Filed Under (Finance Help) by Admin on 18-03-2009
My last commentary for the Crude Palm Oil Futures (FCPO) was two months ago on 13 January when price of FCPO was at RM1,988 . I’d expect the price of FCPO to climb to RM2,400 to RM2,500 of the FCPO can stay above RM1,800. However, in the next two months, the price traded in a sideway range between RM1,740 and RM2,000. The price if FCPO is currently at RM1,902.
The up trend is very well intact because price is above both short and long term 30 and 90 day moving averages. The longer term 90 day average is at RM1,726. However, the strong momentum last month has started to weaken. The ADX indicator has started to decline and the RSI indicator swings stay flat. Average trading volume for FCPO remains the same as last month.
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Filed Under (Hedge Funds) by Admin on 18-03-2009
Bernard Madoff did NOT run a hedge fund. He was a stockbroker “managing” customer accounts. The firm was “regulated” and fraud is already illegal. Few sophisticated investors put any money with Madoff. REAL due diligence ITSELF is an alpha source. PROPER diversification with GENUINE uncorrelated strategies and managers is MANDATORY for risk averse investors.
The Madoff scandal has NOTHING to do with hedge funds. No incentive fees, no prime broker, no proper auditor and no independent administrator. The chart is the Madoff feeder, Fairfield Sentry, versus Gateway, GATEX, a fund with the SAME strategy. Suspicious numbers in the 1990s got worse around 2001.
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Filed Under (Finance Help) by Admin on 18-03-2009
The US market has rallied more than 13 percent after a technical rebound when the Dow Jones Industrial Average (DJI) went to as low 6469 two weeks ago. Yesterday, the DJI rose 178.73 points or 2.5 percent to close at 7395.70 points. Improve housing data led to some investors confidence, causing stocks of homebuilders and banks to climb.
Do not be fooled by thinking that the US market may be out of the down trend. It first need to pass through the 8,000 points resistance level to get out of the bear trend. The down trend of the DJI is defined by a 70 day moving average (see chart) and it is currently at 8,000 points, which was also the previous support level. The momentum of the down trend can only be overcome by a rally above this level. If not, it may just be another pull back of a strong down trend.
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