Oil stay above $63 as the world market rebound

When Wall Street and other stock markets rebounded, the oil prices stay steady between $60-$70.

Oil investors fear that the major economies are heading into recession, they have been taking a cue from the plunging market. A recession will cause a decrease in demand for oil and the pirce will fall further to a record low. There are a lot of bad news around the world, comsumer confidence index falls, every one expected that business conditions to be worsen in the months ahead.

Crude for December delivery rose 7 cents to $63.29 a barrel on the New York Mercantile Exchange. The contract fell 93 cents to settle at $63.22 on Monday.

Dow Jones industrial average rose 171.32, or 2.10 percent, to 8,347.98.

Earlier Tuesday, key Asian stock markets rebounded:

>Japan's Nikkei 225 index, up 6.4 percent

>Hong Kong's Hang Seng index, up 14.4 percent (biggest gain in 11 years)

European stock markets:

>Germany's DAX up 8 percent

>Britain's FTSE 100 up 3 percent.

Prices fell despite an announcement made last week that OPEC (Organization of Petroleum Exporting Countries) would cut oil production by 1.5 million barrels a day. OPEC controls about 40% of global crude oil production, has not ruled out that there will be another cut when it meets in this coming December.

Gasoline fell another 4 cents to $2.629, according to auto club AAA, the Oil Price Information Service and Wright Express. Gasoline prices will continue to fall into the $2.25 to $2.50 a gallon range with the falling price of crude.

How was the Market Indexes after the regional sell-down

Wall Street had a steep sell off Friday, thus sending major market indexes to their lowest levels in more than five years. A grim outlook from Sony helped trigger the selling, and the automaker Daimler added momentum to the drop.

The Dow Jones fell 312.30, or 3.59 percent, to 8,378.95.

The Standard & Poor's 500 index fell 31.34, or 3.45 percent, to 876.77.

The Nasdaq composite index fell 51.88, or 3.23 percent, to 1,552.03.

Singapore's Straits Times Index (STI) plunged 143.39, or 8.3 percent, to 1,600.28.

The plummeting Dow Jones and S&P 500 futures indexes triggered for the sell-down.

ST Index fell 5.6%

Every thing seem so bad lately, and the one day slump on the Singapore market is really a shock to a lot of investors. It was not a surprise to me though, I am still expecting it to fall below 1800 before this November.

Straits Times Index on 6th of October 2008 closed at 2168.32, fell by 128.8. Europe has become the new flashpoint, the investors are worried over the list of ailing European banks that national governments had to prop up.

Nobody knows what will come next. So it is better to be like me, stay away from the market and keep as much cash as possible to yourself.

US fix the credit crunch crisis with US$500 billion

On 19th September 2008, US announced that it will take out US$500 billion (S$717 billion) to fix the credit crunch crisis, by buying the toxic bank assets and hope that it will free up credit markets.

In London, Sydney and New York, regulators have imposed bans on short-sellers who are blamed for aggravating the global market meltdown.

Being a short-seller, one sell shares that he/she does not actually own, hoping to cash in on falling prices.

My opinion is, by saving the credit markets with such a huge amount of money do not solve the core of the problem.

Keep away from the market for small players

There are so many things to worry about in the market:

1) the news on the Lehman Brothers
2) the Fed meeting
3) falling oil prices
4) US about its consumer prices report
5) weak Singapore's non-oil domestic exports
6) Singapore expected to have poor third-quarter growth

Tough Time for Singapore's Market

Singapore stock market will expect more turbulence and STI will continue its downward trend for the rest of the year.

Factors that affecting the weakness of the market:

- It is predicted that Singapore's full year economic growth at 3.2%.
- bad economic environment globally
- High jobless rate of US
- US saving the troubled mortgage giants Freddie Mac and Fannie Mae which own about US$5 trillion of loans (1/2 of all mortgages in the US)
- fast falling commodities sector
- falling oil prices

I would suggest that it is better to keep all your cash and stay away from the market.

Market of the Day

The sliding commodity prices, esp. crude oil, caused the commodity and mining stock a great suffering across the region yesterday. But this morning, almost all major world indices show good sign after FOMC announced that it would keep the Fed funds rate remain at 2%. Most stocks started the day off moving up with out stopping. Asia stocks continue to rally except KLSE.

Instruments traded in the Stock Market

The instruments traded in the stock market are ordinary shares, preference shares, warrants, bonds, loan stocks, options, Unit Trust, etc.

Among all the different securities traded in the market, ordinary share is the most popular securities traded.

Ordinary Shares

When you own some ordinary shares of a company, you are known as a shareholder and you own part of the company. You are entitled to a portion of the profits after deduction of expenses, taxes and payment of debts. The profits you received are known as dividends.

Stock Trading - Red Flags to Look Out For Before You Sell

The primary motivation at the back of every investors mind for buying any stock is profit, whether you choose to sell immediately or wait for a longer time before you sell to access your profit is a matter of choice, a decision I think you should take responsibility for instead of leaving it in the hands of your broker.

There are clues ever present in the capital market that tell you when to sell your stock, when fully understood can save you from loses and can also make you get the benefits for which sake you invested your money in the first place. You have to constantly be on the look out for these red flags or signs that remind you it is high time you bail out of certain stocks in your portfolio.

Let's get you started, shall we!

SELL WHEN YOU REACH YOUR TARGET PRICE
Before you buy any stock, you must settle in your mind by reason of sound facts available to you a target price that you intend to sell your stock for an appreciable return. When you reach your projected price, once you reach your objective that is the best and most reliable time to sell.

SELL WHEN YOU OBSERVE FUNDAMENTAL CHANGES
Changes that affect the fundamentals of a company must be taken very seriously. When you observe that the fundamental of a company is weakening or depreciating in terms of profit capacity, when a company profit potential has reached its peak and it starts declining is time to consider offloading your shares in such a company.

SELL AFTER THE CLOSURE OF REGISTRAR
If you are a stock trader, one who buys and sells stock actively in short durations; you might consider selling after the closure of registrar. If your goal of dividends and possibly bonus scrip in a company has been achieved, in other words, you bought into a stock because you want to avail yourself of the dividends and possibly bonus, after closure date of registrar is a good time to sell, because other stock traders like you will also be selling which can cause the price of the stock to rally down.
The bottom line of stocks trading is acquainting you with the appropriate time to buy a stock and the most suited time to sell, that in my humble opinion is the crux of stocks trading.

Visit: http://stocktradingrevolution.blogspot.com/ for more information.

Article Source: http://EzineArticles.com/?expert=John_Efetobor

Stock Trading - 5 Kinds of Stocks You Must Understand

Basically there are two groups of stocks, preferred and common stocks. Preferred stocks are comparable to bonds because their returns are fixed. Preferred shareholders get first dibs on dividends in good times and in assets if peradventure the company goes under. In other words, the risk of a preferred shareholder is limited, they are mainly interested in dividends. Very few companies issue preferred stock.

When investors talk about investing in stocks, they are referring to common stocks. The vast majority of investors are found in this class, common stockholders take on a few dimension of risk compared to preferred shareholders though common share holders command more voting power at annual general meetings.

The five kinds of stock in discussion fall under common stocks. An understanding of these stocks will greatly enhance your stock trading prospect. I don't know your goal when it comes to investing, one thing I know however is that you will be able to find one among the five stocks that fits your goal and temperament.

GROWTH STOCKS: Are stocks with great potentials for growth, they grow faster than the economy and sometimes than the stock market itself more often than not. The risk level is minimal; investors are attracted to it because they have good earning growth over the long run. Investors in this stock know that over the long term their portfolio is secured.

INCOME STOCKS: Investors who buy into this kind of stocks do so because it doles out a large portion of its profits. Income stocks pay as much as 60% to 80% to investors as dividends compared to other stocks. Income stocks are almost immune to changes in the market because investors are confident that they will receive dividends.

BLUE CHIP STOCKS: Derives its name from the poker game, the blue chips usually have the highest value. They are sector or industry leaders. They are big companies that have been around for a long time, they have strong fundamentals. They pay steady dividends and most times bonus scrip. Though their prices don't grow very much, they are good options for retirement portfolios; they are best suited for the long term.

VALUE STOCKS: Are under priced stocks that has great potential for growth; look at it this way, value stocks sell below their real value which make them very attractive. If you compare the low price of value stocks to its earnings, you will understand why stock traders are attracted to it. They are good options for investors interested in growing their portfolio.

RECURRING STOCKS: These are stocks whose performances are affected by the swings of the economy. When the economy goes up or down a recurring stock responds likewise. Their performance depends on the dictates of the economy; therefore, the best time to invest in recurring stocks is when the economy is performing well.
Your investment options ultimately boils down to you knowing what your goals are in the first place, that way you can hold a combination of these stocks in your portfolio for the purpose of balance.

Visit: http://stocktradingrevolution.blogspot.com/ for more information.
Article Source: http://EzineArticles.com/?expert=John_Efetobor

Although there are some good news from Wall Street and the dip in price of the oil, factors affecting stock market trends are still important look-out for those who wish to enter into the market now. The recent short rally in New York will not push much of the Asia's stock because no one knows what will happen next. It is not wise to risk with out careful research. For those who are new, factors to look out for are:- economic climate, Dow Jones Industrial Index, GDP, commodity prices like crude oil, palm oil, corn, wheat, etc., Interest Rates.

Welcome to my Buy Stocks Now blogspot! You will be able to find useful information on buying stocks.