USDCHF continues its downward movement from 0.9535, and the fall extends to as low as 0.9228. Key resistance is now at 0.9337, as long as this level holds, the downtrend could be expected continue, and next target would be at 0.9170 area. On the upside, a break above 0.9337 resistance will indicate that lengthier consolidation of the longer term downtrend from 0.9751 is underway, then the pair will find resistance around 0.9400.
Provided by ForexCycle.com
When you break investing down to the basics, there are two key approaches.
And we’re not talking about fundamental or technical analysis.
We’re talking about something different.
And just as it’s possible to combine technical and fundamental analysis, it’s also possible to combine these two approaches.
One of these approaches helped us identify what could be the biggest and most lucrative period for investors in living memory…
To be honest, we don’t really mind which approach we use.
We’ve used both, and they can work equally as well.
The main difference is the direction from which you approach an investment.
We’re talking about ‘top down’ and ‘bottom up’ investing.
If you’re wondering what the heck we’re talking about and how these approaches can help an investor, let us explain…
But before we go on, read these two clippings from the same Financial Times article. It will help with the explanation. First:
‘Biotechnology companies are raising money at the fastest rate since the dotcom boom, underscoring the renewed appetite for one of Wall Street’s riskiest bets despite the high chance that the investments will turn sour…‘
And second:
‘Agios Pharmaceuticals, which is developing drugs to treat cancer and rare genetic disorders, raised $122m from an IPO last week and its shares jumped 73.8 per cent on the first day of trading…‘
The first is an example of ‘top down’ analysis (although, in reality there is a level of analysis above the sector level, but we think you’ll get the point).
Top down analysis means looking at something with a wide-angled lens. You’re taking in as big a view of the global economy as you can.
At that point the job of a top down analyst is to work out the biggest trends to impact the global economy. For instance, a top down analyst in the early 1990s may have thought globalisation and electronic communication would be big trends for the next 10 years.
Armed with that worldview, they would have looked for industries and then specific companies to benefit from that view. If the analyst was any good at their job they should have arrived at internet stocks just as the dotcom boom began.
Using a big picture view is how we find breakthrough technologies and stocks in our new Revolutionary Tech Investor investment advisory.
That’s why the FT story caught our eye. Biotechnology is a sector we’re backing heavily in Revolutionary Tech Investor. Half the stocks on the buy list are in biotech.
But as we say, there is another way to analyse stocks, this time from the ‘bottom up’…
Bottom up analysis is what you’d expect it to be. Instead of taking a big picture view, you look at individual companies. You then analyse how they fit into a particular industry, and the national and international economies.
This type of analysis suits stock scanning or filtering. That is, putting parameters into a stock screening software in order to create a shortlist of stocks.
You may want a list of stocks with a price to earnings (PE) ratio less than 15. Or a list of stocks with a cash balance greater than $1 billion. Or anything else. You may use 3, 4 or 5 filters to cut the stocks down to a final shortlist.
Once you have, say, a dozen stocks, you can analyse each stock for the potential to grow revenues or profits. Alternatively, you may want to find under-valued stocks.
That means looking for companies valued below their peers. If investors then revalue the stock, it could rise without the company increasing revenue and profits (we’ve seen this happen during the dividend stock rally).
As we said at the top of this letter, we use both approaches. They are equally valid. We’re simply looking for the best way to find stocks with the greatest risk/reward potential.
So, how do you analyse stocks? There’s a chance you use one of these methods without even thinking about it. But think about whether you’re a ‘bottom up’ or ‘top down’ investor. Then decide if you’re missing out on good opportunities by limiting the way you research stocks.
What you find out may surprise you. You may even find the other way of researching stocks compliments your current approach, or may even be better.
Cheers,
Kris+
From the Port Phillip Publishing Library
Special Report: The Sixth Revolution
Daily Reckoning: More Fodder For Our Property Debate
Money Morning: The News Gets Worse, So We’re Buying Resource Stocks…
Pursuit of Happiness: Save Now to Avoid the Government’s Retirement ‘Labour Camps’
Australian Small-Cap Investigator:
How to Make Big Money from Small-Cap Stocks
It’s almost impossible to predict the future with 100% accuracy. But that won’t stop me taking a stab at it. A big part of our new technology investment service will be working out which technologies have the best chance of succeeding and which will be a flash-in-the-pan.
What follows is just a sample of some of the technologies under development right now. Let me make this clear: I haven’t just made-up a lot of random futuristic ideas. The Revolutionary technologies you’ll read about below are projects being developed in laboratories and research centres round the world…
From hypersonic jet travel to near-space exploration and vacation, to medical and scientific breakthroughs that could rewrite the laws of physics.
It’s impossible to tell how many (if any) of these developments will succeed, but you should know that technology is rapidly changing the world. Even if none of these achieve commercial success, you can be sure that something just as incomprehensible and spectacular will. Read on for our take on the future…
When Concorde had its farewell flight on the 26th November 2003 it was a sad day in the progression of high speed intercontinental travel. But not all hope was lost.
The pinnacle of terrestrial travel has been London to Sydney in less than four hours. That required speeds in excess of Mach 5, commonly referred to as the point of Hypersonic Travel.
But the problem is at that speed, current engine technology gets too hot. Air flow reaches temperatures in excess of 1,000 degrees Celsius. That would melt most materials used in typical aircraft, so it’s not a good idea for an engine.
Hence hypersonic travel has been out of reach. But what’s the best way to reduce the temperature of something that’s hot? Cool it. Simple. A joint program between the European Space Agency and Reaction Engines is working on a plane capable of Mach 5 flight cruising speed.
Reaction already has the engine technology. The ESA are working on a body design.
Put the two together and the next step is a fully functioning prototype for hypersonic travel. London to Sydney in four hours may be closer to reality than you think.
There’s been a lot of talk about 3D printing for some time.
Some say it’s great, some say it’s a fad. Let’s get one thing straight though. This technology is a part of the revolution in manufacturing that hasn’t happened since stonemasonry was established.
3D printing isn’t just about making Yoda Bobble Heads for your Toyota Prius, or making a plastic gun to shuffle through airport security. It’s about taking this technology and putting the capability to make things into the hands of everybody.
Here are a few things you probably didn’t know 3D printers have done:
What this means is it’s not just some gimmick or fad. But a whole new approach to tackling problems to find innovative, creative solutions. It’s a change of attitudes towards the traditionally accepted methods of manufacturing.
The biggest issue with batteries is they run out and take forever to recharge.
The same goes for electric cars.
The bigger problem for electric cars is that if it runs out while you’re on the road, there may not be somewhere to recharge it.
But what if there was an electric car that generated energy from the invisible radiofrequency that is all around us? A car that charged its battery while driving, and never ran out of charge?
Some might say that’s impossible. But Nikola Tesla didn’t think so when he made his Tesla Pierce-Arrow electric car. But that vanished; along with proof his invention in 1931 was even real.
But another man today has made his own version of the free electric car. Ismael Aviso has created an electric motor and battery that has 133% efficiency. In simple terms, it makes more energy than it uses.
It does this by capturing energy from radiofrequency that is invisible, abundant…and free.
Aviso has the world’s first demonstrated free energy engine. Importantly, this isn’t a trick a fake or a scam. The Philippine Department of Energy has also verified Aviso’s invention as legitimate. Aviso has put his engine in a car, and in effect now has a car with unlimited range. No fuel, no recharging…ever.
We’ll be back with part two of this series tomorrow, including why your mind could be the most powerful computer of the future…
Sam Volkering+
Technology Analyst, Revolutionary Tech Investor
From the Archives…
Is This the Spark to Send Australian Property Crashing?
26-07-2013 – Kris Sayce
Why it’s Deflation…Not Inflation, that’s Heading Our Way
25-07-2013 – Vern Gowdie
Why You Must Avoid This Big Investing Mistake…
24-07-2013 – Kris Sayce
The Dark Side of Technology: Part 2
23-07-2013 – Sam Volkering
The Dark Side of Technology: Part 1
22-07-2013 – Sam Volkering
Listen to Charles discuss Ford’s (F) new natural-gas-powered F-150 pickup trucks and what this means for America’s natural gas revolution with Peggy Tuck and Dave Dyer in Part II of today’s Straight Talk Money.
Listen to Charles discuss the GDP numbers, investing globally, and more–including African toilets–with Peggy Tuck and Dave Dyer on Straight Talk Money.
How to exploit and profit from market correlation (via Futures Magazine)In the forex market, we often discuss the concept of correlated pairs. This is because, inevitably, a currency must be paired with another currency to determine its relative value at any given point. In the futures market, this value is derived from…
Article by Investazor.com
FOMC announced to keep the interest rate at 0.25% and not much information about the QE3. The program is maintained at the previous parameters with no given data for an eventual tapering. On the other side, the inflation becomes an alarming issue as “persistently below its 2% objective could pose risks to economic performance”. In this regard, economists are expecting the core inflation to rich 2% in the medium term.
Earlier today, good news came for the American economy, as signs of recovery appear to become increasingly more consistent. The ADP report came up better than expected (200k), possibly giving the tone to the NFP that is waited on Friday. Broadly, this result is sustained by the services sector which created 177k jobs, the biggest gain since last November. The labour market demonstrated the fact that the turbulences given by the cuts in government spendings, fiscal issues and tax increases were safely overcome. The advanced GDP release (1.7%), the version that tends to have the most of the impact, showed that the worse of the financial problems are being left behind.
The post What Did FOMC Decide? appeared first on investazor.com.
How To Use The 10-Day Moving Average To Maximize Your Trading Profits (via Morpheus Trading Group)Swing traders rely on a diverse arsenal of technical indicators when analyzing stocks, and there are literally hundreds of indicators to choose from. But how is a new trader supposed to know which indicators are most reliable? Deciding which technical…
German jobless rate steady at half eurozone level (via AFP)The unemployment rate in Germany, Europe’s top economy, held steady at 6.8 percent in July, the federal labour agency said Wednesday, just over half that of the recession-hit eurozone. With just seven weeks to go until a national election, the agency…
By www.CentralBankNews.info Ghana’s central bank held its policy rate steady at 16.0 percent, saying inflation is expected to return to the forecast path by the first quarter of 2014 and prospects for growth had improved.
The Bank of Ghana, which raised its rates by 100 basis points at its last meeting in May in response to rising inflation, said inflation is likely to be close to the bank’s upper band and the upside risks include potential pass-through of further petroleum price adjustments, possible adjustment of utility tariffs and pressures from the impending public sector wage settlement.
These pressures, however, could be moderated by the tight monetary policy stance, ongoing fiscal consolidation and seasonal factors from the oncoming harvest season.
“However, subject to the rate and timing of the adjustment in utility tariffs, the forecast could return to central path by the first quarter of 2014,” the central bank said. The bank has a year-end target of 9.0 percent inflation, plus/minus 2 percentage points.
Ghana’s inflation rose to 11.2 percent in June, the highest since April 2010, from 10.9 percent in May, largely due to petroleum price adjustments, demand pressures and seasonal factors, the bank said. The reconstituted CPI basket put inflation at 11.4 percent from 10.6 percent in March, it added.
The central bank said its composite index of economic activity (CIEA) indicated a marginal pickup during the second quarter with the index showing growth of 3.4 percent compared with a 0.6 percent contraction in March.
The consumer confidence index also improved in June from April while business sentiment softened.
In the first quarter, Ghana’s Gross Domestic Product contracted 3.1 percent from the previous quarer, for annual growth of 6.7 percent, up from 6.0 percent.
Ghana’s finance ministry has forecast growth of 8 percent this year.
Preliminary data for the first half show that government revenue and expenditure were below their targets, with the budget deficit 4.5 percent of Gross Domestic Product on a cash basis, within target.
