Mar 4, 2017

Here Is What To Watch For Next Week Market Movement

China’s National People’s Congress gets underway this weekend, and investors will get an update on the health of the US labour market.

Here’s what to watch in the coming days.
 Li Keqiang, China’s premier, delivers the country’s proposed economic targets on Sunday at the opening of the fifth session of the 12th National People’s Congress, the country’s top legislature.
While much of the discussion takes place in closed-door meetings, economists are paying attention to the Government Work Report and the 2017 growth target. Jian Chang, economist at Barclays, said their base case is for 6.5 per cent growth. He also expects the government to maintain the budget deficit at 3 per cent and inflation target at 3 per cent.
On the politics front, China-watchers will keep their eyes peeled for clues on who could make it to China’s 25-member Politburo and possibly the Politburo Standing Committee (PSC), following a reshuffle of some senior provincial and central government leaders, particularly with the 19th Party Congress scheduled for this fall.

UK budget
UK chancellor Philip Hammond will present his first budget on Wednesday, and economists expect it to show a decline in gilt issuance.
“The UK economy has outperformed earlier forecasts, and so there should be a bit more revenue to play with, leading to the first decline in borrowing in 3 years,” strategists at TD Securities said. “But we see a cautious budget with few giveaways as the UK approaches Brexit.”

European Central Bank
Even as investors prepare for the US central bank to tighten monetary policy, the ECB is expected to leave rates unchanged when it meets on Thursday.
“The focus instead is likely to be on possible changes in language, with a number of voices since the last meeting calling for a change to the ECB’s forward guidance,” said economists at RBC Capital Markets. “An updated set of staff macroeconomic projections, which are likely to see an upward revision to inflation estimates in particular, will add weight to those calls.”

US jobs
The key US event comes at the end of the week as investors look to see whether Friday’s US jobs report will cement the Fed’s case for raising rates, on the heels of hawkish remarks from chair Janet Yellen and a handful of other Fed officials, alongside a string of upbeat economic data.
The report, which comes during the central bank’s communications blackout period, is expected to show the US economy added 190,000 jobs last month, compared with the 227,000 jobs added in January. They also expect the unemployment rate to slip to 4.7 per cent, from 4.8 per cent previously.
But even if payrolls turn up light, Tom Porcelli, economist at RBC Capital Markets, argues that “wages will be the lynchpin to whether the Fed ‘likes’ this report enough to vindicate hiking in March”. Economists expect that wages will have improved.
Average hourly earnings are projected to rise 0.3 per cent in February from the previous month, when they climbed 0.1 per cent. That would leave earnings up 2.8 per cent from a year ago, compared with 2.5 per cent in January. And an uptick in wage inflation would certainly help strengthen the case for a March move, as the Fed’s preferred inflation measure is near the central bank’s 2 per cent target.
With Fed fund futures currently pointing to a 96 per cent chance that the central bank lifts rates in two weeks, a better-than-expected jobs report could bolster those odds further.

10 Thoughts for traders, 10 Points for traders

10 Thoughts for traders
10 Points for traders

1. OPPORTUNITY. There are dozens of these every day, unfortunately you can’t buy them all, so only pick the top 10 and then narrow them down to 2 to 3.
 This is done by using your buying criteria which is part of your trading plan which you already have written down. (Hopefully you have one?)

2. BUYING and SELLING. I have a pre planned strategy which I have developed by trial and error; this was achieved by learning by my trading mistakes  and the mistakes of others.
 3. PATIENCE.This is definitely a virtue worth developing. Sometimes the market is going up in the right direction, but is not going as fast upwards as you  would like.  Be patient and use a “stop loss” to lock in those profits. However small they may be.  Also don’t always be in a hurry to “buy that next share” just because you have that money burning a hole in your pocket.  Do your homework and then you have chosen the right share for the right reasons and not just because it looked good 

4. STRESS.If it is hurting! Don’t do it, cut your losses or be content with a small profit and get out.
5. THINK and PLAN AHEAD. After I have bought a stock and once it has been cleared. I immediately put a sell order in at the price/ percentage that I had  previously worked out using my trading plan.
This trading plan is not set in concrete as it is revised usually on a monthly basis. And always be prepared to improve on it where necessary.
Depending on the volume and the stock’s volatility I occasionally vary my profit margin upwards. If I do this, I always keep a watchful eye on its movement  and put in a stop loss to lock in those precious profits.
6.HOPE.This has no place in a trader’s plan, as Hope leads to procrastination (putting thing off).And this will lead to losses which you can ill afford.
7. WORRYING. The same thing applies as above; if you are worrying about a stock then it is time to sell it.
8. FUN. You should enjoy trading for if isn’t fun then it’s time to put your money into managed funds and quit trading.
9. RESPONSIBILITY. Take responsibility for your trading mistakes and learn from them. No one else made you buy that stock.
10. CONFIDENCE.Have faith in your abilities. At all times be a “Student” for you never know it all. And the minute you become complacent, something  nasty comes along to bring you back to earth with a thump. I hope these tips will give you some assistance in finding you profitable shares and improves your trading skills.