Web Statistics The Sentiment Trader

Tuesday, 4 April 2017

Bond market sending warning signal to the Trump rally - Bond market sending warning signal to the Trump rally


Bond market sending warning signal to the Trump rally

"Bond market sending warning signal to the Trump rally" 

in the news Bond market sending warning signal to the Trump rally? What this all about..... See below. 

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Sentiment Trader can see Three weeks ago the yield on the 10-year Treasury was above 2.60 percent with the Federal Reserve about to raise rates and various economic surveys indicating confidence surging under President Donald Trump.

But something curious has happened.

The 10-year yield has dropped, trading near 2.30 percent this week as "hard" economic data, such as weak auto sales on Monday, indicate the confidence in a Trump-led economy has yet to translate into a tangible increase in demand.

As the bond market signals worry, stocks have largely held their ground, with the Nasdaq composite index hitting a new high as recently as Monday.

History shows something has to give.

Theoretically, let's say the 10-year yield was to drop another 30 basis points (0.3 percent) to 2 percent in the next month. Using hedge fund analytics tool Kensho, we found there were 35 times in the last decade when the 10-year yield dropped 30 basis points in one month.


The S&P 500, on average, lost nearly 3 percent during those occasions, led by big losses in financials, materials and industrials.

 This is quite interesting. Bond market sending warning signal to the Trump rally? 
Bond market sending warning signal to the Trump rally


With the market near all time highs, and gone frozen, and with investors nervous about the TAX POLICIES FAILING, this is a very interesting time. 

The 10-year yield has dropped, trading near 2.30 percent and will monitor this for our clients, it actually a blessing in disguise we think, and we will update more for our LOYAL members in tomorrows VIP ALERT HERE!

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Monday, 3 April 2017

how to become a successful trader in stock market


how to become a successful trader in stock market

"how to become a successful trader in stock market" 

in the news - how to become a successful trader in stock market? What this all about..... See below. 

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Sentiment Trader realizes There is an age old question amongst traders. That question is based around greed and a wanting to make serious money on the stock market fast. Although being wealthy is a good thing, and a god given right, too many times are people wanting to learn how to trade the stock market profitably, without learning the ropes first. The question really is ‘how long is it going to take before you become a successful trader’?

This is a serious question. But when you start out day trading, or swing trading you probably need to give yourself a time frame and goals otherwise, if you don’t get rich in 2 weeks, you are most likely to quit the game for good. 


One must face the full reality that to become a successful trader, you first need to put the time and effort into learning, and get yourself a mentor. Or someone who is already at a level you wish to obtain yourself. You also have to learn how to be consistent no matter if the market is quiet or volatile. 

Men make good traders. But here is a very important statistic if you are female. Research and study conducted have proven that women actually make better traders then men. Of the study done, 3 out of every 10 males make good traders. But 4 out of 10 females were more successful in pulling a full time income from short term trading. They did also prove that women make better traders than men, due to the obvious fact that they will listen to advice, and they do not let their ego get in the way of learning. 

Studies have also proven that a trader must put in 6 to 12 months before they develop a daily plan, and consistent profit each month. Once you reach that point, you will feel much more confident, and are more likely to see continued success each month. 

Sometimes there will be days, when you will not be able to make a trade. But there is no wasted time, because there is so much skill, and experience one can gather from spending hours, just sitting and watching the markets trade. And when you are not actually practicing your trading, this down time can be used to master your mental game, and the psychology of trading. 

Because in the end, you are not really trading against other investors, in a way the only person you are competing with is yourself. If you are right, that is a move in the right direction, and winners are going to come. 


But what sets a good trader apart from the rest is that sometimes you will mess up and get it wrong, but how long you stay wrong, and when your cut your losses. Some of the best master traders in the world and good at cutting their losses short, and letting the profits run. 


All these skills take time obviously. But as a novice you must realize the more time you put in, the more wealth and experience you will get in time. The key word with all of this is consistency. You have to immerse yourself in trading, or learning, or reading books because in the end the more time you immerse yourself in the stock market trading game or environment, the better you will learn to master your trades as well as your emotions. 



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Sunday, 2 April 2017

Money borrowed to buy stocks hits record - Money borrowed to buy stocks hits record


Money borrowed to buy stocks hits record

"Money borrowed to buy stocks hits record" 

in the news Money borrowed to buy stocks hits record? What this all about..... See below. 

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Sentiment Trader sees that last week, Money borrowed to buy stocks hits record level. Have a look at the chart below, its quite interesting hey!!!....

Money borrowed to buy stocks hits record
Money borrowed to buy stocks hits record

Investors continue to bet big on the Wall Street bull, at a time when stocks are hovering near records but have been unable to break through to fresh peaks.

The latest data from the New York Stock Exchange show margin debt, or cash borrowed to buy shares, hit a record $528.2 billion in February, up from its prior high of $513.3 billion in January.

Borrowing money to buy stocks is a sign that investors remain optimistic the market will continue to rise. Like any form of leverage, such as a home flipper buying a house with, say, a 30% down payment in hopes of fixing it up and selling it at a higher price, there's risk in loading up on stock after taking out a loan to fund the purchase.

Falling stock prices and a resulting drop in one's brokerage account balance, for example, could force investors to have to put up more collateral to meet the lender's requirement. In some cases, the investor will have to sell stocks that are falling in value to raise the cash.

Another yellow flag?: Prior periods when margin debt hit records occurred around stock market peaks, including 2000 when the dot-com stock boom went bust, and 2007 when stocks began to crater amid early signs of trouble in the housing market ahead of the 2008 financial crisis.


Margin debt jumped 22% from the end of 1999 before peaking in March 2000 at $278.5 billion, the same month stocks peaked. In 2007, margin debt shot up to $381.4 billion in July, three months before stocks topped.

We are NOT saying get ready for a crash soon, but these charts do often tell a story of a book you might not want to put down. Keep your eyes and ears open, and we will do the same.

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