Sunday, November 29

Day: October 5, 2020

Mean Reversion Trading: Is It a Profitable Strategy?
Online Trading

Mean Reversion Trading: Is It a Profitable Strategy?

Almost every trading strategy aims to exploit one of two prevailing phenomena in financial markets: mean reversion or momentum.In a nutshell, mean reversion strategies assume big moves will partly reverse, while momentum strategies assume big moves will continue in the same direction.This article will explain the phenomenon of mean reversion in stock prices.What is Mean Reversion?In mathematical terms, the financial concept of mean reversion is better known as “regression to the mean,” which refers to the likelihood of a deviated dataset to revert back to the mean.In other words, if you flip a coin twenty times and all twenty flips result in heads, if you were to do another 10,000 coin flips, it would be extremely likely for the rate of heads occurrences to regress to nearly 50%....
Britannia to issue bonus debentures and payment of dividend
Stock News

Britannia to issue bonus debentures and payment of dividend

NEW DELHI: Bakery and dairy products major Britannia Industries on Monday said its board has approved issuing bonus debentures and payment of dividend to reward its shareholders in such difficult and unprecedented times due to coronavirus pandemic. The board of the company at its meeting held on Monday approved issue of a non-convertible, redeemable fully paid-up debenture of the face value of Rs 29 by way of "bonus to the Members of the Company" for one paid-up equity share of face value of Re 1 (rupee one) each, by utilising its general reserve, Britannia Industries said in a regulatory filing.Besides, the board has also approved “payment of dividend of Rs 12.50 per every one fully paid up equity share of face value of Re 1 each by utilising its accumulated profits”.Elaborating the...
Price analysis 10/5: BTC, ETH, XRP, BNB, BCH, DOT, LINK, CRO, LTC, ADA
Crypto News

Price analysis 10/5: BTC, ETH, XRP, BNB, BCH, DOT, LINK, CRO, LTC, ADA

A recent report by ARK Investment Management LLC presents a strongly bullish case for Bitcoin’s (BTC) future value. The group projects that Bitcoin’s network capitalization will rise to $1-$5 trillion over the next five to ten years. The asset manager argues that Bitcoin offers one of the most attractive risk to reward ratios and should be included in well-diversified portfolios.However, Blockstream CEO Adam Back believes that the estimation is “conservative” and Back suggested that Bitcoin could rally to a “$1 trillion market cap within 2 years” or probably sooner, implying that each Bitcoin will be worth $50,000.Daily cryptocurrency market performance. Source: Coin360Other than buying and holding Bitcoin for the long-term, some aggressive traders add leverage through Bitcoin opti...
Daily Gold News: Sideways, Still Close to $1,900 Price Level
Commodities

Daily Gold News: Sideways, Still Close to $1,900 Price Level

The gold futures contract lost 0.45% on Friday, as it fluctuated following the recent advances. Recently gold was retracing a rally from around $1,800 to August 7 record high of $2,089.20 in reaction to U.S. dollar advance, among other factors. Then gold has bounced from the support level marked by mid-August local low of around $1,875, as we can see on the daily chart (the chart includes today’s intraday data):Gold is unchanged this morning, as it continues to trade within a short-term consolidation. What about the other precious metals? Silver lost 0.93% on Friday and today it is 0.8% higher. Platinum lost 0.14% and today it is 0.3% higher. Palladium lost 0.10% on Thursday and today it’s 1.5% higher. So precious metals are mixed this morning.Friday’s monthly jobs data relea...
GBP/USD Price Analysis: Cable pushes higher towards 1.30 as soft October 15th deadline looms
Forex

GBP/USD Price Analysis: Cable pushes higher towards 1.30 as soft October 15th deadline looms

GBP/USD trades 0.26% higher on Monday mostly on greenback weakness. There have been some Brexit comments but no real movement yet.GBP/USD 4-hour chartGBP/USD has been inching higher on Monday but this is broadly due to some weakness in the US dollar. EUR/USD is 0.61% higher closely followed by 0.55% in USD/CHF and this means the 0.26% move in cable is less impressive. This could be an important week in the pound as after the weekend's Brexit talks between UK PM Boris Johnson and EU's Ursula von Leyen, the other delegates discussing key issues leading into the rest of the talks. Just today UK PM spokesman said the two parties need to work a quickly as possible to reach a Brexit agreement by October 15th and if gaps on fisheries are to be bridged we need more realism from the E...
Dow jumps 350 points on stimulus optimism as traders monitor Trump’s health
Business news

Dow jumps 350 points on stimulus optimism as traders monitor Trump’s health

U.S. stocks climbed Monday as investors grew more hopeful that lawmakers would reach a compromise on a new stimulus deal in light of President Donald Trump's Covid-19 diagnosis and signs of a slowdown in economic recovery.Monday's gains also came amid indications of an improvement in Trump's health and the prospect that he may be leaving the hospital soon.The Dow Jones Industrial Average climbed 350 points, or 1.3%. The S&P 500 also rose 1.3%, while the Nasdaq Composite gained 1.7%."I think this is more stimulus. I really do," CNBC's Jim Cramer said on CNBC's "Squawk on the Street" on Monday. "This is hope on talks between Secretary Mnuchin and Speaker Pelosi that may be going on now."Trump's illness, as well as a weak September jobs report, highlighted the urgency for furthe...
150,000 Mt. Gox Bitcoin won’t trigger a correction anytime soon
Crypto News

150,000 Mt. Gox Bitcoin won’t trigger a correction anytime soon

There is growing speculation that 150,000 Bitcoin (BTC) from the Mt. Gox trustee could move on Oct. 15. But many factors suggest that is highly unlikely given past records.Between 2011 and 2013, Mt. Gox lost 850,000 BTC in the biggest hacking attack in Bitcoin history. The trustee reportedly has 150,000 BTC to repay users who lost their funds from the breach.Yet, there are many hurdles to undergo before the refunds can be issued. The refund process has been continuously delayed since 2019, and the refunds won’t likely happen anytime soon.The Mt.Gox trustee statement. Source: Mtgox.comWhy is there sudden speculation about the 150,000 Mt. Gox BTC moving?On Jun. 30, the Mt. Gox trustee released a statement on the official Mtgox.com website. The trustee, in charge of redistributing...
EUR/GBP: Close below the 55-DMA at 0.9057 to increase bearish pressure
Forex

EUR/GBP: Close below the 55-DMA at 0.9057 to increase bearish pressure

EUR/GBP needs to close below its 55-day average at 0.9057 to see bearish pressure increase to add weight to the bias of the Credit Suisse analyst team for a stronger GBP. As of writing, the pair rises to 0.9077, up 0.17% intraday on the day.Key quotes“EUR/GBP remains capped at its short-term downtrend and recent highs at 0.9148/58, but continues to hold support on a closing basis from its 55-day average, now at 0.9057. A closing break below here remains needed to see a more concerted move lower within the broader uptrend with support seen next at 0.9026/23, below which can see the 50% retracement of the April/September rally and potentially all the way to the lower end of the channel at 0.8912/08. “Resistance is seen at 0.9125/28 initially, then 0.9148/58. Above here can see t...
Jim O’Neill says his comments on India’s response to coronavirus misinterpreted
Stock News

Jim O’Neill says his comments on India’s response to coronavirus misinterpreted

MUMBAI: Backtracking from his earlier statement that he was thankful the coronavirus outbreak started in China and not in India, British economist Jim O’Neill has now clarified that his comments got misinterpreted and it was not what he meant to convey. “So let me just say it is very unfortunate how my comments appeared in March and I regret after how I said it,” the former Goldman Sachs chairman said in an interview.“What I was really meaning is if you look at the nature of how Indian society is today, particularly the complexities of an urban life and (with) many people (living) particularly in the shanty towns and slum dwellings -- by definition it is difficult to control something like this,” he told ETMarkets.com.In mid-March, O’Neill had said on CNBC he was thankful that the co...
Mastering Technical Analysis and Price Action – Part I: Macro Analysis
Forex, Technical Analysis

Mastering Technical Analysis and Price Action – Part I: Macro Analysis

The technical analysis approach revolves around evaluating and capturing mass psychology and sentiments of market participants. Regardless of which technical indicator or other tools we use, mastering this technique, for the most part, involves analyzing price trends and chart patterns.Most beginner traders look at a chart and use the combination of technical analysis tools to make trading decisions based on a single dimension, often on a single timeframe, without paying attention to the big picture. As a result, when broader trends change or the market enter a consolidation phase, the systems they use cease to generate the accurate entry and exit signal. At this point, the beginner traders scratch their heads and do not understand how a profitable strategy suddenly stopped working.Big...