Thursday, 31 January 2008
Back in action
After being on longest holiday ever, I am back. I will be back filling the market monitor for last month but just a quick update on market, we may see a rally starting today. If today's rally continues into next week, we may see the ratios in MM turning green.
Friday, 21 December 2007
Chart reading - using Candlesticks
The candlestick chart is a good way to find out historical information. It can be a bit confusing if you are a beginner so I am going to show you how great it is.
Now, the candlestick shows you two things:
1. The opening and closing price of the day.
2. The high and low of the day
The solid body of the candlestick shows you where the price opened and closed.
If the candlestick is blue then it opened low and closed high (share price went up). If the body is red then it opened high and closed low (share price went down). Line charts only give you the closing price.
To show where the share price went during the day the candlestick shows a thin line coming from the top and bottom of the body. (These are called shadows).
The day's high is where the line stops at the top
The day's low is where the line stops at the bottom.
How do candlesticks help you make investment decisions? They allow you to see share price movements during the day, which gives you much more information than simple line charts
Have a look at some patterns at
http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:candlestick_bullish_
Now, the candlestick shows you two things:
1. The opening and closing price of the day.
2. The high and low of the day
The solid body of the candlestick shows you where the price opened and closed.
If the candlestick is blue then it opened low and closed high (share price went up). If the body is red then it opened high and closed low (share price went down). Line charts only give you the closing price.
To show where the share price went during the day the candlestick shows a thin line coming from the top and bottom of the body. (These are called shadows).
The day's high is where the line stops at the top
The day's low is where the line stops at the bottom.
How do candlesticks help you make investment decisions? They allow you to see share price movements during the day, which gives you much more information than simple line charts
Have a look at some patterns at
http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:candlestick_bullish_
Thursday, 20 December 2007
Market Update - 20 Dec 2007
Market monitor is still in extremes. 300 plus for 65 days is extreme. There may be a short term bounce but can't see any real rally this year. Earnings period coming up so some stocks may rally on earnings surprise news. Earnings surprise is still a relative new area for me and currently I am reading few books and articles on it.
No Double trouble candidates for last 2 days.
4% plus breakouts for today
ADM.L
CIU.L
FKI.L
IFL.L
JMAT.L
NEX.L
RAB.L
SCHE.L
SIT.L
UCP.L
WHM.L
No Double trouble candidates for last 2 days.
4% plus breakouts for today
ADM.L
CIU.L
FKI.L
IFL.L
JMAT.L
NEX.L
RAB.L
SCHE.L
SIT.L
UCP.L
WHM.L
Tuesday, 18 December 2007
High volume breakouts
High volume breakout (up more than 4%) in last 2 days
WG.L - This stock has been rallying last few days. Looks a good buy.
DEB - Rallied today on news that Mahesh "Micky" Jagtiani has taken a 7% stake in department store chain Debenhams and may be mulling a bid.
NEX - National Express journeyed higher on news it expects full year results at the top end of market expectations and remains confident about prospects for 2008.
AGK - temporary power supplier Aggreko expecting full-year operating profit to rise by 50%, although it warned that conditions in North America could become more difficult.
WG.L - This stock has been rallying last few days. Looks a good buy.
DEB - Rallied today on news that Mahesh "Micky" Jagtiani has taken a 7% stake in department store chain Debenhams and may be mulling a bid.
NEX - National Express journeyed higher on news it expects full year results at the top end of market expectations and remains confident about prospects for 2008.
AGK - temporary power supplier Aggreko expecting full-year operating profit to rise by 50%, although it warned that conditions in North America could become more difficult.
Market update - 18 Dec 2007
Market monitor is showing extreme reading for last few days. Such extremes usually result in a bounce. Let see if the theory proves correct. I have closed my all but one position. This one is a long term and I have committed very small amount to it so I am not worried about market conditions for this stock.
Double trouble candidates for 17th Dec
TEO - Penny share. Ignore
Double trouble candidates for 18th Dec
EPO - Nothing exciting about this share. It made loses recently. It is from software sector which hasn't being doing good lately. Volume is high but the high spread between bid and offer is putting me off. Also share has rallied by more than 10% in last 10 days.
SOLA - Volume is good but the correction from peak was huge. The share was up by more than 10% on following new contract deal
"ReneSola is doing well Tuesday after the solar cell producer said it has signed new deals with JA Solar Holdings and leading global photovoltaic companies. The firm has signed a long term sales contract with solar cell manufacturer JA Solar to supply 600 megawatts (MW) of solar wafers over five years, beginning in the second half of 2008. This is in addition to the 60MW wafer sales contract announced in August. Tolling production contracts for the processing of an additional 500 tonnes of polysilicon to be delivered in 2008 have also been signed with leading global PV companies, said the group. It has also entered into contracts to procure over 1,000 tonnes of feedstock for 2008, which chief executive Xian Shou Li said will help the company achieve its growth plan for 2008."
This is a good catalyst to trigger a rally. Buy with caution.
Double trouble candidates for 17th Dec
TEO - Penny share. Ignore
Double trouble candidates for 18th Dec
EPO - Nothing exciting about this share. It made loses recently. It is from software sector which hasn't being doing good lately. Volume is high but the high spread between bid and offer is putting me off. Also share has rallied by more than 10% in last 10 days.
SOLA - Volume is good but the correction from peak was huge. The share was up by more than 10% on following new contract deal
"ReneSola is doing well Tuesday after the solar cell producer said it has signed new deals with JA Solar Holdings and leading global photovoltaic companies. The firm has signed a long term sales contract with solar cell manufacturer JA Solar to supply 600 megawatts (MW) of solar wafers over five years, beginning in the second half of 2008. This is in addition to the 60MW wafer sales contract announced in August. Tolling production contracts for the processing of an additional 500 tonnes of polysilicon to be delivered in 2008 have also been signed with leading global PV companies, said the group. It has also entered into contracts to procure over 1,000 tonnes of feedstock for 2008, which chief executive Xian Shou Li said will help the company achieve its growth plan for 2008."
This is a good catalyst to trigger a rally. Buy with caution.
Friday, 14 December 2007
FTSE relegation
Northern Rock has seen its share price crash from above 600p to around 100p in the last three months so it was no surprise to see it ejected from the list of FTSE 100 constituents in the quarterly shake-up.
Also being ejected from the FTSE 100 are pub groups Mitchells and Butlers and Punch Taverns, electricals retailer DSG, housebuilder Barratt, newspaper group Daily Mail and sugar giant Tate and Lyle.
They will be replaced by Cairn Energy, Kelda, TUI Travel, FirstGroup, G4S, Admiral and Thomas Cook.
The changes will come into effect on December 24. Some use this as a opportunity to buy in these shares that are bing promoted to FTSE 100. The reason behind this that the fund managers tracking FTSE 100 will have to buy these shares to keep their portfolio up to date. These shares have been rallying for last few days. There may be still some steam in these shares. Also most of these are long term investment. Something for your retirement may be!
Also being ejected from the FTSE 100 are pub groups Mitchells and Butlers and Punch Taverns, electricals retailer DSG, housebuilder Barratt, newspaper group Daily Mail and sugar giant Tate and Lyle.
They will be replaced by Cairn Energy, Kelda, TUI Travel, FirstGroup, G4S, Admiral and Thomas Cook.
The changes will come into effect on December 24. Some use this as a opportunity to buy in these shares that are bing promoted to FTSE 100. The reason behind this that the fund managers tracking FTSE 100 will have to buy these shares to keep their portfolio up to date. These shares have been rallying for last few days. There may be still some steam in these shares. Also most of these are long term investment. Something for your retirement may be!
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