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STI 3,000 boosted by pivot investors mkt players
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JustGreat
Senior |
26-Apr-2014 18:37
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Must be fast though. DYODd | ||||
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JustGreat
Senior |
26-Apr-2014 16:09
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Short in May and Huat Big Big |
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WanSiTong
Supreme |
26-Apr-2014 16:05
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Let&rsquo s Talk About &ldquo Sell in May and Go Away&rdquoApril 25, 2014
And just like that, we&rsquo re almost done with the month of April. So you know what that means? The &lsquo Sell in May and Go Away&rsquo chatter now begins.  Does it work? Does it not work? Should we always sell in May? Why does it work? Where does this come from? What if I&rsquo m more long-term?  What if it&rsquo s a midterm election year?  All great questions.Let&rsquo s begin with where this originally came from. The old saying is officially,
The inference here is that there&rsquo s no point owning stocks during the summer. The big boys won&rsquo t get back to business until Horse Racing season in England is over in the Fall. The British have been celebrating this day in September since the St. Leger Stakes (last leg of the English Triple Crown) was established in 1776. In America, we like to call this time of the year, &ldquo Football Season&rdquo . So should we listen? Does the math behind this make any sense? I think it does. If you use the Dow Jones Industrial Average and go back to 1950, the statistics are simply staggering. Hypothetically, had you invested $10,000 but only owned stocks between November 1st through April each year, on April 30th of 2013 that $10,000 would have been worth $775,055. That&rsquo s pretty awesome. Now, had you done the exact opposite and purchased the Dow Industrials every year on May 1 and sold on Halloween, you would have actually lost $687 over the past 63 years.
Look at the average percentage moves. You can choose to ignore those numbers if you want. But I like to think that seasonality is against us as we enter the summer season. Call me crazy. But it wasn&rsquo t always like this. In fact, before 1950 it was profitable to be a buyer in May. At the time, farming was the big driver of the US economy, so this made August the best month of the year from 1901-1950. Today, farming makes up less than 2% of the US Economy, so since 1987, August has actually been the second worst month of the year for the Dow and S& P. Here is the one-year seasonal pattern from the Stock Traders Almanac. Look at the difference between the pre-1950 period compared with the behavioral patterns since then:
During mid-term election years, the numbers get even worse. Remember, this is traditionally the worst year of the 4-year Presidential Cycle. So the &ldquo worst six months&rdquo statistics warn us even more. The average return during this upcoming 6-month period on midterm years is -0.43%. The stats don&rsquo t lie. Here is the Presidential Cycle Composite chart for the S& P500 going back to 1928. Notice how historically, major bottoms are put in during the Fall of midterm years:
Based on the Presidential Cycle and 6-month cycle, we are entering a period of time where the US Stock market tends to struggle. But if history is any indication, this could be one of the best buying opportunities we&rsquo ve had in years. But we&rsquo ll worry about that when the time comes. I&rsquo ve been bearish about US Stocks all year long. This is just another feather on the hat for the bears and I don&rsquo t see any reason to be optimistic about the US Stock Market Indexes. There will always be individual non-correlated names that do well that won&rsquo t change. But as far as the market as a whole is concerned, I will continue to keep a bearish/neutral stance. At least for now.    |
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WanSiTong
Supreme |
26-Apr-2014 16:00
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MarketsCHART OF THE DAY: &lsquo Sell In May And Go Away&rdquoApr. 25, 2014, 7:51 PM
One of the oldest &ldquo rules&rdquo on Wall Street is &ldquo sell in May and go away.&rdquo Based on some rough historical observations, someone decided that it might be a great idea to stay out of the stock market between May and some time in the fall. FBN Securities J.C. O&rsquo Hara ran the numbers for the past 20 years and charted the returns. &ldquo The majority of the time the market was unimpressive over those summer months,&rdquo he said. &ldquo The majority of the markets returns were housed in the first model that was long the months into May and the months after Sept.&rdquo Of course, history is at best a guide, not gospel. &ldquo As we approach May we are not in the SELL camp yet, but rather acknowledge the fact that a volatile, sideways moving market is what history implies,&rdquo said O&rsquo Hara.  
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JustGreat
Senior |
26-Apr-2014 13:43
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Looks like the world tensions are just nice for the " sell in May and go away" saying to be fulfilled again.  I will be looking to short the market in coming days. |
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victortan
Elite |
26-Apr-2014 13:26
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and if we are holding solid mid cap, why sell, shd be looking to acc more. market crash got nothing to scare,  except a sign to buy more, rahter   then a sign to get out .
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victortan
Elite |
26-Apr-2014 13:17
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and while waiting, we collect div for solid mid cap ,like my NSL, chipES and some. |
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victortan
Elite |
26-Apr-2014 13:16
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Thus it is always gd to have some spare cash , insist of selling we buy more when mkt come down will be a better way to profit. |
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victortan
Elite |
26-Apr-2014 13:14
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and end up chasinng if EM soar later like i read about them, it could very well be true, bacause EM has underperfoem the dow for a long time, may play catch up this yr, who knw? |
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victortan
Elite |
26-Apr-2014 13:12
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sell in May, then when u buy back? What if u have to buy back more expensive?
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Octavia
Supreme |
26-Apr-2014 12:45
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Sell In May???As readers will recall  of what equity performance this month was supposed to look like, at least based on historical data, April was supposed to be the best month of the year.
Sadly for the bulls, it has been anything but. That' s the good news. The bad news is that as most know the old saying " sell in May and go away" , there is nothing but pain for the next six months. As FBN' s JC O' Hara explains, the &ldquo Sell in May&rdquo slogan heard around Wall Street has some truth behind it. The gist of the saying suggests it&rsquo s better to be out of the market come May and re-enter during the fall months. We ran the numbers over the last 20 years and found validity to the statement. We created a model that went long the market Jan, Feb, March, April, Oct, Nov & Dec. as well as a second model that went long the market May through Sept 30. We concluded that the May &ndash Sept time period model, on average over the past 20 years, would have lost you money. The majority of the time the market was unimpressive over those summer months. The majority of the markets returns were housed in the first model that was long the months into May and the months after Sept. While there were instances where May &ndash Sept was negative, the risk adjusted returns suggests investors do not necessarily need to exit the market but should expect flat markets with little if any of the yearly gains coming during this time period. The real money was made during other 7 months of the year. As we approach May we are not in the SELL camp yet, but rather acknowledge the fact that a volatile, stagnant, sideways moving market is what history implies. Over the next few pages of this report we examine the past 20 years and highlight where the majority of returns are found. Naturally, all of the above implies that rigged, centrally-planned markets are even remotely comparable to normal historical markets, and trade paterns. They aren' t. Still, for those who are curious what the infamous Sell in May phenomenon looks like, here it is: |
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GorgeousOng
Supreme |
26-Apr-2014 12:24
Yells: "Hehehaha...enjoy life n live to the fullest..." |
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Expect the unexpected!!! |
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JustGreat
Senior |
26-Apr-2014 11:16
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But I think the banks and property counters will drag down the index and they are quite heavy-weight in STI. And it also happened that STI has had quite a good run recently, so may take this chance to retreat. Broad market wise will have to be sector specific.
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victortan
Elite |
26-Apr-2014 10:58
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I bet to differ, sti will go up. buffer by our gd manufacturing data, If happen before , it will happen again on Monday. But anyway , it will affect blue mostly if it did, but mid cap will still soar,  
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JustGreat
Senior |
26-Apr-2014 07:40
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STI will likely open around -0.4% -0.5% on Monday. | ||||
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teeth53
Supreme |
26-Apr-2014 07:04
Yells: "don't learn through life, learn to grow with life " |
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Short term - Eu may hav to pay more for gas bill.... 3 risks from the Ukraine crisis What happens next could have a big impact on Russia' s economy, energy exports and Europe. http://money.cnn.com/2014/04/25/investing/russia-ukraine-risks/index.html?iid=Lead
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teeth53
Supreme |
26-Apr-2014 07:01
Yells: "don't learn through life, learn to grow with life " |
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AS Russia pull out of Apple n facebook, the Apple is doing something to pop up their shares using their own reserve$.
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teeth53
Supreme |
26-Apr-2014 06:56
Yells: "don't learn through life, learn to grow with life " |
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This a good opportunities for G-20 and they  play a more important role in world economy...especially in regional bourses here. teeth53 thot - The Alibaba effect will rub off into successful IPOs effect..in regional bourses here. Russia' s richest man Usmanov sells Apple and Facebook to buy Alibaba....Russia biggest billionaire has bought shares in Chinese internet retailer Alibaba. The Russian  is selling his stakes in US tech giants Apple and Facebook. Usmanov, 60, Founder of Russia iron ore Metalloinvest holding Co, has an estimated fortune of $18.6 billion as of March 2014 and is increasing his bet on China, while selling American assets. Chinese companies account for about 70% to 80% of the portfolio of our foreign internet investments, Ivan Streshinskiy, head of Usmanov asset-management company USM Advisors LLC, told Bloomberg in an interview in Moscow. In the last few mths., Usmanov sold stake in Apple bought for about $100m last year and prior to Apple sale, the Russian tycoon started a gradual sale of his 10% stake in Facebook bought in 2009. Alibaba, the world 2nd biggest internet Co after Google Inc, is valued at about $200 bil, as Bloomberg cites. The Chinese on-line retailer posted surging sales in the 3-mths through Sept, marking fourth straight quarterly profit. China safe harbor -- As Russia relations with the west sour over Crimea referendum and the crisis in Ukraine. Metalloinvest holding would increase its presence in Chinese mkt. China is unlikely to impose any sanctions. So, will likely trade in rubles, yuan, Hong Kong or in Singapore $ dollars. Streshinskiy said. |
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WanSiTong
Supreme |
26-Apr-2014 06:30
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Emerging Stocks Slump as G-7 Agrees to Act Against Russia By Julia Leite and Natasha Doff Apr 26, 2014 4:52 AM GMT+0800
 
Emerging-market stocks fell to a month low as the Group of Seven nations agreed to act against Russia and Standard & Poor&rsquo s cut the country&rsquo s rating. The ruble sank as a surprise rate increase failed to prop up the currency.
The MSCI Emerging Markets Index dropped 1.1 percent to 993.35, capping a second week of losses. The ruble extended this year&rsquo s plunge to 8.8 percent while the Micex Index slumped to the lowest level in six weeks amid concern that higher borrowing costs will hamper growth. Commodity producers including Vale SA (VALE5) and Petroleo Brasileiro SA led declines in Brazil&rsquo s Ibovespa and the real fell the most among 31 major currencies. The G-7 is preparing new measures against Russia, German Chancellor Angela Merkel said, after U.S. Secretary of State John Kerry accused the country of trying to impose its will at &ldquo the barrel of a gun.&rdquo Russia&rsquo s credit rating was reduced to the lowest investment grade at S& P, which said further downgrades are possible, while the central bank in Moscow unexpectedly increased its one-week auction rate to 7.5 percent. &ldquo The overriding theme is Russia,&rdquo Chad Morganlander, a Florham Park, New Jersey-based portfolio manager for Stifel Nicolaus & Co., which oversees more than $150 billion, said in a phone interview. &ldquo There&rsquo s fear of an acceleration of hostility that will impact economic trade. It casts a huge net of uncertainty and the market&rsquo s reflex is to run toward safety.&rdquo The Micex extended this week&rsquo s slide to 5.6 percent in Moscow as OAO Magnit, Russia&rsquo s largest retailer, tumbled 4.2 percent. The ruble weakened 0.8 percent against the dollar. Military ExercisesDiscussions by the G-7 accelerated after Russia renewed military exercises on Ukraine&rsquo s border. The European Union is preparing to impose sanctions against an additional 15 Russians in positions of power after the weekend, a diplomat said. Today&rsquo s interest-rate decision by Russia&rsquo s central bank came as a surprise after 22 of 23 economists in a Bloomberg survey forecast no change. &ldquo What we&rsquo re seeing now is a pretty permanent exodus from Russia and it will be very difficult for the central bank to fight it, because a consequence of this is a further drop in economic activity,&rdquo Lars Christensen, chief emerging-market analyst at Danske Bank Danske Bank A/S in Copenhagen, said by phone. &ldquo They frankly seem quite desperate in their actions.&rdquo Brazil&rsquo s Ibovespa posted its first weekly decline since mid-March as Vale, the largest iron-ore producer, sank 2.3 percent. Oil company Petrobras snapped a two-day rally. The real dropped 1.3 percent as the central bank refrained from calling an auction to roll over foreign-exchange swaps, adding to speculation that it&rsquo s easing support for the currency. China&rsquo s stocks fell, sending the benchmark index to its steepest weekly loss in three months, after the nation&rsquo s biggest liquor maker reported slowing profit growth and concern grew that new share sales will divert funds. The yuan slipped for a sixth day to the lowest level since October 2012.   |
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WanSiTong
Supreme |
26-Apr-2014 06:28
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Stocks end week in red as tech gets hammered
Click the chart for more markets data. Investors just couldn' t keep that loving feeling going at the end of the week, and techs bore the brunt of the cooling off.The Nasdaq dropped 1.75%, while the Dow fell 140 points and the S& P 500 also ended lower. The sell-off came as investors questioned whether key companies like Amazon (AMZN, Fortune 500) are growing at the pace Wall Street likes to see. There were also renewed concerns about turmoil in Ukraine. The major indexes gave up gains from earlier in the week and ended the week with losses. It was the eighth straight week that the S& P 500 alternated between weekly gains and losses, according to Ryan Detrick, a strategist at Schaeffer' s Investment Research. Call it the " Spring Swivel" . The latest reading on CNNMoney' s Fear & Greed index shows sentiment is still languishing in " fear" mode. In geopolitical news, senior government officials told CNN that the U.S. could impose new sanctions on Russia for failing to take steps to reduce the tension in eastern Ukraine. Sanctions would target key allies of Russian President Vladimir Putin, high-profile oligarchs and possibly companies. Even without additional sanctions, Russia is struggling economically. Standard & Poor' s downgraded Russia' s credit rating to one step above junk status, and the country was forced to raise its interest rate from 7 to 7.5% since its currency is dropping sharply. This was the second increase in two months. Related: 3 risks from the Ukraine crisis European indexes finished mostly lower, with Germany' s DAX falling 1.5%. Germany is Russia' s largest trading partner in Europe. New sanctions would hurt both economies. Most major Asian markets finished the day down as well.   |
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