The longest recession of the post World War II period now has an end date.
The National Bureau of Economic Research announced September 20, 2010 that the downturn that started in December 2007 ended in June of last year. The 18 month contraction was longer than the 1973-1975 and 1981-1982 recessions.
The technical indicator of a "recession" is two consecutive quarters of negative economic growth as measured by a country's gross domestic product (GDP)
A "pull back" is a near term price decline of less than 10%
A "correction" is a temporary price decline of at least 10%
A "Bear market" is a downturn of 20% or more in multiple broad market indexes, such as the Dow Jones Industrial Average (DJIA) or Standard & Poor's 500 Index (S&P 500), over at least a two-month period, is considered an entry into a bear market.
Monday, September 20, 2010
Tuesday, September 14, 2010
STOCK TICKER HISTORY
The stock ticker evolved from telegraph technology. Many inventors of the 19th-century such as Thomas Edison and Alexander Graham Bell got their start as telegraph operators. Their experience as telegraphers provided them with a good understanding of the principles of electricity, electromagnets, mechanical devices, and machining tools. Stock ticker machines are an ancestor of the modern computer printer, being one of the first applications of transmitting text over a wire to a printing device.
In 1867, Mr. Edward A. Calahan of the American Telegraph Company invented the first stock telegraph printing instrument. It was Calahan's idea that stock prices could be provided through some form of telegraphy. The distinct sound of the telegraph printing instrument eventually earned it the name of the stock ticker.
Eventually Edison's evolving improvements in stock ticker technology resulted in the introduction of the Universal Stock Ticker in 1869, had an alphanumeric printing speed of approximately 1 character per second. For this and some related inventions Edison was paid $40,000. The Universal was highly dependable and was produced in high volume. At least 5,000 of these devices were produced and this machine was in service delivering stock quotes up to the the crash in 1929. The Universal Stock Ticker was Edison's first commercial success and established him with Wall Street connections that would fund development at his Menlo Park laboratory, as well as funding many of his greatest inventions, including the incandescent electric light bulb.
The self winding stock ticker was in use in 1870. It was used for about eighty years for receiving stock and commodity quotations from the nation's leading exchanges. The self-winding device is the image one generally imagines when referring to a stock ticker. One of the manufacturing vendors in the early 1900s was Thomas Edison's West Orange, New Jersey, plant, current site of the Edison National Historic Site. These "Western Union" self-winding tickers are sometimes mistakenly thought to be invented by Thomas Edison because they were manufactured at his plant. In reality, it is doubtful that Edison had any involvement with Western Union's self-winding ticker.
During World War II many of the Universal and self-winding tickers were scrapped for metal or sold off to businesses in South America. In 1960, Western Union ordered all remaining tickers destroyed.
In 1867, Mr. Edward A. Calahan of the American Telegraph Company invented the first stock telegraph printing instrument. It was Calahan's idea that stock prices could be provided through some form of telegraphy. The distinct sound of the telegraph printing instrument eventually earned it the name of the stock ticker.
Eventually Edison's evolving improvements in stock ticker technology resulted in the introduction of the Universal Stock Ticker in 1869, had an alphanumeric printing speed of approximately 1 character per second. For this and some related inventions Edison was paid $40,000. The Universal was highly dependable and was produced in high volume. At least 5,000 of these devices were produced and this machine was in service delivering stock quotes up to the the crash in 1929. The Universal Stock Ticker was Edison's first commercial success and established him with Wall Street connections that would fund development at his Menlo Park laboratory, as well as funding many of his greatest inventions, including the incandescent electric light bulb.
The self winding stock ticker was in use in 1870. It was used for about eighty years for receiving stock and commodity quotations from the nation's leading exchanges. The self-winding device is the image one generally imagines when referring to a stock ticker. One of the manufacturing vendors in the early 1900s was Thomas Edison's West Orange, New Jersey, plant, current site of the Edison National Historic Site. These "Western Union" self-winding tickers are sometimes mistakenly thought to be invented by Thomas Edison because they were manufactured at his plant. In reality, it is doubtful that Edison had any involvement with Western Union's self-winding ticker.
During World War II many of the Universal and self-winding tickers were scrapped for metal or sold off to businesses in South America. In 1960, Western Union ordered all remaining tickers destroyed.
Wednesday, September 1, 2010
INTERNATIONAL ETFs
All 20 International ETFs were positive this morning.
EWA,EWC,EWD,EWG,EWH,EWI,EWJ,EWK,EWL,EWM,EWN,EWO,EWP,EWQ,EWS,EWT,EWU,EWW,EWY,EWZ
SORT BY SYMBOL:
EWA AUSTRALIA
EWC CANADA
EWD SWEDEN
EWG GERMANY
EWH HONG KONG
EWI ITALY
EWJ JAPAN
EWK BELGIUM
EWL SWITZERLAND
EWM MALASIA
EWN NETHERLANDS
EWO AUSTRIA
EWP SPAIN
EWQ FRANCE
EWS SINGAPORE
EWT TAIWAN
EWU UNITED KINGDOM
EWW MEXICO
EWY SOUTH KOREA
EWZ BRAZIL
SORT BY COUNTRY:
EWA AUSTRALIA
EWO AUSTRIA
EWK BELGIUM
EWZ BRAZIL
EWC CANADA
EWQ FRANCE
EWG GERMANY
EWH HONG KONG
EWI ITALY
EWJ JAPAN
EWM MALASIA
EWW MEXICO
EWN NETHERLANDS
EWS SINGAPORE
EWY SOUTH KOREA
EWP SPAIN
EWD SWEDEN
EWL SWITZERLAND
EWT TAIWAN
EWU UNITED KINGDOM
EWA,EWC,EWD,EWG,EWH,EWI,EWJ,EWK,EWL,EWM,EWN,EWO,EWP,EWQ,EWS,EWT,EWU,EWW,EWY,EWZ
SORT BY SYMBOL:
EWA AUSTRALIA
EWC CANADA
EWD SWEDEN
EWG GERMANY
EWH HONG KONG
EWI ITALY
EWJ JAPAN
EWK BELGIUM
EWL SWITZERLAND
EWM MALASIA
EWN NETHERLANDS
EWO AUSTRIA
EWP SPAIN
EWQ FRANCE
EWS SINGAPORE
EWT TAIWAN
EWU UNITED KINGDOM
EWW MEXICO
EWY SOUTH KOREA
EWZ BRAZIL
SORT BY COUNTRY:
EWA AUSTRALIA
EWO AUSTRIA
EWK BELGIUM
EWZ BRAZIL
EWC CANADA
EWQ FRANCE
EWG GERMANY
EWH HONG KONG
EWI ITALY
EWJ JAPAN
EWM MALASIA
EWW MEXICO
EWN NETHERLANDS
EWS SINGAPORE
EWY SOUTH KOREA
EWP SPAIN
EWD SWEDEN
EWL SWITZERLAND
EWT TAIWAN
EWU UNITED KINGDOM
Saturday, August 7, 2010
HIGH TIGHT FLAG
High, Tight Flag:
A high, tight flag price pattern is rare and seldom occurs during a bull market.
It begins by moving approximately 100% to 120% in a very short period of time (four to eight weeks). This creates the flag pole.
Next, it corrects sideways, usually in three to five weeks, no more than 10% to 20%. This creates the flag. Because of its sharp vertical action, this pattern is often easier to spot on a weekly chart.
The ideal buy point would be 10 cents above the peak of this flag.
This is the strongest of patterns, but it's also very risky and difficult to interpret correctly. Many stocks can skyrocket 200% or more off this formation.
Saturday, July 24, 2010
STOCHASTICS
The stochastic momentum oscillator is used to compare where a security's price closed relative to its price range over a given period of time.
The main difference between fast and slow stochastic is the fast stochastic is more sensitive than the slow stochastic to changes in the price of the underlying security and will likely result in many transaction signals.
K and D are the periods used in the formulas for Stochastic
I prefer a 12 period K and 3 period D Slow Stochastic momentum oscillator for both swing and day trading (smooth the bumps like exponential MAs). Longer term could use 14,5 and intraday could use 4,2. One of the popular traders on twitter uses 5,3.
It is calculated using the following formula:
%K = 100[(C – L12)/(H12 – L12)]
where
C = the most recent closing price
L12 = the low of the 12 previous trading sessions
H12 = the highest price traded during the same 12-day period.
A three-period moving average of the %K called %D is usually included to act as a signal line. It is bullish when K crosses above D and bearish when K crosses below D. The security is overbought when K is above 80 and oversold when K is below 20.
The ideal entry is when K is in oversold territory and begins to curl up and cross above D. Likewise, the ideal exit is when K is in overbought territory and begins to curl down and cross below D. For scalping this would apply to a One Minute Chart, Day Trade consider a 10 Minute Chart, Swing Trade consider a Daily Chart, Speculation consider a Weekly Chart.
The main difference between fast and slow stochastic is the fast stochastic is more sensitive than the slow stochastic to changes in the price of the underlying security and will likely result in many transaction signals.
K and D are the periods used in the formulas for Stochastic
I prefer a 12 period K and 3 period D Slow Stochastic momentum oscillator for both swing and day trading (smooth the bumps like exponential MAs). Longer term could use 14,5 and intraday could use 4,2. One of the popular traders on twitter uses 5,3.
It is calculated using the following formula:
%K = 100[(C – L12)/(H12 – L12)]
where
C = the most recent closing price
L12 = the low of the 12 previous trading sessions
H12 = the highest price traded during the same 12-day period.
A three-period moving average of the %K called %D is usually included to act as a signal line. It is bullish when K crosses above D and bearish when K crosses below D. The security is overbought when K is above 80 and oversold when K is below 20.
The ideal entry is when K is in oversold territory and begins to curl up and cross above D. Likewise, the ideal exit is when K is in overbought territory and begins to curl down and cross below D. For scalping this would apply to a One Minute Chart, Day Trade consider a 10 Minute Chart, Swing Trade consider a Daily Chart, Speculation consider a Weekly Chart.
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