Intermediate-level fundamental traders may want to delve deeper into the end markets for particular commodities. For example, strength or weakness in the commercial real estate markets in large metropolitan areas can offer clues about demand for steel and other industrial metals. Similarly, the Cattle on Feed Report released by the USDA shows the future supply of cattle coming on to the market and can offer clues about future beef prices. Once traders become familiar with interpreting the significance of these data points, they can use them to make trading decisions.
The Securities and Exchange Board of India (Sebi) on Friday allowed domestic stock exchanges to extend equity derivatives trading till 11.55 pm, in a move aimed at attracting investors dealing in Indian products on overseas exchanges in Singapore and Dubai. The new timings will also help in better alignment with commodity markets — amid implementation of universal exchanges — which function till 11:55 pm.
We know this because the series is pure chance and what seemed like an inevitable rise or a decline was just the random number generator being... random. This is important to note, because our brains can often read meaning into things when there’s no meaning to be had. In fact, psychologists even have a word for seeing patterns that aren’t there – apophenia.
Note: Morning session takes place between 10:00 a.m. to 05:00 p.m. whereas evening session is between 05:00 p.m. to 11:55 p.m. The timing of evening trading session will be revised twice a year in order to conform to confront to the US daylight savings time. Usually, evening session closes at 11:30 p.m. during the summer and 11:55 p.m. during the winter season.
This is consistent with a J.P. Morgan Asset Management report published in 2016, "Staying Invested During Volatile Markets," which found that around 60% of the biggest single-day percentage gains in the S&P 500 occurred within two weeks of one of its top-10 largest percentage declines between 1995 and 2014. This means even if you're lucky enough to hit the nail on the head once in a while, no one has the foresight to correctly predict every major pop and plunge in these major indexes with any consistency.
“In 2017, the percentage of S&P 500 sales from foreign countries increased slightly, after two years of measured decreases. The overall rate for 2017 was 43.6%, up from 43.2% in 2016, but down from 44.3% in 2015 and 47.8% in 2014, which was at least an 11-year record high. S&P 500 foreign sales represent products and services produced and sold outside of the U.S.“
Earlier last year, Diwali Muhurat trading was conducted on 18 October 2017. A volatile trading session was seen in the stock markets with BSE Sensex and NSE Nifty closing in negative territory. The benchmark Sensex closed at 32,389.96, down 194.39 points or 0.6 per cent whereas the broader share indicator Nifty settled 64.3 points or 0.63 per cent lower at 10,146.55.
If you miss even a small handful of these major moves higher, you can kiss a good portion of your long-term return goodbye. According to J.P. Morgan Asset Management's report, for the 20-year period between Jan. 3, 1995 and Dec. 31, 2014 (including both the dot-com bubble and Great Recession) the S&P 500 returned 555% (9.9% annualized) for those investors who held on and never sold. If you missed just the 10 best days in terms of percentage gains over this more than 5,000-day period, your return was more than halved to 191%.
The chart below shows two hypothetical investments in the S&P 500 over the 20-year period ending December 31, 2017. Each investor contributed $10,000 every year. One investor somehow managed to pick the very best day (the market low) of each year to invest. The average annual return on that investment would have been 9.95%. The other investor was not so lucky and actually picked the worst day (market high) each year. Even with the worst investment timing, the average annual return would have been 7.76%. At the end of 20 years, the cumulative investment of $200,000 had a value of $456,462.
Before we look at tonights charts I would like to take a minute to discuss trading the three X leveraged etf’s. Leveraged etf’s aren’t for everyone as they can be very volatile. These instruments are for those that can take a bigger risk and still come out OK when they go against you. For the average investor a 1 X leveraged etf is all they can handle and that should be fine. When you start playing with the 2 X and 3 X leveraged etf’s your risk factor goes up very fast.
Extended Hours Trading allows investors to act quickly on information that comes out when markets are officially closed. In the past, only large institutional investors could participate in Extended Hours Trading. Thanks to the emergence of private trading systems in recent years, individual investors are now able to trade during extended hours as well.