U.S Market weeky review

The bears were unable to offset the upward momentum that was sparked by the recent drop in interest rates. The break beyond the neckline of the identified inverse head-and-shoulders pattern coincided with a move toward July highs. Most technical traders will keep a bullish outlook on the markets until they close below their long-term moving averages, which are approximately 3% below current prices. The index of particular interest this week is of the Nasdaq because it has been leading the move higher. Watch to see how the major indexes respond to the upcoming earnings releases over the next couple of weeks because these announcements may act as the next barrier to further moves higher.

Yet another round of FOMC meeting at the end of this month. Doubt they will cut Fed rates as they did in the last round. Bear in mind, that was the 1st cut in 4 years. Going to happen again? Don't bet on it. My guesstimate is they will keep things as it is, else inflation might set in.

Subprime Meltdown

Following the tech bubble and the events of September 11, the Federal Reserve stimulated a struggling economy by cutting interest rates to historically low levels. As a result, a housing bull market was created. People with poor credit got in on the action when mortgage lenders created non-traditional mortgages: interest-only loans, payment-option ARMs and mortgageswith extended amortization periods. Eventually, interest rates climbed back up and many subprime borrowers defaulted when their mortgages were reset to much higher monthly payments. This left mortgage lenders with property that was worth less than the loan value due to a weakening housing market. Defaults increased; the problem snowballed, and several lenders went bankrupt.

Investors and hedge funds also suffered because lenders sold mortgages they originated into the secondary market. Here the mortgages were bundled together and sold to investors as collateralized debt obligations (CDOs) and other mortgage-backed securities (MBSs). When the higher risk underlying mortgages started to default, investors were left with properties that were quickly losing value. In the wake of the meltdown, central banks released liquidity into the market place, which allowed struggling lenders and hedge funds to continue operations and make the necessary payments on their obligations.

Possible Market direction this week: Positive

Fed Interest Rate Cut Seen This Week
Sunday September 16, 7:27 pm ET By Jeannine Aversa, AP Economics Writer
Fed Ready to Lower Rates This Week for First Time in More Than 4 Years

WASHINGTON (AP) -- For the first time in more than four years, the Federal Reserve appears ready to lower interest rates to prevent a housing meltdown and a painful credit crunch from driving the economy into a recession.

A rate cut would affect millions of borrowers, with the intention of getting them to spend and invest more, which would revitalize the economy.

In one of their most important and anxiously awaited decisions, Fed Chairman Ben Bernanke and his central bank colleagues meet Tuesday to determine their next move on interest rates. Those policymakers are widely expected to cut an important rate, now at 5.25 percent, by at least one-quarter of percentage point. Some analysts predict a bolder step, a half-point reduction.

The Fed drops the rate, then the prime lending rate that commercial banks charge many individuals and businesses would fall by a corresponding amount. It now is at 8.25 percent.
"It's no longer a debate over whether they will ease but by how much," said Mark Zandi, chief economist at Moody's Economy.com. "The economy is soft and getting softer," and the Fed has come under economic and political pressure to act.

Should the Fed go with a quarter-point cut, analysts expect policymakers will lower the rate again in October and in December, their final meeting of the year.

Alternative Energy

Today the world's original oil reservoir of 2 trillion barrels of oil is more than half used up. And most geologists believe as I do that the world hit peak oil production two years ago. That means that even as demand for energy skyrockets - India and China are gorging themselves on hydrocarbons - output is falling in startling degrees. In fact by 2030 we will only harvest as much oil as the world produced in 1980.

We're decades away from utilizing solar energy in any meaningful way, and faced with critical shortages in petroleum, there is only one immediate solution - nuclear energy. And the guts to this solution is uranium.

Uranium is enjoying its greatest bull-market ever. As oil reserves dwindle and energy demands grow, the entire world, but China in particular, is starting to make the move to nuclear power.

Campbell Soup 2

Recently announced that its Q4 profit jumped 38.6% to 16 cents per share from 11 cents one year ago. The market, however, was expecting more. After the announcement there were more jeers than cheers, and shares of the company were sent down about 3.5%. While there were some concerns from the company, I think that, upon closer inspection, Campbell is on solid ground.

Lennar Corp

Lennar Corp broke below the neckline of a well-formed head & shoulder pattern. Homebuilder companies are struggling due to the housing slum and the bearish price pattern is an obstable preventing it from moving here. However, this stock is currently testing the influential $25 support level. Strong inclination of not moving south as a close below would signal a prolonged move towards the next major support level of $17.

U.S Market sentiment

Friday’s decline came on the back of weak August non-farm payrolls whichshowed a decline of 4000 jobs versus expectations of gain of 110,000 jobs. Theweak numbers led to a steep rise in both the 2yr and 5 yr US Treasury bonds,with yields declining towards the lowest level in recent weeks. Expect at leastanother decline towards prior low of 12525 or towards the 12,000 level.

Campbell Soup

Recently bounced off the support of a long-term trendline. Trendline has propped up the price in the past but a bearish M.A is giving mixed signals. 50 DMA cut below 200 DMA, indicating a possible trend reversal.

GM

Price is near influential level of support. $29 level has propped up the price in the past and today's 4.83% gain is suggesting that this may happen again. The bulls may prevent a drop below the nearby support and might push the stock back toward the ascending trendline. Be ready to change their outlook on the stock in the event that the price slips below $29.

Market today

The worst of the credit-marketdebacle may be over and stocks will likely rise as the globaleconomy expands. Quite evident for the fact that the Fed lowered interest rate earlier this month to contain the sub-prime crisis.

Market should rally into positive territory today. Watch out!

Hidden Gem

Revolutionary HeartOne monitor from Cardiac Network (CNWI) is a hand-held digital, telephonic device that tells instantly whether you are having a heart attack or just harmless chest pains.

Cardiac Network also has a patient-friendly recording monitor called the 2005A. The patient wears the 2005A which captures and retains pre-event heart data as well as an actual heart attack. This sophisticated device makes it easy for the higher-risk patient to transmit the life-saving data the doctor needs.

Because both of these heart monitors are AMA and FDA approved, the cost to the patient is completely covered by Medicare and other major heath insurers.

Both of Cardiac Network's heart monitors will save many thousands of lives, perhaps as many as 250,000 each year in the U.S. alone.

With its user-friendly digital designs, Cardiac Network will save millions of lives.

HSI

Dark cloud formation. Asian markets expect to be whacked tommorrow. Take care.

Singapore

Singapore banks may be in focus on Tuesday after market leader DBS said it will provide liquidity to an asset-backed commercial paper after investors withdrew support due to credit market conditions. U.S. stocksfell on Monday after data showed the number of unsold homes reached its highest level in more than 15 years in July, adding to concerns about the housing market and consumer spending.

Sub Prime Jokes

Stock Outlook #8: Google

Stock is testing support level. Price is nearing an ascending line which has propped up since IPO in late 2004. News on incorporating ads into YouTube should see the price ending higher. Interesting risk/reward ratio.

Headache?

Expect sustained sluggish U.S growth. The Fed should be able to prevent the squeeze from being a crunch. Impact on Asia should be limited by its ability to redirect & take share in exports, strong momentum, liquidity boom & potential political stimulus. Earnings expect to remain positive going forward. No worries.

Possible Option Trade on Radar

Allergan, Inc. (AGN)

AGN has remained faithful to the 200 day moving average and bounced Friday. Implied volatility remains high and may provide the opportunity to sell options to take advantage of the high volatility. Consider selling some short term naked puts or a bullish put spread depending on market behavior early next week.

Market Meltdown...Going Forward

If you have been following the news, you should know that the stock market has tumbled recently. So is the market going to move up or continue to move down? I don't know. Who knows? Usually one can apply TA and make a forecast on the trend, however, when meltdown such as those we witness recently happens, TA & FA are no longer accurate.

But what I know is that the institutional investors are moving out of the market now. Themarket is really a manipulated market. Forget about whether the US subprime problem is really serious. What's more important is these institutional investors think it is serious. If more and more institutional investors move out of the market, stock prices will continue to fall.
This is a good lesson for all of us because we've seen again that the market is manipulated. At this point, no one talk about the fundamentals. No one talk about the prospects of a company. The market simply goes where the BIG money goes, as always, and the big money is controlled by the institutional investors.

Another important note is the government's interference. The government is another body that has the BIG money. So the government has the power to move the market too. We see that US, Europe and some Asia governments are pumping money into the system, hoping to soften the impact, keep the institutional investors in the market and attract those who have left the market to come back. Whether they can be successful in doing that depends on whether they have enough $$$ to pump in.

I doubt this meltdown will last as the governments are quite rich and think they will win the race. But only time can tell. Hence, for now, I suggest staying on the sideline until a clearer picture forms.

Opportunity to buy

The overnight fall in US indices will very likely be seen as a bearish sign by the market place. After all, the DOW broke below a previous low and as some analysts have seen it , a head & shoulder breakdown.

There are signs which point to an imminent reversal. For the Singapore bourse, STI will on a worst case, drop towards 3260-3270. However, a more likely downside will be closer to 3300-3320. Bottoming out process more likely in the near term. Subsequently, we could see a rebound towards 3470- 3500.

Market this week

The problems in the mortgage and corporate lending sectors continued to be the primary driver of market sentiment last week. Thursday's announcement that BNP Paribas (one of Europe's largest banks) was suspending the operations of three hedge funds, all of which are invested in the U.S. subprime market, caused many investors to fear that the problem is getting more wide spread than originally anticipated. As you can see from the charts below, volatility levels remain high and we believe this may cause the markets to continue trading in a choppy manner until investors get a better idea of how the credit problems will affect the longer-term direction.

TA: Ascending Triangle

After a rally in early March'07, the stock was resisted at $1.32 a couple of times. While any upward movement was capped by the resistance at $1.32, it was observed that every pull-back registered a higher low. This unique movement formed a chart formation popularly known as an Ascending Triangle.

Market Outlook for the week

Worse than expected corporate earnings from several of the big U.S players started to dampen the recent bully rally. This is evident in last Thurs & Fri sharp close down on our local market. More mixed earnings results from the U.S, combined with reports of the spreading credit problem in the mortgage and corporate lending markets contributed to very sharp declines across all major indexes. The Dow Jones Industrial average experienced its worst week in five years and several of the other indexes have fallen below their long-term moving averages for the first time in several months. However, U.S GDP rose at a better than expected pace which indicates that the housing problem may not be that serious after all.

Market expect to open lower in early part of the week but should see some climb towards the end of the week. Trade with caution. Recommend hold on stocks.

8 Secrets for Success (Part 1)

1. Take 100% Responsibility for Your Life – In a societywhere people blame everything from their parents to the governmentfor failure, successful people are those who don't buy into thismentality or succumb to the "victim" thinking succeed. To blame something or somebody outside yourself is saying they have control of your life and not you. Someone else's opinion of you doesn't have to become your reality.

2. Live Your Life On Purpose - What separates motivationalthinkers from the unsuccessful is that they believe they'redoing what they were put here to do. Just living is just getting through the week with the least problems. But when you live your life on purpose, your main concern is doing the job right. For the entrepreneur this means finding a cause you believe in andbuilding your business around it. Like for Wendy, her purpose is to touch and inspire at least one million people's lives before leaving this world.

3. Be Willing to Pay the Price - Be willing to pay the pricefor your dreams. Wanting a big house, a luxury car, and a milliondollars in the bank is all very nice, and everyone wants thesethings – but are you willing to pay the price to get them? This is one of the major differences between the successful andunsuccessful.

4. Stay Focused – Every day we're bombarded with hundredsof tasks, phone calls, messages, and everyone competing for ourtime. Focusing requires giving up something in the presentbecause you are investing your time in something that will payoff big-time down the road. Jack Canfield and Mark Hanson wereturned down by 30 publishers when they submitted the first"Chicken Soup for the Soul" book. Instead of giving up, they stayed focused on their goal and did four or five interviews per day for radio, TV, and newspapers, for five days a week for a whole year. Eventually, a small publisher decided to take a chance on their book, and of course now it's a best-sellerthat has spawned an entire series that have sold more than 10 million copies.



Catch the other 4 secrets in Part 2...

Stock Outlook #7: 6 U.S stocks for TODAY

1. Aetna (NYSE:AET - News) announces quarterly earnings on Thursday morning, watch for $0.80 EPS.

2. Beazer Homes (NYSE:BZH - News) should announce -$0.46 EPS before the market opens on Thursday morning.

3. Analysts will be watching for Exxon Mobil (NYSE:XOM - News) to report $1.94 EPS on Thursday.

4. Ford (NYSE:F - News) hopes to announce -$0.40 EPS tomorrow morning.

5. Wendy's (NYSE:WEN - News). Report out on Thur morning. WEN is looking for $0.33 EPS.

6. XM Satellite (NasdaqGS:XMSR - News) both report on Thursday morning; XMSR expects -$0.44 EPS.

Good Luck All !

For Option Traders: Butterfly spread

One good strategy to use is Butterflyspread. One profits when the underlying moves towards the short strike or remains in a reasonable trading range until expiration. A traditional butterfly is a simple, three-legged option spread. It is the simultaneous sale of two at-the money near month calls or puts and the purchase of one call or put at the next higher and lower strikes, in the same expiration, in the same underlying. The skewed butterfly is also a three legged spread but the strikes are widened in order to embed a short vertical spread inside of the butterfly. This is done in order to reduce the cost and create a net credit. This trade has more risk but a higher probability of success and greater potential maximum profits.

Example 1: (Balanced Butterfly)

XYZ index is trading at $100 and it's mid Dec.
We will sell two Jan 100 calls and buy 1 Jan 95 call and 1 Jan 105 call for $.90 debit.
The maximum risk is $.90, and the maximum potential profit is $4.10.
The max give up (slippage) over fair value should be .20 for self-directed clients, .10 cents for TOS auto-trade clients.

Example 2: (Unbalanced Butterfly)
XYZ index is trading at $100 and it's mid Dec.
We will sell two Jan 103 calls and buy 1 Jan 102 call and 1 Jan 105 call for .40 credit.
The maximum risk $1.60, and the maximum potential profit is $2.00. We hope to buy back the 103/105 vertical back for a small debit (i.e. a .20 debit) prior to closing the entire position to alleviate margin risk.
The max give up (slippage) over fair value should be .20 for self-directed clients, .10 cents for TOS auto-trade clients.

Top 50 Performers 1H07

Below is a compiled list of the Top 50 Performers for the 1st half of this year. Hopefully this report can help you conjure up trading ideas for the second half. Do remember that past performance is not an indication of future performance. Always trade with care. Good Luck!

8 Secrets for Success (Part 2)

Continue from Part 1...

5. Become An Expert in Your Field - One striking factor allsuccessful people have in common is how seriously they taketheir profession. They strive to be the best at what they do,and do almost anything to improve. If someone followed youaround all day with a video camera at your business, would itbe a tape you'd be proud of or embarrassed about? Make thedecision today to work at being the best in your field. How?By finding out what the "best" in your field are doing, and dowhat they do.

6. Write Out a Plan for Achieving Your Goals - Write out anaction plan/map for how you're going to achieve your goals. Trying to reach your goals without a plan is like trying todrive from Los Angeles to Chicago without a map. A goal thatisn't written down is merely a wish or fantasy.


7. Never Give Up - Never, never, never give up. When you'refully committed to achieving your goal, giving up is not anoption. You must be willing do whatever it takes to make ithappen. The power of perseverance is an awesome force. Think of the inchworm – if it pondered the length of the tripfrom start to finish before it started, it probably would nevermove. To a worm's point-of-view, the garden path must looklike a trip to Mars. Never give up! Keep on taking steps towardsyour goal and pretty soon you're there.

8. Don't Delay - Nobody knows how much time they have leftto accomplish their dreams, and we must remember that we don'thave forever. The clock is ticking, and sooner or later yournumber comes up and you're gone. Successful achievers knowthis too, but they don't view it as a "negative". Achievers use it to "spur them on". They go after what they want as energetically and as passionately as possible, for as long asthey have.

Upcoming Result Annoucement

Warren Buffett speaks

Words from the legend...

Read and think before you invest
When a 17-year-old who was attending his 10th consecutive Berkshire annual meeting asked how to become a better investor, Buffett offered some simple but golden advice. Read everything on investing you can get your hands on and fill up your mind with various competing thoughts. After doing that, it's time to get started, as investing on paper and dealing with real money is like "reading a romance novel and doing something else."

Better to invest in businesses tough for competitors to enter
Asked about his interest in investing in Taiwanese high-tech companies, Buffett remarked that "change is wonderful, but not necessarily for investments." In terms of predicting how a business will perform, he said it's much easier to look at consumer behavior and businesses that have big barriers to entry

8 easy ways to save $$

People always have the stigma that saving $$ requires a lot of time & effort. But is this true? Or are you just not disciplined enough? Many a times, we all know how to save $$, it's just that we need a little reminding. Below are 8 easy saving tips that take less than a minute to implement.

1. Make multiple portions of dinner. Box up leftovers for tomorrow’s lunch, and freeze portions to eat later.

2. Unplug the electrical items you are not using (TV, computer, microwave, cell phone chargers, etc.).

3. Decide what you want to eat before opening the refrigerator door. It takes energy to keep the temperature cool if the door is standing open.

4. Pick store-brand items at the grocery store instead of the expensive name brands.

5. Don’t order soda or alcohol when you go out to eat. Drink water instead.

6. Clean the dust from your light bulbs – they’ll last longer.

7. Fill your freezer; it uses less electricity to keep it cold. If you don’t have a lot of frozen foods, freeze some water bottles.

8. Turn off the water in the sink while brushing your teeth and washing your hands.

My 1st rule to becoming rich is to know how to save. Imagine you earn $10,000 a month, spend $9000 and save $1000. Your friend earns $5000 a month (half of yours!!), spends $2500 and saves $2500. Who has the last laugh now?

Market Outlook

Markets emerged stronger last week & Dow is now approaching the 14,000 mark. Initially a triple top formation was lurking, however with Thursday's positive push in prices, this was negated. Consolidation period may be over and the recent record highs points that the market is still bullish and will continue to push towards positive territory this week.

Managing your risks...

Simply put, risk management is a two-step process - determining what risks exist in an investment and then handling those risks in a way best-suited to your investment objectives. Risk management occurs everywhere in the financial world. It occurs when an investor buys low-risk government bonds over more risky corporate debt, when a fund manager hedges their currency exposure with currency derivatives and when a bank performs a credit check on an individual before issuing them a personal line of credit.

U.S Market

Despite the mid-week holiday, the bulls managed to rally together and send the major indexes back toward their respective May highs. Friday's stronger-than-expected employment numbers helped fuel the move. Can Nasdaq move any higher? Interesting...

Emergency Funds

Now that the market has been good for us, have we been too complacent? Did u set aside/use up your emergency funds? Do you even have it in e first place? You OUGHT TO.

Emergency funds are meant to improve financial security for it acts as a buffer and can be used in times of crisis such as illness, loss of job or a major expense. This fund should ideally be at least 6 months of your current salary, depending on each individual's risk tolerance. For those on the conservative side, the funds may be more.

Is the market OVERbought?

With the recent run up in prices so hard & fast, one would expect the market to be overbought and a pullback is possible. Honestly, a pullback is hard to anticipate. I have seen markets of the past continue to barrow through when they were considered to be overbought. Those whom have exited early could only watch at the sidelines. At this point in time, I can only say stick to your trading objective - has your tgt px been met? Is the ROI as set out to be?

My own personal view is the local market is running on its own steam of engine for now. Whatever that is happening around us seem only to either affect us slightly or none at all. Fundamentals seem intact. I suggest staying vested for a while longer.

For those who are more conservative, you may wish to consider safer investment vehicles. See previous post on BONDS.

How about safe investments like bonds?

by Larry Haverkamp

Bonds are a good investment for two reasons.

First, they carry less risk of default. A company that hits on hard times must pay off its bondholders first and stockholders last.

Second, bonds are less risky because of what economists call co-variance.
It is like sound waves created by two loud noises. It is possible to structure the waves so that when they meet, they cancel one another to produce silence. It is incredible but true.

In the same way, volatile stocks and bonds can be combined into a new portfolio to produce much less volatility than found in either the stocks or the bonds individually. It is the magic of diversification.

Stock Outlook #6: China XLX

04/07/07 4.30 pm: China XLX just broke double top. Now @1.32. Expect more upside.

04/07/07 7.40 pm: Today closed @1.34

05/07/07 10 am : Now@ 1.37

05/07/07 12.19pm: Now @1.39. Up 0.07. Your call.

The Art of Fundamental Anaylsis

There are many different types of Investors & Traders whom all have very different trading styles. Today I focus on long-term investing, which is basically holding onto the stocks that you have bought and in time to come, they may rise in price. This very much depends on your anaylsis of the company in which you wish to invest. How each & everyone of us evaluate the worth of a company various and below are some of the aspects that I consider.



1. Sales - Growing much faster than anuual inflation

2. EPS - Gradually increasing & accelerating

3. PM - Rising higher than industrial average

4. ROE - Higher than industrial & mkt average

5. Debt ratio - Low

6. P/E - Gradually Increasing



There are still other factors to look at, so make start making more informed investment decisions from today!

Stock Outlook #5: SBUX

The U.S Market has been quite bearish for several stocks recently. It's a good time to review some of them. SBUX is under the radar alert.

Bearish Divergence spotted. Watch out if it breaks above the 20D MA.

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SGX Market Sentiment

Yesterday, the Dow close 14 points lower due to continued housing declines and mortgage loan issues. STI is up +10.55 points at this point in time. My view is that STI will continue to slip today to below 3525 due to cautious trading ahead of FOMC.

Wed 27/06/07 11.42 am: STI now @3501 down -24.02

Wed 27/06/07 2.30pm: STI now @ 3489 down -35.27

Wed 27/06/07 5.03pm: STI close @3515 down -9.87

True?

Stock Outlook #4: Fung Choi

25/06/07 8.44 am: Price now @0.725. T.A chart looks promising. Expecting price to dip a little on Monday open. Can enter slightly below 0.725

25/06/07 9.12 am: Now @0.735

25/06/07 9.23 am: Now @0.745

25/06/07 2.13pm: Now @0.77. Close trade? Up 0.045. Good enough for me.

No shortcuts

As anyone who has been following my articles for some time knows, I am an advocate of Wealth Planning. I believe in taking a holistic view in planning your finances, goals & ultimately your path. I am certain to say should I take a stone and throw at a group of people right now, 9 out of 10 would have no clue what they want in life and how to get there. Why is this so? C'mon.Take a little time & think about what you want. Map out your goals & objectives.

One little secret to becoming a top trader

Losing traders often fail to acknowledge and control their emotive process during a trade. Winning traders acknowledge their emotions and then examine the market. If the state of the market has not changed, the emotion is ignored. If the state of the market has changed, the emotion has relevance and the trade is closed.

Diversification

Diversification involves proportioning your money so that it is invested in several different areas. It means not putting all your eggs in one basket. While diversification lowers risk, it can lead to money going into investments that either lose money or deliver low returns.

Some will question the need for diversification, pointing out that if all their money was placed into one great investment, then they would achieve the maximum amount of returns. I agreed, however, this is with the benefit of hindsight. In reality, it is much harder to accurately predict which investments will deliver huge profits in the future.

The benefit of diversification is that it gives you a wider exposure to various investments while lowering risk. There are many forms of diversification.

Stock Outlook #3: Buy China Energy

TA looks good for China Energy.

14/06/07 10.15am: Buy @1.73. Be prepared to exit before 1.80

14/06/07 11.30am: Now @1.76

14/06/07 3.00pm: Now @1.76. Up 0.03. Close trade?

14/06/07 3.20pm: Now @1.79. Up 0.06. Close trade.

Stock Outlook #2: Lottvision

The story for Lottvision looks promising. Now @0.62. This is not a guaranteed winner but one to keep under your radar.

Fundamental Anaylsis:

• Intends to become a regional lottery leader
• Possible foray into India/Korea, beyond current foothold in China
• May provide lottery-related services
• Strong demand for lottery-vending terminals
• Aims to tap into interactive mobile gaming in China

15/06/07 2.24pm: Now 0.635

3 U.S Stocks to hold forever

McDonald's (MCD)
With more than 30,000 restaurants in more than 100 countries, you might think that most of McDonald's growth has already happened.

But that's not necessarily so. For years, while consumer tastes evolved, McDonald's was stuck in neutral, offering, in essence, the same menu it started with in 1955. But that's no longer the case. McDonald's now gets it. New menu items have spurred sales growth, and more are on the way. Look for continued domestic sales growth for the next few years as McDonald's learns to upscale its menu.

Looking abroad, only 3% of McDonald's sales come from Latin America, and only 16% from Asia and other developing areas. So there are plenty of expansion opportunities outside the United States.

Chevron (CVX)
With surging demand from the emerging economies, world energy consumption will continue to head higher for the foreseeable future. So, even if oil prices stay put, increasing production levels will drive oil company profits up.

Chevron, the world's second largest player behind ExxonMobil, engages in every aspect of the energy industry from exploration and production to retail marketing. Thus, either Chevron or ExxonMobil would be a good proxy for the entire industry.

Chevron is favourable over ExxonMobil because it has a 50% stake in a huge deep-water petroleum pool under the Gulf of Mexico. The existence of that pool, potentially the biggest U.S. oil discovery since Alaska's Prudhoe Bay, was only recently confirmed. Chevron also holds interests in several other recent major oil and natural gas discoveries.

Starbucks (SBUX)
Starbucks operates or licenses more than 8,800 retail coffee shops in the United States and plans to grow that number to around 15,000. The company recently annouced its aim to have 40,000 stores worldwide. Starbucks also plans to increase sales by adding new food or gift items to its store mix, as well as developing new products such as ice creams and liquors that would be sold in other venues.

Starbucks has been successful at exporting its concept overseas. Its coffee has even caught on in Britain, where tea is the national beverage. It already has more than 500 outlets there. Starbucks has opened a couple of hundred outlets in China. If the concept catches on with China's emerging middle class, the possibilities are huge.

So there we have it. 3 stocks that command great respect.

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- How to use Technical Indicators to identify short & long term buy/sell signals
- How to Spot Trading Opportunities
- How to create own trading system & generate consistent profits

Module 3: Practical Forex Live Paper Trading (4hrs, Mon 25th Jun, 7 to 11pm, $300 only)
- Trade live with Trainer & experience the real action in Forex Trading
- Spot trading opportunities & react to them instanteously
- Apply the tools & techniques learnt in Modules 1 & 2

Special Discount - Sign up all 3 courses for $800 only! (Save $100) Limited Seats only !

Please email soundinvesting@hotmail.com to register. Please include Name & Contact no.

ETFs

Someone emailed me asking on ETFs. So here's it:

ETFs are Exchange-traded funds and comprises of either a basket of stocks or follows closely to the performance of an Index. They behave like any other stocks & are traded over an exchange.

Eg. S&P 500 (SPY), DJIA (DIA)

Advantages are that it provides us with diversification although we only have 1 counter on hand. The diversification could be through different asset class, geographical location etc depending on the ETF purchased.

For now, I advise only buying ETFs on the U.S market as the ETFs in Singapore are still rather illiquid. It is quite pointless should you wish to sell & can't (due to illiquidity) or selling at loss (below Market Price) so as to liquidate it. For those who wish to buy into the STI may consider EWS.

Do you know your Investment Style?

There are a few types of Investment Style. What is yours?

(1) Growth Investing
- Companies that are experiencing tremendous growth at the moment & you stand to gain from their explosive growth

(2) Value Investing
- Simply defined as 'hidden gems'. Buying into undervalued companies.

(3) Dividend Investing
- Investing in companies that return generous dividends to its shareholders.

I advise having a good mix in your portfolio. You stand to gain significantly adopting the first 2 styles especially in times of a bull run, however, counters that dish out generous dividends are usually those that are more stable in nature & able to withstand more volatility during the bad times. What proportion your mix is depends on your own Investment objective, risk tolerance & risk appetite.

The First Line of Defence

Before embarking on the challenging world of Investments, one must ensure the basic essentials for life are met. This meant getting yourself adequately covered by insurance, before channelling your surplus funds for investing. However, the extensive range of insurance plans these days simply leave people baffled. The purpose of getting insurance is that it protects you & your dependents against financial losses in the event of death, permanent disability, critical illness etc. So which do you get? Naturally, this would depend on a few factors such as the phase in life you are in, health status, risk exposure at work, no. of dependables, current total insurance coverage etc. Every individual case comprises of different factors, thus I shall give a hypothetical scenario.

Jack, Single, Unmarried, Working (receiving Employee CPF contribution), Age: 20-30s, Parents are non-dependables

Since Jack is receiving Employee CPF contribution, he has the option to undertake 2 CPF Insurance policies, namely the DPS & Medishield schemes. These 2 policies cover term insurance and H&S (Hospitalisation & Surgerical). Although these 2 plans provide inadequate coverage, I still suggest taking both up. Reason being (a) Premium payment comes from CPF (b) For the coverage provided, premium paid is considered low. To ensure adequate coverage, supplement with other plans such as

1. Term-insurance (An alternative would be whole-life insurance, however, premium paid will be higher for same amount of coverage)
2. H&S insurance
3. Disability Income Insurance

In Jack's case, he may even wish to opt out the term insurance policy as he just started work & does not have surplus cash to pay for the numerous premiums. This is because he (a) has the DPS policy (b) his parents are self-reliant & do not depend on him for money.

Pls consult your Financial Advisor for a comprehensive analysis based on your own needs.

Stock Outlook #1: Buy Ouhua @ 0.605

08/06/07 2.33pm: Flag formation observed. May break near term double top.

Update 08/06/07 5.35pm : 0.635 - Broke near-term double top

Update 11/06/07 8.35am: Ouhua may move north a little this morning. Advise to hold & sell closing to 12pm.


Update 11/06/07 9.12am: 0.65 now. Take Profit? Your call.

Update 11/06/07 5.05pm: 0.63

Invest in your Knowledge !

Price List (** Up to 20% off !)

Pls email Jason at soundinvesting@hotmail.com with book titles & quantity. Transactions to be made at Convenient locations. Free Delivery for purchases of 3 books or more. (All books are brand new)


Handbook for Businessmen – Doing Business in Singapore
by Goh Tianwah

RRP: $24
NOW: $20 ! (15% off)

‘The Most Popular Guide for Doing Business in Singapore’

This book is a one-stop information guide for anyone starting a business. Information in this book is essential to both local businessmen and foreigners who wish to start and operate a business in Singapore. This new edition has been fully revised and enlarged to include changes in the employment regulations and government assistance schemes for SMEs.

Success with Small Business
by Chan Pak Chuen

RRP: $19
NOW: $16 ! (15% off)

This book is dedicated to facilitating the correct start of a small business. Real case studies (including those of the author's) will impart critical business experience aimed at shortening the often painful learning curve of aspiring entrepreneurs. Also includes advice from Singapore successful entrepreneurs and business award winners like Mrs Anastasia Liew, Managing Director of Bengawan Solo and Derek Goh, President and CEO of Serial System Ltd and many others.


The Art and Science of Entrepreneurship
By Inderjit Singh, Member of Parliament (Singapore)

RRP: $25

NOW: $19 ! (more than 20% off)

In this book, Inderjit Singh has distilled the key concepts and key mindsets of entrepreneurship, and translated what goes on within an entrepreneur's mind into structured processes.
In The Art Of Science Of Entrepreneurship, Inderjit Singh reveals lessons learnt through tough experiences he overcame in his unending journey as an entrepreneur. Through reading this book, you should obtain a good feel of what it is like to be an entrepreneur. Perhaps in arming yourself with this knowledge, you will lessen the pain you'll encounter in your entrepreneurship journey. Many have done it, and you to can do it too if you understand what it takes.

Success in the Education Business
by Vincent A.Gabriel

RRP: $24
NOW: $20 ! (15% off)

Success In The Education Business is a detailed guide for aspiring education entrepreneurs in Singapore who wish to start and operate a profitable education business. The author shares with you 40 years of his experience in the education industry as an educator and management consultant.
The book also gives you useful tips on a variety of topics, from the types of education business to set up to choosing a location and calculating the breakeven point for your business. As Singapore is aiming to become the education hub of Asia, this book is an excellent resource for entrepreneurs.


4 Steps to Financial Freedom
by Sean Toh

RRP: $18
NOW: $15 ! (15% off)

4 Steps To Financial Freedom reveals the philosophies and secrets of Sean Toh's financial journey in creating wealth for himself. Here you will learn proven principles and timeless wealth building techniques, as well as simple, practical, and proven financial strategies used by thousands of people to create a life of abundance. By starting to practice these four steps, you will change you life. Make the decision now to take the necessary actions to embark on this journey of creating wealth for yourself.

Show me the Money (Vol 1)
by Teoh Hooi Ling

RRP: $16
NOW: $14 ! (12% off)

Further $1 off when you purchase Vol 1 & 2.
Show Me The Money is a compilation of 30 articles from a column of The Business Times Singapore (BT) with the same name. In her introduction, the author wrote:"I've received many emails from readers saying how the Show Me The Money articles have helped them make sense of the complex financial world. Not only lay investors found value in the articles. Even market practitioners were reading them for incremental insights into the behaviour of the market."Many readers have asked Ms Teh to compile her writings into a book. This publication is, hence, one of most HIGHLY ANTICIPATED investment books to this year.

Show me the Money (Vol 2)
by Teoh Hooi Ling

RRP: $18
NOW: $15 ! (15% off)

Further $1 off when you purchase Vol 1 & 2.
Show Me The Money (Volume 2) is a compilation of 35 articles from a column of The Business Times Singapore (BT) with the same name.
Among the topics covered include:
* Asset Valuation More An Art Than Science
* A Look At Discounted Cashflow Valuation
* Are Stocks in STI Fairly Valued?
* A Tool For Comparison
* Dividends Matter In Picking Stocks
* Is High Dividend The Best?
* Ways Of Comparing The Attractiveness Of Stocks
* What some BT Readers say:
I always look forward to reading your articles in the BT weekend and think that you are doing a good job educating the public on basic fundamentals in money/investment management. The best part is that your articles are written in simple language. So please keep up the good work and I look forward to more good reads from you.
I enjoy reading your articles very much, and salute to your expert analysis and insightful views

Handbook for Stock Investors
by Goh Kheng Chuan

RRP: $18
NOW: $15 ! (15% off)

** ‘ #2 Singapore Bestseller!’

Handbook For Stock Investors is indispensable handbook that provides both novice and seasoned investors with essential knowledge and strategies required for stock investment. Besides learning the basics of trading stocks, you will also learn how to use technical analysis to improve your investment timing. Other skills that you will pick up include techniques for stock selection as well as tactics to lower investment risk and increase profits.

The Essence of Stock Investment
by N W Teong

RRP: $18

In this book the author will share with you how you can increase your chances of making money at ALL times in stock investment. You will learn the following techniques (which are used by practicing fund managers)
· the complete process of investment evaluation
· how to set up a practical and versatile valuation model for your stocks
· how to time the market based on fundamental analysis, with the aid of some simple technical analysis techniques
· how to set up an efficient portfolio spreadsheet
· how to use the Flexi-Value-Time (FVT) investment strategy to greatly increase your odds of making great money under all market conditions

Handbook on Forex Trading
by Nicholas Tan

RRP: $25
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Handbook On Forex Trading is the best guide to get you started on trading forex. Forex trading is an alternative to the stock market as the market has enormous potential with a trading volume of USD 1.7 trillion a day. All you need is a computer and an internet connection and a basic knowledge of forex and you are ready to start trading in a highly profitable market.
This book will teach you how the forex market works, basics of charting, how to trade and when is the best time to trade.

Insights on Warrant Trading and the Singapore Stock Market
by R. Sivanithy

RRP: $18
NOW: $15 ! (15% off)

Insights on Warrant Trading and the Singapore Stock Market aims to educate readers on some of the mysteries surrounding the stock market and to stimulate critical thinking by explaining complicated concepts in the simplest possible terms. This compilation of insightful and vastly informative articles by the author from the Business Times will be your essential guide to warrant trading and stock trading. A must read for all who desire to become smart and savvy investors.

Financial Planning in a Nutshell

The process of Financial Planning is alike to a roadtrip. You need to know where you are (start), where you going (End Destination) & how you intend to get there (The process). The 5 main steps are:

1. Assess your current financial standing
2. Define your financial goals/ objectives
3. Draw up your financial plan
4. Implement
5. Review results along e way & revise your strategies accordingly