Stockmarket

There is an old saying "Buy on the Rumour, Sell on the News" which relates to how investors and traders typically anticipate upcoming market events and either sit on the sidelines or open up a trade (or “Buy on the Rumour”) and then when the news is released into the public domain, the traders close their trades to take profits (“Sell on the News”). Rumours play an integral part or natural market flow.

The top 150 Public Companies Listed on the Australian Stockmarket as at 29/05/2009

1. BHP Billiton
2. Westpac Banking Corporation (WBC)
3. Commonwealth Bank of Australia (CBA)
4. National Australia Bank (NAB)

We’ll examine trading the financial market cycle – a continuation of the discussion from here. There are four stages to the financial market cycle: The first stage of the stock price cycle is “Indecision”. Stage two is indicated by a rising trend pushed up through greed and market euphoria. Stage three is another period of indecision. Stage four is a period of time where prices fall and the market is gripped with fear and panic. Then the cycle returns to stage 1.

Bank stocks trend lower due to an anticipation of an interest rise in US: The sharemarket receded further at noon as base metal prices weighed on the resources sector and anticipation of a rise in interest rates in the United States sent bank stocks south.

But petrol and oil companies were rosier, lifted by a surge in the oil price.

At noon, S&P/ASX200 was down 21.7 points to 4590.2, while the All Ordinaries had slipped 20 points to 4542.2.

ABN Amro Morgans Ipswich manager Tony Russell said it was a quiet day on the market, and the bourse was waiting for further leads from New York.