Archive for August, 2008
Friday, August 29th, 2008
Forex Market Commentary for August 29, 2008 by Cornelius Luca
GFT Daily Market Commentary
The dollar made little progress versus most of the majors, but pushed further up against the pound. Trading will get very thin in the short day before the Labor Day weekend, but the US economic calendar is busy. It will feature personal income and spending reports for July, the Chicago PMI report for August, the University of Michigan survey for September, and the core PCE deflator report for July. Expect choppy trading without much direction.
Euro/dollar
The euro/dollar reversed early gains to close lower on Thursday, as expected. Once again, following an early recovery, the pair should resume its decline. My model is long.
Initial resistance is now seen at 1.4760. The next levels are 1.4780 and 1.4800. A pivotal level is in place at 1.4910.
Immediate support comes at 1.4665. The next level is 1.4572. Below 1.4540, support comes at 1.4485 and 1.4455.
Oscillators are mixed.
NEAR-TERM: Mixed with downside risk
MEDIUM-TERM: Bearish
LONG-TERM: Mixed
Dollar/yen
Dollar/yen consolidated in an inside range on Thursday and closed virtually unchanged. Again. Unless the 110.00 area gives way, the pair will retest the 108.65 area. My model remains (barely) short.
Immediate resistance is still in place at 110.00. Strong resistance follows at 110.35 from a 50-point pivot, which targets 109.85 and 110.85. Distant resistance is 111.60 from another 50-point pivot, which targets 112.10 and 111.10.
Strong support remains at 109.15 from a 50-point pivot, which targets 109.65 and 108.65.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bullish
LONG-TERM: Mixed
Sterling/dollar
Sterling/dollar sank further a new over two-year low on Thursday and the selling pressure should continue.
Initial support is at 1.8240. Below 1.8207, cable has support at 1.8127.
Immediate resistance now comes at 1.8355. This is followed by 1.8437 and 1.8565. The next strong resistance remains 1.8620.
Oscillators are falling.
NEAR-TERM: Mixed with downside risk
MEDIUM-TERM: Bearish
LONG-TERM: Mixed
Dollar/Swiss franc
Dollar/Swiss closed marginally higher after alternating up and down days for nine days. The medium-term outlook remains positive, but trading should remain choppy to early next week.
Initial resistance remains at 1.1025. The next levels come at 1.1054 and 1.1086. Strong resistance follows at 1.1185.
The pair still sees immediate support at 1.0955. This is followed by the area between 1.0925 and 1.0915. A pivot low remains at 1.0844, but this should not be challenged.
Oscillators are rising.
NEAR-TERM: Mixed
MEDIUM-TERM: Bullish
LONG-TERM: Mixed
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Friday, August 29th, 2008
Wealth or no wealth is not really a matter in Islam teaching, to be good individual and be thankful to god is the urge for all Muslim. But, Islam really shows you the way how to accomplish every dreams of yours. I did write about how can praying 5 times a day make us millions dollars in here.
Praying will energize our mind with more power to work towards our dream. A powerful mind that has a definite goals will surely archive them. Mind over matter, you have to really believe in this principle in order to have a millionaire’s mind. Temporary defeat is normal and just a small obstacle you have to overcome.
Husnul-khatimah is what every muslim pray for, which means good ending. Archivement of the goals. It doesnt matter where or how you start, the only mater is just where or how you ended it.
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Thursday, August 28th, 2008
Forex Market Commentary for August 28, 2008 by Cornelius Luca
GFT Daily Market Commentary
The proximity of Labor Day weekend surely doesn’t make things easier in the currency markets. Nor did the half-baked measures at Fannie Mae. The dollar closed slightly lower against the euro and franc on Wednesday, but basically flat versus the pound and yen. However, trading was quite volatile. The dollar lacks much direction, so expect more choppy trading for a couple of days. Only the German unemployment rate report is of interest, as the Nationswide housing price report should be negative.
Euro/dollar
The euro/dollar corrected into an inside range on Wednesday after falling to a near 6 ½-month low a day earlier. Again, following an early recovery, the pair should resume its decline. My model reversed its short position. Sideways to lower trading is likely.
Initial resistance is now seen at 1.4780. The next good level is at 1.4800. A pivotal level is in place at 1.4910.
Immediate support comes at 1.4710. The next levels are 1.4665 and 1.4572. Below 1.4540, support comes at 1.4485 and 1.4455.
Oscillators are mixed.
NEAR-TERM: Mixed with downside risk
MEDIUM-TERM: Bearish
LONG-TERM: Mixed
Dollar/yen
Dollar/yen had an outside day ahead of month end, but closed virtually unchanged on Wednesday. Unless the 110.00 area gives way, the pair will retest the 108.65 area. My model is (barely) short.
Immediate resistance is still in place at 110.00. Strong resistance follows at 110.35 from a 50-point pivot, which targets 109.85 and 110.85. Distant resistance is 111.60 from another 50-point pivot, which targets 112.10 and 111.10.
Strong support remains at 109.15 from a 50-point pivot, which targets 109.65 and 108.65.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bullish
LONG-TERM: Mixed
Sterling/dollar
Sterling/dollar sank to a new over two-year low on Wednesday and the selling pressure should continue.
Initial support is at 1.8286. This is followed by 1.8245. Below 1.8207, cable has support at 1.8127.
Immediate resistance now comes at 1.8437. This is followed by 1.8565. The next strong resistance remains 1.8620.
Oscillators are falling.
NEAR-TERM: Mixed with downside risk
MEDIUM-TERM: Bearish
LONG-TERM: Mixed
Dollar/Swiss franc
Dollar/Swiss closed marginally lower after alternating up and down days for eight days. The medium-term outlook remains positive, but trading should remain choppy for a couple of days.
Initial resistance is at 1.1025. The next levels come at 1.1054 and 1.1086. Strong resistance follows at 1.1185.
The pair still sees immediate support at 1.0955. This is followed by the area between 1.0925 and 1.0915. A pivot low remains at 1.0844, but this should not be challenged.
Oscillators are rising.
NEAR-TERM: Mixed to slightly bullish
MEDIUM-TERM: Bullish
LONG-TERM: Mixed
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Wednesday, August 27th, 2008
It may not be as hard as you think. For example, a 30-year old making $50,000 a year (plus 3% raises each year), saving 10% of their income with a 10% return each year could expect to hit millionaire status at age 59. If they work until the traditional retirement age of 65, they will have over two million dollars saved up. 10% may sound like an aggressive amount of saving, but it could be a combination of employee contributions to a 401k plus company match.
What Role Does Income Play? Surprisingly, income is not as big a factor as you might think. Using the same assumptions as above but making $100k a year, the person would become a millionaire at age 53 instead of 59. How could that be? The main factor here is what Einstein called the “8th wonder of the world”: the power of compounding interest.
Playing Catch-up? Can’t Save That Much?
If you are unable to save that much a year, or you are getting a late start, there is still hope. If you started at age 30, but could only save 5%, you would still become a millionaire by retirement at age 65. If you are playing catch-up and started investing at age 40, you would need to save about 11% a year to become a millionaire by age 65, but at age 50 you would have to save a nearly impossible 30% a year and your time frame would be so short that market volatility would play a bigger role in determining if you could retire or not.
Is One Million Dollars Really That Much These days?
Not really. Once you take inflation into account, being a millionaire today isn’t as impressive as it used to be. For example, if someone was a millionaire in 1980, they would have to have about $1.9 million dollars in 2003 to match the wealth they had in 1980.
Is One Million Dollars Enough to Retire On?
It is. If you had one million dollars today and put the money in something safe that earns around 6% a year, you could afford to take out $60,000 a year for the next 49 years. If you wanted to be a bit more aggressive with your withdrawals and live up your retirement years, you could take out $100,000 a year for 14 years. For simplicity, these examples don’t includes taxes which would decrease your lasting power, though things like social security and higher returns would increase your lasting power.
Do You Have What it Takes to Become a Millionaire?
As you have learned the most important factor to becoming a millionaire is to save early and rely on compounding interest. You can easily have control over how much you save, but you can’t do much about performance - performance isn’t reliable. You could try to make 15% a year, but may end up losing 10% a year doing so. It is better to rely on a properly diversified mutual fund portfolio earning around 10-13% a year, then to gamble and never retire.
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Wednesday, August 27th, 2008
GFT Daily Market Commentary
GFT Daily Market Commentary
The dollar traded higher against all the majors on Tuesday. The rally was exacerbated by stacking evidence regarding the weakening the Eurozone economy; the Ifo institute’s index of German business climate fell to 94.8 from 97.5 in July, while the sub-index of business expectations fell to 87, the lowest since February 1993. With the dollar basically alternating up and down days ahead of the long US weekend, it should edge lower first before the next upmove.
Euro/dollar
The euro/dollar fell to a near 6 ½-month low on Tuesday before trimming losses. Following an early recovery, its decline should resume. My model went short after the release of the horrible Ifo report, so I like the pair down overall.
Immediate support comes at 1.4635. The next level is 1.4572. Below 1.4540, support comes at 1.4485 and 1.4455.
Initial resistance is now seen at 1.4710. The next good level is at 1.4800. A pivotal level is in place at 1.4910.
Oscillators are declining.
NEAR-TERM: Mixed with downside risk
MEDIUM-TERM: Bearish
LONG-TERM: Mixed
Dollar/yen
Dollar/yen continued to alternate up and down days, but the upmove on Tuesday was not significant at the pair got stuck in an inside range.
Immediate resistance is at 110.00. Strong resistance follows at 110.35 from a 50-point pivot, which targets 109.85 and 110.85. Distant resistance is 111.60 from another 50-point pivot, which targets 112.10 and 111.10.
Strong support remains at 109.15 from a 50-point pivot, which targets 109.65 and 108.65.
Oscillators are mixed.
NEAR-TERM: Slightly bullish
MEDIUM-TERM: Bullish
LONG-TERM: Mixed
Sterling/dollar
Sterling/dollar fell to an over two-year low on Tuesday and the selling pressure should persist.
This is followed by 1.8245. Below 1.8207, cable has support at 1.8127.
Immediate resistance now comes at 1.8443. This is followed by 1.8565. The next strong resistance remains 1.8620.
Oscillators are falling.
NEAR-TERM: Mixed with downside risk
MEDIUM-TERM: Bearish
LONG-TERM: Mixed
Dollar/Swiss franc
Dollar/Swiss rallied to a six-month high on Tuesday before giving up most of its gains. My model is now long. The medium-term outlook remains positive, but trading should be choppy for a couple of days.
Initial resistances come at 1.1054 and 1.1086. Strong resistance follows at 1.1185.
The pair sees immediate support at 1.0955. This is followed by the area between 1.0925 and 1.0915. A pivot low remains at 1.0844, but this should not be challenged.
Oscillators are rising.
NEAR-TERM: Slightly bullish
MEDIUM-TERM: Bullish
LONG-TERM: Mixed
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