STOCK WATCH: GOLD ETF, OPTIONABLE ETF

The gold futures chart is still downtrend and so are many metals (see chart captured from Finviz.com on November 20, 2013).

There was a slight rebound middle of last month (October) when most folks thought there will be a tapering of Q.E (Quantitative Easing); supposedly the FED (Federal Reserve, central bank of United States) will stop buying bonds. Now the stocks are still very bullish and gold is bearish. The news are not helpful either. Read this piece from Bloomberg:-

Billionaire hedge fund manager John Paulson, who cut his gold holdings by more than half in the second quarter, maintained his bet on the metal over the next three months as prices rebounded. Global bullion demand tumbled 21 percent last quarter as investors pulled 118.7 metric tons out of ETFs and similar proucts, World Gold Council data show. Billionaire hedge-fund manager John Paulson, founder of Paulson & Co. Paulson’s PFR Gold Fund fell 16 percent in September, bringing the 2013 decline in the $350 million fund to 62 percent, according to a report to investors obtained by Bloomberg News in October. Paulson & Co., the largest investor in the SPDR Gold Trust (GLD), the biggest exchange-traded product for the metal, held 10.23 million shares as of Sept. 30, unchanged from June 30, according to a government filing yesterday. Billionaire George Soros took a stake in the Market Vectors Gold Miners ETF. (GDX) http://www.bloomberg.com/news/2013-11-15/billionaire-paulson-sticks-with-gold-wager-as-prices-rebound.html http://www.bloomberg.com/news/2013-11-17/gold-bears-return-before-yellen-signals-more-easing-commodities.html

So for me, I will buy call or put option, single direction method, base on the trend of the stock (or ETF). Whether the big boys are collecting or holding their positions in these gold ETF, I will base on the chart patterns with technical readings to do my option trades.

For more optionable ETF, see below.

Watch list

How to scan the market with so many thousands of stocks?

Why not try the ETF? But then there are a lot of ETF so which are the ones qualify to buy their options?

Here are some good ones we can watch out:-

INDEX ETF

DIA	SPDR Dow Jones Industrial Average
QQQ	PowerShares QQQ Trust Series 1
IWM	iShares Russell 2000 Index
SPY	SPDR S&P 500

SECTOR ETF
IYR	iShares Dow Jones U.S. Real Estate Index
XRT	SPDR S&P Retail
XLY	Select Sector SPDR Consumer Discretionary
XLE	Select Sector SPDR Energy
XLF	Select Sector SPDR Financial
XLV	Select Sector SPDR Health Care
XLI	Select Sector SPDR Industrial
XLB	Select Sector SPDR Materials
XLK	Select Sector SPDR Technology
XLU	Select Sector SPDR Utilities
COMMODITIES ETF
USO	US Oil Fund
IAU	iShares Gold
GLD	SPDR Gold
SLV	iShares Silver
GDX	Market Vectors Trust Market Vectors Gold Miners

For more information on how to pick stocks or ETF which are optionable as well as would qualify option buying criteria, go to my page here >>

 http://trendtrader-kk.blogspot.com/2012_09_01_archive.html

Hong Kong stock broker

Comparison table of 3 Hong Kong stock brokers:-

click on the yellow shaded names for links to their sites

Company	Commission (electronic trading)	Minimum per transaction
BOOM {Monex Boom Securities HK Ltd}	0.18% per order	HK 88.00
HAITONG {Haitong International Securities Group Ltd}	0.15% per order	HK 100.00
Cashon-line (CFSG) { CASH Financial Services Group Limited}	0.25% per order	HK 100.00

Dow Index members - where to find them?

Check it out from Bloomberg.com, the 30 DOW members.

Check out this link:

http://www.bloomberg.com/quote/INDU:IND/members


It shows the number of up trending and down trending stocks.

So now you can guess the direction of the DOW!

KLSE top 100

Note that w.e.f 24 June 2013, KLCI components will be updated as follow:-

KLCI COMPONENTS w.e.f 24 June 2013 click below for details

KLSE top 100 & high yield

I have been telling my members to trade US or HK markets as they are more lucrative and rewarding. However, many still prefer KLSE so for those Bolihland conservative traders, I have a list of the top 100 market capitalization stocks here for your perusal.
click this link: Top 100 market cap stocks on KLSE   (and download the file).

Also, I have another list of value stocks that are:-

1. high yielding (there are a few hundreds of them on Bursa)
2. not down-trending during such high bullish markets (you will be surprised to see good fundamental stocks that still look bearish)
3. not so volatile (not spike so much)
4. reasonable trade volumes (those nil volumes on some days are taken off the list)
5. continuously making profits and paying dividends for the past few years (not sure will continue to do so in the near future though)
6. Main Board only 

-->> the file: high dividend yield stock list
Go check it out and key them into your watchlist and wait for signals to buy.

You are not sure when to buy?
Go check out T3B SYSTEM web-site:-
http://www.t3bsystem.com/

or contact this office for FREE seminars:-

T3B Malaysia Sdn Bhd

Tel: 603-77281078

Or e-mail: previewmy@t3bsystem.com   

or already a T3B member, then share this post to your friends and let more people learn to trade CORRECTLY!

The traders’ fears

Quotation:

Collective fear stimulates herd instinct, and tends to produce ferocity toward those who are not regarded as members of the herd...Bertrand Russell

The four major fears of traders and investors: fear of losing, fear of missing out, fear of leaving money on the table and fear of being wrong--are really some combination of fear and greed. The bottom line here is that fear is the predator…..Janice Dorn, M.D., Ph.D. 

The quotes above are extracted from the author’s article about emotions in trading stocks. To simplify so that general folks can understand better, I have filled in a chart of SEAGATE (the hard-disk drives manufacturer) the 4 fears. Take a look at the chart below.

Books related to Jesse Livermore

This book is available on Ebay or Amazon for about US$22 to US$25 delivered to your door.
The first part is written by Livermore and the second portion is written by Richard Smitten who explained the trading strategies of Livermore.
 
 


This is the book which is referred to in my previous 2 postings - TRADING PSYCHOLOGY (2) and ABOUT EMOTION IN TRADING.

It is available on Ebay or Amazon for about US$25 delivered to your door.

TRADING PSYCHOLOGY (2)

It is often mentioned that we have to master our TRADING PSYCHOLOGY before we can become successful stock operators; meaning, we have to pay more attention to managing our emotion and patience in order to manage the greed and fear of stock trading.

Further to the last article about this book:-

REMINISCENCES OF A STOCK OPERATOR by Edwin LeFevre
to Jesse Lauriston Livermore

The author LeFevre wrote the book in person of a trader called Larry Livingston, as a nom de guerre for Jesse Livermore who was one of the greatest stock speculators ever. From 14 years old until the day Livermore died, he made a living, became multi rich, bankrupt and rich again through nothing but trading in the stock market as well as commodities. Of course the rules of trading had changed tremendously but the human nature is still the same.

For those finding difficulty to read the book in its entirety, the highlights in the excerpts from the book are as follow:

**********************************************************************************************************

About emotion in trading

The number one in my reading list:

REMINISCENCES OF A STOCK OPERATOR to Jesse Lauriston Livermore; by Edwin LeFevre

Quite many articles been written base on this book about the legend in trading (speculation) of Jesse Livermore, who lived in the early 19 century. However, many members find difficulties and finding time to read this book about this celebrated trader (probably the best of all times).  

Here are some extracts from some of those articles written about this book. At the end of this article is another author who formulated some rules base on this book.

Hong Kong up trending stocks

THIS ARTICLE OUT-DATED (for education only)

Hong Kong stocks have been performing tremendously well for the past few months and some of them outperformed the market very much.
Look at this list:-

Company Code	Company Name	sector
1211	BYD Co (比亞迪股份)	auto
175	Geely Automobile Holdings Ltd. (吉利汽車)	auto
2128	China Liansu Group Holding Ltd (中國聯塑)	construction
3323	China National Building Material Co (中國建材)	construction
3336	Ju Teng International Holdings Ltd. (巨騰國際)	I.T
189	Dongyue Group Ltd. (東岳集團)	manufacturing
2689	Nine Dragons Paper (Holdings) Ltd. (玖龍紙業)	manufacturing
1230	Yashili International Holdings Ltd (雅士利國際)	manufacturing
347	Angang Steel Co. Ltd. (鞍鋼股份)	metal
323	Maanshan Iron & Steel Co. Ltd. (馬鞍山鋼鐵股份)	metal
196	Honghua group ltd. (宏華集團)	oil & gas
3383	Agile Property Holdings Ltd. (雅居樂地產)	property
1109	China Resources Land Ltd. (華潤置地)	property
2007	Country Garden Holdings Co., Ltd. (碧桂園)	property
3900	Greentown China Holdings Ltd. (綠城中國)	property
2777	Guangzhou R&F Properties (富力地產)	property
173	K. Wah International Holdings Ltd. (嘉華國際)	property
808	Prosperity REIT (泓富產業信託)	property
604	Shenzhen Investment Ltd. (深圳控股)	property
1918	Sunac China Holdings Limited (融創中國)	property
435	Sunlight Real Estate Investment Trust (陽光房地產基金)	property
1186	China Railway Construction Corp (中國鐵建)	railway
750	China Singyes Solar Technologies Holdings Ltd (興業太陽能)	solar
2369	China Wireless Technologies Ltd. (中國無線)	telco

These are all strong leaders in their sectors.
(click "read more" to see the charts)