Monday, July 26, 2010

news that we can use

Goldman Sachs earnings fall, trading faces difficulties

It is a piece of very bad news for Goldman in the last few days.Goldman posted disappointing earnings to a large extent because its highly profitable investment banking and trading divisions saw activities slow in the last quarter. The firm had to account for its settlement with the SEC, but that is a one time charge. The faltering in the growth of its core businesses could continue and will likely be compounded by restrictions that the new financial reform legislation puts on proprietary trading.

My Notes: Most U.S. investment banks have faced lower profits, this quarter. The same is the story with many Indian brokerages which have reported lower Q1 earnings. We may be going through a change in the methods of trading. We will look deeper into this issue.


New safe-haven currencies shine amid debt fears 
The Canadian dollar, Australian dollar and Swedish crown are gaining in popularity as investors increasingly look for alternatives.
 
My Notes: Alternate investment vehicles will become increasingly significant in the portfolio of traders. For us, Agro commodities & Metals offer some alternatives to Nifty.
 
Six Reasons Why China Stocks Will Rise 

Investment indicators for China itself were even more dramatic. The Shanghai Composite Index jumped 2.9%, its biggest gain in a month. Chinese firms that consume resources from abroad also leapt on hopes that commodities would drop in price as the yuan rose. In New York, the China ADR Index jumped more than 2.5%
1 China Holds the Keys to Confidence
2 China Will Become a Big Spender
3 It Won’t be the U.S. Consumers to the Rescue This Time
4 Finding A Balance
5 Squelching Inflation
6 The Political Bonus


My Notes: Well, this is the optimistic forecast. But, it could well turn out to be accurate.

Summary

Brokerages are facing difficluties, this seems to be developing as a theme. For the markets, the Nifty is at 5418, certainly not a bearish number. We are at 24 month highs. There will be dips and corrections but we should not challenge the trend.S o far, the trend is up.

3 comments:

gourv said...

Hello Sir,
Gourav here
You said"For us, Agro commodities & Metals offer some alternatives to Nifty".
Also few days back you said that Trading of Nifty in US will put nifty Traders of india in to disadvantage.
What are your views regarding trading the FOREX market like EURO/USD as here no one is having any extra advantage/disadvantage.I have traded the FOREX market but as it trdes 24 hours i cant decide which time frame to trade.I am anxiously looking to hear from you regarding FOREX trading.

Regards
Gourav

kk said...

RESPECTED SIR

THE DEATH CROSS THAT FAILED!!!

I HAVE BEEN CONTINUOUSLY SAYING ABOUT THE DOW'S RANGING PHENOMENON. AND THAT'S THE DAMAGE IT CAN DO , IF ONE IS NOT DYNAMIC.

I AM NOT OPPOSING OR QUESTIONING THE SIGNIFICANCE OF MOVING AVERAGES IN TECHNICAL ANALYSIS. BUT I AM JUST SAYING THAT ,THE THINGS WHICH ARE KNOWN TO HAPPEN , ARE NOT NECESSARILY BOUND TO HAPPEN. AND THAT'S WHAT HAPPENED .

IT HAS HAPPENED IN THE PAST ALSO .THE PERIOD FROM 1999 TO 2002 WAS FULL OF DEATH AND GOLDEN CROSSES FOR DOW JONES.

THAT WAS PAST . FOR ME THE FUTURE IS EVEN BRIGHTER . DOW HAS JUST BROKEN OUT OF A H&S BOTTOM PATTERN , AND THAT'S QUIET STRONG ONE . IT SHOULD BE HEADED FOR 11000.

WHAT IT MEANS FOR INDIA? .IT'S STILL QUESTIONABLE .WE HAVE DONE IT MANY TIMES. OUTPERFORMED WHEN DOW GOES DOWN , AND UNDERPERFORMED ,WHEN IT WENT UP. A DECISIVE BREAKOUT ABOVE 5550 OR BELOW 5250 WILL DECIDE OUR COURSE.

men said...

Help needed.
Dear Mr. Sudarshan,
How does one determine turnover for fno for audit purposes?
ASSUME
1 MINI PURCHASED 1,00,000/-
SOLD NEXT DAY 1,00,500/-
hence turnover is 500/-
assume
1 mini purchased 1,00,000/-
sold next day 99,500/-
hence turnover is ALSO 500/-
Therefore total turnover for AUDIT PURPOSE IS 500*2=1000, if no then what is the turnover for audit purposes ONLY.
but PROFIT =0.
Assume the above rates are inclusive of stt, sd etc in both buy and sale.
Please give your views as we are nearing the last date for filing the returns, sorry for any incovenience and THANK YOU.
Sudhin