Markets

Consumer Spending Rises

A lot of the news reports out there are indicating that consumer spending is going down. Typically, this is a warning sign of an impending bear market, and it’s something that the U.S. economy has been hyperaware of for over a year now. However, the news probably isn’t as bad as it seems, and the fundamental data that is being used to arrive at the previously stated conclusion isn’t the only side of the story. A lot of the speculation about declining consumer spending is because many of the major retailers, including Macy’s and Nordstrom, are showing weaker figures. However, according to the most recent government report on the subject, consumer spending has taken the largest leap upward that it has seen in a year. […]

June 10th, 2016|Markets|

Oil up Over $50

For the first time in many months, Thursday, May 26th’s trading highlights included Brent oil seeing action up over $50, with crude oil just a shade below Brent. For those that have been bearish on oil for the past several years, this is a warning that maybe the oil recovery is already well underway. Both Brent and crude finished the regular trading day just under $50 per barrel, but with Brent breaching that important point earlier, a lot of momentum is on its side right now, and there’s a very good chance that this breach will happen again in the near future, and perhaps even end a trading day above $50. There have been plenty of hints and signs that a recovery was beginning, and this is by far the clearest signal that trader confidence has returned. It’s a momentous moment, albeit a lackluster one thanks to the fact that oil is still down more than 50 percent off of its highpoints. […]

June 1st, 2016|Markets|

New Volatility in U.S. Market

This week is shaping up to be an interesting one for the U.S. stock market. With many factors at play against one another, including a poor jobs report last week, the market has seemingly returned to the state of volatility it was in at the beginning of the year. Tuesday, May 10th, saw huge gains across the board, but without any substance behind them, they were erased on Wednesday. Thursday and Friday should have more conservative movement as a result, but with the large drops that the market experienced Wednesday, the ground is also fertile for value investors to swoop in and push prices upward. […]

May 14th, 2016|Markets|

Apple’s Positive Sentiment Drops Sharply

Apple’s (AAPL) stock price has been moving downward for about a year now, coming off of a high of over $130, down to under $100. And although the stock has moved up over $105 at this moment, there’s not a very strong hold on this price, and investors are quickly losing confidence in Apple’s current price, even if it is already much lower than it has been. There are a number of factors pushing Apple’s price down, and these things don’t look like they will be changing soon. For one, Apple is currently in the midst of losing its grip on a huge marketplace in China. Thanks to current regulations, Apple has suspended its iTunes Movies and iBooks stores there, which is likely to lose the company millions of dollars. There are also issues with the new iPhone’s production. Basically, the biggest problem for Apple is that both customers and investors are losing enthusiasm, and that will only lead to more losses for the company in the coming months. When they announce earnings next week, we can get a better assessment on how much damage has been done, but until then, sentiment is markedly against Apple. That means future price drops in its stock are likely. […]

May 7th, 2016|Markets|

Crude has a Big Day

Oil recently jumped up by 6 percent, surprising a lot of traders that focus on commodities. Crude rose by $2.29 per barrel—6.15 percent—up to $39.55 per barrel on Friday, April 8th. There were a few major factors that contributed to the rise in prices, including the U.S. Federal Reserve’s comments on the economy, U.S. oil production, and an OPEC deal that seems to be limiting production by some of the major players in the oil production world, such as Saudi Arabia and Kuwait. The U.S. has cut its oil supply by 5 million barrels recently, which went well against analyst thoughts that there would be a build of over 3 million barrels. With less supply, prices can go up because of increased tension with demand. […]

April 18th, 2016|Markets, Strategies|

Traditional Stock Options Shed Light on Binaries

When it comes to stock options, volume isn’t always a good thing. In fact, last week, of the five most active stocks when it came to options being exercised, three of the five moved downward. The smallest of these movers was by a loss of more than 9 percent. That was for the pharmaceutical company, Pfizer. The two other companies in the top five that lost value both dropped by more than 30 percent. Of the two assets that gained value, only one was a major company: Cisco. Cisco gained about 5 percent. The importance of looking at executed options when you begin your trading day is that options reveal what traders were thinking in the past. If an option is executed at a gain, that means that the company has increased in value. Remember, traditional options do not carry with them the necessity of being executed as binary options or futures do. […]

April 5th, 2016|Markets|

Oil Prices in Ten Years

Crude oil is still at the heart of economic turbulence in the U.S. and the rest of the world. And despite the fact that OPEC countries seem to be coming to terms with the struggles that they are facing, and causing, in some cases, not everything is what it seems to be. To get a better understanding of the potential in this economic warfare, looking at the politics and the economic impact behind everything is a must. First, let’s start out with what’s happening in the United States. The U.S. does produce oil, and they do have reserves, but because of increased consumption, the domestic oil production is not keeping up with demand. This means that reserves are being depleted, and that means that there is a possibility that the U.S. could run out of oil. It’s not likely, but if things do not change when it comes to consumption in the coming years, it could happen. This would once again give OPEC nations the upper hand, and their ability to manipulate prices would once again drive the price of crude up. […]

March 29th, 2016|Markets|

A Long Term Guide to Your Trading

It’s probably not a surprise to you that your finance goals should change as you get older. A 20 something should be allocating their investing money in a very different manner than a 50 something should be. With this in mind, how does your short term trading play into your overall finance goals? This is a great question, and it’s something that all traders should be considering. There is a lot to gain from trading, but if it’s not approached correctly, then you could be setting yourself up for failure—which defeats the point of trading in the first place. As a general rule, the younger you are, the more risk you can afford to take. This is the method that the best money managers in the world use, and therefore, you should be attempting to duplicate the strategy, too. The closer to retirement you are, the less risk you can afford to take. This mindset should be kept in mind as you start thinking about your overall trading strategy. […]

March 15th, 2016|Markets|

How to Use Short Interest

Momentum and trend are two of the most useful tools that a binary options trader can use, and that means that short term traders of all sorts should be evaluating these concepts before each trade that they make. One simple way to figure this out with stocks is to look at the short percentage that has been taken out. If there is a large amount of short positions taken out, this indicates that large hedge funds have started moving against that company, and even if that company doesn’t have weak technical, it could move momentum downward, and this could reverse the trend of the stock’s price so that the stock starts dropping more steadily. […]

February 10th, 2016|Markets, Strategies|

The U.S. Inflation “Problem”

Inflation hasn’t really been a huge issue over the last several years in the United States. The dollar, although becoming stronger in other countries, hasn’t really changed much in the United States, and many investors are taking notice of this. This is especially poignant for retirees that have been told for years that they need to account for inflation. The payoff has been that their dollar is holding its value far better than what was expected. This might not continue, though. Starting in the late 80s, though, every time that the unemployment rate has hit a bottom, the inflation rate has skyrocketed. Inflation is a legitimate issue as it decreases the buying power of the dollar. […]

January 20th, 2016|Markets|