Archive | 9:25 pm

Federal Open Market Committee statement

30 Jan

Information received since the Federal Open Market Committee met in December suggests that growth in economic activity paused in recent months, in large part because of weather-related disruptions and other transitory factors. Employment has continued to expand at a moderate pace but the unemployment rate remains elevated. Household spending and business fixed investment advanced, and the housing sector has shown further improvement. Inflation has been running somewhat below the Committee’s longer-run objective, apart from temporary variations that largely reflect fluctuations in energy prices. Longer-term inflation expectations have remained stable. Continue reading


Bad news for the markets: US economy shrinked in the last quarter of 2012.

30 Jan

US economyU.S. economy fell by 0.1% in the fourth quarter of last year denying even the most pessimistic forecasts of analysts who estimated an average increase of 1.1%.

Evolution is lower compared to the third quarter, the U.S. GDP increased by 3.1%, and shows that hundreds of billions of dollars that the Fed, the U.S. central bank continues to pump into the economy fail expected to bring economic recovery.

The news brought declines in European stocks while U.S. index futures prices indicate that U.S. markets were open in the fall. After a substantial rally in recent weeks the leading American indices closed to historical highs dated from 2007.

More and more analysts warn, however, that increasing U.S. exchanges is not supported by economic growth. Thus, any indication that the Fed will moderate capital inflows could have negative effects on the capital markets.

Fed ends a marathon monetary policy meeting, which lasted two days and is expected to announce the findings. Markets expect tense press conference with the head of the Fed and investors will weigh every word of it to try to guess which direction the stock prices will go in the next period.

Technical Analysis (Part 1)

30 Jan


What is technical analysis?

Technical analysis is a rather posh name for a very simple concept in trading. It is basically the study of charts on a computer to determine the best areas to invest in a tradable financial instrument, whether it be stocks (e.g. Google, Facebook or Apple), the Forex or currency market (e.g. USD, EUR or GBP) or commodities (e.g. gold, silver or oil). The charts are made up of price movements which comes through as a live data feed over the internet. Traders can see both what has happened in the past and also what is happening in real time, and can choose to see the data on the time frame suited to their trading style. A scalper may use, say, a 1-minute or a 5-minute chart, a day trader may use a 1-hour chart, and a long-term trader would use the daily and the weekly chart. Continue reading

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