Short-term traders have been watching the triangle pattern on the daily chart of the SPX (see chart below) for the last few weeks and this has clearly been resolved to the downside, with prices not only breaking below the triangle but even breaching the 50 day moving average. This quite clearly signals the end to [...]
You are not alone if you are asking who the heck is Dexia, let alone why should anyone care about this European bank that nobody has heard about? Well, Dexia was the reason behind the latest round of share market panic. It is a major player in the $2.9 trillion global municipal debt market. To [...]
I was surprised when I found out that the top keyword search phrase for my blog this month was “2010 Bear Market Strategies”. Due to the lack of bearish articles on Australian sites, my little old blog appeared in the top 2 listings on the Google search results! For the few bears out there (according [...]
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 [...]
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 [...]
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 [...]
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 [...]
I just learned a new investment strategy that has completely changed the way I would buy stocks in a bear market. I wished I had known about it last year when I started buying stocks with a view of holding for the long-term. In my May 6 blog post, I talked about buying XLF, a [...]