Trading & Technical Analysis

The contrarian: as investors panic, now is the time to buy gold

Gold has faced stiff headwinds lately as investors abandon alternative investments to chase record-high stock markets.  Probably the most significant has been the major selling hammering the flagship GLD gold ETF.  It has suffered such intense differential selling pressure that its custodians have been forced to dump enormous quantities of physical gold.  What are the…

3 Small Cap Stocks With Big Potential

Investors can easily be bewildered by the array of house-price statistics and wildly differing views on the state of the property market. The Economist magazine, for example, has long said Australian property is the most overvalued in the world – a claim refuted by many local economists. Who knows? The only certainty is that price…

Using Analyst Recommendations During Reporting Season

The current round of earnings releases is winding down, with healthcare provider Sigma Pharmaceuticals (SIP) the last to report on 14 March.  After that we can all catch our breath – until mid April when the banks begin weighing in with their results. Earnings season should be an exciting time for investors for a variety…

3 Manufacturing Stocks Bucking The Trend

Somebody forgot to tell a few ASX-listed companies about the parlous state of Australia’s manufacturing sector. Maxitrans Industries, Supply Networks and Codan are performing strongly, and a few others sector laggards look ripe for a re-rating. That is not to downplay manufacturing problems, or the damage from a stubbornly high Australian dollar to the export…

Why the Federal Reserve is Digging an Ever-Deeper Hole

Apparently, policymakers at the Federal Reserve are having second thoughts about the wisdom of open-ended quantitative easing (QE). They should. Not only has this untested policy experiment failed to deliver an acceptable economic recovery; it has also heightened the risk of another crisis. The minutes of the January 29-30 meeting of the Fed’s Federal Open…

Earnings Season – 5 Energy Stocks in the Spotlight

Five ASX energy companies are reporting full-year and interim results this week, with Oil Search Limited (OSH) being the largest and perhaps the most highly anticipated. Investors are keen to see some good figures come out to help propel the sector higher; the ASX XMJ Materials Index is down 7% year over year and the…

2013 – Best Year for Floats since the GFC

Is the float market about to roar back to life? Only 11 companies, all small, have applied for admission on ASX. But behind the scenes is a huge amount of Initial Public Offerings (IPO) activity, which could make 2013 the best year for floats since the Global Financial Crisis (GFC). The caveat, of course, is…

Using Divergence To Detect Bottoms and Tops

By Vito Henjoto, Technical Analyst, GFT Divergence is a fantastic tool to use if you can spot it – but for some people, they miss out and just can’t see the wood for the trees. Considering that the trading world is mostly sentiment driven, price itself does not filter out emotions, sentiments and bias of…

Tougher times ahead as the mining boom shifts gears

By Ian Harper, University of Melbourne Various explanations have been offered for Prime Minister Julia Gillard’s decision to announce the date of the 2013 federal election almost eight months in advance. Most commentators, both those who applaud the move and those who decry it, focus on political tactics, but economics should not be overlooked. The…

Is there a quick and easy way to predict changes in trend?

By Vito Henjoto, Technical Analyst, GFT Traders employ a large number of technical indicators to help them identify and predict trend changes, but in reality tracking these changes is no simple task. So, the first question is: “Is there a quick and easy way to predict changes in trend?” The answer is yes.  However, it’s…