Saturday, March 19, 2011
Friday, March 18, 2011
Stocks to watch
Here are some decent stocks worth taking note of since the market started falling this week. A lot of over-bought stocks have fallen below their 10-week moving average lines and might be decent buys depending how the markets react to the bedlam in the Middle East.
Oil is generally conversely related to stock prices so when oil rises stocks usually fall (S&P, NASDAQ, and NYSE). The current over-supply of mid-East crude will get sucked up in a few months and oil prices will rise accordingly based on simple demand/supply.
When the supply dwindles due to crises or OPEC not increasing supply (or both) then the prices will go up and eventually OPEC will start producing more because over $100 oil makes them lots of money. In turn the higher prices not only affect pump prices but food prices and transportation prices. These price hikes affect many other production costs including energy production costs. The costs of all these price hikes are then passed on to you and me as consumers through higher prices at the pump and on the store shelves.

Oil is generally conversely related to stock prices so when oil rises stocks usually fall (S&P, NASDAQ, and NYSE). The current over-supply of mid-East crude will get sucked up in a few months and oil prices will rise accordingly based on simple demand/supply.
When the supply dwindles due to crises or OPEC not increasing supply (or both) then the prices will go up and eventually OPEC will start producing more because over $100 oil makes them lots of money. In turn the higher prices not only affect pump prices but food prices and transportation prices. These price hikes affect many other production costs including energy production costs. The costs of all these price hikes are then passed on to you and me as consumers through higher prices at the pump and on the store shelves.

How much money do you want to make?
One thing that I very much admired about my younger sister was that from the age of 12 she had a diary containing a written plan for everything she wanted to do with her life including the type of man she would eventually marry. We made fun of her for being so starry-eyed but she made us look like fools later in life. As a mother of two successful children, a teacher for many years, a successful realtor, and marriage that has lasted over 20 years I consider her to be a great success. She may not have gotten everything perfectly the way she wrote it down but the power was on her side to make wise decisions which directed her path to success.
The amount of money you create every day at your job currently or after you graduate may seem like a lot especially if you have been a student and have been moon-lighting flipping burgers.
Most people start out their working lives around $30K per year annual salary. Many may feel they have hit the lottery when those first paychecks start rolling in and that money burns tiny volcanic holes in their pockets.
They soon find that there are many new bills to pay and those nice people at the credit card companies are only nice when they are extending the credit that we so "deserve".
When it comes time to pay or especially if you fall behind in your payments and cannot get your bank account to balance (you did learn how to balance a bank account after 4 years of College right?) those "nice" people have suddenly been replaced with someone who refuses to take "no" for an answer and insists that you make some sort of payment today.
Suddenly all that moola you were rolling in does not seem like it goes very far and actually you feel like maybe you need to make even more to stay afloat.
The way out of all of this is to do the thing that most of our U.S. Federal, State and local Governments cannot seem to do: balance a budget i.e. Live within their means.
Without a budget and a PLAN to live within that budget then no matter how much money you make in a given year (especially after taxes are paid) you will NEVER be able to make enough money to get ahead. You see it all the time on Television: the multi-millionaire Professional sports athlete who had it all and then within a few years of going from making very little money to making millions they are in bankruptcy court.
It is the same principle of a purse or hard drive: no matter how large the capacity, without a little planning it can go from being "cavernous" to bulging at the seams with stuff.
Nature abhors a vacuum and the same holds true for personal finances. If their is a hole in your budget you can bet a bill will be there to fill it and then some.
A recent study showed that only about 20% of people had a plan for their lives (including finances) and of those only about 5% had a WRITTEN plan to guide their lives.
Don't be one of the 95 percenters, be in the 5th percentile like my sister was. Write down a plan for the next month, 6 months, year, 5-years and even further if you are so bold.
The amount of money you create every day at your job currently or after you graduate may seem like a lot especially if you have been a student and have been moon-lighting flipping burgers.
Most people start out their working lives around $30K per year annual salary. Many may feel they have hit the lottery when those first paychecks start rolling in and that money burns tiny volcanic holes in their pockets.
They soon find that there are many new bills to pay and those nice people at the credit card companies are only nice when they are extending the credit that we so "deserve".
When it comes time to pay or especially if you fall behind in your payments and cannot get your bank account to balance (you did learn how to balance a bank account after 4 years of College right?) those "nice" people have suddenly been replaced with someone who refuses to take "no" for an answer and insists that you make some sort of payment today.
Suddenly all that moola you were rolling in does not seem like it goes very far and actually you feel like maybe you need to make even more to stay afloat.
The way out of all of this is to do the thing that most of our U.S. Federal, State and local Governments cannot seem to do: balance a budget i.e. Live within their means.
Without a budget and a PLAN to live within that budget then no matter how much money you make in a given year (especially after taxes are paid) you will NEVER be able to make enough money to get ahead. You see it all the time on Television: the multi-millionaire Professional sports athlete who had it all and then within a few years of going from making very little money to making millions they are in bankruptcy court.
It is the same principle of a purse or hard drive: no matter how large the capacity, without a little planning it can go from being "cavernous" to bulging at the seams with stuff.
Nature abhors a vacuum and the same holds true for personal finances. If their is a hole in your budget you can bet a bill will be there to fill it and then some.
A recent study showed that only about 20% of people had a plan for their lives (including finances) and of those only about 5% had a WRITTEN plan to guide their lives.
Don't be one of the 95 percenters, be in the 5th percentile like my sister was. Write down a plan for the next month, 6 months, year, 5-years and even further if you are so bold.
Monday, March 14, 2011
Assignment 1
My hobbies: Stocks, I love everything about the Stock Market and especially the psychological aspects.
- Posted using BlogPress from my iPad
- Posted using BlogPress from my iPad
Location:5 St SW,Calgary,Canada
Assignment 1
10 Create a Blogger account
10 Create a blog
10 Post your blog URL in the Blogger sites discussion area
10 Post a summary of one of your hobbies in your blog. At least one paragraph
10 Add a poll to your blog
10 Include a link to a website that talks about your hobby
5 Demonstrate bolding in blog posting
5 Demonstrate different color fonts in blog posting
10 Follow a blog created by one of your classmates
10 Use the comment feature and ask a question in one of your classmate's blog
5 Write a comment on my blog inviting me to look at your blog.
5 Post the URL to your blog in your invitation comment above.
Saturday, March 12, 2011
Oil driving inflation
"No inflation in sight"...
Famous last words by the Fed chairmen past and present
Oil is generally conversely related to stock prices so when oil rises stocks usually fall (S&P, NASDAQ, and NYSE). The current over-supply of mid-East crude will get sucked up in a few months and oil prices will rise accordingly based on simple demand/supply.
When the supply dwindles due to crises or OPEC not increasing supply (or both) then the prices will go up and eventually OPEC will start producing more because over $100 oil makes them lots of money. Actually OPEC has been upping their production steadily since oil went over $90/barrel.
In turn the higher prices not only affect pump prices but food prices and transportation prices. These price hikes affect many other production costs including energy production costs. The costs of all these price hikes are then passed on to you and me as consumers through higher prices at the pump and on the store shelves.
Chart of Inflation index


Crude Pricing

Energy Prices

Famous last words by the Fed chairmen past and present
Oil is generally conversely related to stock prices so when oil rises stocks usually fall (S&P, NASDAQ, and NYSE). The current over-supply of mid-East crude will get sucked up in a few months and oil prices will rise accordingly based on simple demand/supply.
When the supply dwindles due to crises or OPEC not increasing supply (or both) then the prices will go up and eventually OPEC will start producing more because over $100 oil makes them lots of money. Actually OPEC has been upping their production steadily since oil went over $90/barrel.
In turn the higher prices not only affect pump prices but food prices and transportation prices. These price hikes affect many other production costs including energy production costs. The costs of all these price hikes are then passed on to you and me as consumers through higher prices at the pump and on the store shelves.
Chart of Inflation index


Crude Pricing

Energy Prices

Friday, March 11, 2011
Stocks trading down again today

Real-time equity news [U E]
U.S. stock market report [.N]
1450 ET 6Oct2010-Chipmakers down but SOX still on uptrend
------------------------------------------------------------------------------
The PHLX semiconductor index <.SOX>, down 2 percent, was on track on
Wednesday to post its largest daily percentage drop since Aug. 30 as Xilinx Inc
details, see [ID:nN06111779]
But the index's uptrend, going back to the Aug. 30 lows, is still intact
from a technical point of view. The 14-day moving average, just above 342,
provided strong support, while separate trend lines show further support near
340 and 329.
Reuters Messaging: rodrigo.campos.thomsonreuters.com@reuters.net
1438 ET 6Oct2010-Call sellers emerge in Cirrus as shares fall
------------------------------------------------------------------------------
Chipmaker Cirrus Logic Inc
the afternoon session. In the options market, it appears that some investors
sold calls as the stock slide, said WhatsTrading.com options strategist
Frederic Ruffy. Overall options volume was 3.6 times the stock's daily average,
according to Trade Alert. About 25,000 puts and 3,594 calls traded in Cirrus by
2:31 p.m. EDT. The top trade is a lot of 342 November $14 calls on the $3 bid
as 2,484 contracts now traded, he said. The November $15 calls are the busiest
line as 3,412 changed hands with 81 percent of the volume on bid price. The Dec
$15, Nov $16, Dec $17.5, and Dec $16 calls are seeing interest as well. The
call selling helped push the stock's option implied volatility down 5 percent
to 57 percent.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1421 ET 6Oct2010-Citrix options volume swells as shares slump
------------------------------------------------------------------------------
Citrix Systems
falling in sympathy with data center services provider Equinix Inc
which issued a revenue warning late on Tuesday, said WhatsTrading.com options
strategist Frederic Ruffy. For details, see [ID:nSGE6950JIA] [ID:nSGE6940LF]
Overall options volume was 7.7 times greater than the stock's daily average
as about 33,000 puts and 34,000 calls traded in Citrix by 2:12 p.m. EDT,
according to Trade Alert. Option bears initiated near term strategies in
Citrix, which makes virtualization software, while the bulls positioned for an
intermediate term rebound by buying call spreads, said Interactive Brokers
Group options analyst Caitlin Duffy. Ruffy noted one trade included the
November $65-$70 put spread, apparently sold at $3.10 and might be a
liquidating position since both contracts are in-the-money. It also appears a
January 2012 $55-$75 bullish risk-reversal was initiated at a dime. The Dec
$65-$70 call spread was apparently bought at $2.20 and $2.15, Ruffy said.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1301 ET 6Oct2010-Genzyme options trade looks for higher bid
------------------------------------------------------------------------------
France's Sanofi-Aventis launched an $18.5 billion hostile bid for biotech
Genzyme Corp
for that price to go higher, optionMonster said on its website. The firm's
tracking systems detected the purchase of more than 13,000 April $75 calls on
GENZ for $1.60 per contract against open interest of 1,283 contracts, said
optionMonster analyst David Russell. There was also buying in the October $75
strike calls for nine cents apiece, which could represent a cheap bet by an
investor that the takeover price will be raised this month, he added. Genzyme
shares rose 2 cents to $71.54 and have been moving in a tight range since the
Sanofi offer was made. Sanofi will eventually have to raise its offer, already
rejected by Genzyme a month ago, investors and analysts said after the tender
offer was announced on Monday. For details, see [ID:nLDE69302S]
[ID:nN04187598]
"Today's call buying is apparently the work of investors who think that
Genzyme will hold out for a significantly higher price," Russell said. In all,
about 29,000 calls and 2,000 puts traded in Genzyme by 1:01 p.m. EDT, according
to Trade Alert.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
Keywords: MARKETS STOCKSNEWS
Real-time equity news [U E]
U.S. stock market report [.N]
1450 ET 6Oct2010-Chipmakers down but SOX still on uptrend
------------------------------------------------------------------------------
The PHLX semiconductor index <.SOX>, down 2 percent, was on track on Wednesday to post its largest daily percentage drop since Aug. 30 as Xilinx Inc
details, see [ID:nN06111779]
But the index's uptrend, going back to the Aug. 30 lows, is still intact
from a technical point of view. The 14-day moving average, just above 342,
provided strong support, while separate trend lines show further support near
340 and 329.
Reuters Messaging: rodrigo.campos.thomsonreuters.com@reuters.net
1438 ET 6Oct2010-Call sellers emerge in Cirrus as shares fall
------------------------------------------------------------------------------
Chipmaker Cirrus Logic Inc
the afternoon session. In the options market, it appears that some investors
sold calls as the stock slide, said WhatsTrading.com options strategist
Frederic Ruffy. Overall options volume was 3.6 times the stock's daily average,
according to Trade Alert. About 25,000 puts and 3,594 calls traded in Cirrus by
2:31 p.m. EDT. The top trade is a lot of 342 November $14 calls on the $3 bid
as 2,484 contracts now traded, he said. The November $15 calls are the busiest
line as 3,412 changed hands with 81 percent of the volume on bid price. The Dec
$15, Nov $16, Dec $17.5, and Dec $16 calls are seeing interest as well. The
call selling helped push the stock's option implied volatility down 5 percent
to 57 percent.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1421 ET 6Oct2010-Citrix options volume swells as shares slump
------------------------------------------------------------------------------
Citrix Systems
falling in sympathy with data center services provider Equinix Inc
which issued a revenue warning late on Tuesday, said WhatsTrading.com options
strategist Frederic Ruffy. For details, see [ID:nSGE6950JIA] [ID:nSGE6940LF]
Overall options volume was 7.7 times greater than the stock's daily average
as about 33,000 puts and 34,000 calls traded in Citrix by 2:12 p.m. EDT,
according to Trade Alert. Option bears initiated near term strategies in
Citrix, which makes virtualization software, while the bulls positioned for an
intermediate term rebound by buying call spreads, said Interactive Brokers
Group options analyst Caitlin Duffy. Ruffy noted one trade included the
November $65-$70 put spread, apparently sold at $3.10 and might be a
liquidating position since both contracts are in-the-money. It also appears a
January 2012 $55-$75 bullish risk-reversal was initiated at a dime. The Dec
$65-$70 call spread was apparently bought at $2.20 and $2.15, Ruffy said.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1301 ET 6Oct2010-Genzyme options trade looks for higher bid
------------------------------------------------------------------------------
France's Sanofi-Aventis launched an $18.5 billion hostile bid for biotech
Genzyme Corp
for that price to go higher, optionMonster said on its website. The firm's
tracking systems detected the purchase of more than 13,000 April $75 calls on
GENZ for $1.60 per contract against open interest of 1,283 contracts, said
optionMonster analyst David Russell. There was also buying in the October $75
strike calls for nine cents apiece, which could represent a cheap bet by an
investor that the takeover price will be raised this month, he added. Genzyme
shares rose 2 cents to $71.54 and have been moving in a tight range since the
Sanofi offer was made. Sanofi will eventually have to raise its offer, already
rejected by Genzyme a month ago, investors and analysts said after the tender
offer was announced on Monday. For details, see [ID:nLDE69302S]
[ID:nN04187598]
"Today's call buying is apparently the work of investors who think that
Genzyme will hold out for a significantly higher price," Russell said. In all,
about 29,000 calls and 2,000 puts traded in Genzyme by 1:01 p.m. EDT, according
to Trade Alert.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
Keywords: MARKETS STOCKSNEWS
- Posted using BlogPress from my iPad
Location:5 Ave SW,Calgary,Canada
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