InvestMacro FX

Local mining stocks like Lepanto Consolidated Mining Company (LC and LCB) and Philex Mining Corporation (PX) have made a pretty good run-up during the past week or so. Still, it looks like there’s going to be a follow through at least for Philex in the near term.

Philex Mining Corporation has risen from just below PHP 16.00 to PHP 18.00 in about a week last. Looking at its daily chart, you will see that it has actually formed a bullish pennant pattern. Notice also that the volume for the past week or so has picked up significantly. This suggest that this run-up is well supported by the buyers. Anyway, a breakout from the pattern or a move above PHP 17.7 could send it to a target of PHP 20.00. A breakdown, however, could bring it back to PHP 16.50.

On the fundamental side, Philex Mining recently reported a 152% gain in its net income to PHP 1.31 billion for the first quarter of the year due to higher gold prices. With gold, silver, and copper – all PX’s produce trading at all time highs and even projected to move higher, PX’s net income for the next period could further expand.

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Oriental Peninsula Resources Group, Inc.’s (ORE) performance in 2010 was stellar. Indeed, last year’s feat could be considered as one for the books. Unfortunately, this year’s story looks to be the exact opposite at least from the technical point of view.

As mentioned, 2010 was a year to remember for ORE as it grew from PHP 0.85 all the way to a high of PHP 4.55! In an unlucky turn of events, its winning streak was cut short as it gradually slipped for during the first 4 months of 2011. It even fell to a low of PHP 2.4 before it was able to recover somewhat as it rallied to just above PHP 3.00. Still, ORE’s shares remain depressed as it resumed its downward journey.

What’s worrying me is that when I looked at ORE’s bigger picture, technical indicators point to an even bearish outlook. Why? Well, if you look at the chart above, you will notice that it has been forming what appears to be a big complex head and shoulders pattern. If this is so and ORE broke its neckline then a journey towards PHP 1.50 at least would be a big possibility. Moreover, ORE is already exchanging below its 200-day moving average which of course is a sign of weakness. Another signal that suggest the same thing is the apparent crossover of the 50-day moving average (red line) under the blue one. See also that the 100-day moving average (pink line) is about to make a bearish crossover as well. On the positive note, if the neckline support holds, then ORE could just continue moving sideways.

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By David Adams

In several recent articles I have been discussing some of the phases that new traders enter and exit in their e-mini trading careers. Each phase is a stopping point, or at least point where traders pause to rectify their trading styles, and then move on to another stage. The goal, of course, is to become a consistent and profitable trader. The final stage that I generally encounter with unsuccessful e-mini traders is a stage where they are on an eternal search for that one system that will make them the trader they want to become. I should also add, that the eternal search stage is usually a terminal stage in a trader’s career. I know many traders who are in this stage will not greet this article with warm smiles and a happy demeanor, but the truth is the truth.

Very quickly, we initially discussed the initial stage a new trader enters; where everything is brand-new and the realization that money can be lost is shocking. Following this new trader stage is a fear based stage where traders are hesitant and reluctant to let their profits run and enter normal setups. Quite simply, they are worried about losing money, not making money. A good many e-mini traders emerge from fear-based trading to successful trading; and a sizable number of traders end their career at the fear-based stage. This group finds trading very stressful, more stressful than they care to endure.

In my worldview, the most unpleasant and torturous state of trading is the trader who has purchased numerous systems with little or no success. This trader has purchased indicators, bought books, and joined trading rooms. For this trader, success has been elusive because he or she has missed the point. There are those that would have you believe that e-mini trading, especially in the scalping style, relies on predictive indicators. They believe that there ought to be a standardized formula that spits out surefire trades when the stars are all aligned in a perfect constellation. Scalp trading is normally a reactive (not predictive) type of trading where the market dictates the variables and a good trader takes what the market offers. Scalping is seldom predictive, and almost always reactive. It’s a very tough concept for many traders to assimilate.

The problem is a simple one; indicators, trading systems, and even trading rooms are all tools for the trader to learn how to trade. The key phrase in the previous sentence is “learn how to trade.” I recently received a letter from a prospective client who thought that my trading style was similar to “shooting from the hip.” He had been through several e-mini trading courses and was a breakeven trader, at best. What he did not realize, or hasn’t learned yet, is that the vast majority of price action occurs in and around support and resistance. Indicators do not point out support and resistance effectively, they simply report past data; as a matter of fact most are simply convoluted reproductions of the past period of price action. I use indicators to confirm decisions that are made in and around support and resistance, but my primary tool in learning to trade is price action, price is everything.

But returning to our stage III fellows, though searching for the Holy Grail of trading, I often speak with them regarding potential for correcting their trading with my trading style. I generally hear a litany of complaints about training educators who they felt took advantage of them, didn’t know what they were doing, or were incompetent. There are some e-minitrading educators that fall into these categories, but by and large if a new trader takes the time to learn a good system he or she will find success. On the other hand, the searcher for the Holy Grail continues his eternal quest hoping to find the trading version of the fountain of youth. No amount of encouragement seems to cheer these folks up, they want success and they want it now because they have been deprived of their rightful profits for a long period of time.

Advising traders in the Holy Grail stage is difficult and tiresome. Generally speaking, I encourage these traders to find another line of work as they have given it their all and trading hasn’t been a career for which they are suited. There is no Holy Grail. There is hard work, there is an infinite amount of effort in learning charts and trading methodology, and there is experience. Again, I repeat, there is no Holy Grail; there are no magic indicators or trading systems that can replace trading technique for personalities that may be unsuitable for the trading business. Experience has taught me that the Holy Grail candidate is one step from leaving the business and the best advice I can give is to find a career for which they are better suited. Many of these people are very talented, very intelligent, and good people; they just aren’t traders, and there is nothing wrong with staying out of the trading profession.

About the Author

Real Live Trading Doesn’t Lie. Spend several days in my trading room and see if you can benefit from a fresh and unique view on trading e-mini contracts. Sign up for your free trading experience by clicking here

By James McKee

The Japanese people are still suffering after the recent earthquake and tsunami that decimated the island nation recently. The subsequent nuclear disaster and the damage it caused will be felt for years (and possibly decades) to come. Japanese factories and other production houses are unable to produce goods and as a result are losing a lot of money. Some Japanese companies such as Nintendo and Sony are finding themselves inside of hurricanes of loss that may be too deep to dig out of. Nintendo has issued information stating that they have 2 periods of consecutive loss, and Sony has come forward to say that they are losing money as a result of their Playstation Network being down.

Sony’s problems may just be beginning since the backlash from many players utilizing their systems have been negative to say the least; Sony’s PSP Go is a device in which content can only be downloaded to the device. Without a network no one can use the system that they paid for, and this has many consumers up in arms (and rightfully so). Sony may see a consumer response that is unlike anything seen in recent memory, many promises and even the very premise on which devices are being sold has been betrayed.
This sort of incident will certainly hurt the nation of Japan overall since Nintendo and Sony are both heavy hitters in the country’s electronics industry. Japanese automakers such as Toyota, Honda, and Nissan have also been faltering. These car companies are without a doubt cutting back production, and in all likelihood will be suffering substantial loss as a result of closing their production lines. If the Japanese economy does not recover soon then the JPY will be looking at a downward slope on the online forex exchange. The time for change is now for Japan.

Japan needs to consider its options carefully and figure out exactly what may lie in store for them in the long-term. Unfortunately there is no easy way to predict what sort of fallout is going to occur from the nuclear and other incidents. The nation of Japan is in serious trouble and unfortunately their allies are not in any better shape. The United States is finding itself in a fiscal crunch of their own with a deeply segregated bi partisan system which is not aiding their recovery, and in the long run Japan may find itself reaching out to China.

About the Author

Author is a Forex trader and financial analyst residing in Denver, Colorado. To stay up to date on all the latest developments in the financial world and beyond be sure to check out the online forex trading regularly.

By Cedric Welsch

The currency exchange market is open for trading all over the world, 24 hours per day, 5 days per week. Unlike the stock market that closes every night at 5PM, the Forex market allows traders to perform billions of transactions, no matter of the time zone they are located in. Moreover, Forex trading alerts enable them to stay on top without having to remain 24 hours a day looking at the charts.

There are many different applications available on the internet that you can use to be kept up to date with the most recent news related to the foreign exchange market. Forex trading alerts can be set up through SMS or email, and so you will always be aware of the latest progresses of the market. Without these signals and alerts, it is basically impossible for a trader to keep up with all the important economic and politic events around the world that can influence the Foreign exchange market. With just the 6 majors currencies of the world, the US and Australian dollar, Swiss franc, Japanese Yen, Great Britain Pound and Euro, there is a total of 30 currency pairs that you must keep track of. There is no doubt that they are not steady all the time, as any of these markets may drop suddenly even after being steady for a very long time.

There are two mains that you can receive Forex trading alerts. You can either choose to get these alerts once per day, or multiple times per day, but only when something really important and relevant happens. There are pre-defined algorithms and formulas that are used to determine if something is “important” or not, and most of the alert senders will allow you to customize what you get based on the region you live in. You may have to pay a little bit more for these extra options, but keep in mind that information means power and times is money. You want to get the important news on time, and nothing else.

Many traders claim that they rely almost on Forex trading alerts only. Nevertheless, remember there is not a perfect trading system, and what an experienced trader does successfully may simply not work for you too. All you can do is to use correct and accurate information to correlate it with your own knowledge in foreign exchange trading and then make the right decisions.

About the Author

Fierce and brave currency news casting is what many traders should look for always.
The proper execution of forex analysis can be attained through such effort.

By Cedric Welsch

The Forex market is a worldwide financial market that trades currencies. Forex trading banks are institutions which facilitate the exchange of one currency for another. Forex banks offer speculative trading, currency exchange, and international payments. The banks also offer an opportunity to trade on margin, providing leverage which is equivalent to 100 to one or 100 times what’s on deposit. You must open an account at the bank in order to trade in the foreign exchange market and then you may place trades through your account.

Forex is the largest market, in excess of three trillion US dollars each day. Trading pairs allow investments in another country’s money. Primarily speculators participate in Forex. They are offered over-the-counter using the major currencies, the minor, and the exotic currencies. FX is often a means of acquiring a country’s currency, but mostly speculators trade on the market direction of different pairs. The base currency is pitted against the trade or variable currency. Forex banks serve as a neutral party while these monies fluctuate in value.

When it is time to cash in on a trade, the bank is capable of transferring the earned funds into your account. And vice versa, when you lose money, the bank will collect the money you owe from your account. Depending on the spread of the U.S. dollar, the Euro, the British pound, the Canadian dollar, the Australian dollar, the Japanese Yen, and the Swiss Franc, the major currencies and the bid and offer price, profit has the potential to be earned; even if you choose to select currency pairs from the minor currencies and the exotic currencies. The fluctuating prices of currency is determined by market conditions which include free flow of goods, services, and capital, balance of payments, and perceived future value of currency.

Forex trading banks include some large banks like the Bank of Canada and Saxo Bank which offer internet trading and many other banks throughout the world. The main trading center is London, New York, Tokyo, Hong Kong, and Singapore are the other leading FX centers. Some banks handle very large trades and only handle institutional investments, while others work with the individual investor or speculator. Foreign exchange trading is also offered by non-bank foreign exchange companies, but the primary difference with these institutions is that they do not offer speculative trading so if speculating is of interest to you, you will want to work with a Forex bank.

About the Author

So many options about forex news intake is freely available now because of technology. It has always been hard to determine forex scams in the early days, but not anymore.

By Cedric Welsch

A forex trading advisor is not a person you hire to get tips on exchanging currencies. It is a term for a software trading program or forex robot. Forex traders often use this type of program to give themselves an advantage over their competition. An automated program can increase the chances of picking a winning trade, which will help to boost profits. A trading advisor will send an alert when there are optimal trading conditions, allowing investors enter the market when it is most profitable.

Forex trading advisors do not have any emotions when deciding trades. This is one of its biggest benefits since many new investors let their emotions get in the way of making trades. An amateur trader may attempt to stay in the market for longer than is recommended to attempt to make more profit. However, staying too long will increase the risks of losing money if the market unexpectedly turns against the investment.

The Forex market can be notoriously volatile, so investing on your emotions is certainly not a good idea. An automated advisor will eliminate emotion decisions and allow you to collect profits before the conditions start to negatively affect your investment. Software uses precise calculations to determine the best time to exit and enter the market. If the program has calculated a likely winning trade based on current market conditions, it will send out an alert to the user. Once a profit is realized, it will also close out your trading position.

Even after you have sold your trade, profits may continue to rise. A forex advisor will immediately close your position once there is a significant profit, which can create a problem if you want to stay in the market for longer than usual. However, it will make sure your profits are secured. You can always enter the market another time and try to make higher profits.

Trading programs are also designed to evaluate numerous currency parameters at the same time. It is virtually impossible for a single person to track and monitor currencies since they rapidly fluctuate throughout the day. However, a program will help to automate all of these analytical chores for you.

A good forex trading advisor can identify potential currency investments that you have never considered before. If used correctly, it can dramatically increase your profits. It will take a bit of money to invest in this type of program, but the results are well worth the cost.

About the Author

Do you suppose you can automate live forex news streams? You need live news every day.
Straight to the point forex broker reviews must be what you seek instead of the biased.

By David Adams

One of the most important concepts in e-mini trading is to learn to trade with the trend. Of course, trends come in varying intensities and magnitudes. The question many e-mini traders face is whether they are entering a trade in a strong trend or a weak trend. Strong trends typically produce sizable profits and weak trends can often end with a loss. It’s in every trader’s best interest to discern the strength and intensity of a trend in which they may choose to initiate a trade.

The Average Directional Indicator and its sister indicators, the Minus Directional Indicator (-DI), and the Plus Directional Indicator (+DI) are part of a group of indicators developed by Welles Wilder in his 1978 book, “New Concepts and Technical Trading Systems.” As an aside, I highly recommend reading this book as it is one of the landmark texts in technical trading. Along with the above-mentioned indicators this book also laid the groundwork and explained the Relative Strength Indicator (RSI), Average True Range (ATR), and the RSI. These indicators have been around since 1978 and are still the basis for a great deal of technical analysis.

The ADX is used to determine the strength of a trend. I do not use it as a primary indicator in my personal trading, but rely heavily upon it as a secondary indicator to indicate whether the trend in which I am participating is a powerful or weak trend. Generally speaking, the default setting for the ADX is set at 14 bars, though I have seen traders adjust the setting as high as 50 bars and as low as 8 bars. The ADX is generally plotted on the same plane as the +DI and -DI. When the +DI and -DI cross it is generally considered a potential entry point for a trade. The ADX, however, will give the trader a good idea whether or not this potential entry point is part of a strong trend or merely a spurious trade signal in a range bound market. The ADX is plotted on a continuous graph from 0 to 100. For the most part, the strength of the trend, as measured by the ADX is as follows:

• 0 – 25 indicates a lack of trending market action.
• 25 – 50 indicates a strong trending market.
• 50 – 75 indicates a robust trend.
• 75 – 100 indicates an extremely powerful trend.

Like many technical indicators, it is important to understand that the ADX is a lagging indicator. This does not necessarily have to be an impediment to using the ADX though, because e-mini traders often enter trades too early in a trend and are subject to false breakouts and false breakdowns. So the ADX can assist an e-mini trader in entering a trend at the proper time.

It is also important to understand that the ADX is non-directional, which is to say that it does not indicate the direction of a trend, only the strength of a trend. For example, a strong downtrend may register 58, and a strong uptrend can also register 58. The point is a simple one; the ADX only measures the strength of a trend and not the direction of a trend. So, when the ADX is rising the strength of a trend is increasing either long or short. By the same token, when the ADX is falling the strength of a trend is waning.

In summary, this has been a short introduction into the use of the ADX and more study and actual experience is required to use it effectively. We have noted that the ADX measures trend strength and is a non-directional indicator. It does not measure the direction of a trend, only the strength of the trend. Finally, we have given some general guidelines on ADX readings that quantify the strength of the ADX indicator. Learn more about this indicator, as it is useful and can be a valuable addition to your trading.

About the Author

Real Live Trading Doesn’t Lie. Spend several days in my trading room and see if you can benefit from a fresh and unique view on trading e-mini contracts. Sign up for your free trading experience by clicking here

Henry Sy-backed Banco De Oro Unibank, Inc. or BDO as it’s commonly known made some significant headway over the past two months. And it appears that BDO still has some more left in its bank for a move higher.

The start of 2011 was not particularly well for BDO as its shares slid from around PHP 60.00 to a low of PHP 45.8 on February 23. From that point, it was able to pick itself up all the way back to PHP 54.00. After that, it consolidated for a while before it breached the PHP 54.00 resistance the other day. Since the start of the year, BDO was actually forming a cup and handle pattern which it broke last Monday. Now, if it can keep its head above the PHP 54.00 then it could head all the way to PHP 62.00.

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From $17 a year ago, the price of spot silver rose to an all-time high of $49.78 yesterday way faster than gold’s ascend. One factor is the Middle East unrest and many people who find gold expensive are moving to silver instead.

As seen on it’s chart above, upon tapping $49.78 yesterday, the daily candle stick closed at $46.46. This is clearly a bearish candle signal and indicates a one-day reversal. True enough, silver continued to decline today and could do so in the coming days. However, this doesn’t mean that silver will continuously fall. In fact, its uptrend still remains intact and the price could further head back up once it finds some support. Like I always say, as long as the uptrend remains intact, the bulls will be on its side. In that case, catching the price at the uptrend lines and placing your stop loss below it would be advantageous. At its current chart, the immediate support could be around $44.00. Then after that could be $42.00. In any case silver bounces off those levels and heads back up, it needs to first retest it’s all-time high at $49.78 as heavy selling pressure will most likely be encountered at that level.

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