the bull is still intact? 3. How to tell if the bull is losing its momentum? Disclaimer: • What presented here is not a recommendation, please consult your licensed broker. • Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market...