Japanese Yen and US Dollar Rally on Dow Tumbles, Later Stabilization to Boost Carry T
The Japanese Yen continued to rally higher against its higher yielding counterparts, as continued tumbles in the Dow Jones Industrial Average led to pronounced carry trade liquidation. The US dollar also had a strong day of gains, matching its largest intraday advance in six months. A flight to safety across the board led to continued volatility across all asset classes, with especially pronounced moves in interest rate and stock markets.Euro traders saw the single currency lose another 140 points against the Japanese Yen, leaving the EURJPY at its worst peak-to-trough drawdown since March. The high-yielding British Pound was likewise among the worst performers as it shed an incredible 250 points to ¥240.56. Finally, US dollar traders saw the greenback remain relatively stable against its Japanese counterpart, adding a minimal 6 points to ¥118.77 through time of writing.A positive surprise in US Gross Domestic Product data lent the dollar support through early morning trade, with continued flight to safety leaving the greenback higher on the New York afternoon. The US economy grew at a faster pace than expected through the second quarter of the year, registering a 3.4 percent annualized expansion versus 3.2 percent expected. The attached Price Index was slightly subdued, however, adding weight to the argument that inflationary pressures are receding in the world's largest economy. The result shows that the economy posted a strong recovery from the first quarter's dismal 0.6 percent annualized rate, with a sizeable improvement in the Trade balance and Government Consumption spurring a jump in GDP. Yet not everything is rosy on the release; Personal Consumption fell to a 2.7 percent annualized pace, worse than the 3.4 percent expected and considerably below the 4.2 percent clip seen in the first quarter. The net implications of the report are arguably mixed, but such a strong rebound in headline GDP rates nonetheless quelled fears of a continued US economic slowdown. Strong GDP rates were unable to hold back equity market tumbles. Continued risk aversion led the Dow Jones Industrial Average another 94 points off to 13,379 by 17:34 GMT. Losses were actually worse earlier in the day, but bears were unable to drive the closely-followed index beyond yesterday?s panic-lows. The S&P 500 posted a similar 0.71 percent decline to 1,472, while the tech-heavy NASDAQ Composite had the largest percentage drop at 0.86 to 2,577. Continued gains in corporate bond yields and overall credit concerns brought financial shares lower, while speculators cut back expectations of mergers and acquisitions for the same reasons.Fixed income markets showed small gains on the session, sending yields further from their recent highs. The benchmark 10-year note inched up 3/32 points to 97 and 7/8, with the yield losing a single basis point 4.77 percent. Treasuries had moved considerably higher in early trade, but a subsequent stabilization may signal a pending turnaround in markets. A bounce in yields would certainly boost the dollar, offering better rates of return to the yield-hungry international investor.
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Analysis by DailyFX
Friday, July 27, 2007
Dollar up vs. euro, pound
NEW YORK (AP) - The dollar strengthened against the euro and British pound on Friday after new data showed the U.S. economy grew at a solid clip during the second quarter, its best performance in more than a year.The 13-nation currency fell as low as $1.3628 before climbing back to $1.3649 in late New York trading, still below its level of $1.3718 late Thursday.The dollar also rebounded against the British pound, which dropped to $2.0270 from $2.0462 late Thursday. Despite the slip, the U.S. currency has fallen against the pound to levels last seen in 1981.The U.S. Commerce Department reported Friday that the economy grew at a 3.4 percent pace in the second quarter, with revived business spending boosting the new growth.An inflation gauge closely watched by the Federal Reserve showed 'core' prices -- excluding food and energy -- rose at a rate of just 1.4 percent in the second quarter. That was down sharply from a 2.4 percent pace in the first quarter and marked the smallest increase in four years.Fed Chairman Ben Bernanke has said the biggest threat to the economy is that inflation will fail to moderate as expected.Higher interest rates, a weapon against inflation, can support a currency by offering investors better returns on investments denominated in that currency.Individuals, however, tightened their belts as they coped with high gasoline prices and the ill effects of the housing slump, the report showed. The sour housing market continued to weigh on national economic activity in the spring, but not nearly as much as it had in previous quarters.The dollar fell further against the Japanese yen, dropping as low as 118.40 before edging up to 118.78 on Friday, still lower than 119.46 late Thursday.Fears about the fallout from the subprime loan problem in the United States have piled on top of a narrowing interest rate gap between the U.S. and Europe to help push the dollar down.The U.S. Federal Reserve is holding its main rate steady at 5.25 percent, while the European Central Bank and the Bank of England are expected to further raise rates.In other trading, the dollar bought 1.2086 Swiss francs, down from 1.2095 late Thursday, and 1.0610 Canadian dollars, up from 1.0492.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
NEW YORK (AP) - The dollar strengthened against the euro and British pound on Friday after new data showed the U.S. economy grew at a solid clip during the second quarter, its best performance in more than a year.The 13-nation currency fell as low as $1.3628 before climbing back to $1.3649 in late New York trading, still below its level of $1.3718 late Thursday.The dollar also rebounded against the British pound, which dropped to $2.0270 from $2.0462 late Thursday. Despite the slip, the U.S. currency has fallen against the pound to levels last seen in 1981.The U.S. Commerce Department reported Friday that the economy grew at a 3.4 percent pace in the second quarter, with revived business spending boosting the new growth.An inflation gauge closely watched by the Federal Reserve showed 'core' prices -- excluding food and energy -- rose at a rate of just 1.4 percent in the second quarter. That was down sharply from a 2.4 percent pace in the first quarter and marked the smallest increase in four years.Fed Chairman Ben Bernanke has said the biggest threat to the economy is that inflation will fail to moderate as expected.Higher interest rates, a weapon against inflation, can support a currency by offering investors better returns on investments denominated in that currency.Individuals, however, tightened their belts as they coped with high gasoline prices and the ill effects of the housing slump, the report showed. The sour housing market continued to weigh on national economic activity in the spring, but not nearly as much as it had in previous quarters.The dollar fell further against the Japanese yen, dropping as low as 118.40 before edging up to 118.78 on Friday, still lower than 119.46 late Thursday.Fears about the fallout from the subprime loan problem in the United States have piled on top of a narrowing interest rate gap between the U.S. and Europe to help push the dollar down.The U.S. Federal Reserve is holding its main rate steady at 5.25 percent, while the European Central Bank and the Bank of England are expected to further raise rates.In other trading, the dollar bought 1.2086 Swiss francs, down from 1.2095 late Thursday, and 1.0610 Canadian dollars, up from 1.0492.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
EUR/USD Bumps support again after GDP
By John Jagerson, 27 July 2007
The downside on the EUR/USD picked up some momentum early in the session coming all the way down to 1.3626. It will be interesting to see how long the flight to lower risk assets like gov't bonds continues to assist the USD's value. Following the 2nd quarter GDP, the EUR/USD cut its support bounce short and "reapplied" for a support break. Because GDP was above many expectations and a major improvement from last quarter's numbers, the EUR/USD responded predictably by pushing back towards support. However, some of the factors driving U.S. GDP, including non-residential construction, don't seem likely to continue improving in 3rd quarter and other traders will probably recognize this as well. The market is already cooling off for the coming weekend so a break here is unlikely before next week. From a technical perspective, I think this is a real make it or break it level. If the market descends below this level early in the week ahead, we could see a lot more volatility in the short term.
By John Jagerson, 27 July 2007
The downside on the EUR/USD picked up some momentum early in the session coming all the way down to 1.3626. It will be interesting to see how long the flight to lower risk assets like gov't bonds continues to assist the USD's value. Following the 2nd quarter GDP, the EUR/USD cut its support bounce short and "reapplied" for a support break. Because GDP was above many expectations and a major improvement from last quarter's numbers, the EUR/USD responded predictably by pushing back towards support. However, some of the factors driving U.S. GDP, including non-residential construction, don't seem likely to continue improving in 3rd quarter and other traders will probably recognize this as well. The market is already cooling off for the coming weekend so a break here is unlikely before next week. From a technical perspective, I think this is a real make it or break it level. If the market descends below this level early in the week ahead, we could see a lot more volatility in the short term.
Arena Bowl gives New Orleans a kick
NEW ORLEANS (AP) - July is not the kindest month for New Orleans.
With temperatures in the 90s and humidity at the saturation point, the tourist crop, which means so much to the city, thins out.That adds excitement to Sunday's ArenaBowl that goes far beyond sports fans here.'It's fantastic,' said Jay Cicero, of the New Orleans Sports Foundation. 'It's a great piece of business for New Orleans at a very slow time for our hospitality business.'For a city that has raked in the big paydays associated with the Super Bowl, about $290 million, and the NCAA Final Four, about $100 million, the estimated $15 million in spending the ArenaBowl is expected to spark looks small.But Cicero said, cash is only part of the payoff.'The exposure associated with this and the notoriety of hosting a league championship is tremendous,' Cicero said. 'There will be national and international broadcasts associated with it. And that keeps New Orleans in the spotlight when we need it.'The league asked to get out of the third year of its three-year contract with Las Vegas so it could bring the championship game to New Orleans, showing solidarity with the local Arena League team, the VooDoo, and helping the city's recovery from Hurricane Katrina.The VooDoo suspended operations for the 2006 season because of damage to the city and the New Orleans Arena, where they play, from the Aug. 29, 2005, storm. It was then that the AFL's Board of Directors met and unanimously agreed that it would hold its championship game in the Crescent City when it was 'economically and logistically feasible.'The VooDoo returned this season, and set a league record by becoming the first team in league's 21-year history to sell out the entire season on season tickets.On Sunday, the Columbus Destroyers and the San Jose SaberCats meet on the VooDoo's home field in front of a sellout crowd.It's the first sellout of a neutral site for the Arena Football League's championship game, with the tickets snapped up almost nine weeks before the game.The 2005 game drew 10,822 and the 2006 ArenaBowl had a crowd of 13,476. The New Orleans Arena has a capacity of 16,021, but will need some reconfiguring for the game.Because of the small allotment of tickets to the teams playing the game, most of the fans will be local, said Mary Beth Romig, spokeswoman for the New Orleans Metropolitan Convention and Visitors Bureau. But again, she feels the impact will be greater than expected.'It puts a few heads in beds,' Romig said. 'But it also brings the city corporate exposure and the league is really doing some fantastic things around town.'There will be a concert Saturday night with the Rebirth Brass Band and Styx.Additionally, players built a playground at an elementary school, and staged a mascot exhibition and an event for fans on game day, all of which benefited the city and residents, Romig said.'I don't know what the bottom line is,' said Bill Curl, spokesman for the New Orleans Arena. 'I can't tell if it's lucrative, but it sure is important.'This game re-establishes New Orleans' reputation as a championship city. This is the first major team championship in New Orleans since Katrina.'Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
NEW ORLEANS (AP) - July is not the kindest month for New Orleans.
With temperatures in the 90s and humidity at the saturation point, the tourist crop, which means so much to the city, thins out.That adds excitement to Sunday's ArenaBowl that goes far beyond sports fans here.'It's fantastic,' said Jay Cicero, of the New Orleans Sports Foundation. 'It's a great piece of business for New Orleans at a very slow time for our hospitality business.'For a city that has raked in the big paydays associated with the Super Bowl, about $290 million, and the NCAA Final Four, about $100 million, the estimated $15 million in spending the ArenaBowl is expected to spark looks small.But Cicero said, cash is only part of the payoff.'The exposure associated with this and the notoriety of hosting a league championship is tremendous,' Cicero said. 'There will be national and international broadcasts associated with it. And that keeps New Orleans in the spotlight when we need it.'The league asked to get out of the third year of its three-year contract with Las Vegas so it could bring the championship game to New Orleans, showing solidarity with the local Arena League team, the VooDoo, and helping the city's recovery from Hurricane Katrina.The VooDoo suspended operations for the 2006 season because of damage to the city and the New Orleans Arena, where they play, from the Aug. 29, 2005, storm. It was then that the AFL's Board of Directors met and unanimously agreed that it would hold its championship game in the Crescent City when it was 'economically and logistically feasible.'The VooDoo returned this season, and set a league record by becoming the first team in league's 21-year history to sell out the entire season on season tickets.On Sunday, the Columbus Destroyers and the San Jose SaberCats meet on the VooDoo's home field in front of a sellout crowd.It's the first sellout of a neutral site for the Arena Football League's championship game, with the tickets snapped up almost nine weeks before the game.The 2005 game drew 10,822 and the 2006 ArenaBowl had a crowd of 13,476. The New Orleans Arena has a capacity of 16,021, but will need some reconfiguring for the game.Because of the small allotment of tickets to the teams playing the game, most of the fans will be local, said Mary Beth Romig, spokeswoman for the New Orleans Metropolitan Convention and Visitors Bureau. But again, she feels the impact will be greater than expected.'It puts a few heads in beds,' Romig said. 'But it also brings the city corporate exposure and the league is really doing some fantastic things around town.'There will be a concert Saturday night with the Rebirth Brass Band and Styx.Additionally, players built a playground at an elementary school, and staged a mascot exhibition and an event for fans on game day, all of which benefited the city and residents, Romig said.'I don't know what the bottom line is,' said Bill Curl, spokesman for the New Orleans Arena. 'I can't tell if it's lucrative, but it sure is important.'This game re-establishes New Orleans' reputation as a championship city. This is the first major team championship in New Orleans since Katrina.'Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
signals to day
Friday July 27, 2007
EUR-USD
1.3746. It should test 1.3774 area after which a sell off down to 1.3702 or extended to 1.3659 area is expected.
USD-CHF
1.2038. While below 1.2070 - 1.2094 it might drop to 1.1989 or below 1.1941 zone.
USD-JPY
118.68. Overall structure is bearish. Decelerating momentum could attract it towards supports at 118.31 or 117.88. Major support is clustered around 116.79 limit.
GBP-USD
2.0490. Current fall is near an end of wave around 2.0375 - 2.0483 zone, a rally should then procede to above 2.0526 or 2.0560. Fall below 2.0355 would cancel this scenario.
EUR-CHF
1.6548. Market should meet resistance at 1.6581. We expect then an extended move down to 1.6526 -1.6450 area.
EUR-JPY
163.15. Market should not go lower than 161.72. After this move down it should go up to 163.01 - 163.84 area.
EUR-GBP
0.6709. It should trade lower to 0.6689. Resistances are at 0.6711 and 0.6721. A break of 0.6735 is bullish.
AUD-USD
0.8711. Market should meet resistance at 0.8761. We expect then an extended move down to 0.8707 -0.8560 area.
USD-CAD
1.0537. Current rise seems to be over near 1.0546 or 1.0593 for a retracement towards 1.0499 - 1.0471 area.
Friday July 27, 2007
EUR-USD
1.3746. It should test 1.3774 area after which a sell off down to 1.3702 or extended to 1.3659 area is expected.
USD-CHF
1.2038. While below 1.2070 - 1.2094 it might drop to 1.1989 or below 1.1941 zone.
USD-JPY
118.68. Overall structure is bearish. Decelerating momentum could attract it towards supports at 118.31 or 117.88. Major support is clustered around 116.79 limit.
GBP-USD
2.0490. Current fall is near an end of wave around 2.0375 - 2.0483 zone, a rally should then procede to above 2.0526 or 2.0560. Fall below 2.0355 would cancel this scenario.
EUR-CHF
1.6548. Market should meet resistance at 1.6581. We expect then an extended move down to 1.6526 -1.6450 area.
EUR-JPY
163.15. Market should not go lower than 161.72. After this move down it should go up to 163.01 - 163.84 area.
EUR-GBP
0.6709. It should trade lower to 0.6689. Resistances are at 0.6711 and 0.6721. A break of 0.6735 is bullish.
AUD-USD
0.8711. Market should meet resistance at 0.8761. We expect then an extended move down to 0.8707 -0.8560 area.
USD-CAD
1.0537. Current rise seems to be over near 1.0546 or 1.0593 for a retracement towards 1.0499 - 1.0471 area.
Daily Technical view July 27th
EUR/USD Technical ViewEuro recovered yesterday a few points by bouncing back up very close to the 1.3680 support line. So far today it seems that the pair is again moving south but most traders are expecting to see the US data before making a commitment to add more shorts or reverse back to longs. From a technical point of view a break bellow 1.3680 will put the pair under more pressure and bears will take control, if that happens next support area is around 1.3612 followed by the 1.3550/60 zone. If on the other hand the pair recovers some strength we might be in for another push north toward the 1.3830 resistance line and new highs above that, the 1.3900 round number and higher up 1.4000 should act as bull targets and can be considered resistance levels when/if the pair gets up there.Resistance Levels
1.3830 – July 18th High
1.3750 – round number Support Levels
1.3680 – April 27th High
1.3550 – June 5th High
1.3459 – May 10th/11th Low
1.3365 – December 3rd High GbpUsd Technical ViewCable has retraced quite a bit from Tuesday's high at 2.0650 and after dropping for three consecutive days the pair is trading just under the 2.0400 level and looks to have its sights set on the 2.0365 support line. If the down move continues the next support target is the 2.0200 level which has already proved to be strong resistance and now has turned into support. A failure to breach bellow 2.0365 today will most likely be interpreted that the long trend has not finished and the pair will start to recover some of the loses from the last few days, with that in mind it won't surprise us to see another push towards the current highs at 2.0650 and once there we might see a new high be
ing made. Resistance Levels2.0700- round number
2.0650 – round numberSupport Levels
2.0360 – July 11high
2.0200 – Round number
2.0133 – April 18th High
2.0060/70 – April 25th High
Sunday, July 22, 2007
The Elliott Wave Theory In Forex Trading
by Joel Teo
The Elliott Wave Theory that is used in Forex trading is named after a man by the name of Ralph Nelson Elliott, who was around in the nineteen twenties and thirties. Elliott was the person who discovered that stock markets did not behave in a somewhat chaotic manner, which was previously thought to be the case. He discovered that the stock markets traded in a repetitive cycles that were based on the emotions of investors and traders that are caused by outside influences or the mass psychology that is predominant at that specific time. Elliott also explained about how the up and down swings of the mass psychology always resulted in the exact same repetitive patterns, which he then divided into patterns that he designated waves. To claim this observation made by him, Ralph Elliott came up with the name The Elliott Wave Theory.
The pattern that is shown when a trending market moves is what Mr. Elliott called a five three pattern. The first five wave pattern is called impulse waves, and then the last three wave pattern is called corrective waves. During wave one, the initial upward move is taken. This is caused by a small amount of buyers who purchase, and this causes a rise in the price. In wave two, people who originally bought sell their investment, and this causes the price to dip, however, it will not go as low as the start price before it starts being bought again. Wave three is generally the strongest and longest of all the waves. This wave is when the general public notices the currency and wants to purchase it. This causes a price spike which exceeds the price at wave one. Wave four is when more people start to sell again, so the price dips. Wave five is when most people buy, and this is when the price because too much. At this point the ABC corrective waves come in. The three wave pattern is considerd wave counter trends. Letters are used instead of numbers for this three wave set.
According to The Elliott Wave Theory, the Forex market moves in predictable repetitive patterns called waves. A market that is trending moves in a five three wave pattern, with the first five waves are impulse waves, and the last three waves are corrective waves. By understanding what the waves represent in the Forex market, traders and investors can understand how the market is moving and how to maximize their investment while minimizing their risks in the Forex market.
Tips For Forex Pivot Point Trading
by Joel Teo
Forex pivot point trading is an easy way for traders to utilize the pivot points and predict what is possible in the market. There are some easy to use, follow, and remember tips that will help any Forex market investor use pivot points and the associated support and resistance levels to minimize their risks.
If the price is at the pivot point, a move back to the resistance one or support one level is very possible. If the price is at the resistance one level, you can expect to see a move to the resistance two level or a move back towards the pivot point. If the price of the currency is at the support one levels, expect it to move towards the support two level or to go back towards the pivot point level. If the price is at resistance two levels then it can be expected to move towards the resistance three levels or back towards the resistance one level. If the price is at the support two level, you can expect it to move towards the support three level or a move back towards the support one level.
Any news that is a significant influence to the market will have an effect on prices. If there is no news at all that has a significant influence on the market, the price will generally move from the pivot point to either support or resistance level one. If there is any significant news which has an influence on the market, then market price may go right through the resistance one or support one level, and reach level two, or even three, of the support or resistance levels. Resistance level three and support level three are used by Forex market traders as a general indication of the maximum range for days that are extremely violatile but may occasionally be exceeded. Pivot points work excellently in sideways markets because prices will usually range between the resistance level one and the support level one price fluctuation. In a very strong Forex market trend, the price may blow right through a pivot line and keep moving.
The pivot point is a very important tool used by Forex market traders to analyze market fluctuations. The pivot point is the first place an investor usually enters a trade, because the pivot point is the primary support and resistance level and the biggest price movements generally occur at the pivot point price. By following the tips above, pivot point trading on the Forex market will help a trader anticipate market trends and minimize the risk.
Forex Pivot Point: What It Is And What It Does
by Joel Teo
Forex Pivot points are used by Forex investors and market traders to figure out the entrance and exit points for the Forex trading day. The trading activity for the previous day determines where these pivot points are set. This technique is generally used after you have determined the direction that the trend is going. Pivot points are used alongside some of the other technical analysis tools including MACD crossover, candlestick patterns, and moving average crossovers, to try and maximize investment and minimize loss by predicting the fluctuations of the market. Forex uses pivot points extremely well because of the fact that the majority of the currency pairs generally vary between these levels.
Pivot points are used by Forex market investors and traders to identify any important support and resistance levels. The pivot point and the associated support and resistance levels are specific areas at which the price movement direction can possibly change. Short term traders are the ones who find pivot points the most useful because they are looking to take advantage of any small price variations. However, both range bound traders and breakout traders also use pivot points in the Forex market. Reversal points are identified by pivot points to benefit range bound traders, and this helps them to minimize their risks. Pivot points are used by breakout traders to recognize any key levels which may need to be broken so the move will be classified as a real deal breakout.
To calculate the pivot points and the associated support and resistance levels, traders use the last open, high, low, and close, from the last trading session. The New York closing time of four in the afternoon is used as the close of the previous trading day by most Forex traders, because the Forex market is a twenty four hour a day market. The specific calculation for the pivot point is Pivot Point(PP) = (High + Low + Close) / 3.
Pivot points are an excellent technical analysis tool for Forex market traders and investors because of their simplicity. These pivot points, along with the associated support and resistance levels, are calculated by traders by the previous trading day's session specifics. The formula to calculate pivot points is simple and easy to use, and by utilizing pivot points along with other technical analysis tools, including moving average crossovers and candlestick patters, Forex market traders can predict specific areas of price movement in the market. This allows traders to minimize their risk while maximizing their profits.
Should Refinancing Your Mortgage Be In Your Future?
by Joseph Kenny
Buying the house you wanted brought you a lot of joy. Soon, you moved in and were glad to get settled. You had your mortgage, and you may have gotten a larger house because you were able to get an adjustable rate mortgage. Here are some reasons, though, why you may want to think about refinancing that mortgage.
The Future Is Unpredictable
Adjustable rate mortgages allowed many people to get that larger house simply because it started out with lower payments - initially. However, if it has not started already, the day is coming when the fixed rate portion of your mortgage will soon be over. Once that happens, you can expect a jump in your rates because your payments will get a new interest rate. The new interest rate will be changed regularly - limited only by caps set by law.
You still may expect quite a jump - or it may stay steady, or even decrease - depending on the market. The possibility is there that it could become higher than you might be able to pay. This makes it potentially bad. Besides that, when rates do become higher, it may be too late to refinance. Every mortgage, at that time, will probably become unaffordable for most people.
Get A Better Interest Rate
If you watch the market rates, you will know when you have a good opportunity to get a better interest rate. Lower interest rates will mean that it is a good time to refinance your mortgage. It also means that you could lower your monthly payments and get a much more secure fixed rate mortgage.
It is also possible that if you did not have very good credit when you got your current mortgage, that you could see an even greater reduction in your interest rate. A better credit score results in better terms when you refinance, so you will also want to make sure it is in as good as shape as possible.
Reduce The Length For More Savings
You could save much more money if you are able to keep your payments about the same and shorten the time length on your mortgage. If you currently have 20 years left on your existing mortgage, reduce it to 10 or 15 years when you refinance for tremendous savings - if your can. This simple step will enable you to save tens of thousands of dollars over the remaining life of your new mortgage.
Get Cash From Your Equity
If you have lived in your home for a few years, then you will have some equity built up. Using your equity as a source of cash for whatever need or want you have is a good way to get a low interest loan - with time to pay it back. All you need to do is to add the cash you want to the total amount you need.
Keep in mind, though, that you will need to leave 20% of the value of your house untouched. If you get a loan for more than 80% of the value of your house, you will need to pay for private mortgage insurance.
Take enough time when you are trying to refinance your mortgage to get several quotes and compare them carefully. This will help you see which offers are really good. Do not limit yourself to looking just at the interest rate, but also consider the total amount of fees, as well as the overall cost of refinancing. You also want to make sure that there are no penalties for paying it off early.
by Joel Teo
The Elliott Wave Theory that is used in Forex trading is named after a man by the name of Ralph Nelson Elliott, who was around in the nineteen twenties and thirties. Elliott was the person who discovered that stock markets did not behave in a somewhat chaotic manner, which was previously thought to be the case. He discovered that the stock markets traded in a repetitive cycles that were based on the emotions of investors and traders that are caused by outside influences or the mass psychology that is predominant at that specific time. Elliott also explained about how the up and down swings of the mass psychology always resulted in the exact same repetitive patterns, which he then divided into patterns that he designated waves. To claim this observation made by him, Ralph Elliott came up with the name The Elliott Wave Theory.
The pattern that is shown when a trending market moves is what Mr. Elliott called a five three pattern. The first five wave pattern is called impulse waves, and then the last three wave pattern is called corrective waves. During wave one, the initial upward move is taken. This is caused by a small amount of buyers who purchase, and this causes a rise in the price. In wave two, people who originally bought sell their investment, and this causes the price to dip, however, it will not go as low as the start price before it starts being bought again. Wave three is generally the strongest and longest of all the waves. This wave is when the general public notices the currency and wants to purchase it. This causes a price spike which exceeds the price at wave one. Wave four is when more people start to sell again, so the price dips. Wave five is when most people buy, and this is when the price because too much. At this point the ABC corrective waves come in. The three wave pattern is considerd wave counter trends. Letters are used instead of numbers for this three wave set.
According to The Elliott Wave Theory, the Forex market moves in predictable repetitive patterns called waves. A market that is trending moves in a five three wave pattern, with the first five waves are impulse waves, and the last three waves are corrective waves. By understanding what the waves represent in the Forex market, traders and investors can understand how the market is moving and how to maximize their investment while minimizing their risks in the Forex market.
Tips For Forex Pivot Point Trading
by Joel Teo
Forex pivot point trading is an easy way for traders to utilize the pivot points and predict what is possible in the market. There are some easy to use, follow, and remember tips that will help any Forex market investor use pivot points and the associated support and resistance levels to minimize their risks.
If the price is at the pivot point, a move back to the resistance one or support one level is very possible. If the price is at the resistance one level, you can expect to see a move to the resistance two level or a move back towards the pivot point. If the price of the currency is at the support one levels, expect it to move towards the support two level or to go back towards the pivot point level. If the price is at resistance two levels then it can be expected to move towards the resistance three levels or back towards the resistance one level. If the price is at the support two level, you can expect it to move towards the support three level or a move back towards the support one level.
Any news that is a significant influence to the market will have an effect on prices. If there is no news at all that has a significant influence on the market, the price will generally move from the pivot point to either support or resistance level one. If there is any significant news which has an influence on the market, then market price may go right through the resistance one or support one level, and reach level two, or even three, of the support or resistance levels. Resistance level three and support level three are used by Forex market traders as a general indication of the maximum range for days that are extremely violatile but may occasionally be exceeded. Pivot points work excellently in sideways markets because prices will usually range between the resistance level one and the support level one price fluctuation. In a very strong Forex market trend, the price may blow right through a pivot line and keep moving.
The pivot point is a very important tool used by Forex market traders to analyze market fluctuations. The pivot point is the first place an investor usually enters a trade, because the pivot point is the primary support and resistance level and the biggest price movements generally occur at the pivot point price. By following the tips above, pivot point trading on the Forex market will help a trader anticipate market trends and minimize the risk.
Forex Pivot Point: What It Is And What It Does
by Joel Teo
Forex Pivot points are used by Forex investors and market traders to figure out the entrance and exit points for the Forex trading day. The trading activity for the previous day determines where these pivot points are set. This technique is generally used after you have determined the direction that the trend is going. Pivot points are used alongside some of the other technical analysis tools including MACD crossover, candlestick patterns, and moving average crossovers, to try and maximize investment and minimize loss by predicting the fluctuations of the market. Forex uses pivot points extremely well because of the fact that the majority of the currency pairs generally vary between these levels.
Pivot points are used by Forex market investors and traders to identify any important support and resistance levels. The pivot point and the associated support and resistance levels are specific areas at which the price movement direction can possibly change. Short term traders are the ones who find pivot points the most useful because they are looking to take advantage of any small price variations. However, both range bound traders and breakout traders also use pivot points in the Forex market. Reversal points are identified by pivot points to benefit range bound traders, and this helps them to minimize their risks. Pivot points are used by breakout traders to recognize any key levels which may need to be broken so the move will be classified as a real deal breakout.
To calculate the pivot points and the associated support and resistance levels, traders use the last open, high, low, and close, from the last trading session. The New York closing time of four in the afternoon is used as the close of the previous trading day by most Forex traders, because the Forex market is a twenty four hour a day market. The specific calculation for the pivot point is Pivot Point(PP) = (High + Low + Close) / 3.
Pivot points are an excellent technical analysis tool for Forex market traders and investors because of their simplicity. These pivot points, along with the associated support and resistance levels, are calculated by traders by the previous trading day's session specifics. The formula to calculate pivot points is simple and easy to use, and by utilizing pivot points along with other technical analysis tools, including moving average crossovers and candlestick patters, Forex market traders can predict specific areas of price movement in the market. This allows traders to minimize their risk while maximizing their profits.
Should Refinancing Your Mortgage Be In Your Future?
by Joseph Kenny
Buying the house you wanted brought you a lot of joy. Soon, you moved in and were glad to get settled. You had your mortgage, and you may have gotten a larger house because you were able to get an adjustable rate mortgage. Here are some reasons, though, why you may want to think about refinancing that mortgage.
The Future Is Unpredictable
Adjustable rate mortgages allowed many people to get that larger house simply because it started out with lower payments - initially. However, if it has not started already, the day is coming when the fixed rate portion of your mortgage will soon be over. Once that happens, you can expect a jump in your rates because your payments will get a new interest rate. The new interest rate will be changed regularly - limited only by caps set by law.
You still may expect quite a jump - or it may stay steady, or even decrease - depending on the market. The possibility is there that it could become higher than you might be able to pay. This makes it potentially bad. Besides that, when rates do become higher, it may be too late to refinance. Every mortgage, at that time, will probably become unaffordable for most people.
Get A Better Interest Rate
If you watch the market rates, you will know when you have a good opportunity to get a better interest rate. Lower interest rates will mean that it is a good time to refinance your mortgage. It also means that you could lower your monthly payments and get a much more secure fixed rate mortgage.
It is also possible that if you did not have very good credit when you got your current mortgage, that you could see an even greater reduction in your interest rate. A better credit score results in better terms when you refinance, so you will also want to make sure it is in as good as shape as possible.
Reduce The Length For More Savings
You could save much more money if you are able to keep your payments about the same and shorten the time length on your mortgage. If you currently have 20 years left on your existing mortgage, reduce it to 10 or 15 years when you refinance for tremendous savings - if your can. This simple step will enable you to save tens of thousands of dollars over the remaining life of your new mortgage.
Get Cash From Your Equity
If you have lived in your home for a few years, then you will have some equity built up. Using your equity as a source of cash for whatever need or want you have is a good way to get a low interest loan - with time to pay it back. All you need to do is to add the cash you want to the total amount you need.
Keep in mind, though, that you will need to leave 20% of the value of your house untouched. If you get a loan for more than 80% of the value of your house, you will need to pay for private mortgage insurance.
Take enough time when you are trying to refinance your mortgage to get several quotes and compare them carefully. This will help you see which offers are really good. Do not limit yourself to looking just at the interest rate, but also consider the total amount of fees, as well as the overall cost of refinancing. You also want to make sure that there are no penalties for paying it off early.
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