Tag archive: stock market

Trouble in Eden? Apple Stocks Drop

Yes, Apple stock prices have experienced a few ups and downs since the announcement of the upcoming iPhone X with certain details seemingly leaving investors not so confident in what Apple are about to bring to the table, and when. But, according to CBA, Apple stocks usually rise or fall the day of their product announcements then drops just after the launch before gaining traction a few weeks post launch and holding fairly steady from then on. Since the stocks have dropped by 0.90%, they’re still within the predictable ‘OK’ area and seem to be following the pattern so far.

Since most have forgone replacing their devices in anticipation of the upcoming Apple launches so spirits and stocks were at a predictable high withe with the announcement of the new Apple watch but dropped after the announcement of the iPhone 8 and extensive leaks of the iPhone X. Factors such as the questionable new features like the facial recognition and the potential security issues it implies, rumours of production delays for the new OLED screen and the launch delay until the next fiscal year, seem to be major contributors to the stocks’ recent drops.

Nonetheless, Apple is a brand that has built itself into a brand well known for its exclusivity with a very loyal market, often implied whenever you here ‘Apple user vs Android User’. The ‘us and them’ mentality has always been a subtle yet convincing selling point for them and there is no doubt that the queues for the iPhone 8 will still be as long as ever, with crazy campers and maybe a broken screen more.

 

Stockmarket: ASX Finishes in Red for the First Time in 2017

ASX has finished in the red for the first time in 2017, due to falls in big banks, unstable oil prices and decline in investor confidence.

While brent crude strengthened by the end of the trading session to $US55.05 a barrel, fears that the OPEC-led deal to cut production might not be implemented properly by its participants diminished investor confidence.

The benchmark S&P/ASX 200 Index and the All Ordinaries Index each dropped 0.8 per cent to 5760.7 points and 5813 points respectively. Investors sold out of every sector, with banking receiving the most impact. Commonwealth Bank of Australia fell 0.5 per cent, as Westpac declined by 0.8 per cent. National Australia Bank was down 1.2 per cent and ANZ Banking Group dipped 1.5 per cent.

The US dollar also weakened as the post-election euphoria winded out. “The US dollar appears to have entered a consolidation phase since last week after a period of market optimism associated with prospective Trump policies,” NAB economist Vyanne Lai said. As a result, the Australian dollar rose 0.6 per cent to US73.72¢.

stock market

What is Stock Market, and Should You Join?

It is a popular new year resolution, but investing in a stock market could indeed be an overwhelming decision for beginners – is it the right choice, and how can you get profits out of it? Here are a few explainers to help you start.

What is a stock market?

Investopedia defines stock as “a share in the ownership of a company”. Stock market acts as a platform where buyers and sellers exchange securities, such as shares and derivatives.

The price of stocks changes according to current demand and supply level. Depending on your investment goals, you could hold shares for a few weeks (swing trading) or buy and sell quickly after a day or less (intraday trading).

Is stock market right for you?

If you are risk-averse, probably not. The dynamic of stock market involves constant changes, and it would suit you only if you are comfortable with a level of risk.

Stock markets also work best for patient investors, whose judgments are not easily clouded by fear or greed. Sometimes it is best for investors to hold rather than quickly sell in hopes of great returns, which could induce panic and trigger bad decisions. Investors should also research the company properly before buying in instead of depending on big names. By learning about the company, investors will be able to analyse and expect changes in the market better.

 

For more information, head to ABC, Investopedia, and the Economic Times.

Stock Market Tip: Use Google Trends

What a curious thing the stock market is; so powerful, yet so flighty. Like a school of sardines, it moves as one, changing direction nimbly when danger looms or advantage beckons. What it will do next has always been difficult to predict.

But what if you could now – using nothing more than a free, public online tool?

Research published today in Nature Scientific Reports finds that Google search behaviour is not only a clear indicator of movements in the market; it also gives insight into the likely future behaviour of economic actors:

These warning signs in search volume data could have been exploited in the construction of profitable trading strategies.

Mind reading from data mining

Stock market prediction is so difficult, says Warwick Business School researcher and first author Tobias Preis, due to “herding behaviour”.

Investors are influenced by the collective thinking of others in the market, as well as their own personal reasons, so trading patterns in one week are nearly useless for predicting what will happen the following week.

Knowledge is power … and may be highly profitable.
MyEyeSees

To predict the market, Preis says, you need to know what is going through people’s minds before they make their financial decisions – and one way to do this is to see the words they Google.

Data mining tools such as Google Trends and Google Correlate are putting powerful analytical toolkits into the hands of investors keen to parlay a small advantage into a large gain.

As a point in principle, the price of stock in Apple Inc. is seen to positively correlate with search volume, in this recent article from the Harvard Business School.

Twitter feeds are also showing promise as sources of strategic investor information.

This was demonstrated in spectacular form on Tuesday when the hacked Associated Press Twitter account reported two explosions in the White House with US President Barack Obama injured.

Twitter

Associated Press immediately corrected the tweet, but the Dow Jones Industrial Average dropped 143 points in a “flash crash”.

And while the market recovered within minutes, the crash showed just how intertwined Twitter and the stock market are.

Previous work by German economists Dimpfl and Jank looked at whether internet search queries could predict stock market volatility.

They concluded that daily search query data gives clear insight into people’s interest in the market as a whole.

Investors are more active with their queries during times of strong market movement.

Like Preis, they found a rise in investor attention is followed by a period of heightened market volatility.

This was also supported by a group of European researchers who, when studying the American stock exchange NASDAQ-100, found:

Query volumes anticipate in many cases peaks of trading by one day or more.

In other words, there is a correlation between trading volumes of NASDAQ-100 stocks and the volumes of queries related to the same stocks.

The advantage of using real-time data analytics is, of course, that it tells you what is happening right now.

Conventional channels for market data involve lags of several days. Google’s Research Blog notes that

Google Trends … provide a real time report on query volume, while economic data is typically released several days after the close of the month.

Given this time lag, it is not implausible that Google queries in a category like “Automotive/Vehicle Shopping” during the first few weeks of March may help predict what actual March automotive sales will be like when the official data is released halfway through April.

This work is detailed in the paper Predicting the Present with Google Trends.

So how do I make my millions?

The work done so far indicates that using tools such as Google Trends and Yahoo! can yield real-time insight into market sentiment, and that this information can be used strategically to devise profitable trading strategies.

 

What is needed, though, is finer granularity.

If investors could drill down further into the data to discern daily or hourly trends they might well be able to predict a rise or fall in stock prices.

It could also give people warning of impending crises.

With increasing volumes of data on the internet, there is a clear need for tools that can mine this data and be a window into the zeitgeist.

Google Trends, with its access to search data from the most popular search engine, is probably the most powerful such tool currently available.

And if you’re looking for a safe bet, it is highly likely we will see a lot more action in this field in the years ahead.

The Conversation

David Tuffley, Lecturer in Applied Ethics & Socio-Technical Studies, Griffith University

This article was originally published on The Conversation. Read the original article.

Market: Latest Stock Market News – US Election

It has been reported on Monday that international stock markets has risen. With the Dow Jones industrial average increased by 371.32 points, this has suggested positive news for Clinton following the FBI email investigation.

According to an article on CBC, “Investors have been anxious in recent weeks over signs that the presidential race was tightening. Stock markets hate instability, and a Clinton presidency is being interpreted as a continuation of the status quo.”

CBC also reported that “A broader market index, the S&P 500, ended Friday on its longest losing streak since 1980 — nine days in a row — on fears that Republican candidate Donald Trump may ascend to the White House.” There was confidence on Monday as the market with the S&P reaching 46.34 points, to 2,131.52

Phil Blancato, CEO of Ladenburg Thalmann Asset Management has stated that “This is not a rational market. This is a reaction to less uncertainty,” “In those kinds of markets, people are jumping into stocks that they think are cheap. And what are the cheapest right now? Financials and health care.”

For Toronto’s stock market, the S&P/TSX composite index is rising by 143.20 points to just over 14,652.45.

Gold has lost $25.10 US an ounce to hit $1,279.40 US an ounce.

The December contract for light sweet crude dipped by 82 cents, closing at $44.89 US a barrel.

The Canadian dollar rose by 0.17 of a cent to finish at 74.78 cents US.