Trading & Technical Analysis

Why commodities could run

At the height of the stock panic in late November, the flagship S&P 500 stock index had plunged 49% year-to-date.  Fully 2/3rds of this decline happened in the 9 weeks leading into the panic lows!  Naturally the psychological impact of such an epic selloff was utterly massive.  Fear exploded to unprecedented extremes. A stock panic…

It’s not too late to consider commodities for your portfolio

Last autumn’s stock panic fueled a particularly hard selloff in the commodities sector.  And many folks were quick to proclaim the end of the 21st-century commodities bull.  Indeed nearly all commodities prices were hammered, with some experiencing precipitous declines that were unseen since the Great Depression. But even at the depths of despair, the secular…

Tax perks for share traders

It’s tax time and this means working out how much money you’ve made or lost on the stockmarket this financial year and how much tax you’re up for. With the help of Tax for Australians for Dummies, written by tax specialist Jimmy B. Prince (2009 Wiley Publishing Australia) – we’ve highlighted some of the essential…

Impact of US dollar on commodities prices

On any day that commodities prices move materially, the financial media is quick to ascribe their action to the US dollar.  And this oft-discussed causal relationship is certainly logical.  With commodities priced in dollars, a stronger dollar will buy more units of any given commodity while a weaker dollar buys less. But countless times as…

ASIC lifts short selling ban on stocks

Australia’s corporate regulator has lifted the ban on covered short selling of financial stocks, saying systemic risks in the financial system had declined. The Australian Securities and Investments Commission (ASIC) lifted the ban on Monday ahead of its Friday expiry date after reviewing market conditions. “The balance between market efficiency and potential systemic concern has…

Arbritrage can be low risk and can double your profits

There’s a trading method that professional fund managers and institutional traders have been using for years – yet until the introduction of Contracts for Difference (CFDs) into the Australian market, it was a strategy almost impossible for retail investors to trade profitably. The technical term is arbitrage.  The theory is simple.  It means trading the…

SEC chief says new short-selling rules are a priority

The head of the Securities and Exchange Commission said on Tuesday she is making the issue of new rules restricting short-selling a priority as the agency heard from an array of interests about ways to limit trades that bet against a stock. Investors and politicians have been clamouring for the SEC to put new brakes…

How to evaluate gold stocks

In my tenure as an analyst on the gold stock circuit, I’ve been blessed to have experienced some pretty neat things that have given me an inside look at the gold mining industry.  And by far the most exciting of my adventures have been tours of actual gold mines. I’ve descended deep into the bowels…

Why commodities will remain the best-performing sector

Out of their dismal lows in early March, the stock markets rocketed 27% higher in a single month!  After such fast gains, Wall Street remained skeptical.  Was this a typical bear rally that would soon collapse?  But as the last couple weeks have shown, it didn’t.  Stocks not only held their rally gains, but they…

Winner of the $1000 giveaway

With the Easter break behind us, we can now announce the winner of the $1,000 giveaway – in the Bulls versus Bears trading competition. This time we focussed on the S&P/ASX 200 index, which comprises the 200 largest Australian stocks by market capitalisation. You were asked to tell us what level the index would hit…