momentum if you wait for opec you would have missed the main upswing by 25%..The idea is to forsee the future changes in circumstance and put your head on the block...........In the words of Dell Boy...he who dares wins.............
i disagree with you, i've been trading for the past 30 years and only burnt my fingers once by not trusting my technical analysis, and my technical analysis and so SBK shows that it is not yet the right time to buy SOL, nobody here knows what opec will decide next week, may be they increase and then what, look what tito did today most banks discounted no rate cut, and then the baby fell out the bed, luckily the market closed an hour later or the losses would have been more. as technical analysis it is not my job to predict the bottom or the top but to find a good and safe entry point and profitable exit point
Hi Momentum, I am very interested to learn about your trading principles regarding SOL? What are the key signals for you personally on this one? (I think it is important to value other people's strategies - in order to benchmark my own)
my view has no value, i viewed that tito will not cut rates i was wrong, but that is because it cannot be measured and calculated, if you do not own a good TA programme purchase one, if you do not have the money on this platform SBK offers a chart section that has the five most important tools you need to do TA, if you do, learn how to use, the most powerful tool in a TA programme is trendlines, and trade within those trendlines, together with the same tools as what SBK offers for free on this platform, i am now in cash, waiting for better buys, i do not have a mandate like most fund managers
No i am not worried about the TA i want to understand the principal of no rate cut vs. a rate cut and the effect it should have on banking shares. From what you have posted you view that if no rate cut was priced in and there is a rate cut this is negetive. You need to understand basic fundamentals before TA. I thought it was the other way around? If the consenses was no rate cut (which it was not) and there is a cut - this is a major positive? Anybody else?
The market seems have priced in 1% cut (albeit that economists prediced 0.5% cut). A rate cut is good for banks and stocks in general (it means less bad debt pressure from the customers banks lend money to and more growth). Having priced in 1% the Bank shares rallied prior to the announcement. When the announcement of 0.5% came (being lower than what was evidently 'priced' into the interest rate sensitive stocks), they dropped back sharply +-5%.