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Trading Journal

psaTrading
Sep 28 2015 at 09:13
891 posts
In the pre-opening, European shares traded with some losses. The reverse of the trend of Wall Street on Friday should dictate investor sentiment at this early stage. The technology sector and pharmacist should be more sensitive because of the US biotech sector weakness. In Madrid, investors will react to election results in Catalonia. This region accounts for about 20% of the Spanish GDP. With 7.5 million inhabitants (of 46.7 million), GDP per capita is the fourth of the country (after Madrid, the Basque Country and Navarra), the unemployment rate of 19.10% against the national average of 22.37%. Catalonia is Spain’s most indebted region of the country (66 180 M. €).

psaTrading
Sep 29 2015 at 14:46
891 posts
Investors continue to focus on the ramifications of the Volkswagen situation (in the US has been dubbed DieselGate), in the automotive sector and in the German economy. In the near future, the new CEO Matthias Muller, will have to address several points. The first is how to deal with the 11 million vehicles (which may possibly be more) that were sold and did not meet the standards of CO2 emissions. The second is related to various lawsuits which begin to be brought against the company. The third relates to the reaction of many governments, the first was the Swiss that banned the sale of the related models. The fourth is the threat of some rating agencies cut the credit rating of VW debt, which would increase the company’s borrowing costs and reflect the leasing costs and financing of car buyers of the brand. But probably what most alarmed investors is the impact that will have on the German economy. According to the Ministry of Economy of this country, the automobile sector is, directly and indirectly, approximately 10% of GDP. In addition, some investors fear that this case compromise the good name and reputation that German industry has in the world.

psaTrading
Sep 30 2015 at 09:40
891 posts
European markets have opened up, reflecting the good performance of the Asian markets and the stabilization of the price of raw materials during the session in that region, however this can be a technical reaction to accumulated losses in recent days. The initial rise should be led by the most penalized sectors in recent days, as the industrial, mining and automobile. The Chinese government halved the tax on small cars. This measure benefits more local brands than European automakers. Today will be the closing quarter, a period that is seasonally favorable to equity markets. To change investor sentiment will be necessary that this recovery will extend for a few days and be accompanied by high volume. The trading volume in index or stock is an excellent barometer of the conviction of the buyers at a time when the market is in an upward movement. Using the DAX as a sample of European markets (despite the case of Volkswagen), only if this index overcome 9750/9790 (preferably with volume) is that it may be considered a sustainable recovery.

psaTrading
Oct 01 2015 at 11:32
891 posts
The recovery from yesterday and its continuation today, may not be sufficiently compelling to calm investors as uncertainties remain (situation of the world economy and the monetary policy of the Fed).

psaTrading
Oct 02 2015 at 16:34
891 posts
Global economy is a mess this days. China and emerging market even the European market are slowing down and the U.S domestic market is the only market showing signs of strength.

psaTrading
Oct 05 2015 at 14:40
891 posts
The employment report was clearly disappointing. Not only job creation has undergone a sharp slowdown as well as wages have remained unchanged does not constitute an inflationary pressure. So in terms of monetary policy, this data further complicated the mission of the Fed and does not fit clearly the conditions for a rise in interest rates in December, increasing the uncertainty in relation to the timing of the first increase in rates directors in the United States. After an initial fall in response to labor market data, the markets staged a very strong recovery. The rally was led by sectors that had previously been more penalized: mining, oil and biotechnology. It may be pointed out some reasons for this behavior. The first is that the weakness highlighted by the employment market has caused a devaluation of the dollar and as a result there has been an appreciation of commodities, which boosted mining and oil sectors and the industrial reflection. As usual, the biotechnology sector showed a fairly high volatility but ended the session with 3.40% gains. The strong recovery of the US indices is a positive sign from a technical point of view, it is important to check if it will continue in the coming days.

psaTrading
Oct 06 2015 at 15:39
891 posts
Asian markets closed with some gains, which could perhaps have been more significant considering the rally held by the American indices. Today was signed the Trans-Pacific Partnership, an agreement between the US, Japan and over 10 economies of the Asia-Pacific region, which aims to promote free trade between these countries. This agreement is very important not only for the duration of their negotiations (5 years) as it involves countries that account for about 40% of world GDP.

psaTrading
Oct 07 2015 at 16:14
891 posts
The trade balance registered a deficit in August well above the estimated (48300 M.USD vs 42500 M.USD), while imports increased 2.60% and exports declined 2%. This fact limits the GDP growth in the 3rd quarter. In addition, the fall in exports, especially to emerging economies, may signal that American companies have suffered a fall in revenue in some areas of the globe. This is particularly relevant in the given moment as is approaching the earnings season.

psaTrading
Oct 08 2015 at 12:18
891 posts
In recent sessions there has been an appreciation and overperformance on assets with higher risk. This pattern does not mean that the risks that hit the market during the months of August and September have disappeared. It was the perception of investors in relation to these issues that has changed. Perhaps now investors believe that the Chinese GDP growth will slow down (to about 6%) but not collapse. On the other hand, in relation to US interest rates, investors begin to discount that its growth will only occur in 2016, so it is no longer so much uncertainty. Therefore, in the short term, one should not exclude a retreat of the major global indices but this correction will only be a natural movement after the strong gains of the last few days and should not represent a new change in investor sentiment.

psaTrading
Oct 09 2015 at 11:29
891 posts
The medium-term outlook for the equity markets have become more encouraging in the short term but there is a possibility of a correction after the strong gains achieved in recent days.

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