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Jan31
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Know More:
Accumulation/Distribution, GorillaTrade, MACD, Money Flow, Moving Average, OBV, On Balance Volume, Relative Strength Index, SK-SD Stochastics, Technical Trading, Velocity, Volatility, Volume, Volume Oscillator, Volume/Price Trend
If you are like me, you have seen the increased ad time purchased by GorillaTrade.com. I decided to see what the hype was about and share the results with you. The short answer is as follows. GorillaTrade.com is a technical trading system. That is, it uses information from the market to decide whether or not to trade a stock instead of analysis of the company. The long answer is interesting. GorillaTrade.com sifts through more than 6,000 stocks each night. Those that meet all 14 of the indicators Gorilla feels are most indicative of stocks ready to go up significantly are tagged. They become GorillaPicks. Each GorillaPick has Trigger Price for purchase, a Confirmation Event (related to volume), a stop loss level for risk control, a first target for sale of some of the position and a second target for aggressive investors. Stocks that don't meet a single of the 14 indicators are put on a list to short, either through sale or by using a put.
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Jan31
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So, how did the equity markets do in January? Overall, pretty good. There was a scary patch in mid-January where the market sold off, but overall it turned out to be a good month. The returns are as of 10:34...
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Jan30
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What are LEAPS? How can I use them?LEAPS stands for Long-term Equity Anticipation Securities. Leaps are long dated call or put options on stocks (equities) or ADRs (American Depository Receipts). The expiration date of LEAPS can be up to three...
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Jan27
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In a previous post I wrote about Zacks, a company that uses analyst reports to build a consensus forecast for companies and then parses the companies into those with rising estimated earnings to those with falling estimated earnings. They assign...
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Jan26
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TechTrader writes that the world has changed since Len Zack did his research on earnings estimates in the late '70s and that it also changes during the business cycle. The analyst coverage waxes and wanes depending on whether bull or...
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In 1979 Leonard Zacks, Ph.D published an article in the Financial Analysts Journal entitled "EPS Forecasts - Accuracy is not enough." His central conclusion was, "Earnings estimate revisions are the most powerful force impacting stock prices. Stocks with rising earnings...
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Jan25
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The key determinant of stock price is the consensus opinion of the future growth in earnings. The market wants to know if it will grow faster than the index and faster than its peer group. It also wants to know...
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Jan24
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Each currency has a three letter code that is used to distinguish it from other currencies. In this series of posts, I have used several of them such as USD (US dollar), GBP (Great Britain Pound), JPY (Japanese Yen) and EUR...
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Jan23
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Most FX trading services have systems to help you identify what might be profitable trades. There are two major types of FX systems. The first and most common for the retail trader are trend following systems. Trend following systems usually have some...
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Jan21
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Devin tells his associates that he feels it is worth the effort for them to get their CFA charters. He has not done it, and wonders from one who has if I think it was worth it. Is he giving...
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Jan20
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Dan asks for advice on the best way to study the topics for the CFA Exams. He learns best through real life applications.Dan, I hope you do decide to pursue the CFA designation. It will serve you well in dealing...
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Foreign Exchange Trading part 1 You’ve made the decision that you want to trade FX for fun and profit. What happens? Usually you will sign up with one of the FX trading services that have sprung up to facilitate the retail trader. This...
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Jan19
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Foreign Exchange Futures If you do not want to accept the credit risk of a counter party in an FX transaction for future settlement, you can use FX Futures. In a FX Future transaction, you enter into a trade with...
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Jan18
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Foreign Exchange Forwards Most FX trades settle Spot or T+2 (trade date plus 2 business days). However, you may not need the currency right away and may wish to lock in your rate now. You can access the “Forward” market. FX forwards are...
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Jan17
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The FX market is the largest market in the world with more than the equivalent of $2 trillion being traded each day. This ensures very liquid markets for the major currencies. The largest currencies traded are the US Dollar (USD or $),...
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Jan16
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Foreign Exchange (FX) is trading one currency for another. For example, when you see a quote of 114.63 JPY/USD it means that if you wanted to buy Japanese Yen (¥) you could buy 114.63 ¥ for each US dollar ($). Most...
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Jan13
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I believe many of the trends present in 2005 will continue in 2006. Below I list several trends I think will have important impact on the US markets this year.1. Energy costs will stay relatively high. This will lead to...
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Jan12
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If you have an annuity and need the liquidity, does a structured settlement make sense? I would have to conclude, that it depends on your need. Usually, using a third party to buy all or part of your annuity for...
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Jan11
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In my last post I listed the style returns for various indexes over a many year period. Today I would like to list the performance of various industrial sectors. I will use broad SEC industrial sectors.The best performing sector in...
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Jan10
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One of my collegues just produced a chart with the top ten index returns each year from 1983 through 2005 for a series of indexes we track. I found it interesting as it pointed out another reason for diversification. See...
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Jan 9
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What is Market Timing?My friend Phil called me last week. He wanted to know market conditions, as he was thinking of getting back into the market. Phil tries to time the market. That is, he gets out when he thinks...
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Jan 6
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What is a structured settlement to an annuity?Remember that for most annuities, if you need to redeem your principal, you usually pay a significant penalty. An industry has formed to provide liquidity to those who need it from their annuities. ...
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Jan 5
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What is a Viatical Settlement?A Viatical Settlement is when a company buys your life insurance policy from you before you die at a discount from its death benefit.Let's say you have a $100,000 life insurance policy. You are 75 years...
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Jan 4
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What is an annuity?An annuity is a contract between you and usually, an insurance company. The contract specifies an exchange of your cash now for a stream of payments from the insurance company. The payments can be fixed or variable.There...
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Jan 3
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What is a Structured Settlement?Originally, a structured settlement referred to an immediate annuity purchased by the defendant as a settlement for the benefit of the plaintiff in a court action. If you slipped and fell and sued the grocery store...
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Jan 2
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It is easy for investors to confuse good companies with good investments. They are not necessarily synonymous. Sometimes a very good company is not your best choice to invest in. Let me give an example and also an exception.Right now,...
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