Train crash in Buenos Aires leaves 49 dead, hundreds injured
Train crash in Buenos Aires leaves 49 dead, hundreds injured
MarketWatch.com – MarketWatch Breaking News Bulletins
Forex: GBP/JPY finds support at 125.60 – Forexrazor
|
Forex: GBP/JPY finds support at 125.60
Forexrazor High-Risk Warning Forex, Futures, and Options trading has large potential rewards, but also large potential risks. The high degree of leverage can work against you as well as for you. You must be aware of the risks of investing in forex, futures, … |
USD Index To Resume Upward Trend, Japanese Yen Weakness To Accelerate
USD Index To Resume Upward Trend, Japanese Yen Weakness To Accelerate
Currencies News and Information on Yahoo! Finance
AUDUSD narrow range has sellers looking for momentum
The AUDUSD has been in a narrow trading range for the month February. The 279 pips is the narrowest since 257 pips in Feb 2011 and 254 is April 2010. Today, the price fell to new month lows and that low was extended in NY, after a rally into the London session. When the new low could not sustain, the choppy session continued for the pair.
Looking at the shorter term 5 minute chart below, the last move higher tested and held the 50% of the days range and the 200 bar MA. Staying below is good for the bears but trade activity seems to be balanced. So I would expect profit taking buyers near the lows at the 1.0603-09 levels with stops below.
Forex News and Commentary by FXDD » Forex Trading
3 Mistakes to Avoid when Plotting Fibonacci Tools on Forex Charts
Successful Forex trading using technical analysis hinges a lot on correct application of technical indicators, and the Fibonacci tools are not an exception. It is pretty easy to apply a tool like the Fibonacci tool retrospectively when the price action is all done and nicely fits, but the real challenge is how to apply the Fibonacci tools when trying to determine where a retracement action is going to end for a renewed trend move to resume. In this piece, we will try to identify common mistakes that traders make when using the Fibonacci tools and how to avoid them.
1. Plotting Fibonacci retracements on a short time frame.
This is perhaps the greatest mistake made by traders when using Fibonacci tools such as the Fibo retracement tool. Why is this so? In Forex, the market activity in a short time frame such as the 15- minutes or 1-hour time frame is too short to effectively determine the trend of a currency. What the trader may see as a strong downtrend on a 1-hour chart or a 4-hour chart may actually be a retracement on a daily chart. Trying to plot a Fibonacci retracement tool on the shorter time frame will only end in disaster. The trend pattern of currencies on a longer time frame such as the daily chart is usually a better determinant of the trend. The best thing to do here is to use the longer time frame to determine the trend, apply the tool and then switch to the shorter time frame to make your entry determination.
2.Over-reliance on the Fibonacci tools
In Forex, it is a bad practice to use only one indicator to carry out your technical analysis. Confirmation of the entry is best done using two or three indicators that supplement each other, and the Fibonacci tools are not an exception.
To give an example, let us assume a currency pair is undergoing a downward retracement following a particularly strong uptrend. Where do you possibly think the retracement will halt, especially given the fact that there are five possible retracement levels (23.8%, 38.2%, 50%, 61.8%, 100%)? This is where you have to turn to other indicators such as the Stochastics, MACD or RSI for help. For example, if I get a Stochastics cross at an oversold level (i.e. Stochs crossing upwards at
Always confirm entries with more than one indicator.
3. Misapplication of the Fibonacci Tool
Many times, traders simply misapply it. What does misapplication mean? Fibo tools are best plotted from the swing high to the swing low. If the trader does not use the highest or lowest points on the chart for tracing the tool, an inaccuracy has set in and this is a clear example of misapplication. Another example is tracing the tool from a candle shadow to a candle body or vice versa. A trader must be consistent. For the best results, always trace from the tip of the upper shadow (the wick) of the candle making the high, to the tip of the lower shadow of the candle making the swing low.
These are the common mistakes made by traders when using the Fibonacci tools. Avoid these mistakes to get the best results possible from your Fibonacci tools.
Article was written by Alexander Collins who started his own Forex blog recently. Need Fibonacci, Camarilla, Pivot point calculators? Download all these Forex trading tools at PipBurner.
3 Mistakes to Avoid when Plotting Fibonacci Tools on Forex Charts
Successful Forex trading using technical analysis hinges a lot on correct application of technical indicators, and the Fibonacci tools are not an exception. It is pretty easy to apply a tool like the Fibonacci tool retrospectively when the price action is all done and nicely fits, but the real challenge is how to apply the Fibonacci tools when trying to determine where a retracement action is going to end for a renewed trend move to resume. In this piece, we will try to identify common mistakes that traders make when using the Fibonacci tools and how to avoid them.
1. Plotting Fibonacci retracements on a short time frame.
This is perhaps the greatest mistake made by traders when using Fibonacci tools such as the Fibo retracement tool. Why is this so? In Forex, the market activity in a short time frame such as the 15- minutes or 1-hour time frame is too short to effectively determine the trend of a currency. What the trader may see as a strong downtrend on a 1-hour chart or a 4-hour chart may actually be a retracement on a daily chart. Trying to plot a Fibonacci retracement tool on the shorter time frame will only end in disaster. The trend pattern of currencies on a longer time frame such as the daily chart is usually a better determinant of the trend. The best thing to do here is to use the longer time frame to determine the trend, apply the tool and then switch to the shorter time frame to make your entry determination.
2.Over-reliance on the Fibonacci tools
In Forex, it is a bad practice to use only one indicator to carry out your technical analysis. Confirmation of the entry is best done using two or three indicators that supplement each other, and the Fibonacci tools are not an exception.
To give an example, let us assume a currency pair is undergoing a downward retracement following a particularly strong uptrend. Where do you possibly think the retracement will halt, especially given the fact that there are five possible retracement levels (23.8%, 38.2%, 50%, 61.8%, 100%)? This is where you have to turn to other indicators such as the Stochastics, MACD or RSI for help. For example, if I get a Stochastics cross at an oversold level (i.e. Stochs crossing upwards at
Always confirm entries with more than one indicator.
3. Misapplication of the Fibonacci Tool
Many times, traders simply misapply it. What does misapplication mean? Fibo tools are best plotted from the swing high to the swing low. If the trader does not use the highest or lowest points on the chart for tracing the tool, an inaccuracy has set in and this is a clear example of misapplication. Another example is tracing the tool from a candle shadow to a candle body or vice versa. A trader must be consistent. For the best results, always trace from the tip of the upper shadow (the wick) of the candle making the high, to the tip of the lower shadow of the candle making the swing low.
These are the common mistakes made by traders when using the Fibonacci tools. Avoid these mistakes to get the best results possible from your Fibonacci tools.
Article was written by Alexander Collins who started his own Forex blog recently. Need Fibonacci, Camarilla, Pivot point calculators? Download all these Forex trading tools at PipBurner.
Euro / Yen – 22/02/2012 12:31 GMT
Euro / Yen |
||||
| Weekly | Daily | Hourly | ||
| Trends |  |
 |
 |
|
| Resistances | 107.6 | 106.9 | 106.3 | |
| Supports | 104.35 | 104.85 | 105.5 | |
| Our strategy | ||||
Can it be? Commodity Dollars and JPY Weak on the Same Day?
Today we have the odd spectacle of the weak commodity currencies and a weak Japanese yen a spectacle that is unlikely to continue in the near term. Which currencies to win the race to the bottom?
The market’s satisfaction with the Greek bailout deal remained in evidence as the Euro’s
Upgrades & Downgrades: YHOO, BMRN, HGSI, DNDN, and TSLA
Analysts are weighing in today on Internet portal Yahoo Inc. (YHOO – 14.48), biotech stocks BioMarin Pharmaceutical Inc…(Read More)
SchaeffersResearch.com Trading Floor Blog
The 3 Best Stocks in this Mega-Investor’s Portfolio
February 22, 2012 by stanh
Filed under Misc. Articles
Bill Ackman may not be a household name in the world of investing, but he should be. For starters, he became a billionaire through the successful management of hedge funds and by concentrating his bets into a small handful of opportunities he thinks will pay off big. This was the case with mall operator General Growth Properties (NYSE: GGP), one his most successful turnaround stories, as he turned a million investment into .1 billion, as I'll detail below.
Currently, Ackman is running Pershing Square Capital Management, a hedge fund that ended 2011 with a total market value of close to billion. Ackman has been likened to billionaire investors such as Carl Icahn and Warren Buffett. He has striking similarities to Icahn in that he is more than willing to confront underperforming companies and agitate for change. In many instances, he has been successful in making changes that benefited not only his hedge fund investors, but also the shareholders of the public companies he targets. And like Buffett, he is willing to bet big on a hand full of undervalued stocks.
Below are three notable recent moves from Ackman's portfolio during the last quarter of 2011. You will be able find the trademarks moves of Icahn and Buffett, but also moves that are becoming unique to Ackman as he continues to distinguish himself is one of the "gurus to watch" on Wall Street.
Ackman's beef with Canadian Pacific
Ackman's largest position, at 21% of his portfolio, is currently in Canadian railroad operator Canadian Pacific Railway (NYSE: CP). He significantly increased his stake of 4 million shares from the end of the third quarter and now owns 24.2 million shares. This works out to a current market value of about .8 billion and around 14% of the entire company.
Ackman has been advocating for the replacement of CEO Frederic Green and an overall shakeup at the company to improve its operating performance. He recently presented his views to the company's shareholders and stated that Canadian's costs are rising faster than the competition. He also argued that the company lags in service quality, so it isn't able to charge higher prices because customers aren't willing to pay more for inferior railroad transportation and delivery times.
Ackman, in a move reminiscent of Carl Icahn, is also pushing to replace Canadian's board of directors for his own members. We'll see the outcome of his proposals when the company holds its annual shareholder meeting in May.
Canadian Pacific does look like it's in need of improvement. Its operating margin of 32.2% has fallen for the past five years and way behind the peer group average of 38.4%. Ackman wants to install a management team that can lower costs, better serve clients and eventually grow faster.
Improvements on the way at J.C. Penney
Ackman didn't increase his position in department store retailer J.C. Penney (NYSE: JCP) during the fourth quarter, but the company represents his second largest stake at about 17.5% of the portfolio, worth .4 billion. And while he hasn't been buying the stock recently, he installed his own management team in 2011, which is fast at work to improve the company's lagging performance.
As with Canadian Pacific, profitability at J.C. Penney has been lagging peers. So has its overall growth. In response, management has closed the catalog business and shuttered underperforming stores. The most notable move has been to appoint Ron Johnson, who spearheaded the effort to create retail stores at Apple (Nasdaq: AAPL), as the retailer's CEO. Johnson has moved aggressively to reduce discounting at Penney's and boost total profits.
The General Growth saga continues
Back during the credit crisis, Ackman initiated a huge position in mall owner and developer General Growth Properties just as it was falling apart due to excessive debt and deteriorating performance at its malls. The move was a home run, with Ackman coming out well ahead of his initial cost of million to a stake worth over a billion dollars.
Like J.C. Penney, Ackman is now in control of much of General Growth's board of directors and has the helm in terms of determining the company's future direction. Between last year's third and fourth quarters, the stake rose in value by another 24% to .1 billion, or 14% of the portfolio.
Ackman has held tight with his position and received shares in real-estate developer Howard Hughes Corp. (NYSE: HHC), which was spun out of General Growth during its restructuring. The position is small at 7.6 million, or only 2% of the portfolio, but has some further upside. It owns quite a bit of real estate in areas including Las Vegas, near Baltimore and in a suburb of Houston.
Risks to Consider: Currently, Canadian Railway and J.C. Penney are in the early stages of experiencing operating improvements. This means there could be further room for these stocks to run. Of course, they have already moved up sharply, because investors are confident in Ackman's ability to make improvements. In this respect, the main risk is that much of the coming operational improvements are already priced into the stocks. I don't think that's the case, but it may be worth picking these stocks up on any significant pullback for a larger margin of safety.
Action to Take –> Because Ackman actively pursues large, publicly-traded companies, individual investors can easily ride off of his coattails. In fact, they can cherry pick his best ideas for even higher upside potential. The big upward movement in shares of General Growth Properties since the credit crisis serves to indicate just how much potential upside there is for investors who track Ackman closely.
– Ryan Fuhrmann
This article originally appeared on StreetAuthority
Author: Ryan Fuhrmann
The 3 Best Stocks in this Mega-Investor's Portfolio
