Thursday, April 28, 2016

Exclusive: The Trend of Stocks

The Trend of Stocks

A general direction or a precise direction? What would you prefer? Well, trends of stocks have long been gauged to render trading easier. Trends are normally an indication of a general direction or a way of generating an array of predictable trading outcomes. BigOption welcomes you in the world of trend of stocks for a better binary options stock trading experience. Get in.

Tackling stock trading have long been the hurdle of many traders since they want to make consistent money in binary options. But to be able to make consistent money all the time demands more knowledge and a deeper analysis. Yes, I may tell you that a trend is a general direction, but what do you do with that information? How do you actually analyze this trend? The answers are not simple, but once you grasp them, more doors to making incredible earnings will be opened. There are several characteristics that make up one single trend and in this article, the aim is to get you known to these characteristics and the attributions of trends of stocks. You will also be taken deeper into the subject of stock trading, trend of stocks and quality of stocks. Traders will also be introduced to Blue-chip stocks in this blog.

Stock trading, a delicate issue?

Stock trading is a delicate issue. Without proper knowledge on a particular stock, trading on it will be a mistake. Easy to say, CALL on eBay stock today or PUT this stock! But actually if some time is dedicated to research and analysis, a better job here can be done. For example, during the whole month of April, earnings season were the headlines. Earnings season refers to whereby a company releases its quarterly earnings, based on which, the company’s actual worth and health will be analyzed. The company itself stands as a stock on a market. It can be traded as an individual stock or the stock may also / or at the same time be a component of an Index traded worldwide.
What happens is, the higher a stock’s earnings are, the more value it gets. And as a component of an Index, a performing stock adds more value to the whole index.
Performing Stocks
A stock evaluation will have considerable impacts on both the stock and the broader index on which the stock is quoted. As a result, this news will have a much larger impact in binary options, than most traders think. In the event of a quarterly earning report, markets will tend to become highly volatile ahead and following the data release as well. The same news can generate effects that may last around a week in binary options. So if you, as a trader see that ebay got higher quarterly earnings, it is obvious that you place a CALL option on the stock, or a PUT option. In the same way, eBay being enlisted as a component on NASDAQ, may also turn out bullish for the Index. Thus, if the NASDAQ goes up, a CALL option is mandatory else a PUT option is obvious. Right?

Trends of Stock Trading

Wake up traders! We are in the world of binary options and this field has evolved so much that trends are an obvious help to generate high quality trading predictions. A most simple and easy way of comprehending stock trading trend is:
Stock trending
Normally stocks trend around 30 percent in a whole session, either on fundamental or economic cues. The rest of the trading session, a stock normally moves sideways in trading ranges. A normal trading range looks like this:
Normal Trending
KISS: Keep it simple stupid! I'm sure you heard of that. I have too, for many years before I do understand the basics, instead of looking for complicated things. Sticking with trends is required while trading stocks. Hear-say information will not help you here, as many intermediate and advanced traders in binary options need more than just a piece of information.

Top Technical Indicators that can be used

If traders prefer to use top technical indicators in order to gauge trends of stocks, three technical indicators can be suggested:
  1. Moving - Average
  2. MACD
  3. Parabolic Sar
All these 3 technical indicators can be found on BigOption’s Blog.
Traders should keep their trading psychology in line with risk management, so that they use these technical indicators to increase high-end gains instead of running into losses.

Macro Trend and its Advantages


What does a trader need to focus on? Many will say money, some will say outcome, others may say trading tools, but very few give importance to timeframe. While putting a stock at stake in binary options, timeframe is important to verify. Choosing time, is simple but choosing the right time requires verification of time frames.
Trends classification comes into 3 segments, notably:
  • Primary
  • Intermediate
  • Short-term
It is important to consider timeframes so as to be in-the-money. The best way to multiply your gains is to give importance to powerful time trends, as many traders tend to ignore these, by laying more attention on different time frames that appear simultaneously.
In Primary markets, bull and bear hold more importance, as the trends may vary from time to time, by looking at the uptrend or downtrend of a particular stock. These trends can be constantly verified over longer periods of time and may generate effects that may last longer or shorter depending on the trend. But any reaction to the market, might signal a bullish or bearish trend anytime.
In Intermediate and long-term trend markets, more importance is given to actual health of an economy. Investors and analysts focus on the sudden news or event that may come and add spark to stock trading or may also provoke a downtrend. Sudden turnarounds create rallies to which timeframes are subjective. Everything here depends on how trends are interpreted in such a volatile market. While, intermediate markets get hooked on news and on the other hand long-term market get mostly involved with technical analysis, as mentioned above. Use of technical indicators can help to determine trading outcomes of a particular stock in binary options.

Macro trends

All timeframes should be in line with macro trends. By positioning yourself in the same line of the market will help increase winning chances. Macro trends are global trends which may have significant future impacts on the sectors of activity belonging to a company that should be of interest to us traders. These trends exist in a general level in the whole economy rather than concentrating on a particular sector. Trends in data releases such as, domestic product, inflation, employment, spending, monetary and fiscal policies. Most important in stock trading will be the quarterly earnings.
Stock Measuring
Measuring a Stock’s share price is utterly necessary and determining the changing trends determined by the stock’s points is what matters on a stock chart.

An exclusive tour inside Blue-Chip Stock

Apart from just analyzing, many traders have difficulty in redeeming higher gains just because they cannot differentiate between stocks. Blue-chip stocks are a vital part of stock trading since they comprise of influential stocks.
JPMorgan chase & co, Intel, Wal-Mart and IBM form part of the currently highest ranked stocks. Of course there are many other stocks that exist alongside these, which have higher payouts or better quarter earnings for sure, but most of them are not around since long and have a lot to prove yet. Many of these new companies, are also subject to a short life on the market since it is difficult for them to affirm their superiority amongst gigantic companies. However, I am not telling you not to trust them, they are good trading source, but blue-chip stocks stand apart.
Blue-chip stocks have long been on the market, have proved their supremacy and have continued to operate on the market for several years in a row. These stocks possess market capitalization in the billions and are leaders in their industry. Basically these companies are established and mature. These are types of companies that pay regular dividends that often increase on a yearly basis. Some companies really stood out of the box by paying dividends for over 20 years in a row! These companies are good source of trust, but they are not fully immune from market downturns like the Lehman Brothers chain of companies.

The Bottom line

Now that you have been introduced to blue-chip stocks, make sure you do trade on one of them, but by keeping in mind the trend of stocks. Whether you opt for a primary, an intermediate or a long-term market trend, you are advised to follow the guidelines given in this article. Make use of the trends of stocks or technical indicators to achieve your desired trading outcome in binary options stock trading.
Warren Tancredi By: Warren Tancredi 

Monday, April 25, 2016

Crude oil futures - weekly outlook: April 25 – 29

Crude Oil

Oil prices rose on Friday, notching up a third successive week of gains as concerns about a global supply glut eased, bolstering investor sentiment.
On the New York Mercantile Exchange, crude oil for delivery in May settled at $43.73 a barrel at the close, up 55 cents or 1.27% for the day, extending the week’s gains to 10.68%.
Global benchmark Brent settled up 1.35% or 60 cents at $45.13 a barrel. It ended the week up 4.71%.

Disruptions to supply from an oil worker strike in Kuwait early in the week helped prop up prices after the weekend’s failed negotiations between major producers on an output freeze intended to rein in ballooning overproduction and shore up prices.
Prices continued to be underpinned after the International Energy Agency said Thursday it expects the oil market to rebalance from oversupply by next year, provided there is no major economic downturn.
IEA chief Fatih Birol said 2016 would see the biggest decline in non-OPEC oil supply in the last 25 years, which will help the market to come back into balance from oversupply.

Also Thursday, an official from OPEC said it will discuss freezing oil production at its next meeting in June.
But analysts have cautioned that freezing production near current levels is unlikely to reduce the global supply glut.
Data on Wednesday showed that U.S. crude stockpiles rose slightly less than expected last week and continued to hover near record highs.
The Energy Information Administration reported that U.S. crude inventories increased by 2.08 million barrels in the latest week, bringing total crude stocks to 538.6 million barrels.

Crude production continued to decline, falling to an average 8.95 million barrels per day from 8.98 million in the prior week. Production has now fallen in 11 out of the past 12 weeks as low prices continue to erode shale output.
On Friday, oil services company Baker Hughes said the number of U.S. oil drilling rigs, viewed as a proxy for activity in the sector, fell for the fifth straight week to the lowest level since November 2009.

In the week ahead
Tuesday’s supply data from industry group the American Petroleum Institute will be in focus ahead of Wednesday’s weekly government report on stockpiles.
Ahead of the coming week, has compiled a list of these and other significant events likely to affect the markets.

Monday, April 25
Markets in Australia will remain closed for the Anzac day holiday.
The Ifo Institute for Economic Research is to release data German business climate.
The U.S. is to release data on new home sales.

Tuesday, April 26
The U.S. is to release data on durable goods orders and a private sector report on consumer confidence.
Bank of Canada Governor Stephen Poloz is to speak at an event in New York.
The API is to release its weekly report on crude stocks.

Wednesday, April 27
New Zealand is to release data on the trade balance.
Australia is to report on consumer price inflation.
The U.K. is to release a first readout of first quarter gross domestic product.
The EIA is to publish its weekly report on crude stockpiles.
The Federal Reserve is to announce its benchmark interest rate and publish its rate statement.

Thursday, April 28
The Reserve Bank of New Zealand is to announce its benchmark interest rate and publish its rate statement, which outlines economic conditions and the factors affecting the monetary policy decision.
The Bank of Japan is to hold its next monetary policy review. The rate announcement is to be followed by a press conference.
Japan is also to release data on household spending, inflation, retail sales and unemployment.
In the euro area, Germany and Spain are to release preliminary data on inflation, as well as reports on unemployment.
The U.S. is to publish its initial estimate of first quarter economic growth and the weekly report on initial jobless claims.

Friday, April 29
Markets in Japan will be closed for a national holiday.
Australia is to report on producer price inflation.
The euro zone is to publish preliminary reports on consumer inflation and first quarter growth.
Germany is to report on retail sales.
Swiss National Bank Chairman Thomas Jordan is to speak at an event in Bern.
Canada is to publish its monthly report on GDP.
The U.S. is to round up the week with a report on personal spending and revised data on consumer sentiment.

Thursday, April 21, 2016

Oil rises as IEA expects biggest non-OPEC output fall in 25 years
SINGAPORE (Reuters) - Crude prices rose on Thursday, reversing earlier declines, as the International Energy Agency (IEA) said that 2016 would see the biggest fall in non-OPEC production in a generation,
helping rebalance a market that has been dogged by oversupply.
The IEA's chief Fatih Birol said on Thursday that low oil prices had cut investment by about 40 percent in the past two years,
with sharp falls in the United States, Canada, Latin America and Russia.

"This year, we are expecting the biggest decline in non-OPEC oil supply in the last 25 years, almost 700,000 barrels per day.
At the same time, global demand growth is in a hectic pace, led by India, China and other emerging countries," he told reporters in Tokyo.
The comments reversed earlier declines in crude prices.

After falling to a session low of $45.23 per barrel on Thursday, front-month Brent crude futures rose to $46.10 a barrel by 0555 GMT, up 30 cents from their last close.
U.S. crude futures dipped to $43.62 before rising to $44.43 a barrel, up 25 cents from their last close.
"Optimism has returned to energy markets, at least for now," analysts at Bernstein Research said in a note to clients.
But weighing on markets were earlier statements by Russia and Iran. Russia's energy minister said it might push oil production to historic highs
of over 12 million barrels per day (bpd) just days after a global deal to freeze output levels collapsed and Saudi Arabia threatened to flood markets with more crude.

Meanwhile, Iran, determined to regain market share following the lifting of sanctions last January, reiterated its intention to reach output of 4 million bpd.
With major producers in the Middle East and Russia seemingly racing to raise production, much will depend on U.S. drillers and demand to determine how long the global glut lasts,
which sees between 1 million and 2 million barrels of crude pumped every day in excess of demand.

"Any hope of market re-balancing from the current surplus in supply (lies) on the predicted decline in U.S. oil production," French bank BNP Paribas (PA:BNPP) said.
"The U.S. accounts for the bulk of non-OPEC's 2016 oil supply contraction of 700,000 barrels per day forecast. If the decline in the U.S. oil supply proves insufficient to tighten balances,
then ... the oil price will remain low," it added.

Bernstein said "we believe at $50-$60 per barrel, oil U.S. shale has a clear future."
In refined products, China saw exports of diesel and gasoline soar, spilling surplus fuel into a market that is already well supplied,

and threatening to further cut Asian benchmark refining margins that have halved since the beginning of the year.

Friday, April 15, 2016

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