Technical Analysis Training Video

Here is a good video on technical analysis explained in easy terms. It includes an overview of MACD (moving average convergence/divergence and stochastics)

Money Never Sleeps

Greed, for lack of a better word, is bad. Who doesn’t love Gordon Gekko? With his cinematic return to the roiling, shark-infested waters of Wall Street, director Oliver Stone has a second shot at selling that morality tale, 17 years after a similar cautionary message got lost in the glare of Gordon Gekko’s machismo and mantras.

Still slick, sly and now slinging apocalyptic warnings, the Gekko is back, played once again by Michael Douglas. “Wall Street: Money Never Sleeps” — the sequel to Stone’s iconic ‘80s flick —opens Friday, two years after Manhattan’s real-life bankers and financiers began to come apart at their crisply tailored seams.

But those looking for a simple morality tale might be disappointed: Stone does not see America’s financial industry in black and white.

Where the original film exposed the dangerous seduction of gathering wealth at any cost, the sequel is a somewhat more nuanced depiction of Wall Street in the cataclysmic days of the 2008 financial meltdown. A disgraced Gordon Gekko dishes advice in this ‘Wall Street’ sequel that seems both up to the minute and behind the times.

When Oliver Stone’s “Wall Street” came out in 1987, it was intended as a cautionary tale for the greed-is-good crowd. Or was it? Despite its heavy-duty moralizing about the wages of sin, the film was really about how greed is sexy. A new generation of traders and brokers and moneymen made “Wall Street” their bible.

“Money Never Sleeps” seems both up to the minute and behind the times. Real world events have upstaged it. The economic fallout from Gekko-style malfeasance isn’t merely grist for melodrama, it’s a scary constant in our lives. Even Gekko, one of the great antiheroes of modern movies, has been supplanted by Bernie Madoff and all the rest. Reality, thankfully, has a greater pull than fiction.

In some ways, because it is a fiction, “Money Never Sleeps” is a comfort. Instead of recoiling from real-life skulduggery, we get a chance to wax sentimental about a golden oldie like Gekko. He may want to make peace with his daughter but she knows him for what he is. “He’ll hurt us,” she says to Jake, while we in the audience wait eagerly for the hurts to arrive on cue.

Gekko knows his daughter better than she knows herself. When he asks Jake why she is engaged to a high-powered broker if she hates her father so much, he flashes a wicked smile. (If the film had pursued the Freudian implications of this question, Winnie’s role might have perked up.)

Douglas is once again marvelous as Gekko. His hawklike profile has never seemed more severe, but there’s a weariness, too. You can believe this man spent eight years in prison. Although the filmmakers push for his redemption in a singularly phony denouement, Gekko’s real redemption comes a bit earlier, when the malfeaser in him once again rises to the occasion. Compared with Gekko, the film’s other designated bad guy, billionaire vulture Bretton James (sleekly played by Josh Brolin) is a waxwork.

If one were to take this entertainingly uneven film altogether seriously, it might be worth pointing out that the good old days of Wall Street shenanigans were never all that good – or that old, either. Stone imparts a rosy glow to the old guard in “Money Never Sleeps” – particularly Jake’s mentor, played by Frank Langella, and another honcho, played by Eli Wallach, who is so ancient he lived through the Great Depression. Stone has Gekko say things like, “While I was away greed got greedier,” or “It’s not about the money, it’s about the game.”

Meanwhile Gekko is using the money to ambush everything in sight, including his own child. Some game. “Money Never Sleeps” doesn’t get inside the sociopathology of the money culture. In a sense, it is a product, an expression, of that culture. Maybe that’s why it’s so disagreeably agreeable. Grade: B+

Are small banks good investments

Are small banks stocks good investments? Smart money is saying many small banks are good value picks right now.

Every Friday afternoon for the past year, it’s been the small-bank death watch: Which U.S. bank would federal regulators seize next?

In 2009, it was 140 banks stretching from Florida to Washington state. The number is 85 and counting so far this year, including two failures announced late Friday. Yet with federal banking reform moving ahead this week, shares of the smallest community banks are a good bet on any recovery in the credit cycle, say money-managers and industry analysts, who are becoming more bullish about a turnaround for banks with assets of $1 billion or less. See how financial stocks fared on Friday.

Smart investors are starting to realize that we are in value territory for the right banks, the strong will continue to get stronger and the weak will get weaker. Lawmakers reach a deal for new rules governing the banking industry. Analysts say the deal isn’t as stringent as many had feared, bringing relief to investors. Small banks caught a break from Congress in the financial regulatory bill that passed on Friday. With regard to capital requirements, the banks will be allowed to count some trust-preferred securities, a form of hybrid debt capital, towards their capital standards, easing them of the onerous burden of raising new common equity.

The smaller operators also will have to contribute less money than big banks to the FDIC deposit insurance fund, which will save them $4.5 billion collectively over the next three years.

Like their larger peers, tiny community banks have been struggling under the weight of the massive credit crunch. Since the end of 2007, when the U.S. recession took hold, the SNL Small Bank Index is down 36% as of June 24, compared to a 14% decline for the S&P Small Cap 600 Index and a 23% drop for the Russell Microcap Index.

Yet lately small bank stocks have been gaining traction. So far this year, the SNL Bank Index is up 14%, outpacing the 2% gain for the S&P Small Cap Index and a 3% gain for the Russell Microcap Index.

Investors and analysts who specialize in microcap banks say the ones that will emerge from the economic downturn in stronger shape are the banks that didn’t make too many loans on speculative construction of commercial buildings, strip malls, or housing developments.

Value stock picks  are stocks whose share price are at bargain levels with solid fundamentals. Small banks are great investments for the value traders.

How to Swing Trade

Wikipedia defines swing trading as a stock, index, or commodities trading practice whereby the instrument is bought or sold at or near the end of an up or down price swing caused by daily or weekly price volatility. A swing trade position is typically open longer than a day, but shorter than trend following trades or buy and hold investment strategies. Swing traders engage in prospecting changes in an instrument’s price caused by oscillations between its price being bid up by optimism and alternatively being sold down by pessimism over a period of a few days, weeks, or months. Profits can be sought by engaging in either Long or Short trading.

The Stocknod momentum stock picks employs this style of buy and sell trading that attempts to capture gains in a stock within one to four days. Momentum swing traders use technical analysis to look for stocks with short-term price momentum. These traders aren’t interested in the fundamental or intrinsic value of stocks, but rather in their price trends and patterns.  More on stocknod stock alerts and Stocknod reviews.

Stocknod explains Swing trading as a trading style that finds situations in which a stock has the extraordinary potential to move in such a short time frame, the trader must act quickly. Therefore, swing trading is mainly used by at-home and day traders. Large institutions trade in sizes too big to move in and out of stocks quickly. The individual trader is able to exploit such short-term stock movements without having to compete with the major traders. Swing trading can be volatile but can also be very lucractive if done correctly. More on Stocknod’s momentum stock picks and how to swing trade.

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China tops USA in Clean energy spending

China is emerging as the world’s clean-energy powerhouse, according to a new study by The Pew Charitable Trusts.

China is emerging as the world’s clean-energy powerhouse, according to a new study by The Pew Charitable Trusts.

Last year, China spent more than any other major country on clean energy, including wind and solar, toppling the U.S. from the top spot for the first time in five years, the Pew report says. The U.S. is also on the verge of losing the top spot in terms of installed renewable energy to China.

Unless U.S. policies change to encourage more investment, the U.S. could miss its chance to lead the expanding clean-energy industry, says Phyllis Cuttino, project director at Pew. The USA’s entrepreneurial tradition and strengths in innovation give it the potential to recoup leadership, the Pew report says.

Cuttino’s sentiments echo those expressed late last year by Energy Secretary Steven Chu. He noted in congressional testimony that the U.S. “has fallen behind” other countries in the race to be at the forefront of the clean-energy industry. Although Chu said he was confident the U.S could make up the ground, he cited China as a formidable competitor.

In recent years, China has emerged as the No. 1 maker of solar cells for solar panels and, most recently, as the leader in wind-turbine-making capacity. China’s leaders have also set in motion plans to get 15% of the country’s energy from renewable sources by 2020.

The Pew report, using data compiled by Bloomberg New Energy Finance, examined the world’s top 20 economies. It found that:

• From 2005 through 2009, China’s clean-energy investment, including wind and solar, soared 148% vs. 103% for the USA.

• Clean-energy investment in Asia, mostly China, rose 37% last year to $39 billion. By contrast, investment declined 33% last year in the Americas as the economy slowed and credit markets tightened.

• Ten of the leading economies devoted a greater percentage of gross domestic product to clean energy than the U.S. in 2009.

The U.S. has no national standard for expanded use of renewable energy. The American Wind Energy Association and others argue a national standard would do more to help manufacturers prepare for a big U.S. market for their products. The U.S. has also offered on-again, off-again financial incentives for renewable energy while other countries’ support has been steady.

Defense is best offense

Many Main Street investors have yet to regain their stomach for the risky, uncertain and highly volatile world of stocks. Many buy-and-hold investors have unwittingly switched to a “buy-and-fold” strategy.

Individual investors who once embraced risk-taking have adopted a more defensive investing posture, preferring capital preservation over appreciation. Many are trimming the percentage of stocks they own and boosting holdings of safer investments, such as CD’s and money market funds.

Market turbulence caused by signs that China is clamping down on credit to slow its economy, bank bashing by the White House, concerns over debt problems in some European countries and the recent pullback has investors on edge. A two-day rally this week left stocks down 1.1% in 2010.

Following the money trail highlights the shift toward defense. Since the start of 2008, when the worst financial crisis since the Great Depression began shredding paper wealth into confetti, stock funds have suffered outflows totaling $232 billion, Investment Company Institute statistics show. In contrast, fixed-income bond mutual funds have enjoyed inflows of $431 billion.

The love affair with bonds could end badly, says Brian Belski, chief investment strategist at Oppenheimer. In the 2000s, bonds outperformed stocks by a record 7.7 percentage points, on average, annually. The only other times bonds outpaced stocks for a full decade were the 1930s and 1970s. In both cases, stocks rebounded in the following decades, topping bonds by an average 10 percentage points a year.

Due to the shock and awe of the past 10 years, most people went to the safest assets they could find, and many are beginning to think now is a good time to move out of bonds into stocks.

The current lower demand for stocks, analysts say, could steal some of the cash ammunition the stock market needs to move higher.

Commodities Stock Bubble

Is a commodities stock bubble about to pop? And which commodities are at more risk than others? Many preduct Gold ETF Funds to have sharp turn in coming months. Here are experts from a Reuter’s article I read today.

A bubble has formed in commodities as “speculative fervor” returns to markets after the global financial crisis, veteran Wall Street economist Henry Kaufman said on Monday. “There are bubbles in commodities,” and probably in the gold market as well, Kaufman, president of financial consulting firm Henry Kaufman & Co Inc in New York, told analyst at Outlook Summit in New York. He cited the return of leveraged bets as one driver of select commodities stock bubbles.

Because commodity markets are small compared with some other financial markets, comparatively modest shifts out of other assets could increase the risks in commodity markets.

However, the “speculative fervor” where participants are borrowing heavily in short-dated markets “might be a risk for the dollar,” Kaufman said.

Investors, spurred by near-zero U.S. interest rates and easy availability of funds, have borrowed huge sums of money in dollars in recent months to purchase higher-yielding assets in so-called “carry trades.”

Kaufman went further to say he did not expect the U.S. government to take any action to stabilize the dollar at the degree they have gone.

Longer term, if the U.S. economic recovery is more anemic than that in some other major economies, that will weigh more on the dollar, he added, citing the area between 80 yen and 85 yen per dollar as a “testing point.”

Despite some analysts’ concerns that the huge amount of U.S. government debt issuance will ultimately pummel the dollar and push U.S. government bond yields steeply higher, Kaufman expects the 30-year Treasury bond’s yield will rise only moderately to about 5.5 percent by early 2011, from about 4.4 percent now.

Kaufman became known as “Dr. Doom” for correctly forecasting higher inflation and interest rates when he was chief economist with Salomon Brothers in the 1970s and 1980s. He is also known as an expert on the Federal Reserve.Look for several of the barn burner commodities to peter out soon. Keep close eye on Top Gold ETF Funds: ProShares ultra Gold (UGL Prices) and SPDR Gold Trust (GLD Prices). Follow current hot stock picks with Stocknod Hotsheet.

Maximizing Your Tax Return

If your goal is to make money from trading and investment, maximizing your return is always uppermost in your mind. There are many strategies that the savvy trader can use to maximize their trading returns, though some have more obvious benefits than others.

Both taking a large position in trading and increasing the frequency of your trades can help to maximize your returns, but you must be very careful when employing either of these strategies. A large position may put a high percentage of an account at risk, thus causing the trader to want to back out. The trading system must also be chosen carefully when attempting to use this strategy, as it will only work with a system that does not have too many negative trades. Trading more frequently can also increase your returns, but, again, has risks for the trader. Due to the enormous amount of work required to keep up on such frequent trades, traders attempting this strategy often get burned out and are unable to keep up with the workload.

The most useful method of increasing returns is to find trades that have a favorable risk to reward ratio. If a trade has a higher reward than it does a risk, it is a good bet it will help to maximize returns. These safe and profitable trades lack the negative aspects of the other methods, ensuring both peace of mind and monetary reward for the trader who chooses wisely.

Mutual Fund Commissions

Before investing in stocks, it is advisable to research the difference between commission based and commission free mutual fund companies that you are considering. Since the goal for investing is to make money, it is wise to weigh the pros and cons of these two types of mutual funds. Before deciding, request a report that covers the performance over the last five to ten years, keeping in mind its annual return, since its beginning. With this information you can literally “do the math” and determine whether the added fees will help you make money or lose money in the life of your investment. Oftentimes you will find that a commissioned or loaded fund has a lower annual maintenance fee.

A commission based fund is simply an investment opportunity where the investing company adds an extra fee to the mutual fund. Unfortunately, since you are leaving your choice of mutual funds at the discretion of someone else, you do not know if they are putting your money in a fund that they know something about or if they are just putting it in a mutual fund for the fee. You will need to research your investment group as well before making your final decision.
A commission free mutual fund is an investment opportunity where the the company chooses a fund and only charges you a maintenance or annual fee for handling your money. Once again, doing your own research on the company that you are interested in is the best way to determine which direction you need to go with your investment.

How to Read Stock Charts

Unfortunately for the average investor, stock market charts are not particularly intuitive. It takes a fair amount of knowledge to decode and understand them thoroughly, but the basics can be grasped fairly easily. For example, every stock has a ticker symbol consisting of letters taken from the company’s name. While this may seem unnecessarily complex and unreadable, it is actually a byproduct of the times when stock trades were made using the limited space on ticker tape. The ticker symbols can easily be looked up through online tools, and because they are based upon the name of the corporation, they are usually fairly easy to remember once known.

Other numerical figures are important to understand for accurate stock market interpretation. The last trade figure represents the price of a specific stock in the last reported trade. The change figure tells how much the price of the stock has changed since the closing figure of the previous day. This gives a sense of the price trend or stability of a particular stock. The close and open figures tell the investor how much that stock was worth when the day opened and when it closed.

While stock market charts include many other symbols and figures, these are the basics, which an investor must know to get started. These basic terms can be used to expand knowledge of the chart’s terminology and significance. An understanding of the measurements of price and stock trends included in stock market charts is essential for stock market success. So, be sure to expand your knowledge whenever possible.

A new stock charting website that I would reccommend for fundamentals is www.ycharts.com. New website in beta but by far the cleanest and easiest stock charts I have found today. For technical analysis there is no need to learn how to read stock market charts because the Stocknod algorithm already has all of the best stock technicals baked into the proprietary formula.  If you are looking for stock signals, then let Stocknod read your stocks charts automatically with no learning curve on how to read stock charts.

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