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.