Boeing (BA): Descending Triangle

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Boeing has been trading within a Descending Triangle consolidation mode for many months. This chart pattern is not for investor (cannot make money from buy low sell high strategy) because the stock price is moving side way.

However this chart pattern is very good for Option traders and range trader (using CFD) for short term trading.

BA Nov6-2014

Option Strategy

  • Short Vertical Call Spread near Resistance – Bearish Direction
  • Short Vertical Put Spread near Support ($119 has been a reliable support, also the 38.2% Fibonacci Retracement Level) – Bullish Direction
  • Short Iron Condor between $117 and $131 – Non Directional & Premium Collection
  • If $119 support is broken, Long Put if Vega is low.

Range Trading using CFD Strategy

  • Short at Resistance (Declining Trend Line) 
  • Long at Support (at about $119)
  • About $10 range

Original Post by Marubozu My Stocks Investing Journey

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Honeywell (HON): Shorting Opportunity!

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Honeywell is currently trading within the range between $90 and $98. HON is facing the Rectangle resistance with a Hanging Man.

HON Nov6-2014

A few ways to short sell US stocks:

  • Long Put Option – Almost unlimited profit (when stock price reaches zero) with maximum loss defined but time sensitive.
  • Short using CFD (Contract for Difference) – Almost unlimited profit (when stock price reaches zero) but unlimited losses also (when the stock price goes up to infinity theoretically)
  • Short Vertical Call Spread – Limited Profit Limited Loss.

Note: When the stock market is at the high (especially now at historical high), it is essential for everyone to learn how to short sell safely. Short selling is a very important skill for a trader and investor (to hedge the portfolio which already making money).

Original Post by Marubozu My Stocks Investing Journey

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Singapore REIT Fundamental Analysis Comparison Table – 2 Nov 2014

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FTSE ST Real Estate Investment Trusts (FTSE ST REIT) Index changes from 753.55 to 763.85 compare to last post on Singapore REIT Fundamental Comparison Table on Oct 6, 2014. The index rebounded from the 200D SMA but currently testing the Rectangle Support Turned Resistance level at 765.  The index is currently range bound in consolidation mode.

 FTSE ST REIT Index Nov2-2014

  • Price/NAV increases from 1.02  to 1.03 (slightly over value now)
  • Distribution Yield decreases from 6.61% to 6.53% (take note that this is lagging number, past DPU does not represent future DPU)
  • Gearing Ratio increases from 33.42% to 33.81%.

Singapore-REIT-Fundamental-Analysis-and-Comparison-Table-2-Nov-2014Singapore Interest Rate Nov2-2014There are 35 Real Estate Investment Trust in Singapore as shown in the above table. Most people just purely choose the REIT with HIGH DIVIDEND and invest blindly without knowing what are the RISKS. If you want to learn how to pick the right REIT and invest to generate passive income safely, check out the very pragmatic and educational public seminar here “Investing in Singapore REIT“.

Grab an insight of the REIT class here 3 Tips To Increasing Returns On REITs Investments

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