Monday, January 30, 2012

After 3 consecutive Down Days for Financial Sector

After felling to pass through the high since July 2011. It has fell 3 consecutive days for financial sector stocks. Today, it continues to fall further. The Fast Stochastic Oscillator (FSTO) is falling close to 0. It seems we have reached a mini over-sold position. A light rebound might occurs in the near future for short term sellers.

Thursday, January 26, 2012

More news on Interest Rate

Feb announced US Interest Rate will continue to stay at historical low until late 2014. Possibly going to stay low until 2015. Hence, stock market gain as the result late afternoon. This gives dividend paying stock even more attractive. I am now pausing further selling of financial companies. The financial companies as a group could pass the July 2011 high and test the double tops occurred on April 2011 and June 2011 respectively.

Tuesday, January 24, 2012

Financial Services Sector (Part II)

It is testing July 2011 high point and it seems that it will be down day today for the financial sector. I will assume that we are reaching the over bought area and some profit taking will take place today and coming days.

Friday, January 20, 2012

Financial Services Sector

I noticed with the recent uptrend for the Canadian Banking Section starting beginning of December 2011, It is already increase well above 5% from the low point of Nov 25, 2011. It is about to test the high point for the month of July of last year. I am about to sell some of my positions around this area and see if it pass through the resistance mark.

Thursday, January 19, 2012

50 and 200 Day Moving Averages 101

One of the most effective and widely used technical trading tools is the simple moving average. The two averages that I looked at are 50 days and 200 days simple moving averages (SMA).

When I trade indexes, I usually look for those two averages and see how they perform over the year. A quick way to see whether it is a good entry point is to see whether the 50 days cross over and above the 200 days moving averages and via versa.

You can use google financial and other charting tools to do a quick technical analysis chart.

Wednesday, January 18, 2012

Calymore Canadian Financial Monthly Income ETF

Calymore Canadian Financial Monthly Income ETF is a basket of Canadian Financial companies in one ETF. It pays $0.04 per month as dividend. The ETF last paid on December 23, 2011 for $0.04 every share you own.

52 week trading in the range of $5.86 - $7.34. I am comparing this to TD Monthly Income fund that also pay monthly income. For 1 year performance, TD Monthly income fund outperform the ETF over 10%. (TD gain 0.79% while FIE lost 9.82%).