US Dollar Continues Drop, FTSE Down For 5th Day

Published by Filipe R. Costa on Wed, 18/05/2011 - 10:23
us dollar drops again

Market commentary for May 17th: The FTSE 100 ended 2010 worthing 5,899.90 and is now valued at 5,861. The index was not able to mark much more than a 3% gain and has erased every cent so far. The last five sessions were all negative and the index ended just three of the last ten sessions in green.

Housing Data Continues to Disappoint

Published by Filipe R. Costa on Tue, 17/05/2011 - 15:53

US Housing Starts unexpectedly fell in April to 523,000, a drop of 11% from prior month and below the mean forecast of 569,000. Building Permits fell 4% to 551,000 and was also reported below expectations that were held at 590,000. More than 2 years after the US economy bottomed, the home construction market is still struggling to recover.

Spread Betting Providers Initial Margin Requirement Comparison

Published by Filipe R. Costa on Tue, 17/05/2011 - 12:37
margin call

Sometimes it is useful to use margin to the limits, especially when we trade indices and forex markets and when we are trading with just a few pounds. Not being able to open positions when there is money in our account is frustrating. Cut The Spread investigated initial margin requirements across spread betting providers identifying the best places to trade.

Strauss Can Stress Markets

Published by Filipe R. Costa on Tue, 17/05/2011 - 10:47
Strauss-Kahn arrest

Market commentary for May 16th: The British main index started the day slumping by near 1% after the news of arrest of IMF chief executive Dominique Strauss-Kahn. Such arrest was perceived as a potential problem in the solution for the Greek debt, weighing negatively on European markets.

Friday 13th Scares Investors

Published by Filipe R. Costa on Mon, 16/05/2011 - 10:26
friday 13

Market commentary for May 13th: The most superstitious were right. Last friday was a good opportunity to be out of the equity market. A Friday together with the number thirteen could not be a good recipe for the bulls. Equities in the UK were down 0.32% to end the week at 5,925.9, losing 50 points since Friday 6th.

One Extra Reason To Use a Stop Loss Order

Published by Filipe R. Costa on Fri, 13/05/2011 - 12:31
stop loss

There are many reasons to use a stop loss order. The main idea behind them is to avoid losing more than you can afford or more than it is recommended in a single trade or bet. Risk management and portfolio rules dictate that we should go out of losing bets at some point instead of letting them roll until our funds are completely burned out.

Down or Up? Which Way To Go?

Published by Filipe R. Costa on Fri, 13/05/2011 - 11:07
up and down

Market commentary for May 12th: FTSE closed down on oil and metals drop. Dow closed up on oil and metals recovered. It's interesting how things change from morning to evening. Equity markets started the day in red yesterday. FTSE was as low as 5,880 and recovered to 5,945 but still closing down 0.52%.

Euro Slides, Equities Continue Decline

Published by Filipe R. Costa on Thu, 12/05/2011 - 10:51
inflation concerns

Market commentary for May 11th: The day was not really good for equities yesterday with FTSE losing ground again closing at 5,971, 0.71% lower. After this change, the index is up a pale 1.29% this year so far. In the US, investors were not luckier and saw the Dow losing 1.02% to close at 12,630.03.

Microsoft Buys Skype For $8.5bn

Published by Filipe R. Costa on Wed, 11/05/2011 - 11:31
microsoft-skype deal

Market commentary for May 10th: Microsoft certainly marked the day announcing plans to buy Skype in an all-cash transaction of $8.5bn, the most expensive Microsoft acquisition. Facebook and Google, potential interested parties are now out of the game. Steve Ballmer plans to grow the 600 million users Skype already has by integrating the service into Outlook, xBox and other Microsoft products.

Greece is Weighing Heavily on Euro

Published by Filipe R. Costa on Tue, 10/05/2011 - 09:38
greece cartoon

Market commentary for May 9th: The euro continues under pressure on rumors Greece may want to leave the Eurozone. Even if it does not, it is now certain the country will need a second bailout package to meet all its debt obligations. Adding to existing problems, S&P credit agency reduced its view on Greek long-term sovereign debt further into junk territory from BB- to B.