The Bulls Reign on Ultrasis

 Ultrasis stock (LSE:ULT) has already become a bulls’ paradise and the scenario is expected to continue. This is a bull market; a trend is not over until it is finally over.

From the beginning of 2013 till June, the stock was in a tight consolidation phase. Since June, there has been a northward breakout on the stock – something that has resulted in a clean Bullish Confirmation Pattern on the chart.  Looking closely at the chart, it can be seen that the ADX period 14 is above the level 60, while the DM+ is clearly above the DM-. This shows the prevalence of buyers in what could rightly be called a buying pressure. The scenario is further confirmed by the MACD (default parameters), whose signal lines and histogram are both far above the zero line.  However, occasional bearish pulls cannot be ruled out in the stock’s journey further north. There are accumulation territories around 1.20 and 1.1, whereas the price could go on towards the distribution territories of 1.8 and 2.0.

I would like to conclude the article with the quote below:

“Trading has advantages that make it superior compared with other jobs, but it also has its pitfalls. It can require you to work long hours, especially at the start of your career, but those times should become less frequent as you mature as a trader.”  – Joe Ross

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Ground-breaking lessons from expert traders: http://www.harriman-house.com/experttraders

Source: http://uk.advfn.com/newspaper/authors/azeez-mustapha

 

Weekly Trading Forecasts (July 15 – 19, 2013)

The recent week was characterized by significant reversals in the markets; an event which led to new confirmed signals on popular pair and crosses. This is especially possible with the new lease of stamina in the EUR and the GBP, as the USD was suddenly caught in exponential weakness. Even the JPY pairs have assumed a new bias (in most cases). The new signals in the markets are expected to continue.

EURUSD

Primary trend: Bullish

It can now been seen that any bearish threats on this pair has already been rejected successfully, as the price rose significantly in the latest development in the market. There is now a clean Bullish Confirmation Pattern on the chart, and the price could go on beyond the resistance lines at 1.3100 and 0.3200 respectively. Within the next several trading days, it would be sensible to seek long trades only.

USDCHF

Primary trend: Bearish

From the weekly high of 0.9750, this pair dived by roughly 300 pips. The price is now trading below its formers support levels (which are now resistance levels). The market appears to be oversold, as indicated by some oscillators, but in reality this means that the market is weak and would continue to trade lower. In the face of this fact, the price may reach the support levels at 0.9400 and 0.9300.

GBPUSD

Primary trend: Bullish

It is clear that some vivid optimism has returned to the market. Could this be called Mr. Carney’s effect? The time would tell whether the new bullish bias would be sustained. However, based on the reality in the market, the Cable is supposed to be going upwards in a significant bullish mode, though that does not rule out occasional bearish pulls, which are not supposed to take the price below the accumulation territory of 1.5000.

USDJPY

Primary trend: Bearish

A ‘sell’ signal has been formed on the USDJPY, following the Bearish Confirmation Pattern that occurred in the market. Since then, the USDJPY has traded sideways so far (for the market is volatile as a result of deadly struggles between buyers and sellers). However, the downward movement ought to resume in earnest. The price could reach the demand levels of 98.00 and 97.00. Meanwhile, the supply level at 100.00 is a barrier to any bullish attempt.

Primary trend: Bullish

When it is said that the major bias on this cross is bullish, it is precariously so. This is because there is no clear directional movement in the price for now: both the EUR and the JPY are a kind of strong, and one would need to be stronger than the other for the market to go upwards or downwards. At the end, the EURJPY would have to respect the overall direction of all the JPY pairs, and until it happens in such manner as a clear signal, no new positions are advised.

Source: www.paxforex.com

For further articles, go to: http://www.paxforex.com/forex-blog

Thomas Rowe Price: The Father of Growth Investing

LEARN FROM GENERALS OF THE MARKETS - PART 32

“I never blamed the market… I had to have the proper process from mentality

to preparation to execution if I was going to make it.” - Anthony Crudele

Thomas Rowe Price, Jr. was born in Maryland, USA. He lived from 1898 to 1983. Receiving his first degree in chemistry (Swarthmore College), he’d first-hand experience of the economic Depression, and instead of developing a great hate for the markets, he fell in love with them. Yes, he found that he preferred figures to chemicals. He began working at a brokerage firm in Baltimore, where he worked his way upwards the company’s ladder.

Because he didn’t see eye-to-eye with the investment philosophy of the firm he worked for, he established his own firm in 1937 - T. Rowe Price Associates. He invariably gave his investors’ interests a priority, also charging investment-based fees rather than commissions. The logic is this: if your investors succeed, you’ll succeed too.  He founded a mutual fund in 1950; which he presided over till he retired. The Fund, named T. Rowe Price Growth Stock Fund, was actually purchased by his erstwhile workers. Yet it remains a functional trading firm till today. 

Lessons

What can we learn from this mad genius?

1. What others see as reasons for abandoning the markets are what trading geniuses see as the reasons for embracing the markets. I’ve seen misinformed people swearing never to trade or invest again because of the effects of the 2008 bear markets. What happened then have made some traders reach the pinnacle of their achievements. Thomas’ early years as a market player made him come to grips with the effects of the Depression, but this only made him a better market player. 

2. Customers, clients, and investors come first. They need to be given priority in everything. If this is done, then you’ll be well compensated. This is what Thomas believed, and it worked for him, just as it still works today.

3. Honestly, the best market forecasters don’t know tomorrow with utmost certainty. The art of forecasting is essentially probabilistic in nature. You don’t know what’ll happen in a few years’ time, not to mention several years. There are rivals and cutting-edge innovations; and things like that. These things can have severe impact in the world of trading. The only thing you can be sure of is that there’ll always be changes, and the only thing you can always control is your risk.

4. Why was Thomas a successful investor? He knew the markets have some patterns caused by herd mentality. The logic is to go against that herd mentality, not to go with the crowd. His investment approach; which is growth investing, was totally something that looked so novel. It’s all about specializing on some instruments that could go northward in the long term. Self-control, sticking to his strategy and good knowledge of the fundamentals are some of his secret principles. 

5. Thomas was called the father of growth investing because he believed that hot and well-organized companies can deliver returns that could outpace the growth rate of the economy. Therefore good research is needed in stock picking, diversification, and risk reduction. These principles have proven to be correct. When selecting stocks, Thomas often considered a company’s research excellence in product developments, absence of deadly rivals, non-intervention by the government, cost-effective budget, well-compensated workers, decent percentage profit, good profit margin, and an enviable increase in earnings per share.  This is the definition of a growth stock. The shares of a company are worth holding as long as this definition is still valid. When it’s clear that the definition is no longer valid, it’s time to dump the shares. Newbies can use these principles successfully.

6. Thomas was smart enough to know when to hold on to stocks and when to let go. Although he espoused growth investing for more than 3 decades, he tended to become aware of the blind overconfidence of the public. When the price gains had gone too far and the public enthusiasm is irrational, then the bullish biases were over. He knew when to sell. Do you also have exit strategies?

Conclusion: Rookies tend to visualize how much they can make from then markets, without thinking of how they can control the impact of the uncertainty when things go wrong. You can really control what happens to your account… plus you can deal with your trades with clean rationality. Strategies that make sense have logical positive expectancy incorporated into them, since following the line of the least resistance may sometimes have very low accuracy. 

This piece is ended with a quote from Thomas:

"It is better to be early than too late in recognizing the passing of one era, the waning of old investment favorites and the advent of a new era affording new opportunities for the investor."

Source: www.paxforex.com

For further articles, go to: http://www.paxforex.com/forex-blog

 

A Buying Opportunity of a Lifetime on TXO!

Albeit the current bias on TXO stock (LSE:TXO) is bearish, the bias is expected to vanish sooner or later, as the stock resumes a long-term upward journey. This is indeed a buying opportunity of a lifetime! Even, should the stock trend further lower, the movement is going to be transitory, for it would merely give a room to buy at a better price.

TXO is currently a buy-and-hold paradise. On the chart, it can be seen that the RSI period 14 is converging towards the level 50. It would ultimately break above it as the stock would inevitably assume either a steady and slow upward journey or a rapid one. From trading below the lower Trendline, the price has gone back into middle of the Trendlines. When the price breaks the upper Trendline to the upside, there would be a confirmation of a bullish bias on the chart. By then those who had entered earlier would have made nice profits.

There are demand levels at 0.15 and 0.14 – the price is not supposed to go below those levels. Meanwhile, it could go towards the supply levels of 0.5, 0.75 and 1.0 eventually.

This article is ended with the quote below:

“If you don't take a chance, you won't get hurt -- but on the other hand, you'll never know what could have been. In addition, if you don't take risk after risk by making trade after trade, you'll never sharpen your trading skills, and so will never become a winning trader. So when you face risks and possible losses, don't despair.” – Joe Ross

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Ground-breaking lessons from expert traders: http://www.harriman-house.com/experttraders

Source: http://uk.advfn.com/newspaper/authors/azeez-mustapha

Medusa Mining Shares Are Expected To Fall Further

Medusa Mining shares (LSE:MML) are bound to continue falling further as the reality on the chart indicates.  At the time of writing this forecast, the price was trading at 92.5, and it may fall further towards the support levels of 91.000 and 90.00 respectively.

Historically, any upward surge in the price has invariably been a wonderful opportunity to short the shares. On the chart, the EMAs 10, 20, 50 and 200 are used (the color that stands for each EMA is indicated at the top left side of the chart). All the EMAs signify the weakness of the shares. This would continue to be true as long as the price stays below the EMAs 50 and 200. The EMAs 20 and 50 are serving as hurdles to the bulls’ interests. You can see that any rally into the either the EMA 20 or EMA 50 gave satisfactory selling opportunities. This scenario would continue.

This article is ended with the quote below:

“I’ve met far too many “breakeven” traders who, upon inspection, have been losing money consistently.  It’s not that they’re lying; they simply don’t want to know the truth.  Thus, they avoid it.” – Dr. Brett N. Steenbarger (Source: Trade2win.com)

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Ground-breaking lessons from expert traders: http://www.harriman-house.com/experttraders

Source: http://uk.advfn.com/newspaper/authors/azeez-mustapha