Trading Expansions of Range and Volume
Equity market cycles provide opportunity in every phase of liquidity. The greatest possibilities are evident when expansion-of-range-and-volume (XRV) price activity propels a stock rapidly higher or lower. XRV moves occur when institutions have directed their traders to buy or liquidate large equity positions. The stock in trade overwhelms supply or demand, pushing price in a rapid directional move higher (in the case of buying), or lower (in the case of selling). The resulting XRV chart pattern affords traders the opportunity to capitalize on institutional activity, which tends to continue over the course of several trading sessions.
Steve Ruffley is a professional market strategist and trading mentor. He has been involved in financial markets for well over a decade and is author of the soon to be published “Ruff Guide to Trading” .
Ruffley (@SteveRuffleyInter on Twitter) is the CEO of iViewcharts.com and is chief market strategist and head of education at Intertrader.com where he has presented over 800 live trading webinars over the last four years. He is in the running for FXStreet.com presenter of the year 2014.
Brownfield land developer Inland Homes (INL) has changed its strategy in the past year or so and it is building more homes rather than selling the land on to other developers. That is enabling it to generate additional profit from the land, yet the share price suggests the underlying value of the land is being largely undervalued by investors.
The continued need for more housing in the UK puts Inland in a strong position, particularly as brownfield sites are generally more likely to be favoured in the planning process than greenfield ones.
Britvic PLC BVIC is the company behind famous soft drink brands such as Robbinsons, R Whites Lemonade and Tango. It also has lucrative long-term agreements to manufacture, market and sell PepsiCo branded soft drinks such as Pepsi and 7Up.
That combination makes it one of the most defensive yet fast growing companies in the UK today. However, despite its attractive features I won’t be investing in the company just yet.
The Chinese Lunar New Year begins on 19 February, when the year of the Horse comes to an end and 2015's year of the Goat begins. We look at a new special report from CMC market strategist Colin Cieszynski that looks at historical data comparing the year of the Horse and the year of the Goat.
Cieszynski examines three key areas and outlines what this could mean for stock markets around the world in the year ahead. This report focuses on: historic market returns for the year of the Horse and the year of the Goat, the outlook for commodities and key stock markets as during the year of Goat, the role central banks around the world are playing in spurring growth, Chinese years and market returns.
One is a more volatile option for a short-term tryst, one is better suited to settling down for richer for poorer, and the third is undergoing a tough time at the moment and probably just needs a little time.
Jens Rabe is a noted trading coach in Germany, who specialises personally in options writing. Here, he is interviewed on how he started trading and how he developed his skills in order to leave work and trade on his own full time.
He first made a trade on the markets in the 90s when the dotcom frenzy was building up around the world, with his own interest being sparked while feeling bored doing his national service in the German army.
A multi-strategy note from analysts at Morgan Stanley has outlined the implications for the markets after the European Central Bank’s announcement of quantitative easing.
The announcement by ECB president Mario Draghi that the central bank will purchase €60bn per month of debt from euro-zone governments, agencies and institutions for at least the 18 months from March 2015 went "beyond market expectations" and the bank's own forecasts and should therefore be viewed as a "positive surprise", Morgan Stanley said.
Share price weakness at Iomart (IOM) following a failed bid approach and a disappointing interim statement offers investors a buying opportunity. The cloud computing and managed hosting services provider has good growth prospects and is a strong cash generator.
Iomart offers managed hosting, co-location, content delivery networks and cloud computing services. It owns its own physical network infrastructure, including eight data centres. The vast majority of revenues are recurring.
2015 has started in a similar fashion to the way 2014 ended. The same stocks that were heavily beaten down towards the end of last year are seeing further selling as the new year gets into full swing.
No prizes for guessing which ones are suffering – miners and oil companies (and the associated oil services firms). Oil started the year on the back foot and has kept going, while copper prices have slumped dramatically in recent sessions.
Thu, 1st Jan - * Former group treasurer and head of tax and WM Morrison, Paul Coyle, has been sentenced to one year in prison for insider trading.