Cashing in on Reverse Divergence March 27, 2011 My fellow trader, Dr. David Paul, came to me with a new setup he wanted to trade. We tested it extensively, and it fulfilled the criteria we were looking for: good risk to reward, good hit ratio, good Sharpe ratio and all the other boring stuff that makes most people eyes glaze over. In fact [...]
Defining a reversal March 27, 2011 In my last article I defined a superb trading strategy called Reverse Divergence strategy. Let me very briefly recap it for you: You trade in the direction of the trend, defined by a 50 period MA, and when the Stochastics indicator has made a lower low, but price is making a higher low, you have [...]
FTSE dips as banks come under pressure February 8, 2011 The FTSE 100 dipped this morning despite strong results from Xstrata and BG Group. The index has gained in four out of the last five trading sessions – regularly surpassing the 6,000 barrier, but banking stocks were among the poorest performers today. Commodities dipped as the price of copper came down after a record high [...]
Mid morning wrapup January 17, 2011 Oil giant BP saw its shares rise by two per cent this morning as its deal with Russian company Rosneft for arctic exploration boosted the stock. Analysts said the tie-up with state-controlled Rosneft opened up massive reserves in the arctic, a region they said was believed to contain one fifth of the world’s undiscovered oil. [...]
FTSE dips as miners take hit January 14, 2011 The FTSE 100 opened lower today as weaknesses on Wall Street overnight took their toll on European markets. Mining stocks were in the firing line, with falling commodity prices and talk of an interest rate hike in China, dragging share prices down. Xstrata fell by more than one per cent in early trading. Banking stocks [...]
Portugal bond auction dominates markets January 12, 2011 European markets were today putting Portugal under the microscope as the ailing euro zone member launched its first debt auction of the year. The country – desperately trying to avoid a bailout from the European Union and IMF – is tapping bond investors for around €1.24bn. All eyes are on the auction which is key [...]
FTSE 100 bounce back led by banks January 11, 2011 The FTSE 100 lifted in early trading today as banking stocks led the way. The recovery came after a poor session yesterday with the euro zone debt crisis casting a shadow over European markets. Citigroup upgraded HSBC to “buy” from “hold”, fuelling more confidence in the banking sector. Barclays also climbed as the London Stock [...]
FTSE 100 bounce back led by banks January 11, 2011 The FTSE 100 lifted in early trading today as banking stocks led the way. The recovery came after a poor session yesterday with the euro zone debt crisis casting a shadow over European markets. Citigroup upgraded HSBC to “buy” from “hold”, fuelling more confidence in the banking sector. Barclays also climbed as the London Stock [...]