This category contains 17 posts

The Low-Down on LIBOR

Most people are not clear what exactly LIBOR is. Here’s a quick primer in a FAQ-like format. Who Administers LIBOR? LIBOR (London InterBank Offered Rate) was previously administered by the British Bankers’ Association (website here), and was handed over to Intercontinental Exchange (ICE) Benchmark Administration (IBA) on January 31, 2014 (website here). How Is LIBOR … Continue reading

Trading Vehicles for the Chinese Market

I was finding out a bit more about a China A50 ETF, and thought it’ll be good to compile a little information. Main Types of Shares for Chinese Companies A Shares Traded on the Shanghai and Shenzhen exchanges. RMB denominated. Off-limits to foreigners, except for Qualified Foreign Institutional Investors (QFII) who are given a limited … Continue reading

Market Timing Using The Coppock Curve Indicator

One of the many indicators used for market timing is the Coppock Curve. You can get that from StockCharts.com and FreeStockCharts.com. The StockCharts.com school has a good article about the Coppock curve here. I would just add my own observations about using the indicator. Construction 10-period Weighted Moving Average of (14-period Rate of Change + … Continue reading

Buy Programs and Sell Programs (Program Trading) in the Markets

If you’ve been trading in the stock market for some time, you might have had some questions of this nature: Most stocks have very similar intraday price action patterns as the index (unless there are stock-specific news or events). Why is that? Can the scale really be due to “manual trading”? If the big boys … Continue reading

Options Expiry and Max Pain

Read an interesting blog post (link here) that highlighted two nuances about options expiry While options stop trading at 4pm on the 3rd Friday of the month, they technically expire only at 12 noon on Saturday. Brokers have their own policies on automatically exercising options that are ITM.However note that since stocks still continue trading … Continue reading

Futures Contracts for Major Stock Markets

I’ve been doing a bit of research on the common futures contracts traded around the major markets. Have listed what I found below, and will add to it as I dig up more information. This post is mainly meant for my own reference as I try to narrow down the contracts that are good to … Continue reading

ETFs on Europe

Was reading some info on ETFs on Europe, might be something good to monitor to get a sense of the price action in European equities. I have categorized some of the ETFs below. If you look through a couple of their charts, you would see that many of them have bounced off the same bottom … Continue reading

Difference Between Stop Orders and Market-If-Touched Orders

I noticed that Interactive Brokers have two types of orders that seem to be the same, namely stop orders and market-if-touched orders. Found a good blog entry (link here) that highlighted the difference. Basically two scenarios If you are looking to buy If trigger price > current price, use a stop order If trigger price … Continue reading

Thoughts on the Average Directional Index (ADX) Indicator

I was just reading on the ADX, an indicator that measures “trend strength”. The ADX was developed by Welles Wilder, the same person that developed the Relative Strength Index (RSI). Construction First, ascertain whether the current period went up or down versus the prior period. Instead of looking at Closes, Wilder calculates and compares two … Continue reading

Important SEC Filings for Fundamental Research

Just wanted to list down the few key SEC filings used for fundamental research into companies. Insider Transactions and Holdings Rule Every director, officer or owner of more than 10% of a class of registered equity securities needs to file Forms 3, 4, and 5. Form 3 Initial filing (e.g. IPO). Form 4 Filing before … Continue reading

Renko, P&F, Keltner, Bollinger, Donchian, CCI, ROC

I’ve been seeing various traders use a number of such technical indicators that appear to be similar, hence I did a bit of reading up and noted down some of the key points. Renko vs. Point & Figure Charts Both are very similar except for the following differences (not a comprehensive list) Symbols P&F charts … Continue reading

Book Review of An Introduction to Trading in the Financial Markets by R. “Tee” Williams

I picked up this book because it contained some materials about trade processing (e.g. clearing and settlement). I have always been curious as to the nitty-gritty details of clearing and settlement, and it is one area that I would like to know more about if I have the time. This is a pretty high book … Continue reading

Understanding Futures Fair Value in Pre-Market

Now every day for the U.S. market, people will look at the futures price during the pre-market to gauge whether the stock market will open higher that day, or lower. How that is done is by comparing the futures price with the fair value of the futures. If the futures prices are higher than the … Continue reading

Pocket Pivots and Buyable Gap-Ups

This post covers two buy techniques from Chris Kacher and Gil Morales. They have presented this technique at multiple places, a sample copy of their presentation can be found here. There is a lot more information on the two techniques at their website (http://www.virtueofselfishinvesting.com/), especially at the FAQ section. Pocket Pivots Idea and Characteristic Institutions … Continue reading

Accretive M&A transaction

An M&A transaction is accretive (i.e. EPS of the combined company > EPS of the acquiring company) if the acquirer’s P/E ratio > target’s P/E ratio. This is for the situation where the full consideration is paid by issuing new shares in the acquirer. This also assumes that the earnings of the combined company is … Continue reading

Industrial Revenue Bonds

Some cities/states offer Industrial Revenue Bonds (IRB) to encourage investments. How it works: A city issues the bonds to finance the building/buying of a facility/land/equipment. Using the bond proceeds, a company builds/buys the facility/land/equipment. However, the title of the facility/land/equipment is owned by the city. The city leases the facility/land/equipment to the company for say … Continue reading

Difference between Stock Splits and Stock Dividends

They are essentially the same. In both cases, each shareholder receives a certain number of new shares free of charge, whereby the stock price is reduced accordingly. The total shareholders' equity remains the same. Cash remains the same. In the case of a stock split, each old share is split into a number of new … Continue reading

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