Stock market and frequent trading
Is frequent stock market trading portfolio good or bad?Is the idea how to make more money in the stock market not a top one?
In this article the concept is simple, do not trade very often to make more money in the stock market.This concept is interesting especially for the long term to avoid a lot of trading costs and commissions.But financial and economic conditions are not constant.So a frequent change of the stock market portfolio maybe necessary.The question is how frequent?Ok not daily or even weekly or maybe montly.But each quarter or when specific conditions change such as news that are important, then changing the composition of the stock market portfolio is almost necessary.But it all adds up to each individual personal investment policy statement and how risk averse the investor is.
Apple stock(AAPL) is rallying last days.According to Yahoo Finance Apple has already its Iphone 7plus sold out globally in every possible color.As sales and income,profits drive demand for stocks this is no surprise that stock rallies as fundamentals news,mainly very strong sales are supporting the stock demand.
Stock market is unpredictable
It is very hard to predict stock market moves.Technical analysis and fundamental analysis try to predict how stock market will move.But if we could predict with accuracy stock market movements we would all make money.Today Apple gave a huge boost to Nintendo stock.
At live Apple event it was revealed that Nintendo(NTDOY) will partner with Apple on two of its popular games,Super Mario and Pokemon Go.At the time of release share of Nintendo very soon gained almost 26 percent up $7.35 at $35.55.A great and very quick profit as stocks often react with volatility in good or bad news.Apple shares(AAPL) also gain after the release of new products.
Stock market and ISM non-manufacturing index
The stock market relies on fundamentals and broader economy.This is common sense.Today ISM non-manufacturing index for August 2016 was released.A major negative surprise,yet above 50 indicating expansion.
Initially the US dollar was weakened significantly against major currency pairs.The US stock market shows little movement to this negative surprise.
Stock market and quantitative easing
An interesting article on Europe and quantitative easing.At some point this quantitative easing will stop.What will be the implications for stock market and bonds?In the article JPMorgan says this may push debt yields up from record lows.A change in spreads for long term and short term bonds is very possible.But stocks will benefit or not from an end to quantitative easing?
It is mainly about fundamentals first,then supply and demand.If we focus on fundamentals then the end of quantitative easing should have little effect on stocks.But supply and demand will probably play a role.
Stock market ends up after weaker US jobs reports
With US job reports for the month of August 2016 now released the US stock market ended up yesterday.Crude oil gained also on a weaker dollar.They often say bad news lead to gains.The report was not too bad.As we mentioned seasonality in jobs during summer is not so indicative about the labor market.We are entering in September with FED rate hike expectations but as US elections are near maybe the FED will prefer not take action until then.
Stock market and job reports
Today the US stock market is waiting for the non-farm payrolls report and analysis of new jobs and unemployment.Will a stable jobs creation trend appear?Extreme values could appear but a stability in jobs creation is always a good thing for stocks.Also seasonality is important as this month report will be about last summer month.
Stock market news
US stock market starts September 2016 with weakness as a few hours after the opening all three major US indices are in negative territory.Losses are small.After the end of summer it is interesting to see possibly a new trend.Tomorrow with the release of non farm payrolls for the month of August 2016 volatility may return to the stock market.
Stock market and rate hikes
How will US stock market react to a possible near term rate hike?The much anticipated speed of FED chairman Janel Yellen at Jackson Hole may provide some clues about how close is the FED to actually raise interest rates.If this happens economic theory implies that this is bad news for stocks as rate hikes lower the stocks valuation using a DCF approach.For now US stock market does not make any strong moves as we are still in summer mode.Maybe from September we will see more volatility which is both good and bad for stock trading.
Stock market decisions on a daily basis
3 stock market actions on daily basis for all stocks are buy,sell or hold.
Each is different and reflects financial news and opinion about financial markets.Buy is when you are bullish,sell when you are bearish or a stock has reached your target goal and buy if you think a trend will continue.
Also almost every day reports and news come out.Have a strong reason to make any decision and arguments to either buy,sell or hold any stock.Stock market is volatile but as always return comes with risk.