CME Crude Oil & Energy Update

Crude Oil & Energy Update - Interview with the CME Group's Joseph Ria

When you hear the news reporters talk about the price of crude oil in the marketplace, they're generally talking about WTI, which is West Texas Intermediate crude oil. It's a very light, sweet crude oil and the highest grade that's out there.

Crude oil is based on and priced on the amount of sulfur that's in the oil. It makes it easier or harder to refine based on the amount of sulfur. WTI being the lightest and sweetest, is the highest priced crude oil in the marketplace.

It is a benchmark delivered in Cushing, Oklahoma.

In benchmarks for crude oil and global pricing of crude oil, WTI probably prices about 50% of the global pricing of crude oil. Brent being basically the other pricing benchmark. There's two out there, Brent being a little of a mixture of three different grades of crude oil; BF&O, Brent 40 and Ossenberg. They're all produced in the North Sea.

Click here to review the rest of the complimentary article from Joseph Ria. This link will also give you exclusive access to three more investing trading video seminars and articles.

Weekly Stock Pick

The Market Week Ahead

Earnings season is coming up again starting with the financials, technology and drug companies. A second stimulus plan is being talked about, oil is below $60 again with traders saying buy. Equity traders are wondering about President Obama’s approval rating possibly going down and any possible policy changes because of that. During this recent market run up, individual investors have been investing more money into mutual funds, and ETF’s than normal while corporate insiders have been taking it out 27 times faster. Click here to find out if the bear market’s most violent decline is right around the corner.

My Stock Pick This Week

Is a Chinese life insurance company. China is a great place to invest long-term with an economic engine of 1.3 billion plus people. The growth potential in the insurance industry is massive to say the least. This insurance company currently has total assets of about 1 billion Chinese Yuan or $150 million, with liabilities of about 550 million yuan or $80 million, which is about a 2:1 equity to debt ratio. But it may not be as good as it looks currently. 460 million Yuan or almost half of their assets are invested long term in Chinese listed banks. Last year as the Chinese market made a big correction along with this insurance company’s big investments in the Chinese banks resulting in a single digit investment loss for the year for this Chinese insurer. At a current price earnings ratio of 36, it’s a short-sell now and buy back later at lower price valuations to make a long story short.

Sell-Short China Life Insurance Ticker LFC

Sell Entry: 59.62 to 58.43

Stop-Loss: 61.85

Take Profit Areas: 57.30 to 55.04, 52.89 to 52.09, 51.36 to 50.59, 47.62 to 46.90, 39.96 to 39.36

China Life Insurance Company Profile

China Life Insurance Company Limited provides various insurance products to individuals and groups in China. The company operates in three segments: Individual Life Insurance, Group Life Insurance, and Accident and Health Insurance. The Individual Life Insurance segment offers participating and non-participating life insurance and annuities to individuals. Its products comprise long-term health and accident insurance products. The Group life insurance segment provides participating and non-participating life insurance and annuities products to companies and institutions. It offers various long-term insurance products. The Accident and Health Insurance segment provides short-term accident insurance and health insurance to individuals and groups. The company distributes its products through its direct sales force, exclusive agent force, and various intermediaries, as well as through bank assurance arrangements. The company was founded in 1949 and is based in Beijing, China. China Life Insurance Company Limited is a subsidiary of China Life Insurance (Group) Company.

Click here to review and trial the Trading Software we used in determining our short position on LFC.

Click the China Life Insurance Stock Chart for a larger view.

ZuluTrade Revolutionary Forex Trading Accounts

What is ZuluTrade?

ZuluTrade bridged the gap between valuable information in money markets and trade execution, by converting the advice of professional and talented traders globally to an executed trade rapidly and automatically in your account (from supported brokers)

There was a time when trading was a headache. Not anymore! You don't have to study or monitor the market to make a good pick, because hundreds of industry well-known experts from all over the world are doing it for you. All you have to do is pick the experts you like, and ZuluTrade will quickly convert their advice into live trades in your trading account directly with the broker. And the best of all, it's completely FREE!

ZuluTrade receives rebates from the brokers, for the trades generated and splits them with the experts that provide the advice. Check the performance results recommended by our experts here

Who is placing the trades on my account? Do the experts know about my account?

None of the experts that recommend trades will ever know your account's existence. ZuluTrade receives their recommendations, and checks the experts you have subscribed with in your account profile, and decides whether or not to autotrade their advice in your live account using a secure direct connection with the broker's backend. ZuluTrade's patented engine places trades automatically with no human intervention. ZuluTrade service is server based, in other words you don't even need to have your computer on.

How do I get started?

All you have to do is provide ZuluTrade with the name and account number of the brokerage firm you're trading with. Sign and fax the LOD required by your broker, to authorize ZuluTrade to bridge the experts advice with your broker account.

If it is the first time that you will trade online or you never had an on-line trading account with one of the brokers we support, then the first step is to open a new account. Click here to open one now in just 5 minutes.

Are the results hypothetical? There are a lot of websites that claim all kinds of results.

Every signal received by ZuluTrade is executed on at least one live / demo broker account. The results contain final spread, swap rates, and profit or loss from current open positions, hence all possible costs by the broker. The spread is the standard spread advertised by the broker you're trading with. Hence our performance always reflects real market conditions. Due to the volatility of the markets, sometimes results may vary between accounts.All signals and trades executed on a demo account are considered to be hypothetical.

I already have an account with one of the dealing brokers you support. What is the next step?

When your broker notifies you that the change has been made, you will receive an email from us that you are ready to start using . This process will take a maximum of 2 days.

I already have an account with one of the dealing brokers you support. Why is ZuluTrade telling me that I cannot use this account? Signing the RB form doesn't work. Do I need to open a new account? What’s wrong?

This is because when you opened this account, there was a party that acted as a Referring Broker (RB). Your dealing broker cannot remove that Referring Broker from your account and replace it with as the new one (legal issues). You need to open a new account and set as your Referring Broker. Click here to open a new account already setup for .

I do not want to open a new account, and I don’t want to sign any forms, even though there is not any cost involved with it. I prefer to use my existing account with the broker I’m trading with, without any changes. Is this possible?

No. By signing the RB form, you enable ZuluTrade to receive rebates from the broker or dealer you have an account with, and most importantly for ZuluTrade to pay the signal providers that are generating the trades being executed in your account. So if you do not wish to sign the RB form with the existing account, the alternative is to open a new account with your broker by signing the same RB form for that new account.

Why do I need to type my username for the broker platform I’m trading with? Is there any danger for anybody to steal it?

No, there is no danger. We will never ask you for your password. But even If your password was stolen, it is not possible for anyone (including ZuluTrade) to withdraw funds from your account. This is because your broker, who always wires funds to the beneficiary of the account ONLY, is the one who had opened the account

Link your existing broker account with our revolutionary trading platform

Once you complete the signup form, we will then automatically send you your login details to begin autotrading with our platform. Accounts are usually activated within 3-5 days.

What is a pip?

A pip is the minimum movement of a currency upwards or downwards. To calculate each pip for every currency, divide 1/ (currency pair exchange rate) Ex: 1/224.92 (GBP/JPY) = 0.00444 GBP. If you’re trading a 100:1 leverage account, then multiply this with 100. Ex 0.00444 x 1000 = 4.44 GBP. To transform this to USD just convert it. Ex: GBP/USD = 1.9377 x 4.444 = 8.6 USD / pip.

Another example is to calculate a pip for GBP/USD. 1/1.9377 = 0.516 GBP. For a 100:1 standard account, multiply that with 10. Ex: 0.516 x 10 = 5.16. To convert in USD multiply with 1.9377. Ex: 5.16 x 1.9377 = 9.98 USD / pip.

Without proper risk management, this high degree of leverage can lead to large losses as well as gains.

How long does it take to open a new account with my existing broker?

It only takes 1 day. Most brokers – if you already had an account with them, do not require duplicate proof of records, and will provide you with a new account number. Don’t forget to tell them that your Referring Broker is.

What is the minimum deposit to open a new account?

It depends on the broker, but we recommend that the amount for a standard account is $20,000 USD and for a mini account is $1,000 USD.

I don’t have a trading account with the brokers you support. Is that a problem?

No. You can open a new account already set up with now by clicking here.

I tried to open an account, but I’m confused. Should I open a standard account, or a mini one?

If you are trading more than $10,000 USD we recommend to open a standard account, otherwise a mini account.

Can I open my account in different base currency than USD?

Yes. You can choose between USD, JPY, EUR, GBP and AUD.

I logged into my account. How many providers should I trade with?

On the account settings page in the member's login area, there is a wizard that corresponds to the lots traded by every provider and your equity. This wizard will display how many providers you should choose without having the risk of a margin call. Simply follow the wizard. Of course you can choose the signal providers manually if you wish.

What is a lot?

A standard lot is a buy or sell size. If you buy 1 lot of EUR/USD, trading at 100:1 leverage then you buy 100,000 EUR/USD. But since you’re trading with 100:1, the leveraged value is 1,000 EUR/USD or 1 standard lot. If you trade a mini lot, then you buy 10,000 EUR/USD and the leveraged value is 10,000 EUR/USD or 1 mini lot.

Without proper risk management, this high degree of leverage can lead to large losses as well as gains.

Can you add more signal providers?

Send an email to us and we will add them as soon as possible.

Can I trade manually? Or will it conflict with the zulutrades?

Yes. Manual trades will not affect automatic trades.

I have opened a new account with my broker. How do I know everything is ok?

Your broker will send you an email confirming that we are the Referring Broker, and that your account is ready. Then, you log in to ZuluTrade and configure your trades.

Who are these signal providers? How did you pick them?

We do not pick them. Any individual can become a ZuluTrade signal provider. It is not possible on ZuluTrade to misrepresent the performance of the signals generated. If ZuluTrade shows a profit or loss, it is accurate, because details are confirmed by the dealing broker’s statements. For each pip stated in the performance section, there is a trade registered in the broker’s backoffice. The results are a combination of hypothetical and actual results.

What is ‘spread’ and why do all my trades start off with negative pips?

The spread in the FX currency trading market, refers to the difference between the ‘bid’ price for the currency and the ‘ask’ price.

Each traded currency pair opens with the spread. So if the spread is 5, then your trade will open at –5pips.

How do I control the number of lots, and the number of trades a signal provider trades with on my account?

When logged into your account at zulutrade.com, go to your account settings page. From there select the ‘max open lots’ drop down menu’, this allows you the set the number of total lots you wish a provider to have open at any one time, before he can open any more lots. Also, next to each provider's name you have selected, there is a drop down selection called ‘lots’. This pertains to the number of lots to be traded on each individual trade. For example: if you wish each provider to trade with 2 lots per trade, but wish there to be no more than 2 trades open at a time. Then you would set max open lots to 4, and number of lots next to your providers name to 2.

Do you offer institutional accounts?

Yes, we also offer various intitutional account types based on trading volume. Please contact us for more details.

Click here for more information on opening a ZuluTrade account

Time for High-Yield Junk Debt Again?

High-Yield Debt: Is It Time To Fill Your Trunk With Junk?

To the tune of "Putting on the Ritz" "If you're blue and don't know where to go to . . . Why don't you go where high-yield sits, Putting on the Risk."

In case you haven't had your radios tuned to W-A-L-L Street, junk is now music to the ears of the financial mainstream. To wit: In the first half of 2009, high-yield bonds saw a whopping 28.6% return, completely erasing the 25% shortfall from last year. Also, an estimated $41 billion in corporate debt was issued, an 81% increase from 2008.

All in all, it was junk's best first-half performance since the 1980s. By comparison, US Treasury's endured a 4.4% loss and suffered their worst six-month performance since Merrill Lynch began tracking the sector in 1977.

It goes without saying, investors who chose risk made out like bandits; while those who opted for safety made out like the poor flubs being robbed by said bandits. And, according to the usual experts, the boom times for BBB ratings (and below) have only just begun.

On this, the following news items from recent weeks capture the full extent of risk-grab glory:

"The second quarter was about the dissipation of fear and the resumption of greed. The lights are coming back on in trading desks." (Wall Street Journal)

"Corporate Bonds Look Like A Good Bet" (DJ MarketWatch)

"Nowhere is the recovery in financial markets more evident than in corporate bonds. The gains may be the clearest indication that the $12.8 trillion pledged by the government and Federal Reserve to thaw credit markets is starting to pull the economy out of the worst recession since the 1930s." (Bloomberg)

Translation: As the economy recovers, so will junk. ---- Or will it?

High Times For High Yield? The July 6 Short Term Update presents a compelling price chart of a major junk bond index that shows whether the grab for risk will end in gains, or pain. Click here for more.

In his 2002 book Conquer the Crash, Bob Prechter made the following observation: The more convinced the mainstream becomes in an end to the recession, the stronger becomes their conviction that "now is the perfect time to buy depressed junk bonds."

Bob then squashes the notion via this myth-busting picture of the High Yield "Junk" Bond Index from 1987 to 2002.


Look closely: During the most rampant economic growth of the 1990's bull market, high yield debt plunged 70% in value. In Bob's own words: "Those high-yields were a chimera."

This picture is a stunning reminder of one key point: In a genuine bull market, investors don't have to chase after, or borrow for -- returns. Returns come to them from the highest quality instruments out there.

In the 2003-2007 rally, junk bonds rose alongside stocks as a debt-propelled liquidity bubble pushed all markets up together. Then, once the credit bubble burst, the whole leveraged system came tumbling down.

At the end, the notion that junk bonds rise with the economy is just one in a long line of false-causality claims held by the mainstream -- one that leads its followers down a very dark path.

The July 6 Short Term Update presents an objective chart of a major Junk Bond index which suggests where high-yield -- and the economy as a whole -- will be in the months to come. Click here for more information.

What Successful Forex Traders Already Know

Most Forex Trading "Robots" Don't Work

Most auto trade "robots", "expert advisors", or "black box" systems don't work over the long haul. Sure they look great on paper, but that's because most of them are "curve fit" and programmed to work with historical market data. Think about it: if these "robots" really did what they say they could, don't you think your broker and everyone else on the planet would be using them 24 hours a day? As a successful trader, you don't even consider these gimmicks.

There Is No "Holy Grail" of Forex Trading

As soon as you realize that in order to get ahead in the Forex markets you WILL have losing trades... you're on the right path to becoming a successful trader. Instead of trying to predict the future, which is impossible; you, as a successful, independent trader know that all you need to do is put the odds in your favor on every trade. Then, predicting the future doesn't matter, and you have everything in place you need to come out ahead.

Blindly Following "Red Lights" & "Green Lights" Is A Surefire Way To "Get POOR Quick"

If you think you can "get rich quick" buying Forex pairs when a light turns green on your computer, and selling them when it turns red... think again. As a successful trader, you understand the underlying reasons behind your decisions, which gives you way more power and flexibility than blindly obeying a blinking light like a mindless lemming.

Your Broker Doesn't Care About You

Let's face it. You and I both know that your broker is a salesperson. The bottom line is that the more trades you place - win or lose - the more money your broker makes. With Forex, the broker's cut is called "the spread", and sometimes they'll try to fool you by telling you they don't make a "commission". Don't be a sucker. It's the same thing. As a successful trader, you know to place only those trades which give you the maximum amount of potential, and the minimum amount of risk.

Having To Spend Long Hours Trading Forex Is A Myth

Most traders think that in order to make the most money possible trading Forex, they need to stare at their computer and trade all day long. But most traders are not successful. I've found that the more time you spend trading, the worse you do... and that's because you begin to sabotage your trading decisions due to burnout, fear, and greed. Not to mention that you end up not "having a life". As a successful trader, you know that to maximize your results, you should spend no more than 20 minutes a day placing trades... so that you have the rest of the day to spend with your friends and family doing the things you truly love and enjoy.

Waiting For The Economy To Recover Before Trading Is A BIG MISTAKE

Many traders, especially beginners, wait for the media - or their stock broker - to tell them the market or economy is safe before placing trades. This is nonsense. The general state of any markets - stock, forex, whatever - and the current condition of the economy has nothing to do with your potential success trading Forex. As a successful trader with specific rules that tell you what to do (no matter what happens in the markets) you know that the key is controlling risk and when you control risk you have the potential for profit whether the markets move UP or DOWN. It's awesome.

Click here for the Forex Nitty Gritty

Van Tharp's Peak Performance Home Study Course

It has been nearly fifteen years since I made any significant changes to the Peak Performance Home Study Course.

During that time, I have researched and learned a lot more about important topics for trader peak performance, and I want to share this knowledge. I have spent much of last year working on a new edition of the course. Now, we are introducing the new 2nd Edition of the Peak Performance Course.

First and simply, everything has been modernized and updated. Market examples and real world references are from today rather than the early 1990s.

Second, there are numerous new ideas, theories, and practical exercises to help you become a more successful trader.

Third, I estimate that I revised more than 20% of the existing content of the five volumes.

Of all the additions and revisions, I think these are the most noteworthy improvements:

Four entirely new chapters

Major changes to other chapters amounting to about 16K words of additional, new material. Two new daily tasks of trading.

The Four New Chapters

Personal Responsibility. I am able to explain today what I was unable to articulate fully in the original course. Teaching this topic over and over again for the last 15 years has enabled me to now extensively describe the all-empowering idea of total personal responsibility. You create the results you want in trading. When you hold sources other than yourself responsible for your mistakes, you tend to repeat those mistakes over and over again. This chapter will open your eyes to recognizing and correcting mistakes that you once thought outside of your control and allow you to take charge of your trading.

Trader Preparation Self-Assessment. Are ready to trade now? Find out by answering questions regarding your psychology, your business plan, your systems and other major factors of trading success. If you find that you are not ready to trade, then that just means that you are taking the right action by working on this course rather than trading. People have been asking for a way to assess their preparedness as a trader, and now it is a new chapter in the course.

The Four Models of Self-Sabotage. Sometimes you try to stop a behavior but it continues and just seems impossible to change. Your mental states are so overwhelming that you cannot change them. Or you find a belief that you know is not useful, but you cannot change it. For example, suppose you believe that you are not worthwhile and that you do not deserve profits. When you think about that belief, you know it is not useful, but somehow you just cannot shake it. Those are the examples of self-sabotage that we will be dealing with in this new chapter, as well as a specific instance of a classic case of self-sabotage. I have explored this topic in depth in the last 10 years. This new chapter also includes the oneness model of self-sabotage, my most recent understanding of self-sabotage.

Changing Your Beliefs. This is one of the most important new topics in the course as I believe that beliefs shape your world. When you realize that your beliefs control your reality, you can totally change how you experience the world simply by changing your beliefs. The straightforward step-by-step procedure found in this chapter will take you through how to monitor, look at, and most importantly, change your beliefs. Most beliefs can be changed with these procedures except those that have a very strong emotional charge on them. When you have emotional charge on your beliefs, that charge seems to anchor into your body until you release it, so there is a section in this new chapter dedicated to help you release that charge.

I also revised a number of sections, rewriting about 20% of the existing course.

The Peak Performance course has helped so many traders transform their lives since I first released it 23 years ago. I invite you to click the link below and read more about this course now.

Sincerely,

Dr. Van K. Tharp

Click Here to Read More About the Course

Weekly Stock Pick

Market Headlines

They have an approved plan to sell General Motors assets. China is taking big steps to Yuan internationalization as they have been doing for the past few years or longer. President Obama goes to Russia to reset relations. BOJ chief Shirakawa says Japan corporate finance still tight. Alcoa is supposed to report a losing quarter, and FedEx is seeing signs of a turnaround. I’m hearing to get into defensive and high yielding dividend stocks again, that inflation is real and to buy gold. The pre-market futures are pointing down currently.

My Stock Pick This Week

It’s a sell on a big UK broadcasting company that’s also involved in broadband and telephony services. This company is getting ready to defend a plan to redistribute public funding that could go to its rivals. The proposed law by the ruling Labour Party may allow even more attempts at redistribution of funds to it’s competitor rivals. The companies premium sports and movie channels should be more broadly available through other television platforms, Britain's communications regulator said last Friday, adding that it may force a wholesale offer of the services. The UK communication dept said it believes BSkyB is limiting distribution of these channels to rival TV platforms, thereby restricting consumer choice. ESPN has just bought U.K. broadcast rights to some games from England's Barclays Premier League, giving the U.S. sports-TV network a long-sought boost in Britain but pitting it against this tough rival.

Sell-Short British Sky Broadcasting. Ticker BSY

Sell Entry: 30.58 to 29.72

Stop-Loss: 31.08

Take Profit Areas: 28.86 to 27.14, 22.98 to 22.09, 21.28 to 20.46, 17.06 to 16.40,

British Sky Broadcasting Company Profile

British Sky Broadcasting Group plc and its subsidiaries operate a pay television broadcast service in the United Kingdom and Ireland, as well as broadband and telephony services. The Company acquires and commission programming to broadcast on its own channels and supply certain of those channels to cable operators for retransmission by the cable operators to their subscribers in the United Kingdom and Ireland. British Sky Broadcasting Group plc retails channels (both its own and third parties) to direct-to-home (DTH) subscribers and certain of its own channels to a limited number of digital subscriber line (DSL) subscribers. The Company also makes three of its channels available free-to-air through the United Kingdom digital terrestrial television (DTT) platform as part of the branded Freeview offering. It operates principally within the United Kingdom and Ireland, with activities conducted primarily from the United Kingdom. On September 5, 2007, the Company purchased Amstrad Plc.

Click here to review and trial the Trading Software we used in determining our short position on BSY.

Click the British Sky Broadcasting Stock Chart for a larger view.