Trading insights on share trading, forex trading, cfd trading and options trading. Powerful insights from our Wealth Advisers at PhillipCapital Australia.
Australian and US Market Commentary 04 April 2016 - A new quarter means a new beginning for some and new opportunities for all
We have now entered the second quarter for the year and generally the first few days of a new quarter are good strong up days as Super fund monies are put into the market. It was positive in the US and it was the opposite in the local market based on Friday’s price action.
It is impossible to determine where the market will find a peak or trough. However, by using a composite volume profile, we can determine past areas of business or rejection using volume nodes which can help us determine where the market might trade back to or reject.
Read more about Past areas of business with volume profile nodes
Market Commentary 29 Mar 2016 - Aussie market is looking more and more like its leading the US markets?
Happy Easter. I trust that the Easter Bunny has been kind to you but not too kind if you know what I mean.
Volume profiling arranges volume as a function of price for a period of time, producing a bell curve from which we can determine the value area, or area where there is price acceptance. Where 70% of the volume is transacted, we call this the value area and the tails are called the value area high (15%) and value area low (15%).
Read more about Determining areas of business using volume profile
Recapping last week’s price action. Monday was an up day pushing up to 5214 at the high which was in line with the 75% level (5215.3) from the range of the October top to February bottom and the 50% level (5217.2) of the August 2015 top to the February bottom.
Read more about Market commentary: US market and Australia market - 21 Mar 2016
The most popular technical analysis methods such as RSI, MACD and moving averages can be classified into two main categories - momentum and trend. The issue with this is that most traders use one or the other without regard for the market context
Read more about Market modes with volume profile - trending or consolidating?
Both Australian markets and US markets have taken a breather over the last week after such impressive gains from the couple of weeks prior. The big question now is will this rally continue or is it running out of puff?
Why are popular indicators unreliable? The most popular technical analysis methods such as RSI, MACD and moving averages are price derivative indicators and is really just an abstract of what the price is already telling us - whether the market is moving up, down or sideways.
Read more about More accurate market forecasting using volume profile
Australian and US Market Commentary - Will the strength in the market be strong enough to overcome the cycles?
We have seen solid gains in the local and US markets over the last week or so. With particular stocks rallying in some cases 3 times or more what the market has managed as a whole to do. March is an important month and has a number of cycles falling due. Will the strength in the market be strong enough to overcome the cycles or will the cycles get the upper hand and turn the markets back down?
Happy 29th February everyone. It’s not every day you can say that, so I am taking advantage of that while I can for this Leap year. Markets are looking like they are poised for a good move one way or the other. 2016 as it unfolds, is shaping up to be a year of opportunities and we are approaching one very shortly.
Read more about Australian and US Market Commentary – 29 Feb 2016