Skip to main content

Posts

Buy High, Sell Higher - Trading the Breakout

After working in the industry for over a decade and committing endless hours in trying to figure out how many is made through investing I was able to identify four methods that actually works. I am assuming most of us knows them as well. One who can master any one of it can become the market guru and own the market. But let me warn you, for decades people have tried to master these rules. They have spent years to learn and implement them, from industry veterans to math wizards but have yet to perfect them. So here we go, Method #1: Buy Low Sell High Method #2: Sell High, Buy Low Method #3: Buy Higher, Sell Higher Method #4: Sell Lower, Buy Lower You don’t have to master all four. Just any one will help you become a very successful trader. This article will focus on method #3, Buy Higher, Sell Higher. The article tries to analyze the 52-week (250 days) breakout buy for a 30-days and 90-days holding period. If you follow the reports by financial media outlets and social media

US Economic Health Indicators: March 2021

An economy is a series of transaction where goods and services changes hands in exchange for money or credit. Greater the transaction in the economy, higher will be the economic output and economic growth. Since cash in any economic system is presumably limited, to achieve higher transactions short-term, mid-term and long-term credit is used in exchange for goods and services. Many factors contribute to enable any person to be willing to borrow to make any purchase. Since credit can be viewed as borrowing from the future to meet current needs, many factors like future earnings, cost of borrowing, current financial status, confidence in the economy etc. plays a critical role. All these factors are a function of central bank’s monetary and fiscal policies so monitoring their levels and changes in it could assist anyone in making a sound financial decision. The article intends to watch few factors of high importance and monitor periodic changes in them relative to their past levels. US

S&P 500 Sector Performance: March 2021

Technology sector gained stronger relative performance and moved from rank 11 to rank 1 Communication sector gained stronger relative performance and moved from rank 10 to rank 2 Financials sector gained relative strength in price performance as it moved from rank 6 to rank 3 Consumer Disc. sector achieved relative strength in price performance as it moved from rank 7 to rank 4 Energy sector achieved relative strength in price performance as it moved from rank 9 to rank 5 Real Estate sector experienced relative momentum loss as it moved from rank 5 to rank 6 Materials sector experienced relative momentum loss as it moved from rank 4 to rank 7 Healthcare sector experienced no change as it maintained it's position as last month and ranked 8 Industrials sector experienced loss in relative momentum as it dropped from rank 2 to 9 Utilities sector experienced loss in relative momentum as it dropped from rank 1 to 10 Staples sector experienced loss in relative momen

Sector Earnings Update: April 2021

S&P 500 The S&P 500 index has gained 6.2% returns year-to-date with a 3-year annualized returns of 16.7%. The index has earned $122.5 per share over the last 12 months and is expected to earn $172.98 per share in the current fiscal year. Current dividend yield is 1.44% and is expected to yield 1.49% over the next 12 months. The index is currently trading cheaper at a PE of 32.77 relative to its 10-year average of 34.45. S&P 500 index is bullish given 94.04% of its members are trading above their 200-day moving average price. Over the last 12 months, the index earned a positive return 59.62% of the time with 5.54% of the members closing at its new 52-week high price and none of the members closing at a new 52-week low price. Consumer Discretionary The Consumer Discretionary sector has gained 4.0% returns year-to-date with a 3-year annualized returns of 20.1%. The group has earned $20.45 per share over the last 12 months and is expected to earn $36.24 per share in the cur

Housing Market Update

Homeownership Rate in US (%): Homeownership Rate in US (%) in 2020 was 65.6%, an increase of 1.08% YoY. Average since the bottom of the financial crisis has been 65.0%, a decrease of -0.23% was observed as of the last reporting period. In the last five years Homeownership Rate in US (%) observed an increase of 0.59%. Median House Sale Price (USD): Median House Sale Price (USD) in 2020 was $346,800, an increase of 6.02% YoY. Average since the bottom of the financial crisis has been $286,383, an increase of 3.90% was observed as of the last reporting period. In the last five years Median House Sale Price (USD) observed an increase of 2.87%. Private Housing Starts (units in thousands): Private Housing Starts (units in thousands) in 2020 was 1670, an increase of 5.23% YoY. Average since the bottom of the financial crisis has been 1070, an increase of 10.68% was observed as of the last reporting period. In the last five years Private Housing Starts (units in thousands) observed an increa