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Facebook news and analysis

4-28-2021 – Facebook reported better than expected 1Q results after the bell. FB reported earnings of $3.30/share topping the expectations of $2.37/share. The Revenue came up to $26.17 billion well above Wall Street expectations of $23.67 billion.

FB stock is trading 4.85% higher at $322.62 in post-market trading

Facebook FB has acquired SportStream, a startup that aggregates sports content and uses it to offer custom social media-focused content solutions to teams and media companies.

Facebook’s FB offering price is $55.12, only $0.52 below where shares traded when the offering was first announced

Facebook FB will be joining the S&P 500 following the Dec. 20 close, and will also be added to the S&P 100. The social networking giant is replacing test equipment vendor Teradyne TER

Facebook FB is reportedly in talks to acquire Bangalore-based product start-up Little Eye Labs.

Facebook Profile

Facebook, Inc. operates as a social networking company worldwide. It builds various tools that enable users to connect, share, discover, and communicate with each other on mobile devices and computers.
The company’s Facebook Platform is a set of development tools and application programming interfaces that enables developers to integrate with Facebook for creating social apps and Websites. As of December 31, 2012, it had 1.06 billion monthly active users and 618 million daily active users.

Trading Report for (FB). A detailed report, including free correlated market analysis, and updates.

DISCLAIMER
Investment involves risks. Stock and bond values fluctuate in price so that the value of an investment can go down depending on market conditions. International investing involves additional risks, including risks related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political, economic or other developments. These risks are typically heightened for investments in emerging markets. Typically, when interest rates rise, there is a corresponding decline in the market value of bonds. Credit risk refers to the possibility that the issuer of the bond will not be able to make principal and interest payments. There may be less information available on the financial condition of issuers of municipal securities than for public corporations. The market for municipal bonds may be less liquid than for taxable bonds. A portion of the income from municipal securities may be taxable.

Tesla Motors, Inc. TSLA

Tesla Motors, Inc. TSLA

5-11-2021 – Tesla (TSLA) halts Shanghai land purchase due to US-CHINA tensions

Tesla Earnings

4-26-2021 – Tesla reported earnings after the closing bell.  TSLA reported earnings of 93 cents per share beating the consensus of 79 cents per share. Revenue reported at $10.39 billion slightly better than the expectations of $10.29 billion. Net profit came up to $438 million, or 0.39/share, in the Q1, compared with $16 million, or 0.2/ share. The stock is trading 1.39% lower at 727.35 in post-market trading. Tesla stock closed at 738.20 on Monday.

Check the latest Tesla stock upgrades and downgrades

What are Tesla Regulatory Credits

Regulatory Credits are credits or points given by some states (there are about 14 states with that programs including California) or the federal government for contributing zero pollution to the environment. The auto manufacturers who have a surplus of credits can sell their credits to other auto manufacturers, who can use the credits to comply with the local and federal laws.

Tesla Motors, Inc. designs, develops, manufactures, and sells electric vehicles and electric vehicle powertrain components. The company also provides services for the development of electric powertrain systems and components, and sells electric powertrain components to other automotive manufacturers. It markets and sells its vehicles through Tesla stores, as well as over the Internet. As of October 3, 2013, the company operated a network of 42 stores and galleries in the United States and Canada. Tesla Motors, Inc. was founded in 2003 and is headquartered in Palo Alto, California.

RISK DISCLOSURE: Options involve substantial risk and are not suitable for all investors. Please read “Characteristics and Risks of Standardized Options” prior to investing in options. Evaluate any strategy prior to use to understand risk and suitability.

Netflix NFLX

Netflix news and analysis

Netflix Earnings

Netflix (NFLX) trades 9% lower in after-market trading as investors disappointed by the new subscriber’s figures. NFLX added 3.98 million new subscribers well below the expectations of 6.2 million. Netflix reported $3.75 earnings/share below the expectations of $2.97. The revenue came up to $7.16 billion, beating the forecasts of $7.13 billion. (4-20-2021)

About Netflix

Netflix, Inc. provides Internet television network service that enables subscribers to stream TV shows and movies directly on TVs, computers, and mobile devices in the United States and internationally. The company operates in three segments: Domestic Streaming, International Streaming, and Domestic DVD. The Domestic Streaming segment offers access to content delivered over the Internet to various connected devices, such as PCs, Macs, game consoles, smart TVs, Blu-ray players, hone theatre systems, Internet video players, digital video recorders, and mobile devices. The International Streaming segment engages in the streaming services primarily in Canada, Latin America, the United Kingdom, Ireland, Finland, Denmark, Sweden, and Norway. The Domestic DVD segment provides DVDs-by-mail subscription services. The company also provides standard definition DVDs and Blu-ray discs to its subscribers in the United States. The company was founded in 1997 and is headquartered in Los Gatos, California.

RISK DISCLOSURE: Options involve substantial risk and are not suitable for all investors. Please read “Characteristics and Risks of Standardized Options” prior to investing in options. Evaluate any strategy prior to use to understand risk and suitability.

China could push U.S. interest rates higher

The wrecking ball swinging through the Chinese stock market has sent investors around the world scurrying for cover in the safe haven known as the U.S. Treasury market.

The result: Even as U.S. stocks take a beating, a key rate that influences the cost of many consumer loans briefly fell below 2% for the first time in four months. Investors were snapping up Treasuries, pushing up prices and pushing down yields.

In the short run, lower yields make it cheaper for Americans to buy big-ticket items such as new cars or refrigerators or to take out mortgages to buy a home. Businesses also benefits by paying less to borrow.

AUDUSD touching the lows

AUDUSD touching the lows

AUDUSD has moved to new lows in the last hour touching 0.7259.

The weaker than expected US Employment Cost index on Friday put an end to that break. In fact the price moved above the 200 hour MA for the first time since July 22. That did not last long.

Today, the price action has been up and down choppy, but down overall Economic releases later in Australia along with an interest rate decision by the RBA. will add volatility and risk.
On the downside, with the low from Friday at 0.7233 being the lowest level since 2009, a break below it should open the door for further down momentum. 0.7000, the next logical target for the pair.

On the upside we need to see a move above the 200 hour moving average (and staying above). If done the 0.73408 and 0.7366 levels become the next upside targets.

Bank of Japan (BOJ) Governor Kuroda comments

Bank of Japan (BOJ) Governor Kuroda comments USDJPY

Central banks can overcome the zero lower bound, as long as the policy maker commits decisively to fulfilling its mandate with well-designed unconventional policy measures

It has become a common understanding among central banks that unconventional monetary policy, despite some lingering skepticism from academic front, has proven to be effective

Inflation is widely perceived to be ultimately a monetary phenomenon, so creation of a massive quantity of money would be a strong signal of a central bank’s commitment to fighting deflation

Monetising govt debt is widely understood to run the risk of eroding the credibility of the central bank and thereby potentially increasing risk premiums rather than reducing them

Central bank’s strong commitment to policy objectives, clear and consistent communication, and decisive action to fulfil the commitment would collectively be powerful enough to have significant impact on inflation

BOJ’s commitment to achieving the 2 percent inflation target will never be compromised

Am confident BOJ can achieve its inflation target with “unwavering determination”

Selling Covered Calls

Selling Covered Calls Option Strategy

When you are neutral on a stock or market and you want to generate additional income from your stock investments, there is an option strategy that is worth your consideration. The strategy involves selling covered calls on stocks or assets that you own and are willing to sell at a particular price.

With the selling covered call strategy, you are selling someone the right to buy an asset that you own at a fixed price (the strike price), on or before the expiration date of the option.

This strategy has some advantages.

You receive a premium for selling someone the right to purchase your asset at a particular higher price that you are willing to sell it for anyway. If the asset price is below the strike price at expiration, then the calls that you sold are not exercised and the premium that you collected provides additional income for you, increasing your rate-of-return or reducing your basis in the stock. If you are writing out-of-the-money calls, the asset may continually increase in value, yet the options may never get exercised, allowing you to do this over and over again. This generates continuous income for you, increasing your portfolio and generating cash flow for other investments.

The downside risk of owning the stock is ameliorated by the option premiums that you collect by selling covered calls, because the premiums reduce your basis in the stock.

If the calls that you sold do get exercised, then you are obligated to sell the asset at the exercise price. But you essentially sell the asset at a premium from the asset price that existed when you sold the covered calls, because you collected the option premium.

You have already agreed that you would like to sell the asset at the exercise price and the price is augmented by the option premium that you collected.

Since you are the seller of the option, the time decay of the option works in your favor. The time-value portion of the call premium constantly declines with time, going to zero on the expiration date. The rate of decay is predictable and is easily calculated by options analysis software. As the expiration date approaches, the rate of decay increases. For this reason, it is often better to sell calls with one month or less until expiration. After they expire, you can sell calls on the next month out and collect another premium.

It is also important to cover risks and disadvantages of this strategy.

If the price of the underlying asset goes below the strike price by more than the option premium that you collected, then you are losing money on paper. But this risk is similar to outright asset ownership and is ameliorated by the option premium that you collected.

When you sell a covered call on an asset that you own, you are limiting your upside potential. If the stock price rockets skyward and stays above the strike price at expiration, then the option will probably be exercised and you will be obligated to sell the asset at the agreed-on strike price. So there is some lost opportunity cost here if the asset turns into a high-flyer.

It is important to analyze your expectations for the underlying asset before writing the covered call. If you have a target price in mind for the asset, you can write an out-ot-the-money covered call approximately at your target price and collect a lower premium but participate in the rise of the asset. If you expect the asset price to remain stable, you can write the call approximately at-the- money and collect a larger premium without much risk. If you expect the asset to decline, but you do not want to sell the asset at that time, the premium you collect from selling a covered call can help offset the price decline. If you sell an in-the-money call, the premium you collect will be even larger, but you run a greater risk of the call option being exercised.

If you are thinking about selling the stock anyway, selling a covered call on the stock can be used to sell the asset at a premium, or generate income for you as you stand ready to sell the asset at a premium. However, if you have decided that there is considerable downside risk in a stock and want to eliminate it from your portfolio, then it is probably better to sell it outright.

Forex Trading Signals and Robots

Options: Pros and Cons

History of Futures Trading

History of Futures Trading

History of Futures Trading

The first recorded instance of futures trading occurred with rice in 17th Century Japan, there is some evidence that there may also have been rice futures traded in China as long as 6,000 years ago.

Futures trading is a natural outgrowth of the problems of maintaining a year-round supply of seasonal products like agricultural crops. In Japan, merchants stored rice in warehouses for future use. In order to raise cash, warehouse holders sold receipts against the stored rice. These were known as “rice tickets.” Eventually, such rice tickets became accepted as a kind of general commercial currency. Rules came into being to standardize the trading in rice tickets. These rules were similar to the current rules of American futures trading.

In the USA, futures trading started in the grain markets in the middle of the 19th Century. The Chicago Board of Trade (CBOT) was established in 1848. In the 1870s and 1880s the New York Coffee, Cotton and Produce Exchanges were born. Today there are ten commodity exchanges in the United States. The largest are the Chicago Board of Trade, The Chicago Mercantile Exchange, the New York Mercantile Exchange, the New York Commodity Exchange and the New York Coffee, Sugar and Cocoa Exchange.  Worldwide there are major futures trading exchanges in over twenty countries including Canada, England, France, Singapore, Japan, Australia and New Zealand. The products traded range from agricultural staples like Corn and Wheat to Red Beans and Rubber traded in Japan.

The biggest increase in futures trading activity occurred in the 1970s when futures on financial instruments started trading in Chicago. Foreign currencies such as the Swiss Franc and the Japanese Yen were first. Also popular were interest rate instruments such as United States Treasury Bonds and T-Bills. In the 1980s futures began trading on stock market indexes such as the S&P 500.

The various exchanges are constantly looking for new products on which to trade futures. Very few of the new markets they try survive and grow into viable trading vehicles. Some examples of less than successful markets attempted in recent years are Tiger Shrimp and Cheddar Cheese.

Futures trading is regulated by an agency of the Department of Agriculture called the Commodity Futures Trading Commission. The agency regulates the futures exchanges, brokerage firms, money managers and commodity advisors.

 

 

Forex Daily Report

Forex Daily Report (5-8-2015 8:00pm GMT)

US dollar supported against all the other major currencies, after data showed that the U.S. economy created slightly less jobs than expected last month, while unemployment declined in line with market expectations. U.S. unemployment rate ticked down to 5.4% in April from 5.5% the previous month.

EUR/USD hit the daily high at 1.1287 but after the payrolls number rapidly lost the positive momemtum and return close to daily low of 1.1178.

EUR/USD is consolidated in to the closing hours changing hands in a tight range in the 1.12 region.

Forex markets keep their eyes on negotiations between the Greek government and Brussels Group (IMF, ECB, EU) about the Greek debt.

 

 

 

Kamikaze Defense

Kamikaze Defense

A kamikaze defense is a method for deterring a potential acquirer from purchasing a company.

How it works:

Kamikaze defense is named after the suicide attacks of Japanese pilots during World War II. For example, Company FGH makes a bid to buy Company STW. The STW board of directors does not want to sell the company, but Company FGH goes directly to the Company STW shareholders and offers to buy their shares for a 15% premium.

Fearful that Company FGH may be successful in its efforts, Company STW sells its key intellectual property and randomly buys Company X35, which makes cigarettes and horsemeat. Company FGH finds Company STW less attractive and drops its bid.

Why it Matters:

The kamikaze defense is near suicide in that the board has to be willing to nearly kill the company in order to save it from acquisition. This is very risky, and in some cases the shareholders will oppose the effort. For this reason, the kamikaze defense is often a last resort.

How to Draw Trend Lines

Support and Resistance Lines

Forex Trend Trading