| Volatility RULES! |
|
| July 31, 2007 |
|
It’s action-packed with twists and turns galore! You’ll shriek with delight…or perhaps from utter astonishment. You don’t want to miss THE blockbuster of the summer: Volatility.
How could you not be intrigued — the entire global market is running amok! I give this two thumbs WAY up!
Ok, forgive me for being silly for a moment but seriously with the way volatility is infiltrating the market this summer, it could very well be the setting for a 4-star summer action movie!
And it all can be explained with one word: leverage.
Leverage is the amount of debt used to finance a firm’s assets. It helps both the investor and the firm to invest or operate. It does come with greater risk but with greater risk comes greater opportunity for profit.
Leverage is the reason we are seeing vicious rotation within sectors, global market rotation and of course, currency rotation.
Now, of course, every time the market has dipped this year, we’ve heard some nonsensical reason for it. From China to the rise of interest rates to bonds to higher oil — we’ve been given way too many excuses.
Well here I am with the facts. The fact is that this volatility that we are seeing all comes back to Forex — the Foreign Exchange Market — and leverage. If you want to watch everything unfold, all you need to do is watch the currencies. Not oil, not gold, not unleaded — just the currencies.
Why? Because the currencies move first. So remember, FOREX is the leader: watch it and everything else will fall into place.
 |
|
Sometimes I forget how powerful the word volatility can be. It can cause some people to panic unnecessarily. There is no need to be afraid…remember that with risk comes increased opportunity for profit. And that my friends, is what I want you to concentrate on! Take a look at a few stocks that I want you to get in on to take advantage of the current market:
 Asta Funding Inc. (ASFI)
Asta Funding, Inc., together with its subsidiaries, engages the purchase, management, and liquidation of performing and non-performing consumer receivables. These receivables consist of MasterCard, Visa, private label credit card accounts, telecommunication charge-offs, and other types of receivables. The company was founded in 1994 and is based in Englewood Cliffs, New Jersey.
Join Trending123 now to get all the goods on ASFI so you can play it to your best advantage!
 Marvell Technology Group (MRVL)
Marvell Technology Group, Ltd. provides semiconductors of analog, mixed-signal, digital signal processing, and embedded microprocessor integrated circuits worldwide. Its product portfolio comprises switching, transceiver, wireless, PC connectivity, gateways, communications controller, storage, processors for wireless and embedded applications, and power management solutions that serve applications used in business enterprise, consumer electronics, and emerging markets. It was incorporated in 1995 and is headquartered in Hamilton, Bermuda.
Join Trending123 now to get all the goods on MRVL so you can play it to your best advantage!
|
Before you make a trade with me, you might want to know something else about the way I operate. I’m a planner. I tell you this so that if you are the type of trader that enjoys an intra-day trade alert that gives you a nanosecond to react, buy and cross-your-fingers in hopes of a quick profit…well, I’m probably not your man.
 |
|
“Sell in May” and the Carry Trade
The carry trade is a trading method that attempts to exploit the difference (or “carry”) in interest rates paid for one currency versus another. The idea is to borrow money in the low interest rate currency, and lend it in the high interest rate currency, in order to profit from the spread between the two.
For example, the Bank of Japan set short-term interest rates at 0.5% in early 2007, while the U.S. Federal Reserve kept rates at 5.25%. You can borrow the equivalent of $100,000 in yen—i.e., 11,900,000 yen at an exchange rate of 119 yen per dollar—at an interest rate of 0.5%. You can then exchange the yen for $100,000 and lend the $100,000 at the U.S. interest rate of 5.25% (e.g., by buying U.S. bonds). Excluding other costs, your profit would be the difference between the two interest rates, or 4.75% (5.25% – 0.5%).
So now you know how people can profit from the carry trade. But how do foreign currencies help us trade U.S. stocks? Well, in 2007, every time the yen has risen, the S&P 500 has corrected, and every time the yen has tanked, the S&P has shot up. Moreover, the U.S. market has closely tracked the euro-yen carry trade. Want to guess what’s going to happen next? Good news: You don’t have to. Just click here to join Trending123 and get the latest currency update.
|
If you join me at Trending123, you can expect nothing less than advice from someone you know has spent at least several hours if not days or weeks planning the next move. My recommendations come straight out of this philosophy of understanding fully what we are getting into before we get into it.
If you share this investing philosophy then please join us today!
I look forward to meeting you in the trading room!
Sincerely,
John Lansing
Trending123
P.S. If you put my planning to the test, how would I do? Well take a gander at how some of our past recommendations did: Hansen Natural Corp—up 23.95% in 4 days, Berry Petroleum—up 27.20% in 6 weeks and Zoll Medical—up 109.91% in 4 months! Get in on the next round of gains today!
|
