December 2007 Deja Vu

Last night’s 500 point drop in the DOW brings back memories of 2008. Prices slicing decisively through the 200 day MA of the SPX on Tuesday, Aug 2 already sent shivers down the spine of technical analysts everywhere. Yesterday’s 60 point plunge confirmed a break of the 27 month uptrend line and neckline of the [...]

Using Fibonacci to identify potential turning points

In my last blog post, I talked about some “topping” chart patterns used in technical analysis. Since Elliott Wave International is giving away a free e-book on using Fibonacci to identify turning points this week, I thought I would continue my series on technical analysis and write a post on how I use Fibonacci Retracements [...]

AORD head and shoulders – an example of when to hedge

Yesterday I decided to buy XJO put options to hedge my Australian stock portfolio because of what I observed as a “head and shoulders” pattern on the daily chart of the All Ordinaries Index (see $AORD chart above). This pattern is formed when the price charts make a new lower “high”. In a healthy bull [...]

How your SMSF can profit when the market goes down

Stock investors can only profit when stocks go up in price. The only way for a stock investor to profit in a falling market would be sell short but most people are uncomfortable with short selling. Short sellers are perceived negatively and are frequently blamed by regulators and company CEOs for causing stock prices to [...]

Create your own DIY capital protected investment

Every now and then I would get emails from my broker to ask me to buy some special Capital Protected investments. These products are generally share investments  with a guarantee that your capital will be protected if the share falls below your purchase price, and you can keep any capital gains made if the share [...]

Insuring your paper assets

Last week a storm damaged the fences on one of our investment properties. I check our insurance policy and was relieved to find out that storm damage was covered and the maximum cost of repair to me would be $300, which is the level of “excess” I chose when I bought the insurance. Almost everyone [...]

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