February 27, 2011

London Stock Exchange Difficulties

The London Stock Exchange experienced trouble late last week when it was shutdown for 4 consecutive hours. Not a lot of information was provided on the nature or cause of the "glitch" but it was enough to make inaccessible the exchanges electronic facilitation of what would have ordinarily been a busy trading day. Apologies were given but I'd like more accountability on how the exchange had the plug pulled out from under it. Traders in London and across the world took notice. A few weeks earlier, another major European exchange was shut down as a result of a "glitch." Here's an article on it: February 26th NY Times

The stock market didn't seem to concerned about the shut-down in London and Pushed forward on Friday after a week of declines. Oil companies have been rising as evidenced by new 52 week highs being made recently for companies like Exxon Mobile, ConocoPhillip, Hess Corp, Chevron, and other companies in the Oil and Integrated Gas industry. They were rising before the Libya uprising that has shaken North Africa, and Crude oil has been flirting with the $100 level. As the unrest in the Middle East continues to weight on investors minds, the price of oil may rise further and provide resistance to economic recovery. Prices of Commodities have been rising in general, from Cocoa, Silver, Corn and Wheat, to oil and Steel, We have to make sure not to let the news reports mislead us, and take the direction of our ideas in ways that are not ours. Doing your own research, own analysis, and producing your own ideas, is the way to have a proper investing mindset.

February 21, 2011

Nasdaq & ICE and Frankfurt Want NYSE

The whole deal being talked about earlier this week over the proposed take-over of the New York Stock Exchange by a Frankfort Exchange Operator has Continued to Add to the Story. Over the Weekend, Tucked Several Pages Deep in the Saturday NY Times Edition, Was an Article About the NASDAQ - OMX Also Showing an Interest in Acquisition of the NYSE. There is a clause in a signed contract which imposes a penalty of over $300 million dollars on the NYSE Group if they back out of talks with the Frankfort Operator. It has been reported that a completed deal would create a Mega Powerhouse exchange serving all along the Atlantic. Now that Nasdaq has shown an interest the stakes have risen for what type of deal NYSE might get in the end. Here's the article that just came out: Nasdaq OMX and NYSE Talk.

I have to admit that I was surprised and pleased to hear Nasdaq OMX groups interest in enhancing their services but also keeping the NYSE American owned. I know the penalty for backing out is stiff but in the long run, that will be made up many times over again. The stock market has been rising the past couple months. I saw in the news papers where all three major US Indexes were trending upward at what appeared to be 45 degree angles. I have learned over time and through experience, that a trader must not catch a stock first. Instead they must catch a movement and then use a stock to ride it. Of course the big challenge is determining when the declines are genuine corrections and when they signal falling prices ahead. As for now, the S&P 500 has been up three consecutive weeks. The moment was like a current that pushed prices up. I would expect oil prices to rise this week as the unrest in Libya and their 1.6 million per day of oil output may face challenges. As Africa's 4th largest oil exporter, Libya political strife, may play a role in the rise. China has been taking steps to curb their inflation and economic policies being put in place, provide incentive for domestic spending by Chinese consumers. As the Markets in china focus on domestic demand, the trade imbalance with the US should narrow in the months ahead. We are in an upward trending market, I don't see a slow down occurring this week.

February 17, 2011

Jesse Livermore, Timeless Trading Wisdom

I just completed a section on my Investing website about Jesse Livermore. Livermore is one of my favorite traders of all times. He made several fortunes trading the Stock Market. Mr. Livermore was very secretive in his trading and strategies, but towards the end of his life, he wrote a book in which he revealed many of his secrets and market experiences. I first learned of about Livermore reading John Boik's How Legendary Traders Made Millions: Profiting From the Investment Strategies of the Greatest Traders of All time. After reading about Livermore, I was hooked, I read as much as I could possibly find. He was mysterious, filled with ingenuity and passion for trading, Enigmatic, and a Stock Market Genius. I personally believe that Jesse Livermore was ahead of his time and with his knowledge and keen observation of the stock markets, was able to amass fortunes that others could only dream about.

I've studied Livermore for years. I am well acquainted with his life, his story, and his amazing feats amassing wealth as a stock market operator. I highly recommend for anyone wanting to get their foot in the door and learn more about investing, to study Jesse Livermore Quotes. I have compiled quotes and broken them down into subjects on my website. I am sure after you read it, you will agree that Mr. Livermore was a Genius and it was very kind of him to leave us his words which remain timeless to this day when it comes to developing the skills to trade successfully in the stock market. One of my favorite Jesse Livermore Quotes is: "The stock market is never obvious, it was designed to fool most of the people, most of the time" Visit my website to find out what other pockets of wisdom and insights Jesse Livermore has passed on to us to learn from and became more successful traders in our own right. I wrote about Jesse Livermore as a young man in a future post (I came back and added this last sentence).

February 15, 2011

The News and Commodity Prices

When it comes to Commodities and Grain Prices, China is World's largest Wheat Grower Accounting for up to 1/6th of the Total World Output in Good Years. Severe Droughts Throughout China, Appears to be Contributing to the Rising Price of Wheat. As the Harvest is Smaller, Prices Go Up from the Less Supply and More Demand Model. Here is an Article I found in the NY Times Which Writes about the Potential Crop Problems that China is Experiencing. The Wheat Prices are Nearing High Levels hit in 2008: China's Droughts Effecting Wheat Harvest.

As China's inflation rises, the Price for food Also Surges. Here is an Article in the News, Commodity Prices, and Chinese Inflation: Chinese Inflation on the Rise With other World Events Such as the Flooding in Australia or the Fighting Across the Middle East, Grain Prices Should Continue to Rise. There is also high Prices in Coffee, Sugar, Cocoa, Soybeans, and other Commodity Staples. These Increases in Price, will Eventually be Passed on to the Consumer.

NYSE Being Acquired by FrankFurt Stock Exchange Operator

The parent company of the New York Stock Exchange (NYSE) said on Tuesday February 15th, 2010 that its agreed to be acquired by Frankfurt Stock Exchange operator in a deal which would ultimately create the world's largest financial markets company. This new Development was first reported on a several days ago. The fact that the process is moving forward and an acquisition is underway, makes this deal, one to watch closely over the coming weeks. Read About this Story: NYSE Acquisition Details.

Not Quite Sure How I Feel About this Deal Yet. For 2 Centuries, the New York Stock Exchange has been a Symbol of American Capitalism and Free Markets. Now It is Being Sold to a German Company Which was Able to Put up Enough Cash. Should Some American Icons, be Protected from Acquisitions Such as the NYSE?

February 13, 2011

Investing for Beginners on Twitter

Investing for Beginners Guide to Better Investing on TwitterThe Investing for Beginner's Twitter Account is Set Up. Follow and Receive Important Updates, Market Observations, and More. Networking Can Facilitate Sharing Information and Learning from One Another in Ways that Were Not Available Just a Decade Ago. Get Involved with the Conversations Going on Around the Planet on a Topic as Fascinating as Investing and the Stock Markets. Stay Current on the Most Important and News Worthy Items Happening in Your World. From Economics, to public policy, my twitter account is meant to share and inform.

Investing Terms & Stock Market Definitions

I've been working on the page titled, Investing Terms from the Investing for Beginner's Website. I've looked up numerous definitions in the past and documented most of them. It is with these notes and documents that I decided to organize Investing Terms and Definitions into a useful, educational, and organized web page. There were so many to choose from, that evaluating which ones should be included, was a long selection process.

Have any terms or words related to investing you want to know more about? Which ones? Leave them here and they will be evaluated and eventually included on the terms page. The more terms that people are searching for, the more terms and definitions will be added over time. Downloadable pdf's with these terms available for download or printing, will also be added to the terms and associated pages.

February 9, 2011

New York Business Section Measures SP100 Index

The New York Times Business Section Prints the Prices and Performances of the 100 Companies in the S&P100 Index. This Index is a bit more Refined than the More Widely Followed, S&P500 Index. The 100 Index, is made up of larger companies that lie within the 500 Index. This Data is Available except, on Mondays (Because the Markets are closed the day Before). What's Great is that They Print Little Symbols to Represent When a Stocks is at New Highs or at New Low points During a 52 Week or Year to Date Time Frame. Those are the Stocks to Watch Closely Because They're the Ones Closest to Breaking out of a Range, Marking Clearly What Direction They're Going.

You'll See Patterns When Seeing that List Every Day. For Example, I now See Blue Chip Type Stocks Making a New Highs or Lows. There Emerges Patterns That Can Only be Observed Through Time and Study, Analyzing and Recording What You See or Feel When in this Field. For Example, Just Today I Noticed from the List of 100, that the Ones that Had the New Highs, Where Blue Chip Type of Stocks. Like GE is an Example, or Boeing. Stocks I have been Watching for Years Have Hovered Somewhere in the Middle of the New Lows and New High Symbols, are Now Showing up Day after Day with a Little Symbol Showing its Press Upward. The Fascinating Aspect of All of this is that Those Leaders Will Change Over Time. There will Be Leaders, but New Leaders will Replace them Eventually. Finding Which Ones is the Goal, Making a Move Before its Popularity has Become Obvious, is the Art.

There Will Come a Point, When Large Position Holders Will be the Ones Selling the Stock to the Public. Once the Buying Power is Gone and the Former Holders are Out, the Stock Price will Fall From a Lack of Demand. Navigating, Discovering, Researching, Learning, Experiences, Seem to Join Together and Helps in Realizing How Interrelated these Markets can Be. Investing Means Staying Sharp, Seeing Patterns and Recognizing them is Very Interesting with Stock Prices.

February 8, 2011

New French Short Sale Regulations,

Hedge Funds Use Strategies that use Both Long and Short Positions to Enter and Exit Trades. The Hedge Fund Managers Often Close a Losing Long Position To Add The Funds to a Profitable Short Position, They May Hold. In Many Cases, Hedge Fund Managers are Long in Positions that are Rising in the Market, and Short on Positions that are Falling in the Market, Both Occurring at the Same Time. Hedge Fund Managers Closely Look at Stocks Which are Grouped into "Industry Groups." When Certain Industry Groups are Rising, In them, they will Have Leading Stocks, which Contribute to The Industry Groups Overall Rise. On the Other Hand, Just Like There are Rising Industry Groups, There are Also Falling Industry Groups. Looking at the Industry Groups which are Falling, Stocks can be Found Which are Falling Faster than the Others. Hedge Funds will "Hedge" their Positions on the Long Side, By Simultaneously Holding Positions on the Short Side or Vice-Versa.

The Reporting on How Hedge Funds Operate has been Vague, and Sketchy at Best. French Regulators are now Requiring Hedge Funds to Report their Short Positions on a Daily Basis. This Will be a Development to Watch Closely. Will the Europeans Follow? Will the United States? It is an interesting thing to Watch Right Now: French Regulators Require Disclosure

February 7, 2011

Nasdaq Breached as Reported by NY Times

A few nights ago, I was awake doing some research. I glanced at the Yahoo news at one point and saw an Article about the Nasdaq systems being hacked. The article was a bit vague with not much details. Today, the NY Times did a story on it and was much more forth coming with information and details. Apparently, the Nasdaq has been breached several times during the last year. The Justice Department became involved with an investigation and told Nasdaq officials not to tell their customers, while they conducted their investigation. The Report says the trading systems themselves weren't hacked but other services such as investor relations segments were. Here is the Article I read in NY Times Today on the Nasdaq breach: NY Times - Nasdaq Breach. I find it Interesting how the Justice Department wanted customers to not be told when the breaches were first discovered.

February 2, 2011

The Fed's Beige Book

The Nation's Manufacturing Sector Expanded at the fastest rate in January in seven years, according to the Institute for Supply Management. Before this Report came out, it was already highly likely that Manufacturing was not only expanding, but would continue in the coming months ahead. One area I look at (other than the news and commodity prices each day) is the Federal Reserve's "Beige Book" which is a summary of economic activity in each of the federal reserve's regions (there are 12 total). As I read the reports for the past year, it was clear to me, manufacturing had been growing in several of the Regions for the past several months. Here is a link where you can find it, including archived reports.www.FederalReserve.gov/FOMC/BeigeBook.