Articles for: Australia

In the last issue of the Trading Tutors Newsletter, Chief Editor Tom Scollon offered some interesting insights into how he weights one sector to another.

As I am sure most of you know sharemarkets are divided into sectors. For example Financials excluding property is about 40% of the Sharemarket, Materials is about 20%, and Industrials are about 8%.

Volume is one of the simplest and most undervalued indicators around. Like indicators in general, volume alone does not give the whole picture.

It was the 20th Anniversary of the 1987 stock market crash last month, and the last two to three weeks have been quite fretish.

Gold attracts a disproportional level of interest. Gold and gold stocks weigh minutely on the market compared with, say, base metals.

A friend and a fellow trader had a stroke a few days ago. He is OK. He needs to take some action to clean up his life and leave behind some habits that have a detrimental effect on his health.

Bonds are debt instruments that pay owners semi-annual interest payments.

In the near term the DOW has arrived. There is not a lot more major travel for the time being – up or down – even though you may ‘feel’ the market is a little frenetic and the media/analysts beat it up.

There has been a lot of talk in recent times about whether the current Australian market rally will continue or if the brakes will come on.

I’m still a bear in the US. In an article I wrote some weeks back I mentioned that the US bond market was pointing to about a 50/50 chance of recession next year in the US.