Archive for June, 2009

Implied Volatility

June 24, 2009

Implied volatility is the volatility calculated from an option’s price. It does not necessarily have anything to do with historical volatility. Implied volatility reflects market participants’ view of risk, the riskier they believe the market is, the higher implied volatility is. Implied volatility is usually low during bull markets when participants are complacent and high [...]

Visibility

June 24, 2009

The degree to which future prospects can be projected. This is often used in connection with corporate earnings. A CEO may say earnings have low visibility for the next quarter, which means he probably has no idea or little idea how earnings will be the next quarter.

Vanguard Exchange-Traded Funds

June 24, 2009

Vanguard was an innovator in the index fund field, the Vanguard ETFs are a class of ETFs offered by Vanguard which track major underlying stock market and industry/sector indices.

US savings bonds

June 24, 2009

US savings bonds are offered at a fixed rate of interest over a predetermined time period. They are different from Treasury securities because US savings bonds are not easily transferable and are non-negotiable. However, they are popular due to their exemption from state and local taxes.

US Dollar Index

June 24, 2009

The US Dollar index measures the value of the US Dollar compared with the currencies of its major trading partners. An investor can view the current trend of the USD by charting the US Dollar Index.

Triangle

June 24, 2009

Triangles are chart patterns formed when trendlines drawn on a price range give off the appearance of a triangle as the area between the trendline gets narrower and narrower. There are many types of triangles and they are considered consolidationg patterns.

Trendline

June 24, 2009

A trendline is a line drawn to help determine the direction of the current trend.  It is usually draw by connecting the succesive troughs or peaks in a security’s price. The price usually tests the trendline, and if it breaks above it, it is thought to be a signal of a reversal in the trend.

Trend Trading

June 24, 2009

Trend following is a popular trading strategy which attempts to capitalize on the existence of trends. Trend followers typically try to enter into a security at the beginning of a trend predicted by some method, and follow the trend until there’s a reversal signal.
Trend followers typically have a few big winners and lots of small [...]

Trend Analysis

June 24, 2009

Trend analysis is a field in technical analysis which tries to analyse and determine the current trend in a security/economic indicator’s price to predict future price movements. Stocks in an uptrend are thought to be in an uptrend until they reverse and vice versa for stocks in a downtrend.
There are many ways to perform trend [...]

Trend

June 24, 2009

Trend refers to to a general direction in the price of a security(or interest rate or economic indicator).  Trends can be short term or long term, depending on the time frame used.  There are uptrends and downtrends and the term is usually used to describe a movement in the market that lasts for months or [...]