Tuesday, May 22, 2012

Nasdaq alters IPO procedures after Facebook glitch

Nasdaq alters IPO procedures after Facebook glitch
 Nasdaq OMX Group Inc said on Monday it is changing its initial public offering trading procedures following glitches in Facebook Inc's market debut at the end of last week that prevented some traders from knowing for hours whether their orders for shares had been completed.

The exchange operator said in a note to traders that modifications to its IPO and halt cross application would prevent the problems that occurred on Friday from recurring

Source: Reuters

Facebook stock falls below IPO price

Facebook stock falls below IPO price
After starting troubles and a lackluster debut on Friday, shares of social network giant Facebook fell below the issue price on Monday, its second trading day.

Facebook stock fell as low as US$33 in the first half-hour of trade on Monday before closing at ~US$34.03. That is down 11% from Friday's close of US$38.23.

The stock made its debut on Friday, closing with a gain of less than 1% following technical glitches.

The rather disappointing debut and a sharp fall on Monday have sparked a few uncomfortable questions about the Facebook IPO and its future. May be it was the pre-listing hype about stronger-than-expected investor demand that killed the enthusiasm surrounding Facebook's stock market debut.

Meanwhile, two analysts began formal coverage of the stock on Monday, with mixed reviews.

BTIG Research has set a 'neutral' rating on Facebook, saying that he finds the company’s current valuation “unappealing”.

Susquehanna has set a 'positive', or buy, rating on the stock, with a price target of US$48.

Groupon recovered its losses from Friday, while Zynga and LinkedIn each extended their losses.

Monday, May 21, 2012

EURUSD Technical chart | 21-May-2012

Below is the technical chart of EURUSD, using Doda-Donchian and Doda-Bollinger bands.

EURUSD Technical chart
EURUSD Technical chart

Although both the above mentioned indicators have buy signal, it's better to ignore these signals as this currency pair is trading near high resistance zone.

On the upside, resistance is at 1.2819 and 1.28226. It can kiss these levels in coming trading days. 1.2774 is the immediate support.

Sooner or later, it will resume its downtrend journey.

Friday, May 18, 2012

US bond funds witness highest inflows in five weeks

US bond funds witness highest inflows in five weeks
 The Investment Company Institute data released on 16th May showed that the US mutual fund investors invested most of the new money into bond funds since early April in the latest week as disappointing US economic data and euro-zone worries hurt equities.

The US mutual fund trade organisation said that bond funds saw estimated net inflows of $7.59 billion in the week ended 9th May, the most in five weeks. Domestic and global equity funds saw combined net outflows of $1.29 billion, an improvement from the previous week's outflows of $5.31 billion.

For their part, domestic equity funds saw net outflows of $2.4 billion in the latest week, extending the previous week's $5.5 billion of net outflows. Global equity funds saw inflows of $1.12 billion.

The S&P 500 Index declined 3.4% over the period in response to negative data on euro-zone business activity and fears that Greece would reject an international bailout. Weak figures for both the U.S. services sector and US jobs growth also dragged down markets.

Wednesday, May 9, 2012

DowJones Technical Chart | 09-May-2012

 Below is the technical chart of DowJones, using Ichimoku kinko hyo indicator.

DowJones Technical Chart
DowJones Technical Chart

In the last trading session, DowjOnes has closed below kijun-sen line. That is the first signal of its weakness and suggestiont o book profits and sit on cash. Although it managed to close above kumo, so I'm not suggesting to take short positions here. One can take short positions when it and chikou-span closes below kumo. Will expalin that even also later, as and when happens.

Sell GBPUSD | Technical chart | 09-May-2012

 Below is the technical chart of GBPUSD, using ichimoku kinko hyo indicator, Doda-Donchian and Doda-Bollinger Bands, on H4 time frame.

Sell GBPUSD | Technical chart
Sell GBPUSD | Technical chart

GBPUSD price has already closed below kumo and Doda-Donahian line; thus giving bearish kumo breakout signal. On the upside, resistance will be at 1.6147 and 1.6156 and one the downside, support is at 1.6113.

Friday, May 4, 2012

Facebook unveils IPO price range...Road shows start next week

Facebook logo
 Facebook Inc. has set a price range of US$28 to US$35 per share for its initial public offering (IPO). The world's leading social networking company plans to sell 180mn shares in the public offer that is due to hit the markets later this month.

Facebook has also increased the maximum size of its offering to US$13.6bn, up from US$5bn earlier.

The company filed updated IPO papers on Thursday afternoon with the Securities and Exchange Commission (SEC).

Facebook is expected to begin the road show next week and the stock is expected to begin trading on May 18, according to a report in The Wall Street Journal (WSJ). Facebook is planning to list its shares on the Nasdaq Stock Market under the ticker symbol “FB.”

The IPO could take the eight-year-old Facebook's total market value to ~$75bn. That would put Facebook ahead of PC giant Hewlett-Packard Co. as well as eBay and Yahoo!. Google has a market cap of ~US$200bn while Amazon.com boasts of a market value of a little more than US$100bn.

An additional 157.4mn shares will be sold by Facebook insiders through the IPO. The company will not receive any proceeds from these shares.

Company insiders planning to sell shares in the IPO include Mark Zuckerberg, Facebook’s co-founder and CEO. He plans to sell 30.2mn shares.

Facebook’s other two top officers - Chief Operating Officer Sheryl Sandberg and Chief Financial Officer David Ebersman - do not plan to sell shares in the offering, according to the SEC filing.

Other big sellers include venture-capital and private-equity firms, including Accel Partners, DST Global Limited, Elevation Partners and Greylock Partners.

Board members James Breyer of Accel Partners and early Facebook investor Peter Thiel plan to sell 38.2mn and 7.7mn shares, respectively.

Other notable insiders selling shares include Mark Pincus, chief executive of social-game maker Zynga and LinkedIn Chairman Reid Hoffman.

Microsoft will sell ~6.5mn shares - or about 20% of its holdings in the social network.

Facebook had revenue of US$1.06bn in the first quarter, up 45% from the same period last year. Net income fell by 12% during that period to US$205mn, as operating costs nearly doubled. The company has more than 900mn monthly active users.

Nearly a dozen Wall Street firms are participating in the Facebook IPO.

Lead underwriters are Morgan Stanley, JP Morgan and Goldman Sachs.

Tuesday, May 1, 2012

Sell GBPJPY | Technical chart | 01-May-2012

 Below is the technical chart of GBPJPY, using Ichimoku indicator.

Sell GBPJPY | Technical chart
Sell GBPJPY | Technical chart

The price is trading below kumo on H4 time frame chart at the time of writing this article. If it closes below kumo, one can take short sell in this currency pair for the first of target of 128.43, from where it should bounce back little.

Book Profits in Yes Bank | Technical Chart | 01-May-2012

Below is the technical chart of Yes Bank, listed on Indian stock exchange, using Ichimoku kinko Hyo indicator.

Book Profits in Yes Bank
Book Profits in Yes Bank

Yes bank technical chart clealry shows to book profit in it. The price is rising in weekly chart but kijun-sen line is flat. The expected price movement of this share has been drawn in the above chart. Near term target is Rs.309. Even on daily chart, the price has entered inside kumo i.e. no-trade zone.

Buy Wolverine Worldwide | Technical Chart | 01-May-2012

Wolverine Worldwide
 Below is the technical chart of wolverine world wide, listed on NYSE, using ichimoku kinko hyo indicator.

Buy Wolverine Worldwide | Technical Chart
Buy Wolverine Worldwide | Technical Chart

Its stock price has already closed above kumo @39.35; so is the Chikou-span (CS) line. Thus, giving bullish breakout signal. One can surely buy this stock even at current price with a stop loss of 37.85

Tutorial on Moving Average Convergence/Divergence (MACD) indicator |Part 1

 A trend-following momentum indicator that shows the relationship between two moving averages of prices. The MACD is calculated by subtracting the 26-day exponential moving average (EMA) from the 12-day EMA. A nine-day EMA of the MACD, called the "signal line", is then plotted on top of the MACD, functioning as a trigger for buy and sell signals. 

 There are three common methods used to interpret the MACD:

1. Crossovers - As shown in the chart above, when the MACD falls below the signal line, it is a bearish signal, which indicates that it may be time to sell. Conversely, when the MACD rises above the signal line, the indicator gives a bullish signal, which suggests that the price of the asset is likely to experience upward momentum. Many traders wait for a confirmed cross above the signal line before entering into a position to avoid getting getting "faked out" or entering  into a position too early, as shown by the first arrow.

2. Divergence - When the security price diverges from the MACD. It signals the end of the current trend.

3. Dramatic rise - When the MACD rises dramatically - that is, the shorter moving average pulls away from the longer-term moving average - it is a signal that the security is overbought and will soon return to normal levels.

Traders also watch for a move above or below the zero line because this signals the position of the short-term average relative to the long-term average. When the MACD is above zero, the short-term average is above the long-term average, which signals upward momentum. The opposite is true when the MACD is below zero.

In principle, using a tool that spots a stock's momentum makes good sense. This may be why so many new traders gravitate towards a technical analysis strategy that employs a momentum-spotting tool called moving average convergence divergence indicator, or MACD for short. It usually doesn't take long for that trader to realize the drawbacks can be as potent as its advantages.

That's not to say MACD lines shouldn't be used; they just shouldn't be used without understanding their shortfalls.

What Is MACD?

In simplest terms, a moving average convergence divergence indicator (MACD) is a group of dynamic lines used by technical analysts, or traders who specialize in using a stock chart's history to predict its future. The MACD indicator usually consists of at least two lines (a lead line and a lagging line), and sometimes a third line (usually a histogram) is added as well.

Since a trader does not need to understand the formula or calculation to use the tool, the mathematical details will be omitted here. For those inclined however, the formula is readily available through numerous Web-based resources.

The 'lead' line, generally speaking, moves up and down a centered (at a zero line) graphical plot, and is largely reflective of the movement of stock or index it is being applied to.... meaning when the stock or index chart is rising, so too is the MACD line. The stronger or faster the stock or index moves, the steeper the lead MACD line.

Tutorial on Moving Average Convergence/Divergence (MACD) indicator
Tutorial on Moving Average Convergence/Divergence (MACD) indicator

Sell EURJPY | Technical Chart | 01-May-2012

 Below is the technical chart of EURJPY using Doda-Donchain and Doda-Bollinger Bands indicator.

Sell EURJPY | Technical Chart
Sell EURJPY | Technical Chart

Both Doda-Donchian and Doda-Bollinger bands have given sell signal in this forex currency pair @106.806. Major resistance level is 105.85 and support levels are  at 105.71 and 105.11

Doda-Donchian ver 2.0 Released

 Based on the feedback and some pending features, I'm releasing Doda-Donchian version 2.0 today. Showing sample chart of EURUSD on ti...