Market Insights
Trading Tools
The death cross is when the short-term line crosses below the long-term line, signaling a potential downtrend. Investors may sell or adopt a conservative strategy, considering market conditions, fundamentals, and support and resistance levels.
The trade deficit is when imports surpass exports, leading to currency devaluation, economic instability, and industrial competition. U.S. gap sparks Sino-U.S. tensions, highlighting global economic imbalance.
A fiscal deficit is when spending exceeds income, stimulating the economy but leading to long-term debt and inflation. The causes are mismanagement and deficit policies. Solutions: cut spending, raise taxes, and manage debt.
Precious metals are rare, industrially and economically valuable metallic elements, including gold, silver, platinum, and palladium. Valued for preservation and appreciation, they are considered safe-haven investments.
The Canadian dollar is Canada's official currency, influenced by economic data, interest rates, trade conditions, and oil prices tied to the global economy. Exchange rate fluctuations have a significant impact, so investors should be cautious.
Repo, securing funds by selling securities, is a short-term financing tool in financial markets, pivotal for liquidity and asset management. The vast repo market allows the Federal Reserve to regulate money supply, influencing market rates.
A swap involves two parties agreeing to exchange a set of assets or liabilities in the future, including currencies, interest rates, and equities. It aids in cost reduction, risk management, and diversification, but entails credit risk.
Warrants are certificates that can be converted to raise shares, grant the right to buy company stocks at a specified price within a period, provide funds, motivate staff, and enable flexible, diversified investments with hedging and leverage.
A trade surplus shows economic strength but can cause currency appreciation, hurting exports and sparking trade wars. Policy adjustments are crucial.
The inflation rate measures currency devaluation; a rise indicates reduced purchasing power, while a fall reflects slowed economic growth and price stability. Calculated using the Consumer Price Index (CPI), money supply, and economic growth.
Return on capital (ROIC) The return on invested capital indicates a firm's profitability and efficient capital use. A high ROIC reflects robust earnings, while a declining one may hint at capital inefficiency or profit challenges.
ROC indicator reflects market prices, analyzing trend direction and strength. Above zero signals an uptrend; higher positions indicate stronger trends. Below zero indicates a downtrend, with lower positions suggesting stronger downward trends.
Treasury rates, the rates offered by government-issued bonds, directly impact borrowing costs and portfolio returns. It reflects economic confidence and monetary policy. Inverted interest rates signal a potential recession.
The Doji, a fundamental candlestick pattern with no body, formed by upper and lower shadows. Indicates market uncertainty and potential trend change. Different forms imply different market conditions. In a trend, it hints at a potential reversal.
Public companies are traded on stock exchanges and require investment analysis considering industry traits, supply chains, core strengths, financial metrics, and company disclosures. Choose growth-oriented companies after comprehensive understanding.
