Should Investors Buy Coca-Cola Stocks?

Market Leader informed

 

The Coca-Cola Company (NYSE:KO) is an American food company, the world’s largest producer and supplier of concentrated products, syrups and nonalcoholic beverages.Coca-Cola is its most famous product.

The company’s headquarters are in Atlanta, the capital of Georgia. Muhtar Kent has been the President and CEO of the company since July 2008.

Coca-Cola’s history began on 8 May 1886 in Atlanta, US, in the house of pharmacist Pemberton. Then John Pemberton cooked somewhat unusual syrup in his copper basin, called his bookkeeper Frank Robinson and shared his invention with him:

- Frank, my friend, try what I came up here with!

- There’s something in it, John!Put down the recipe lest you should forget it!

Today Coca-Cola is a large company that has a market cap of $136.54 bn and employs 92,800 staff. The company maintains a dividend policy and its stocks are held by many large investors.

The company defines its mission, business vision and values for a decade ahead

Option Selling Strategies: Common Mistakes and How to Avoid Them

Market Leader informed

 

Market Leader continues publishing opinions of western technical analysis specialists and comments of analysts from the Masterforex-V Trading Academy.Today we are offering an article by James Cordier and Michael Gross, Option Selling Strategies: Common Mistakes and How to Avoid Them. James Cordier is a founder of Liberty Trading Group, an investment company exclusively specializing in commodities options selling.Michael Gross holds an analyst position at the same company.Aleksandr Komarskikh, Head of the Options Faculty of the Masterforex-V Trading Academy, offered his comments on this article.

In today’s volatile and unpredictable markets, option selling is becoming a popular choice among higher net worth traders and investors due to the high probabilities of success and the ability to perform in any kind of market conditions. Indeed, option selling can be a powerful way to diversify into a potentially high yielding investment. However, there is no free lunch. Strategies based on option selling are easy to understand but one can take ages to learn trading by the strategy. Option selling, especially in the commodities, has it’s own set of risks. Knowing how to deal with them should not only allay any fears you may have about selling premium, it can substantially boost your bottom line.

When considering whether or not to allocate capital to an option selling portfolio, first review all and any necessary information you can find on this subject matter.Whether you hire a professional manager or attempt to go it alone, knowing what to do seems to take precedence over what not to do.

It is my experience, however, that not doing the wrong things will have every bit if not more impact on your portfolio’s ultimate performance than doing all of the right things. So, one should learn a lot from other people’s mistakes. To this end, we will consider three gross mistakes made by option sellers and, most importantly, simple ways of avoiding them.

Mistake # 1: Overpositioning (extreme trading/positioning)

This is the most widespread and gross mistake made by beginning option traders. Most brokers for self directed traders would see investors do this time and again. No matter how intensively and for how long you school beginners on how to sell options but it’s tough to tell them how to position properly.

It usually looks like this:

Currency Wars Shaking the Foundations of Global Economy

Market Leader informed

The main intrigue of the G20 Summit held late last week involved the issue of devaluation of national currencies. It resulted in a decision of the Ministers of Finance of leading G20 countries that can be briefly characterized as eagerness to shift to such a foreign currency exchange rate system that would consider market and economic realities and treat excessive devaluation of currencies in a reserved manner. Moreover, as recorded in the summary minutes, developed economies will keep the situation regarding instability and inadequacy of currency rates fluctuations under control in the near future. For actively developing economies such measures should become a guarantee of reduced risks inherent to violent fluctuations in capital flows that can sometimes cause real disasters.

Unfortunately, nice words are not backed by specific decisions and steps. The so-called issue of currency wars became crucial long before the summit. However, the forum didn’t outline any practical and effective measures, while the historic statement that ‘the world’s leading countries agree to refrain from competitive devaluation of national currencies’, it seems, was included in the minutes of the meeting even before it actually started. Nevertheless, nobody expected a huge sensation because any country that dares to criticize manipulations with a national currency of a certain nation will immediately face tangible resistance from the ‘offended’ state.Interestingly, the summit didn’t put any emphasis on such an important suggestion that state issuers of reserve currencies should follow aligned monetary policies to prevent developing economies from suffering. Developed countries were expected to inform the Great 20 of their plans in order to maintain stability of the global economy.

The Swiss Against Higher Taxes

Market Leader informed

According to a poll of the Confederation's citizens on taxes and the state's fiscal policies increasingly more Swiss people believe that the state should cut spending and stop taking out further loans rather than increase taxes in the context of a budget deficit. It should primarily save on public officials' and officers' salaries and the armed forces.

In the meantime, the Swiss frank is forming a с(С) Wave within a senior timeframe а(С) upward wave in Forex.
Based on the scenario of a further strengthening of the Swiss curreny, a В wave is forming against the previous bearish move.
If the MF sloping channel is broken with the MF Pivot remaining intact this will increase the wave level to a с(С) wave. When broken, the MF Pivot will commence a В wave to the entire wave starting at 0.9547.

News releases

13:55 USA University of Michigan Consumer Sentiment Index

G20: Who will be in charge?

Market Leader informed

The world’s leading states have recently gathered at the G20 summit in Seoul, South Korea. Previously thePresident of France Nicolas Sarkozy said that G20 is a new model of world management in the 21^st century. However, some analysts that feel skeptical about G20 call it a model of international disputes of the 21^st century as every day the amount of those who want to be in charge of the global economy growths while the economic stability in the world deteriorates.

It may seem that the Chinese-American disputes should have divided the world in half (2 camps). However everything is not that simple. Analysts have found out other axes of disagreement.

Confrontation of “deficit” and “surplus” countries. The “deficit” ones call upon considering the imbalance problem while the “surplus” ones question the reasonability of such discussions. Germany’s tough stand should be paid special attention to. It opposes the USA’s economic approaches, which imply working out the target levels for the current balance deficit.

Opposition of the manipulated and manipulators: The USA says China manipulates its national currency, deliberately devaluing it. China providing counter arguments saying the US itself “has been at the cookie jar” (hinting at the money printing press and the excessive amount of dollar bills it prints).

Opposition in terms of political disagreement: Democracy is up against authoritarian states. There are only 2 authoritarian states among the members of G20 – China and Saudi Arabia. Russia balances between democracy and authoritarian system.

Interventions and noninterference policy: It is necessary to consider the global question of whether it is necessary to adopt an agreement which forces to comply with it or the process should be optional. Both China and the US share the opinion on the matter as they do not strive to burden themselves with restrictions of new international conditions.

The senior versus the junior: the oppositions emerged as soon as G20 was formed… between the elite (the invited countries) and the other 170 states that were left “waiting in the hall”, so to say. Of course, it is believed that the participation of the World Bank and the IMF makes up for it. Nothing doing!  As a result the countries not included in G20 express growing discontent with the “senior” countries as the latter claim to be “the management committee of the world”.

Revival of British-Russian relations

Market Leader informed

Dmitri Medvedev, President of the Russian Federation, and the British Prime Minister David Cameron have come to an agreement about improving the top-level relations between the two counties. The Russian President has also invited Mr. Cameron to visit Russia in 2011.

After the talks with the British Prime Minister Dmitri Medvedev told reporters that Russia and Great Britain are ready to cooperate as their stands coincide on a number of important issues.

The tech analysis of the GBP currency rate.

At Forex GBPUSD has terminated downward wave A H6 (1.6297-1.5949). Correctional wave B (1.5949-1.6177) makes up 61.8%. The MF pivot at 1.6255 defends wave B, a breakout of it will prompt shortened bullish wave C.

On its way up the price has completed wave A of level H3 (1.5949-1.6177). It is currently shaping wave B defended by the MF pivot at 1.6015.

Today’s news:

07:00     GER - Prelim GDP

10:00     EU - Prelim GDP

10:00     EU - Industrial Production

14:55     USA - U. of Michigan Confidence

Euro is under bulls’ pressure

Market Leader informed

The common European currency is currently retracing against the rapid growth seen over the last few weeks.

The market indicates negative sentiments: numerous countries are not satisfied with the Fed Reserves’ monetary policy (emitting $600B of extra dollars) while investors prefer to wait until the end of the G20 summit for fear of greater risks. Today’s accelerator of the market activity may become the news on the EU (9.00GMT) and the US (14.55GMT).

For today (Now 12^th) the Department of Volume Analysis of Masterforex-V Academy has defined:

The mid-term tendency of EURUSD is bullish

The intraday dynamics of the 6E futures (EURUSD):

At this point the key level is the max volume cluster at 1.3617 (2500 lots). An upswing from the level can provoke a wave of EUR buys, making it gain in value. Until then the bearish sentiments will be pressing the currency pair.

Is Singapore Dollar going to reverse its trend?

Market Leader informed

Yesterday in Seoul, South Korea, there was the opening of the G20 summit. The main issue discussed at the summit is how to stop “currency wars”, i.e. the competitive devaluation of numerous national currencies.

In the meantime, we are probably witnessing the beginning of the mid-term reversal of USDSGD at Forex. During the Asian session the price formed an upward H4 FZR*. Within the scope of wave C on H4 there are completed waves A and B of level H1. Wave C of the same level is still in the process of formation.

According to the Department of studying Masterforex-V trading system , the future movement of the currency pair will follow one of the following 2 scenarios:

·         Coming out of the MF Sloping Channel and breaking through the MF pivot at 1.3069, followed by the confirmation of other MF binary patterns, will terminate the entire bearish wave started at 1.4070.

·         For the downward scenario the price will need to shape the MF reference point and get over the MF pivots at 1.2889 and 1.2846, completing the whole bullish wave of level H8 started at 1.2815.

·          

Nov 12^th. Expected news (GMT):

07:00     GER - Prelim GDP

10:00     EU - Prelim GDP

10:00     EU - Industrial Production

14:55     USA - U. of Michigan Confidence

Learning Business Success from Soros

Market Leader informed

Market Leader, a news portal for professional traders, published another study of successful milestones in the life of internationally renowned financier George Soros this time.

 

He is an outstanding economist, a one-man orchestra. Apart from being a financial genius, Gorge Soros is a philanthropist and talented philosopher. He is among the few people who have turned their luck around and put the American dream in practice because a Jewish boy from Budapest cannot often become the king of the world. Soros wasn’t born with a silver spoon in mouth and anything he attained cost him huge effort. Each dollar of his wealth is saturated with the owner’s sweat. Now you have a great opportunity to learn a few lessons from George Soros, one of the most influential people worldwide.

 

Lesson one: Be a professional as the market forgives no mistakes.
Soros’ financial genius felt free only at 26, after George moved from England to the US. The young man founded a business for acquisition of securities. Soros’ firm offered a new arbitrage-based approach in this area calling it internal arbitrage – separate sale of combined securities, bonds and warrants before they could be officially separated. To George’s great regret, President Kennedy introduced an additional charge on foreign investments in 1963. Soros had nothing left to do and closed his business (1963).

 

US Fed to Hit Developing Countries with the Money Press

Market Leader informed

Last week was marked by the scheduled meeting of the US Fed. Its outcome was expected with some degree of unease. The tension was caused by uncertainty over parameters of the notorious ‘quantitative easing’ for the near term. US economy’s fate depended on the Fed's decision to a large degree – whether it is in for another cycle of crisis or it can be safely evaded and, as a result, how the dollar dynamics will evolve and export and import flows further develop.

 It turns out the concerns were unnecessary – it all finished as usual, in a commonplace manner – they decided to turn on the money press and print as many billions as they need to save the American economy another time. Of course, the US government has a wealth of experience of ‘color print’ but the current situation is delicate in the way that such measures are usually taken in a critical position though it isn’t that extreme now.

 The Fed was expected to buy back governmental bonds worth $500 bn within 5 months. In fact the program scope turned out to be $100 bn larger and buyback rates lower with only 75$ bn to be spent a month instead of the planned $100 bn. The Fed also intends to reinvest about $300 bn of its revenues in governmental bonds. The total scope of the program was no sensation either - $900 bn in the context of expectations varying from $500 bn to $1 trillion.

 Markets reacted ambiguously – on the one hand, the program involved a corridor wider than forecasted. On the other, implementation rates were significantly below expectations.
Decisions so made were described by most analysts as ‘quantitative easing – 2’ by analogy with recent steps when the Federal Reserve already implemented a large-scale securities buy-up program. Over one and a half trillion dollars was pumped into the US economy then.

 

Analytic forecast about chocolate market perspectives

Market Leader informed

 Analysts of the Swiss-based Barry Callebaut, one of the leading confectionery companies in the world, have made a forecast for the new financial year, which began on Sep 1^st 2010. According to their estimations, over the short term the market of chocolate is expected to demonstrate slight but steady growth – not more than 1-2% against the mid-term and long-term forecasts of 2-3%.

The Barry Callebaut experts consider that the reason for such a situation is the slow pace of the global economic recovery after the crisis. Various forecasts for the perspectives of the chocolate market are something between moderate and optimistic: the economic growth in the industry is inevitable but it will be different in various part of the world.

First of all, it should be mentioned that the industry faces the problem of raw material supply. The prices on the raw materials needed to produce chocolate will remain volatile as it was last year, the analysts say. Yet the level will be higher than the historical average. The major problem is supplying the cocoa market: in october2009 the prices made a rapid upswing after the announcement of poor yield of cocoa beans and consequently the reduction of supplies from Côte d'Ivoire, which is the biggest supplier of cocoa beans for the chocolate industry (over 40% of the global supply). The market instantly reacted with the growth of demand for cocoa and record-breaking prices: in early June 2010 the prices grew 150% as compared to 2008, in July at London Stock Exchange (LSE) the price reached a historical 33-year high.

Besides, at the 1^st half of the 2009/2010 financial year the prices on dried milk grew as well, consolidating at a fairly high level.  

The Barry Callebaut analysts report that in general until April 2010 the global market of chocolate experienced stagnation while losing trading volumes. Then some regions started showing uneven dynamics of growth:

China and the US showed a fairly high increase (8,2% and2,7%) while the European markets lagged behind (only a 0.9% increase in Western Europe, and a 5.3%decline in Eastern Europe).

The Euro in a Downtrend

Market Leader informed

EURUSD in the Forex is in a downtrend.
The reason is massive sellout of bonds regardless of their yield. This was triggered by actions of heads of the Eurozone states related to fiscal policies and increased speculation following such statements.

 
The euro finished an Н12 level wave starting at 1.4281 which is currently a new point of reference. The correction to it has reached now 23.6%.
Upwards - there is a point of reference (1.3669-1.3819), a  sloping channel of the latest bearish wave broken. The new upwave A might as we be just a correction to increase wave level.

Holidays:

France - Armistice Day
The US Veterans Day

News releases:

12:00 EUR ECB Monthly Bulletin

6ЕСONT Futures and EURUSD Taking a Course Downwards

Market Leader informed

The Eurozone's single currency continues a steady downtrend by breaking new local lows, with the latest at 1.3670 though the movement has looked like a consolidation over the past two days within 1.3670 - 1.3830 which can become a springboard for further developments.

During the American session the day before bears tested a level at 1.3700 but impulse strength died out below it. The forthcoming G-20 Summit in South Korea might add more clarity to investor sentiment. It is expected to offer drastic solutions to controversies that have arisen so far and affect the fate of global economy and further dynamics of exchange rates.

Publication of ECB's Bulletin at 09:00 GMT is the only significant event today.

The Volume Analysis Department within the Маstеrfоrех-V Academy currently establishes:

MEDIUM-term dynamics: bearish

 

SHORT-term dynamics of 6EСONТ(EUR/USD) Futures

Global Leaders Approving New Rules of the Game

Market Leader informed

Today Seoul opens the G20 Summit.
It will be held for two days. Global leaders are going to approve new rules of the game in the banking sector that involve a tougher control system and to discuss the reform of the International Monetary Fund.

The pound sterling in Forex is, in the meantime, forming a correction wave upward against the previous bearish move. The medium-term bullish trend has not changed, so this wave can become the first wave of continued appreciation of the British currency.

No news releases are expected today, the US has a day-off - Veterans Day.

What are the preconditions of the 18% increase in the global demand for crude oil?

Market Leader informed

Energy Experts report that according to International Energy Agency (IEA) the global demand for crude oil will have gained 18% by 2035.

In real terms the global consumption of crude oil will reach 99 million barrels a day. The situation is conditioned by the daily growing needs of the developing countries, with China being in the 1^st place.

The average price of crude oil will grow from $60 (in 2009) to $113 per barrel, IEA experts say.

The demand for natural recourses grows every single day while their volumes inevitably decline. Taking into account all the above-mentioned, the forecast well may turn out to be true. However we shouldn’t forget that at the same time scientists around the world are engaged in searching and developing the ways and means to provide the humanity with alternative energy sources. For example, new no-break power stations are introduced to provide electricity generated by windmills. Scientists develop new types of engines, which do not consume fuel made from crude oil and is environmentally friendly (hydrogen engines etc).

That is why experts assure that there is no need to fear the forthcoming lack of certain recourses. Moreover, people should gradually abandon making use of the conventional energy sources and contribute their time to developing new, unique and may be constantly renewable ones.

In the meantime within the scope of wave a(C )/C of level W1 the price on“black gold” has overcome the important resistance level at $87.11 (the peal of a W3/4 wave). Experts from the Department of studying Masterforex-V trading system suppose that the next significant resistance levels are 99.84(123.6%) and 120.46(161.8% + 76.4%). In order to reverse the mid-term trend the price needs to get over the defensive MF pivot and to come out of the MF Sloping Channel as they act as the closest significant support levels.

Speaking about possible consequences of playing with currency rates

Market Leader informed

It is not difficult to understand why numerous politicians cherish hope that the favorable currency rate of USD will help the US economy to recover.

Against the background of concerns that the “Japanese disease” may infect the US, any other alternatives are considered impossible or ineffective… or not considered at all. The current political situation in the world together with the growing public debt prevented the US from properly stimulating the economy, as well as from attracting enough investments through various monetary policies. Yet, the devaluation of the US dollar aimed at boosting exports is a risky strategy. Such measures may result in the uncontrollable volatility of the USD currency rate and provoke the rivals’ counter measures. In this particular case there probably won’t be any winner in the “currency war”, everyone will lose the “currency game”.

In order to achieve positive results of economic development countries should cooperate instead of devaluing their national currencies.

 

Who should be blamed for starting the currency wars?

China and Great Britain strengthen trade ties

Market Leader informed

David Cameron and other members of the British government have been on an official visit to China, aimed at signing up a series of trade agreements.

Other issues, including the human rights, have been discussed as well.

Meanwhile, the GBP currency rate keeps on devaluing. GBPUSD is shaping a bearish wave a(C ) or C of level H4. According to the Department of studying Masterforex-V trading system , the downward movement is likely to continue.

Today’s significant news releases (Nov 10th - GMT):

10:30     GB - Bank of England Quarterly Inflation Report

13:30     US - Jobless claims, Import Price Index, Trade Balance

15:30     US - Crude Oil Inventories

19:00     US - Monthly Budget Statement

Germany and China are against US dollar devaluation

Market Leader informed

Previously the US authorities decided to issue $600B aimed at accelerating the pace of the state’s economic growth.

The German Ministry of Finance indicates concerns that US won’t solve its inner problems simultaneously causing inconvenience for other countries. The People’s Bank of China shares Germany’s point of view, urging the world to reconsider the entire global monetary system, however the means are not specified.

In the meantime at Forex the EUR currency rate has formed a downward H4 FZR*.

According to the Department of studying Masterforex-V trading system , at this point the price is completing wave c (C ) of level H4. In order to do that EURUSD needs to get over the defensive MF pivot and to come out of the MF Sloping Channel.

Otherwise the downward movement may be resumed through “the Hound of the Baskervilles by Elder/MF”.

New releases planned for today (Nov 10^th – GMT):

07:45      FR - Manufacturing Production, Industrial Production

07:45      IT - Industrial Production

10:30     GBR - Bank of England Quarterly Inflation Report

13:30     USA - Import Price Index, Jobless claims, Trade Balance

15:30     USA - Crude Oil Inventories

19:00     USA - Monthly Budget Statement

Chevron Stocks Poised For Rapid Growth

Market Leader informed

Chevron Corporation (NYSE:CVX) is the second biggest integrated energy company in the US after ExxonMobil and one of the largest corporations worldwide. Its headquarters are based in San Ramon, California (US).

Chevron Corporation includes a complete production cycle in the oil and gas industry, including exploration and extraction, production, marketing, carriage, chemical production, generation of geothermal energy and power.The company invests in renewable sources of energy and advanced technologies.

Origins of the company

A company called Pacific Coast Oil Co. was established in 1879 after discovery of an oil field in Pico Canyon north of Los Angeles, CA. Later its name was changed to Standard Oil Co. of California and, in 1984 – to Chevron following acquisition of Gulf Oil Corp. At that time this merger was the largest in US history. Another important branch of Chevron’s family tree is Texas Fuel registered in Beaumont, TX, in 1901. These two companies merged in 2001.

The corporation’s market figures and production

The corporation’s market cap is $157.75 bn. There are 2,010.59 millions of issued stocks of the company that maintains a dividend policy.

In 2009 Chevron produced 2.7 mln. barrels of oil per day, or 7% more than in 2008. About 73% of this volume was extracted outside the US. The marketing network supports retail trade on six continents. In 2009 Chevron invested in 13 energy facilities in the US and Asia.

About 65,000 people were employed by the company at start of 2010.

John S. Watson has been the Chairman and the CEO of the company since 2010.

Technologies and new energies

Chevron's operations are focused on technologies that increase its chances during exploration, development and production of oil and natural gas. In addition, it makes investments in the development of new energy technologies: search for efficient biofuel production methods, solar technologies and expansion of renewable sources of energy.

Chevron Stocks Poised For Rapid Growth

Market Leader informed

Chevron Corporation (NYSE:CVX) is the second biggest integrated energy company in the US after ExxonMobil and one of the largest corporations worldwide. Its headquarters are based in San Ramon, California (US).

Chevron Corporation includes a complete production cycle in the oil and gas industry, including exploration and extraction, production, marketing, carriage, chemical production, generation of geothermal energy and power.The company invests in renewable sources of energy and advanced technologies.

Origins of the company

A company called Pacific Coast Oil Co. was established in 1879 after discovery of an oil field in Pico Canyon north of Los Angeles, CA. Later its name was changed to Standard Oil Co. of California and, in 1984 – to Chevron following acquisition of Gulf Oil Corp. At that time this merger was the largest in US history. Another important branch of Chevron’s family tree is Texas Fuel registered in Beaumont, TX, in 1901. These two companies merged in 2001.

The corporation’s market figures and production

The corporation’s market cap is $157.75 bn. There are 2,010.59 millions of issued stocks of the company that maintains a dividend policy.

In 2009 Chevron produced 2.7 mln. barrels of oil per day, or 7% more than in 2008. About 73% of this volume was extracted outside the US. The marketing network supports retail trade on six continents. In 2009 Chevron invested in 13 energy facilities in the US and Asia.

About 65,000 people were employed by the company at start of 2010.

John S. Watson has been the Chairman and the CEO of the company since 2010.

Technologies and new energies

Chevron's operations are focused on technologies that increase its chances during exploration, development and production of oil and natural gas. In addition, it makes investments in the development of new energy technologies: search for efficient biofuel production methods, solar technologies and expansion of renewable sources of energy.

Growing Prices of Potash Fertilizers To Bolster Up Belaruskali?

Market Leader informed

Byelorussian Potash Company (BPC) involved in exclusive delivery of potash fertilizers for such facilities as Belaruskali and Uralkali decided to increase prices for countries of South-Eastern Asia and Brazil. The price tag has been revised because these countries have a higher demand for this type of products.

How much will a ton of potash fertilizers cost now?

According to BPC's official press-release, a ton of standard and granulated potassium chloride will now cost 430 and 450 US dollars, respectively. These prices are on CFR terms, i.e. they include such costs as export clearance of goods + delivery of goods to the main carrier + loading on the vessel + carriage of goods to the destination port. Major and small importers of granulated potassium chloride in Brazil will be charged 440 and 450 US dollars, respectively. These prices will be effective till the end of Q1 2011.

According to BPC’s General Director Vladimir Nikolayenko, this growth of prices will surely have a positive effect on the producer (in particular) and the entire industry (on the whole).
Besides, BPC has been unable to meet the growing demand for potash fertilizers in regions of South-Eastern Asia and Brazil over the past couple of months. Prices should be raised following the logic of market economy, and this will ensure an additional inflow of foreign currency to the Republic in general and additional funds to the industry, in particular. This increased demand for potash fertilizers has been caused by rising prices of agricultural products in the world and a limited quantity of potash products held in stock by producers and consumers.

Text: Dmitriy Frantsevich

 

You are free to discuss this article here:   forum for traders and investors

World Bank offers to change dollar for gold. Will it be heard?

Market Leader informed

Robert Zoellick, the current president of the World Bank, offers to create a new currency system involving USD, AUD, GBP, JPY and CNY (Chinese Yuan) and using Gold as the market guideline.

The world’s biggest banks should think about the new gold standard of managing the currency market volatility, experts of Masterforex-V Academy say. According to Financial Times, it is gold that is used at the markets as an alternative asset.

Discontent with the global currency system is constantly growing around the world, that is why the World Bank has offered to introduce “the Bretton Woods System 2”, Mr.Zoellick says. However, despite economists’ numerous statements in favor of introducing the gold standard most policymakers believe that it will result in introducing extremely tough monetary policies, which in its turn will have a negative impact on the employment and economic growth around the world.

Maxim Gun (Santyago), the head of the Volume Analysis Department, Masterforex-V Academy, thinks that the US economic model is not the standard any more as USD keeps losing its ground versus other major currencies. The Fed Reserve is currently trying again to “artificially vaccinate” the economy by printing more dollars, which leads to the devaluation of the national currency. As a result, by now the world has accumulated a huge mass of uncovered US dollar bills. This is an ideal moment for creating another “center of gravity” inside the global economy. To his mind, the World Bank’s offer is not accidental, it is timely. From the standpoint of tech analysis, the news event may provoke the uptrend of the allied currencies against the US dollar. For example, for EUR it may indicate that the retracement is over and the upward tendency will be resumed.

Foreigners are banned from visiting the symbol of London

Market Leader informed

Yesterday the local authorities banned all foreigners from visiting the famous Big Ben tower in London.

Such a measure was taken in the fear of possible terrorist attacks. From now on only the citizens of Great Britain are allowed to visit the famous tower. However, they can only do that after applying through their sitting Member of Parliament. It should be noted that before the ban 20.000 tourists visited Big Ben every year.

Now it’s time to speak about Britain’s national currency.

The correctional wave (a downward wave of level H2 against the upward ABC pattern of level H4), which has recently been started and is still in the process of formation, is likely to turn into the beginning of another mid-term tendency reversal of GBPUSD at Forex.

According to the Department of studying Masterforex-V trading system , there are 2 scenarios of further price movement:

-          Getting over the 1.6298 level will indicate wave 5/A on H4. If the prices goes further down and overcomes the support level at 1.6107, we’ll witness the continuation of wave C of level D1

-          A downward H2 FZR* followed by a breakout of 1.6014 will cancel wave 4 of level H4, turning the price movement into a retracement against the upswing of level H8, started at 1.5651.

Precious Metals Market: ‘Gold Fever’ Over?

Market Leader informed

Gold started getting cheaper again after reaching its new historical high during the trading session in London when the current market price of gold reached an incredible level at 1,390.18 dollars per ounce. Howard Friend, Leading Analyst at MigBank, a forex broker, points out that this is a record that broke a recent historical high at 1,389.60 dollars per ounce.

 During the trading day at Comex in New York the price went down. December futures cost 1,390.0 dollars per Troy ounce or 0.6% less than the price registered in London.

 Gold prices stabilized primarily in the context of the dollar that started gaining ground against all other global currencies.
According to So Kazuhito, Chief Analyst at Japanese brokerage company Fujitomi, it is the dollar that will begin to affect the situation in the markets because prices of most commodities, including gold and silver, are based on it.

 As compared to US major trading partners the dollar added 0.39% and, in terms of the single European currency, went up to 1.3907 per euro.

 The gold reserves still remain popular. Robert Zoellick, President of the World Bank, repeatedly confirms his agreement with this premise in his article in The Financial Times. It is gold that can be used as a value equivalent for any currency during any trading activities, in any markets and in any situation.

How will the sales of the Portuguese treasury bonds influence EURUSD?

Market Leader informed 

Today, on Nov 9^th 2010, Portugal is going to hold an auction to place its treasuries to the sum of 1.25B euro.

In connection with…

… yesterday (Nov 8^th) EURUSD at Forex continued its downtrend, came out of the MF Sloping Channel and got over the MF pivot, indicating an increase in the wave level of the downward price movement. At the moment the currency pair is being traded around 23% of the entire wave C on D2.

According to the Department of studying Masterforex-V trading system , currently the price is forming a bearish wave of the senior wave level (probably H8). A wave acting as “the moment of truth” is needed to prompt the further direction of the EURUSD price movement.

At this point it is necessary to watch the end of the downward wave C of level H2/H4, keeping in mind a chance of further downtrend through wave c (C ) on H4, which can be traced through the AO and the MF Sloping Channel.

There are now significant news releases on the EU for today.

6ECONT and EURUSD show steady downtrend

Market Leader informed

The common European currency is being traded around the local high at 1.3840. The bearish tendency has been looking fairly strong over the last few days.

The market sentiments about EUR are negative despite the fact that the bulls are desperately trying to regain the lost ground by reducing the volume of their buy-positions, which is of no considerable effect. Some Asian corporations show demand for USD close to 1.3910, which makes the bears feel more confident and strong.

The news block on GB at 9.30GMT, including Trade balance, may cause an increase in the market activity today.

The Department of Volume Analysis of Masterforex-V Academy has defined for today:

The mid-term dynamics is bearish

The short-term dynamics of 6ECONT (EURUSD futures):

The max level of the Euro session at 1.3955 may become today’s key level as it is definitely interesting for the market participants – the current trading volume is over 2000 lots. A downward breakout of the level will prompt the further downtrend of EURUSD. Once the price goes up from the level and settles above it the bulls will get a chance to win back their positions.

Eurozone: Apocalypse Inevitable?

Market Leader informed

Recently the financial world has been demonstrating quite a bad tendency – the world’s major currency, the US dollar, is being ‘capricious’. Its behavior is increasingly unpredictable. The instability of the American dollar (which is now rapidly depreciating against other global currencies) is not based on objective reasons alone. According to some experts, such ‘whims’ are caused to some degree by the US Government’s manipulations with the dollar. Despite its statements that it will not be involved in possible currency wars it in fact drastically responds to some countries’ willingness to depreciate their own currencies. This situation might change after the US Fed publishes exact data on quantitative mitigation which can be carried out in terms of volumes and terms in a few stages which the Fed can modify at each step of the program depending on the then current situation in domestic and foreign markets.

It seems that the euro ‘fans’ should rejoice as the single European currency is gaining weight against the ‘depreciated' dollar. Many already hurried to sell dollars and buy large amounts of the euro in the market. But there’s a catch here – it is the euro that this situation might cause to collapse! Many specialists forecasted such a scenario neither yesterday nor the day before yesterday. One of them, economist Mike Astrachan, writes in his article published in Israeli newspaper Globes that he didn’t think 12 years ago that the euro itself or its ‘father’ – the Eurozone’s nations – had any future. Back then, when the Eurozone was established, this specialist predicted a collapse of the union. To his surprise, it remained ‘alive’ for quite some time and, as a result, the Eurozone’s ‘collapse’ added a lot of pips and grew ‘monstrously’.

Time to Sell Microsoft Stocks?

Market Leader informed

Microsoft CEO Steven Anthony Ballmer decided to sell this corporation's stocks worth 1.3 billion US dollars in total and did so late last week.

 Steven Ballmer believes that his investment portfolio needs risk diversification, and as a result, sold about 50 million stocks. Besides, the current year is about to end and relevant taxes will have to be paid. According to him, he simply complies with the expected tax burden and, moreover, is going to sell another 75 million of Microsoft stocks by this year's end.

 Steven Ballmer holds about 350 million stocks of the corporation he is employed by. Their total worth is about 9 billion US dollars. Owing to his work at Microsoft S. Ballmer became a billionaire. At close of 2009 Forbes ranked him among top thirty richest people.

 Analysts find it crucial to take into account that the CEO is selling his corporation's stocks as he knows the company from the inside. There is no doubt left that stocks sold by the CEO will trigger a pullback. However, other factors also have to be considered before deciding to buy or sell stocks.

S&P500 reaches new heights

Market Leader informed

On Friday, Nov 5^th 2010, S&P500 gained in value against the background of Federal Reserve Chair Bernanke’s speech concerning further purchases of the US treasury bonds.

The rapid uptrend has a form of “the Hound by Elder/MF”.

According to the Department of studying Masterforex-V trading system , the uptrend will continue. In order to reverse it the price needs to break through the defensive MF pivot and MF Sloping Channel with further going for “the Moment of Truth/Test” and settling below the accumulated volume clusters.

London denies supporting hitmen

Market Leader informed

4 individuals have been detained in Marivan, Iran, in connection with a series of murders.

The Iranian mass media say the detained hit-men have ties with Great Britain. They are accused of a series of contract killings committed within the last 2 years.

The British authorities denied supporting or participating in any terrorist or criminal activity anywhere around the world, including Iran.

In the meantime at Forex GBPUSD keeps losing its ground.

Experts from the Department of studying Masterforex-V trading system think that after coming out of the MF Sloping Channel GBPUSD started retracing versus the entire wave from 1.5728.

The bearish wave that is currently being shaped will need a “moment of truth”, which will prompt the destination of the forthcoming movement.

News expected for Nov 8^th 2010 (GMT):

07:00     GER - Trade Balance

11:00     GER - Industrial Production

18:40      US - Federal Reserve Bank of Dallas President Fisher speaks on "The Impacts of Financial Reform on the road to Economic Recovery" at the Association for Financial Professionals Executive Institute Conference"

20:30      US - Federal Reserve Board Governor Warsh speaks on "Invest in America" before the Securities Industry and Financial Markets Association

EURUSD: environmental constituent

Market Leader informed

On Sunday in the north of Germany near Dannenberg thousands of activists gathered to halt the train carrying nuclear waste from France to Germany.

Some of them turned violent and start clashing with police. The policemen had to respond with batons and water cannon.

The situation with the EUR currency rate at Forex is not so dramatic.

During Monday’s Asian session EURUSD formed a downward H2 FZR*. Currently the price is retracing. It will either terminate the current wave or shape subwave b(C ).

The Department of studying Masterforex-V trading system supposes that if on its way down the price breaks the MF pivot at 1.3909 and the MF Sloping Channel, it will probably mean the completion of the entire wave C on D2.

An upward reversal without updating the high will indicate a correction against the bearish wave of level H3. If the level of the high at 1.4281 is overcome wave C of level D2 will be continued.

Gold Prices Breaking New Highs After FED Announcement

Market Leader informed

On Thursday, after the US Federal Reserve announced buyback of treasury bills worth 800 bn. dollars as an incentive for the country's slow economic growth, market prices of gold futures started growing. A weaker dollar inevitably triggers an appreciation of gold, traditionally viewed as an alternative and more reliable asset, and, at the same time, reduces dollar-denominated commodity prices as compared to other currencies.
For example, in response to the weakened dollar December gold futures on New York Mercantile Exchange sky-rocketed by 3.4% (to $1,383.10 per Troy ounce).

According to analysts, the gold market currently demonstrates an uptrend, and some forecast the level of the price record at $1,461 per Troy ounce that can be reached with the help of assets concealed for some time. From this year's start this precious metal went up 24%, and if the rising tendency remains for another year this will be a record trend over the past 90 years. The economic crisis of the past couple of years, instability of the global financial system, the crisis of sovereign debt of a number of European nations are all reasons for a stable appreciation of gold.

Growing gold prices are also connected with a higher demand from India, the world's largest buyer of gold, where the Hinduist tradition requires that during New-Year celebrations (Dhanteras, Diwali) held in November people make presents and adorn themselves and their homes with gold items. According to the statistics of Bombay Bullion Association, 44 tons of gold was delviered to India this October, or 7.8 tons more that last year.

What Oil Prices Should be Expected?

Market Leader informed

The long-awaited US Fed meeting triggered a chain of interrelated events.

The decision to buy long-term governmental bonds worth 600 bn. dollars in total, with about 75 bn. dollars to be spent a month, generally coincided with market expectations. WTI (Light Sweet) oil futures that used to range between $69-87 again reached the upper boundary of the range backed by all signs of market strength. A series of up-bars with increased volumes and the fact that the last bar's close was practically on the top add confidence in further appreciation. A slight pullback is possible to summon up strength before an upward spurt, approx. to $85.5 – 86.

World stock markets show growth

Market Leader informed

On Nov 3^rd the trading day at the US stock exchange ended up with an overall slight increase. S&P500 grew 4.39pts or 0.37% reaching 1198 pts. Dow Jones Industrial Average Index gained 26.41pts or 0.24% reaching 11215 pts. The same was done by Nasdaq Composite in the hi-tech sector. It grew up to 2540 pts, indicating a 6.27-pts increase (0.27%).

Such an uprising of the US stock was caused by the Fed Reserve’s decision to buy more treasury bonds to the sum of $600B and its announcements implying that the pace of production recovery and employment growth would remain low.

The same situation can be seen at the rest of the other markets in the Asian-pacific region.

Australia. S&P/ASX 200 gained 4746 pts or 0.5% (23.4 pts). Such an increase was seen against the background of not so favorable news, as the Australian external trade surplus made up 1.76B AUD (the forecast was 2B). Retail Sales in September grew 0.3% (analysts’ forecast had was 0.45%). In the 3^rd quarter Retail Sales made up a 0.7% increase (the forecast was 1%).

New Zealand.  NZX 50 index lost 6.82 in value (0.21%), going down to 3326.25pts. The decline was caused by Unemployment Rate (3^rd qtr - 6.4%, forecast - 6.7%) and Employment Rate, which gained 1% over the 3rd quarter and 1.8% year-over-year.

Japan.  Nikkei Index indicated the biggest growth in the sector.During Thursday’s morning session it gained 204.92tps (2.24%) reaching the 9364.92 level. Some other indexes, including Topix, behaved the same way, growing by 15.3pts. The Japanese Yen wasn’t lagging behind as well. Currently USD JPY is being traded around the 81,06 – 81,11 area, i.e. demonstrating a 0.46pts increase. Moreover, the governor of the Japanese Central bank announced that over the short term the current interest rates would remain unchanged.

What does Fed Reserve have in store for US economy?

Market Leader informed

On Wednesday, Nov 3^rd, the US Fed Reserve announced the intension of pouring extra funds into the US economy in order to accelerate the slow pace of its recovery. According to the press release, each month until the 2^nd quarter of 2010 $75B will be allocated to buy treasury bonds (the total sum is estimated at $600B).

Besides, it is going to spend extra $250-300B ($35B a month) on refreshing the investment portfolio through changing those mortgage bonds that are going to expire soon. However the members of FOMC do not deny the possibility of increasing the sum if the measures fail to lower the unemployment rate (9.6%), to increase the inflation rate (now it is slightly higher than1% against the predicted 2% per year) and to considerably consolidate the economy.

These measures caused experts’ ambiguous estimations. Dow Jones Newswires calls the purchases of the treasury bonds a disputable measure of solving the economic problems as currently the US economy shows growth, even though it is slow, and the financial markets are relatively calm as opposed to the crisis situation in 2008 when the same measures helped to save the American economy from the deepening crisis: from December 2008 till March 2010 the Fed Reserve was buying the bonds to the sum of $1.75 trillion.

The Federal Reserve’s motivation is the following: as the second means of economic regulation is (interest rates) are lowered down to the minimal level possible (0%-0,25%), numerous companies will be increasing their investment capital, investing in risky assets - shares and corporate bonds – the consumers will increase their spending while the house-owners will be able to refinance the credits. On the other hand, as the result of such actions the US dollar will lose in value a little, which in its turn will affect the export-and-import processes.

Despite the fact that in June 2009 the US economy regained its upswing after the crisis of 2008, experts consider it to be too slow. The high level of unemployment restrains the consumer spending and freezes the consumer prices. Over the 3 quarters of 2010 the basic inflation rate stays at the record low level of less than 1.2%. Besides, it is obvious that there won’t be any instant positive changes in the short run.

Trader’s Professional Tool – ECN Terminal: Integral FX

Market Leader informed

 

With The Trading Account Called Integral

You’ll Become a Trading General!

Nord Group Investments Inc (Nord FX)

Forex is believed to be one of the most high-yield and relatively fast ways to make decent money.This is a fact. However, in the foreign currency market, like in any other sphere of life, we face inevitable risks that we have to take into account. An inexperienced trader often ignores this fact which unfortunately drives him or her to endless losses. Their more experienced peer knows that the main thing in the Forex is to be patient, psychologically stable and… your own person. Complete with a reliable broker, the trader’s guide in the stock market, this all will play into your hands and Forex will ultimately become a gold mine, an inexhaustible source of income for you. But, dear friends, this may happen only after you demonstrate the characteristics above, deny any thought of ‘freebie’ and treat Forex as a serious job. On its own part, a reliable broker that has modern internet trading technologies at hand will help you achieve positive results.

NordFX is appropriately in the vanguard of trading technologies as it currently offers the widest variety of platforms – from MT5 to Integral – that meet the needs of both beginner traders and professionals.

In this respect, Nord Group Investments Inc (Nord FX) emphasizes major ‘elements’ of a modern trader’s success and believes that before starting to trade real money in the foreign exchange market, each trader has to know:

1. WHAT to do (have information about the market conditions, be able to analyze the current situation in the market, have title and opportunity to execute trades);

2. HOW to do this (know the basics of stock exchange trading and use modern trading tools and instruments to execute profitable trades);

3. WHERE and the best way to effectively use a certain trading instrument.

In other words, a professional trader:

• HAS accurate information about what is going on in the market;

• CAN forecast possible behavior of the market in the near future based on analysis of this information;

• SEES what other market actors are doing;

• CAN join or exit action;

• KNOWS how to join or exit IN TIME.

Free studying at Masterforex-V Academy for novice traders

Market Leader informed

Forex education is fairly costly nowadays. In order to learn the fundamentals of trading, the profession which allowed George Soros, Warren Buffet, Larry Williams and other famous traders to make billion fortunes, people have to pay relatively big money. For example, for the first stage of the training courses (1-2 months) under various dealing centers numerous beginners have to pay $150-800, spending both money and time.

Is there any alternative to the existing Forex training courses (Forex trading is one of the most perspective and highly-paid jobs in the world)? Yes, there is. We are talking about Masterforex-V Academy (it was recognized Europe’s best Forex training project 2 times in a row), which has recently opened a free School for novice traders of Forex and other exchange markets (stocks, futures, options).

What is the reason for such “charity”? That is the question that Market leader asked Pavel (Green), the head of the School for novice traders.

Pavel: 

It is not about charity, it is about honesty: any professional trader can explain you that any school provides the basics. You can become neither surgeon nor trader just after finishing school. Dealing centers give their students only elementary knowledge, charging them with considerable tuition fee and turning them into “zombies” so that after finish course they would instantly (!!) open real trading accounts with these DCs. The DCs know in advance that the beginners will lose their money (often taken from the family budget) while the “businesslike” DCs will earn the money even without introducing the traders’ positions to the interbank market.

Market Leader:

Are there many such “dirty” dealing centers, which an inexperienced beginner may run into?

 Pavel: Yes, there are many of them. You can visit the sub-forum of traders called “The black list of dealing centers and broking companies. Techniques of deceiving Forex traders” and read traders’ complaints about numerous DCs that play variuos “dirty tricks” on their clients: some of them do not introduce the clients’ orders to the interbank, some do not pay the gained profit to their clients (with Masterforex-V Academy students among those client), others “catch” the client’s stop-loss orders through giving their own quotes (they draw spikes on the chart to execute the stop-loss orders) etc.