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Timeless Wealth is a leading Publisher of Investment-Opinion content supported by research. We utilize a mix of fundamental and behavioral analysis to uncover undervalued investment opportunities in the small cap sector. Follow us on twitter: https://twitter.com/#!/TimelessWealth
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  • A Technical Approach to the Trading Week Ahead
    I often find portfolio managers and investors describing themselves as top-down strategists. They look for trends at the macro level and apply their findings to individual trades. Spare me the humiliation of having skipped past rigorous scans that lie between the trends and the trading positions themselves, for I'm genuinely curious how these individuals prepare for an upcoming week. In lieu of my own curiosity I thought I'd offer an account of how I prepare for the week that lies ahead using technical analysis. Ah, now there's something new.
     
    Looking for trends at the macro level translates into an analysis of a leading index, such as the Dow Jones Industrial (DJI). I find stocks model the Dow fairly consistently whilst allowing me to deduce simple but potentially profitable trends. Here's a look at the Dow Jones ahead of Monday's session, through my eyes.
     
     
     
    The Dow Weekly chart points to the formation of a bearish chart pattern termed 'rising wedge'. Simultaneously volume is seen declining in combination with rising price. This is called negative divergence. Both of these technical indicators warn of an impeding correction. It does not imply that we are headed for absolute chaos or destruction, but rather, that the markets will 'pull-back'. This lends way for some specific trading ideas. You might, for instance, knowing that the Dow trades downwards this week, short financial stocks. On the other hand you might use this knowledge to leverage your position in a bull or bear ETF, such as FAS or FAZ. But many will look to hedge with gold. Below is a look at SPDR Gold Shares (NYSEARCA:GLD) from a technical perspective.
     
     
     
    Conversely to the Dow, gold is currently trading at support and in the midst of a bullish rising wedge chart pattern (assuming support remains intact). Depending on the severity of a pull-back in the equity market, gold may find itself once again testing resistance and potentially breaking out to new all-time highs. So I'm inclined to believe that gold stocks may benefit from this trend.
     
    But where does that leave other stocks? As far as I'm concerned as a technical trader, that depends on the severity of movement to either the downside or the upside in the equity market. A look at the economic calendar reveals that a significant portion of data isn't due until the latter part of this week. That tells me its unlikely that we will see a breakout, breakdown or significant movement until at least mid-week. This plays a crucial role, as I explain to my Premium subscribers, as it determines how you position yourself in trades that you've deemed appropriate based on earlier analysis (above).
     
    It means there's room to speculate with some other trades while your core positions mature. Similarly this period allows you to build your positions. At the end of the day you look back at your initial choices and compare to the current situation. Ask yourself what has changed, why, and how you can adjust to better position yourself for optimum reward.
     
    In part, that's what a technical approach to the trading week ahead may look like...at least it does for yours truly.


    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
    Tags: SPY, DIA, FAS, FAZ, GLD
    Jan 10 3:01 AM | Link | 1 Comment
  • An Implication To Private Stock Transactions
    The following commentary concerns an article published by the New York Times on Monday entitled, "Stock Trading in Private Companies Draws Scrutiny". At the heart of the issue, accredited investors and investment firms are given ease of entry into owning shares of private, but perhaps soon to be public, companies such as Facebook, Twitter and other leading social-media outfits. The author, Peter Lattman, writes:
    The buyers in these so-called secondary trading markets are mostly wealthy speculators looking to snag a piece of the next Apple, Microsoft or Google before the rest of the investing public can.
    One might argue that venture capitalists who initially fund tech start-ups should have the advantage of owning and trading shares of privately-held companies due to the inherent risk of their investments in the first place. However, increasing private-share transaction volume suggests that while the list of inclusive investors is growing, it may be at the expense of those left out in the dark. Public markets eliminate barriers to entry in that just about anyone with cash can open an investment account and trade at their discretion. Over the last decade a wave of discount online brokerages have taken down a barrier that once stood in the way of small retail investors: high broker commissions. Similarly, trading on secondary markets imposes a barrier, inviting only the elite and wealthy to profit from ownership of shares demanded but unavailable to the public. It's almost beginning to sound like supply lies at the hands of a few, who together, control the market for shares of a particular firm. 
    The implications of this emerging trend remain vague. It's difficult to tell where to draw the line to ensure 'fairness', for lack of a better word. But certainly, there is always the hope that with the S.E.C. looking into the matter the interests of society, as a whole, will be accounted for.


    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
    Dec 28 1:39 AM | Link | Comment!
  • Premier Newsletter Guides Subscribers to 50% trading profits in 2 days.

    Subscribers to TimelessWealth.net Premium Market Digest Newsletter have booked trading profits of as much as 50% in just the last two days. This figure excludes gains not yet realized on winning trading positions. Comparably, during the same time period the Dow posted a dismal 60-point advance. While analysts point the finger at problems overseas as the cause for their losses, TimelessWealth.net points Premium Newsletter subscribers towards opportunity.

    TimelessWealth.net differentiates from other trading newsletters by providing a meaningful, valuable and, most importantly, a supportive trading environment. TimelessWealth.net Founder, Edward Stevenson, explains:

    “Our Premium Newsletter service teaches investors the discipline needed in successful trading. We provide a support-environment that guides investors from one trade to the next. That means from the second a trade is executed to the very moment the trading position is liquidated, we are right there, guiding our subscribers.”

    Stevenson’s service helps investors develop successful trading strategies on the basis of learn-by-example. The seasoned trader captures his personal screen on video to show subscribers how he analyzes various markets. In that environment he is able to convey insightful thoughts and provide relevant information such as his recommendations for entry, exit, and position management.

    As part of the Premium Newsletter service, TimelessWealth.net often analyzes the macro-economic market in order to provide insight on lucrative trades in specific sectors or industries. The analysis of broader and specific markets is largely based on technical analysis, an analysis of past price changes in order to forecasting future price changes.

    TimelessWealth.net published the last two issues of their Premium Market Digest in video format to showcase how two ‘technical’ trades led to trading profits of 16% and 34%, respectfully. These videos are available on the web for anyone interested in reviewing the work.

    For more information about this unique service, visit TimelessWealth’s Premium Newsletter section.



    Disclosure: No positions to disclose
    Oct 12 11:47 AM | Link | Comment!
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