Articles for: ProfitSource

Few would disagree that the US markets are a precursor for most world markets and Australia is no different.

If used correctly Market Depth can help you fine-tune your entry or exit. Simply it is a summary of buyers and sellers and it shows you the balance between the two.

I should elaborate on my view on what a rally is. A rally can be a short-lived recovery or it can be the final spurt at the end of a long-term trend up.

In Issue #4 28 April I spoke about the likelihood of retracement of the Australian stock market and since then the market has been in steady decline.

BHP is very much a favourite of mine – I had 10 wonderful years with the company, mainly in international trading.

This last week has been another one of retreat – a very orderly retracement however – what better would you want? The overall daily trend is still up but I must say some momentum has been lost and I would marginally modify my view about how far this rally might take us – at least in the medium term.

$5.50 is the institutional price offer and so those institutions that take up the script in the current fund raising will be keen to support that price.

This week we have a new contributor – Wayne North. Wayne is based in Melbourne and is an Options Trader on both the Australian and USA markets.

Yes – you will need your seat belt on – not that this big dipper ride will be all that rough – but it is precautionary – that is all that is required in this market right now – prudence not fear.

This is always a tough question. If you are a long-term investor you may adopt a more cautious approach and wait for clearer confirmation that a bull market is in the making.