Month: October 2011

The Best Way to Measure Company Performance

by Marc Lichtenfeld, Investment U Senior Analyst
Wednesday, October 12, 2011: Issue #1619

There’s an adage on Wall Street that stock prices follow earnings.

It means that if a company’s earnings increase over time, the stock price should follow. The same is true for a business whose earnings are falling.

Earnings are the most-used metric when analyzing a company. How much does it earn? How much will earnings grow? What is the price-to-earnings ratio?

It’s a very useful tool for gauging a company’s overall health.

But there’s another metric that I prefer: Cash flow. Here’s why…

Why Cash Flow Is a Better Metric Than Earnings

Cash flow is the amount of net cash the company took in. Remember that earnings can be manipulated fairly easily. There are many non-cash items included in earning reports. Things like depreciation, amortization, stock-based compensation and various other expenses can be more or less directed to tell the earnings picture that management wants to express.

I like to use the following idea to illustrate points when thinking about stocks and companies.

Let’s say you own a business. Which number is more important to you in determining whether your restaurant is successful – the number you report to the Internal Revenue Service or the amount of money you bring home to your family every year?

Without doing anything illegal, those are going to be two very different numbers. You’re going to be able to reduce the amount of taxes you owe on your profits because of depreciation on your equipment and various tax saving strategies that you will no doubt employ.

However, regardless of what number is reported to the IRS, whatever cash you end up taking out of the business’ bank account and putting in your personal account is going to depend greatly on how much excess cash is left over after all of your bills have been paid, including interest on loans and even dividends to your investors.

That’s cash flow…

Putting Cash Flow to Work

It makes sense that a company with strong cash flow will have a stock that performs well. But that’s not just a theory.

The Oxford Systems Trader, a research service that utilizes supercomputers to crunch vast amounts of data, determined that cash flow growth is an important component to stock market success.

This research service tests hundreds of variables in thousands of combinations to determine which criteria would lead to the best possible performance. The backtested results over 10 years showed that the Oxford Systems Trader outperformed the market by 1,568 percent.

I assumed cash-flow growth would be one of those metrics, but was ready to leave it out if the computer established that it didn’t increase the results.

But it did improve performance in a very big way.

Companies with double-digit annual cash flow growth over the past five years outperformed the market by 286 percent when screened every quarter (as often as the cash flow figures are updated).

And, despite a very difficult economic climate over the past five years, there are more than 1,000 companies that have grown their cash flow by an average of 10 percent or more annually.

For example, Questcor (Nasdaq: QCOR) grew cash flow at a compound annual growth rate of more than 42 percent the past four years (five years ago, cash flow was negative). Questcor, a biotech company that makes a drug for infantile spasms among other indications, outperformed the market by 229 percent over the past year.

High-performance metal products manufacturer Haynes International (Nasdaq: HAYN) increased cash flow at a 28-percent annual rate over the past five years. Not surprisingly, it beat the S&P 500 by nearly 43 percent over the past twelve months.

And chipmaker RF Micro Devices (Nasdaq: RFMD) and its 20-percent annual growth rate in cash flow resulted in outperformance of 10 percent during the past year.

Cash flow growth isn’t the end-all and be-all in fundamental research. There are many other factors that go into picking winning stocks.

But a company that’s growing its cash flow by an average of 10 percent or more every year for five years is clearly doing something right and is an excellent place to start your research.

Good investing,

Marc Lichtenfeld

Article by Investment U

How to Profit From The World’s Most Ignored Coal Producer

by David Fessler, Investment U Senior Analyst
Wednesday, October 12, 2011

Coal is the world’s most-used fossil fuel. It’s relatively abundant, with deposits found just about everywhere in the world, except the Middle East.

But proven, recoverable reserves and coal production are fairly concentrated. Seventy-five percent of the world’s annual production comes from just the top five coal-producing nations.

A decade ago, China produced about the same amount of coal as the United States, or about 1.25 billion short tons per year.

As you can see from the graph below, Chinese coal production more than tripled in the last decade, while U.S. coal production remained relatively flat.

China mined nearly half of the coal produced in the world in 2010. Its production was three times that of the United States, and nearly equaled that of the next 10 highest-producing nations combined.

Over the last decade, China’s coal production increased 188 percent. While the top 10 coal producers remained relatively the same since 2000, there were some significant moves within the group.

Indonesia’s coal production over the last decade increased a whopping 368 percent. That moved it from tenth to fifth globally, bumping Russia to sixth place. Check out the pie chart below to see who the world’s largest coal producers are.

What happened to U.S. coal production in the last decade? It increased a measly one percent. That’s more a reflection of tightened environmental and greenhouse gas emission policies than it is of reserve or production limitations.

Fast Moving Coal Miners

When looking for booming miners, one company to keep on your watch list is PT Bumi Resources (OTC: PBMRY.PK). With a market capitalization of $4.49 billion, this Indonesian giant owns the KPC mine, the largest coal mine in the country, and the largest export coal mine in the world.

The KPC mine is so large it isn’t even fully explored yet. Its marketable, proven coal reserves total 2.9 billion tons, and its probable reserves are estimated at 10 billion tons. Clearly, there’s a huge potential for proven reserve growth.

Bumi’s coal operation is vertically integrated. It owns the mine, delivers and markets the coal, and is involved in mine contracting and mine infrastructure.

In addition to coal, Bumi also mines gold, iron ore, lead, zinc and copper. Bumi’s corporate roadmap is to become a diversified mining resource company. To that end, it recently diversified into oil and natural gas exploration. Bumi is ideally located to serve strategic mineral markets in Asia, Europe and South America.

Bumi’s coal production will nearly double over the next two years, and investors will reap the rewards. China’s insatiable demand, as well as demand from other emerging market countries, insures Bumi can sell all the coal they can produce.

The $5-billion giant is certainly one to consider. But if you really want to profit, you’ll want to do some more homework. The company is just one in a booming supply chain that will service the growing energy demands of Asia and Australia.

Good investing,

David Fessler

Article by Investment U

Oct. 12 (Bloomberg) — Tim Guinness, chief investment officer at Guinness Atkinson Asset Management, talks about the outlook for oil prices. He speaks with Maryam Nemazee on Bloomberg Television’s “The Pulse.”

London Gold Market Report
from Ben Traynor
BullionVault
Wednesday 12 October, 08:00 EDT

SPOT MARKET gold bullion prices climbed to $1687 an ounce Wednesday morning London time  – their highest level since September 23 – as stocks and commodities also gained despite Slovakia’s parliament voting against measures designed to promote Eurozone stability.

“Only a close back above $1684 will [see] the market shift neutral,” write technical analysts at gold bullion dealing bank Scotia Mocatta.

However, they add, “a break of $1634 will bring in sellers…there is a rising trend line [at that level] drawn off the $1538 low”.

Gold bullion “has stepped into new territory,” says a note from UBS, adding it is “acting like a hybrid of a risk asset and a safe haven.”

Silver bullion hit a three-week high at $33.05 per ounce.

Slovakia’s parliament yesterday voted against ratifying the Eurozone leaders’ agreement of July 21 that seeks to grant additional powers – including recapitalizing banks and buying sovereign debt on the open market – to the European Financial Stability Facility.

The vote led to the fall of Slovakia’s government after junior coalition partner the Freedom and Solidarity party refused to back the motion. Prime minister Iveta Radicova says she will try to hold a second vote this week and seek opposition backing.

The other 16 Eurozone members have already ratified the agreement.

“Eventually a yes vote will be secured,” reckons Tim Ash, head of emerging-market research at Royal Bank of Scotland.

“Does Slovakia really want to be alone among 17 Eurozone members states on this one, and when the future of Europe is at stake?”

Elsewhere in Europe, billionaire investor George Soros and 95 others – most of them politicians and finance industry professionals – have written to the Financial Times today warning that failure to fix the Euro’s faults could “destroy the global financial system”.

They call for a common Eurozone treasury to raise funds for all members – an idea reminiscent of the joint-government ‘Eurobonds’ that Germany’s Chancellor Merkel has described as a “last resort” and “not a sensible idea”.

Soros and his co-authors also call for reinforced supervision and regulation, as well as a strategy for economic convergence and growth.

“When voters read this I feel this will have the opposite effect than [the writers] intended,” said one comment on the FT’s Alphaville blog.

The European Banking Authority – the continent’s top banking regulator – has agreed in principle that banks should ensure their core Tier-1 capital ratios would remain above 9% in the event of sovereign debt writedowns.

Should this higher Tier-1 ratio be enforced, it will be higher than that expected by many analysts, and may require Europe’s banking sector to raise an additional €275 billion, according to Morgan Stanley.

The EBA’s July stress tests required a bank’s Tier-1 ratios following an adverse shock to remain above 5% to pass – although those tests did not model for a sovereign default.

The impact of sovereign defaults on the European Central Bank, meantime, is “too frightening to contemplate” says Professor David Beim of Columbia Business School.

“Who would bail out the ECB?” he asks, pointing out that a “disproportionate fraction” of the ECB’s €1 trillion of assets is likely to be made up of distressed government bonds.

“The endgame is likely to be the printing of Euros and a burst of inflation.”

Here in the UK, the unemployment rate rose to 8.1% in the three months to the end of August – its highest level since October 1996 – according to official figures published today.

The overall number of unemployed hit 2.57 million, the highest since October 1994.

Over in the US, the Senate yesterday approved the Currency Exchange Rate Oversight Reform Act, which would allow the US to impose import duties in cases where it believed the exporter’s currency was ‘misaligned’. The bill still has to be approved by the House of Representatives and the president.

China’s foreign ministry criticized the development, saying it could lead to a “trade war”.

Central banks meantime could make net purchases of 500 tonnes of gold bullion this year, according to leading precious metals consultant Thomson Reuters GFMS, which increased its 2011 forecast from 336 tonnes on Wednesday.

Ben Traynor
BullionVault

Gold value calculator   |   Buy gold online at live prices

Editor of Gold News, the analysis and investment research site from world-leading gold ownership service BullionVault, Ben Traynor was formerly editor of the Fleet Street Letter, the UK’s longest-running investment letter. A Cambridge economics graduate, he is a professional writer and editor with a specialist interest in monetary economics.

(c) BullionVault 2011

Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.

By Mike Conlon www.ForexNews.com on Oct 11, 2011

This morning all eyes are on the tiny nation of Slovakia who is wielding enormous power in that they are voting on whether or not to ratify the expansion of the EFSF in the Euro zone as part of the July 21st agreement. There must be unanimous agreement among all 17 Euro nations or the process could be derailed. While the market is expecting this vote to pass, there is some trepidation until it is a done deal.

So the markets have started the morning in mild risk-aversion mode after yesterday’s tremendous move higher in stocks and commodities. The S&P 500 had its largest daily gain in nearly 2 months on a light-volume session due to the Columbus Day holiday here in the US with the bond market closed.

Today kicks off the start of earnings season here in the US for corporations so the markets will be keeping an eye on how corporations are doing and what their outlook is for the immediate future. This is important for the forex market because the correlation of stocks and their role in the “risk trade” to currencies could be the driver of global markets in the near-term.

The Euro debt crisis is still looming in the background but the announcement that a complete resolution will be forthcoming in early November has put fears on hold for at least the next couple of weeks.

Economic data due out this week will contribute to the overall market picture but there is no single piece of market-moving news that will reverse risk themes. That’s not to say we won’t see volatility in individual currencies, but rather that this week will be dominated by equities and corporate earnings and the Euro debt saga.

Early this morning, the UK reported lower than expected, industrial and manufacturing production figures, though the misses were slight by about .1%. While we know that the economy is contracting, but it is hanging in there pretty well at this point considering the government austerity. There is also a note out that the BOE may be abandoning a part of the additional QE it announced last week due to the high prices of bonds they want to purchase. UK employment figures are due out tomorrow.

In Japan, the BOJ economic report showed that they see signs of the economy improving and consumer confidence figures came in better than expected. The minutes from their most recent rate policy meeting will be released tomorrow and it could show their concern about Yen strength and their willingness to act (intervene) to weaken it.

Speaking of meeting minutes, the Fed minutes from last week’s FOMC meeting will also be out today and may show Bernanke’s willingness to ease monetary policy further if economic conditions worsen. This could give stocks an additional boost ahead of the earnings releases which have already seen the bar lowered by analyst and the market alike. This means that it will be easier to meet and/or exceed expectations, which could strengthen the risk tradeThere are many in the market who are expecting a major move in equities to the upside to close out the year which could be indicative of the resolution of the Euro debt crisis and the potential end to political gridlock in Washington DC.

Sadly, Washington DC may remain broken until the next elections in 2012 and tonight’s vote on the President’s jobs bill will likely result in non-passage as most see it as doubling-down on bad policy and throwing good money after bad. While these short-term solutions may feel good in the immediate term, the long-term effects are lacking.

And this is part of the overall problem that the administration doesn’t understand—that people and businesses are not going to make long-term decisions on short-term placebos intended to get them re-elected! You can only use other people’s money to buy votes for so long so when the money runs out, the game is over. Unless you create a new game—such as class warfare—that we are seeing today in these Wall St. occupation protests.

While I believe the despair and anger in this country is warranted in many respects, it is misdirected. While the banks haven’t done anyone any favors, Washington DC is the far bigger culprit and the people should take an introspective look as they are the ones who voted this mess into office.

Regardless, markets will go up and markets will go down, so continue to trade and rise above the malaise!

Regards,

Mike Conlon, Senior Forex Mentor

www.forexnews.com

Video courtesy of ForexCT – A leading Australian forex broker, liscensed by the Australian Securities & Investments Commission, offers the MetaTrader4 and PROfit Platform to retail traders. Other services include Segregated Accounts, Trading workshops, Tutorials, and Commodities trading.

By Zac Storella, CountingPips.com

Today, I am pleased to share our latest forex interview on this week’s major events and forex trends with John Kicklighter, Currency Strategist at DailyFx.com. John specializes in combining fundamental and technical analysis with money management and has trading experience in spot currency, financial futures, commodities, stocks, and options. In his analysis for DailyFx, John’s regularly reports on G10 fundamental forecasts, global risk sentiment and carry trade analysis.

Q: In terms of overall forex market impact and direction, what do you feel is the most important event or theme that traders should pay attention over the next week?

We have cleared a lot of the big ticket scheduled event risk (like the NFPs, ECB and BoE rate decisions); and that will allow us to once again focusing on the bigger themes – which are always primary drivers. I think the risk-reward balance is always key; but now we can focus on a direct driver to one side of this equation. The European financial crisis is an ongoing threat to the global sense of investor risk. Set between the effort for expanding the EFSF, Greece receiving its next tranche of aid before running out of cash next month and the German/French vow to present an all-encompassing bailout effort; there is a clear possibility that we can finally get some resolution (whether that be relief or confirmation of a crunch).

Q: Do you feel that the recent euro rally is due to extreme oversold conditions and will be ultimately short-lived or could we see more of a sustained rally if all the euro countries accept to the new EFSF funding agreement?

The euro’s climb to this point was certainly a factor of the currency finding itself in a heavily oversold position. We have seen suggestions of possible progress under the right conditions; but the market is naturally a skeptical place right now – especially when it comes to matters of the Euro-region’s health.  The expansion of the EFSF program would offer a boost; but the timing of its implementation next to Greece’s official default and possible bank-level troubles will be exceptionally important going forward.

Q: On a technical basis, what do you see as the important levels to watch on the EUR/USD going forward?

For resistance, if we are able to surpass the 1.3700 level; it would open the door to continuation on a week-long rebound – possibly adding a feeling of semi-permanence to an otherwise temporary correction. From there, 1.4000/3950 will be the net meaningful line in the sand for bulls to contemplate. As for support, we have a possible ‘shoulder line’ on an inverse head-and-shoulders pattern at 1.3400 (which was a meaningful support level previously in a big 50% Fib and key trendline break). From there, we just take out this month’s lows  at 1.3145, beyond which the floor gives way.

Q: What do you think is the endgame for the euro? Do you think there will inevitably be a breakup of some kind or will the Eurozone leaders be able to pull this together with all countries in tact?

There is the distinct ability for policy officials to ‘change the rules’ on the Euro concept; and therefore, they can adapt the investment perspective to ensure foreign investment keeps finding its way to the region. A Greek default is all but assured now; but what remains to be seen is what preparation they will have in place to keep the hit from spreading to the banking sector (especially given the global slide into financial and economic troubles). The most probable, worst-case-scenario at this point is one of the EU members deciding to leave because the austerity demands are too much to deal with.

Q: The USD/JPY has been trading in a very tight range for roughly two months now around between 76.00 and 78.00. Do you see any catalyst upcoming that might be able to ignite a breakout of this range?

Between the US dollar and Japanese yen, there is no immediate carry benefit, stimulus is extremely lax and they both stand as a relative safe haven. This is a balancing influence that just happens to occur an extreme for the pair (and that extreme is held in place by the store of value appeal the yen is offered through its deflation). We could say a shift in rates or key reversal in growth could offer a drive; but those aren’t probable outcomes for the next 6-12 months. The most probable catalyst with a real influence would be intervention on behalf of the yen. ‘One-off’ efforts to dump yen simply won’t do it. We need something that is consistent – something akin to what the SNB is doing.

Q: The Swiss franc/Euro has been effectively taken out of play by the Swiss National Bank and their peg to the Euro at 1.20. Are you surprised by the success of this policy considering the past SNB failures of intervention and if there is a turn for the worst in the Eurozone, could we expect to see investors pile into the Swissy as a safe haven?

I’m not surprised that the 1.20 floor has held up; because they have essentially vowed unlimited amounts of money to the cause of keeping that benchmark in place. However ‘success’ is a word that I would be hesitant to use here. Keeping this level in place has been quite expensive; and it will continue to be. Bearish speculators will not be major players here for some time as there just isn’t enough room to run when they dive in; but there will certainly be those market participants that aren’t looking to profit on the exchange rate risk, rather they will want relative safety in the European region. That will act as an anchor as long as risk aversion is a prevailing wind.

Thank you John for taking the time to answer my questions in this week’s forex interview. To read John’s latest currency analysis and trading strategies you can visit DailyFx.com or follow him on twitter at http://www.twitter.com/JohnKicklighter.

By MoneyMorning.com.au

In today’s letter we’ll show you the single, most important financial advice you’ll read this year. Advice that will help you prepare for – and survive – the ongoing financial volatility.

Because make no mistake, the market action you’ve seen since 2007 will continue. How long it will last is anyone’s guess. But think about it. Four years ago few thought the market would be where it is today… and it doesn’t look like things will get better any time soon.

If that’s enough to make you close this email and go do something else… STOP. Keep reading. We’ll explain why in a moment.

But first…

Your editor has just come back from a 10-day family holiday to the Gold Coast. It was the first proper holiday we’d had since July last year.

This time, with everything going on in the financial markets we decided this wasn’t going to be a working holiday. There would be no watching the Aussie stock market… no staying up til midnight watching the U.S. markets open… and no wireless Internet access to check the latest stock, bond and currency prices…

It was a total media and financial market blackout.

Do you know what, we coped just fine. We went to the beach, we went to theme parks, we went for walks… we had breakfast, lunch and dinner… all of it without once looking for or thinking about share prices and foreign exchange rates. We didn’t even care about the gold price.

We lived like most of the Aussie population. Just like those who either don’t care or don’t know what’s happening in financial markets. And let’s be honest, most people wouldn’t know Dr. Ben S. Bernanke from a bar of soap.

Here’s the important thing. While it was nice to be ignorant of the markets for a while, it’s not much of an investing strategy. And it’s a pretty poor wealth protection strategy too.

But that’s how most folks deal with their wealth.

Why is that? It’s because they’ve fallen for the trick that investing is hard… that it’s so hard you should leave it up to someone else to look after. (And don’t get us started on the welfare state, “The government will look after me…” argument.)

The thing is wealth planning isn’t that hard if you know what to do…

We like Dan Denning’s note in the August issue of Australian Wealth Gameplan:

“…I’m going to show you a share market asset allocation model aligned with my world view. It’s a simple way to split up your financial assets in four categories… Just because it’s ‘the end of the financial world as we know it’ doesn’t mean you can stop thinking about how to preserve and grow your wealth.”

Dan says asset allocation is the most important part of investing. We agree. But when most people think of asset allocation they just think about investing in different shares – a few banks, a few resources stocks and a few retailers… “That should do it”, they think.

But Dan makes the point:

“A well-designed portfolio is a unified strategy, not a bunch of separate punts.

“You could take a bunch of separate stock picks and chuck them in a spreadsheet and call them a portfolio. But it would be no such thing. In a real portfolio, each position has a specific weighting… The various positions in the portfolio work in concert to try and produce the desired return with a certain level of risk.”

But here’s the key: asset allocation doesn’t just mean diversification. The conventional wisdom among most investors is you should spread your wealth across many assets – shares, property, bonds, etc. And once you’ve done that, that’s it. You do nothing else.

We disagree with conventional wisdom. Investors should take a “world view” of their assets and adjust them over time.

Put another way, using an asset allocation approach rather than a plain vanilla diversification approach, you’re actively managing and adjusting your wealth based on where you believe markets and economy is heading next…

Rather than just choosing a bunch of stocks and hoping for the best.

In short, diversification is a lazy, passive and ultimately doomed way of managing your wealth… while asset allocation is a thoughtful, activity and as Dan says:

“According to the famous Brinson Study… asset allocation has a bigger influence over the performance of your portfolio than stock selection or market timing. Get the asset mix right, and you’ve done the really important work.”

It’s a small but important difference.

Asset allocation means more work. But long term, if you want to build wealth rather than see it eroded in a volatile market, putting in the small amount of extra work is vital.

Cheers.
Kris.

PS. If you’d like to know Dan’s thoughts on asset allocation in more detail, we’d suggest you take a few moments to read this free special report…

Why Allocation Beats Diversification

By MoneyMorning.com.au

On Monday we wrote about Take-Over Targets and Treasure Hunters – and told you why we believe they’re your best chance to bag gains like 226% and 81% in resources stocks.

Today, we’ll show you some of the methods our editors use to track down these companies. It’s an easy formula to filter good stocks from bad stocks…

Finding Them

First, our editors will get their name on company mailing lists… or the mailing list of PR companies that run investor presentations. But they also know these guys are salesmen. They need to double- and triple-check the facts before they believe what they’re told.

Second, they go to mining conferences to hear about up-and-comers (Slipstream Trader, Murray Dawes and Diggers & Drillers editor, Dr. Alex Cowie are on their way back from the Sydney Mines and Money Conference today). Again, they’ll need to check any facts they’ve been told.

Many companies will tell you a project is only 18 months from production. But if you go back next year and hear them talk, they’ll tell you the same project is still ‘only 18 months from production’!

Another way is to painstakingly search the internet and company websites for under-reported stories. Most of the info they need is out there… it’s just a case of finding it.

So once they’ve found a company they like, and it’s exploring for a commodity they know is in demand…

How do they pick the right explorer?

There are a lot of stocks to choose from. And some of it comes down to luck – getting the right idea about the right industry and the right stock at the right time.

But there are five questions they ask that can help weed out the hopefuls from the hopeless…

1. Who’s in charge? Look for a team with a successful exploration record in the same field. If they’re looking at a small-cap potash explorer and the management team’s only experience is in producing iron ore, they’ll probably steer clear. There’s a big difference between exploring and producing. And an even bigger difference between mining iron ore and potash.

2. When will investors get their money? They ask the company to explain how its plans will increase the share price. If there’s no plan in place, it may be too early to buy. If the plan is too ambitious or things don’t add up, maybe the company isn’t being completely honest. Again, maybe that’s a sign to steer clear.

3. What about promotion? Without good promotion, most early stage explorers are as good as sunk. It costs a lot of money to sink holes in the ground and if the company can’t raise the capital it needs to explore, there’s a good chance it won’t make you any money either.

4. Where can it go wrong? If the management team can’t give our editors the downside of the project, they either haven’t thought it through or aren’t being straight with them. They need to make sure the company has a plan in place in case something goes wrong – a contingency plan.

5. How much is it worth? There are many ways to value a mining company. It can depend on how developed the company’s project is. And the potential size of the resource will have a big impact on the value. The less developed the project the riskier it is and therefore you’d expect a bigger return.

Most important, not every explorer hits pay dirt. It costs a fortune to pull commodities out of the ground. And many companies lose their investors’ stakes digging up a whole lot of nothing.

But the ones that do dig up a whole lot of something should make investors big returns. Sometimes it’s like looking for a needle in a haystack. But the reward for finding the right stock at the right time more than makes up for the effort of finding it.

Aaron Tyrrell
Editor, Money Morning

P.S. Looking for a small-cap explorer with the potential to make you big profits is fun but it’s tough. That’s why Diggers & Drillers Alex Cowie spends his days doing the hard work for you. To find out more, click here…

Related Articles

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How to Profit from a Disruptive Market

How to Turn Pennies into Pounds With Australia’s Most Exciting Companies

From the Archives…

What Debt Crisis?
2011-10-07 – Greg Canavan

Enjoy the Rally, It Won’t Last for Long
2011-10-06 – Greg Canavan

Why the Fed’s Actions Make Perfect Sense
2011-10-05 – Murray Dawes

Too Big to Bail
2011-10-04 – Murray Dawes

What Can We Expect Next From Commodities?
2011-10-03 – Dr. Alex Cowie

For editorial enquiries and feedback, email [email protected]

How to Pick the Right Small-Cap Explorer

Being supported by the lower border of the price channel on 4-hour chart, USDCHF rebounded from 0.9002, suggesting that a cycle bottom is being formed. Further rally would likely be seen later today, and a break above 0.9150 could signal resumption of uptrend from 0.7711, then next target would be at 0.9500 area. Key support is at 0.8917, only breakdown below this level could indicate that the uptrend from 0.7711 had completed at 0.9314 already, then the following downward move could bring price back to 0.8500 zone.