The Fed has spoken, and Yalicoo competitors’ returns
surged
By Yinon Arieli | September 24, 2007
The monthly competitors returns surged last week
after the Federal Reserve has spoken and caused the
market to rise sharply (see below for additional
information on that issue). kdiddy (with return of
11.4%) succeeded to increase the gap from other players
by buying few of last week’s rocket stocks such as the
Chinese stock BIDU and the glass designer APOG. The game
is definitely not over yet since genibus (9.9%) and
boopahs1 (7.3%) are still close to kdiddy and have
enough time to take the lead.
The quarterly
stock market competition can be summarized with
QueenPortfolio question to ChrisMartin at the end of
last week:”just curious, what's your plan for leading?”
As the quarterly competition reaches its final week,
ChrisMartin is placed second with a return of 15.8%.
TheTrader, who has been leading the competition
almost all the way from the beginning, is ranked first with an
exceptional high return of 22.5%!
Going over trading by TheTrader shows an interesting
variety of buys and sells; each one of them increased
his portfolio return by a small amount, but when these
returns are combined they have led to a significant rise
in the value of that portfolio. ChrisMartin, on the
other hand, has fewer stocks which have yielded larger
profits. One of his more impressive gainer is the
Chinese-language Internet search provider Baidu.com,
Inc. (BIDU), which continued rising strongly during the
last few months.
As is the case with BIDU, most of the stocks on the
Chinese market have recently increased in value; not
surprising, some of Yalicoo's well-informed and
knowledgeable competitors have succeeded to profit from
this upward trend. Whether the Chinese stock market is
rising too quickly or not and how long will this trend
persist is still hard to tell but those who follow the
activities of Yalicoo's traders may be able to profit
from this rise.
genibus, however, with a yield of 13.9%, still has a
chance to catch up with the leaders, but it seems that
unless something extraordinary occurs this week, the
winner is going to be one of the above-mentioned three
amazing Yalicoo traders. Stay tuned with me to the
Yalicoo competition arena to follow the exciting
occurrences of the following week.
5
days of competitions
As Yalicoo community grows, new competitors are winning
games. Among last week’s new winners we had victheslick
and HKN; each one won two of the
daily competitions with impressive returns. We
also had new comers who won the second and third places:
GlassEye, Cashmoney and mathgeek.
the weekly
stock trading competition was very interesting as
genibus continues to be one of Yalicoo’s leading traders
with a yield of almost 8%! gold, a new player who joined
our community this week, was doing very well last week
and was ranked second, close to genibus. I’m curious to
see what these traders are planning for this week.
Following their trades provides an interesting view of
the market and the options hidden in it for those who
are well-informed and educated.
Last week stock market highlight
The Federal Reserve has spoken; is it good for the stock
market?
The Federal Reserve expressed the concern that the
housing problems could spread through the rest of the
American economy by its decision to drop the funds rate
by half a point to 4.75%. The market has responded
positively showing it is ready for further growth; the
stock market changed its downward trend of the last
weeks and started to increase quickly, with the Dow
rising more than 3% up in only 4 days.
“Economic growth was moderate during the first half of
the year, but the tightening of credit conditions has
the potential to intensify the housing correction and to
restrain economic growth more generally,” the Fed said
in its statement, and increased the ambiguity in the
minds of observers as to another potential drop in the
fund rate in the future.
Morgan Stanley economists expect the Fed to ease by a
full percentage point in order for its measures to have
any significant effect on the economy. Richard Weiss,
chief investment officer at City National Bank also
thinks that half a percent drop is a bad sign. “It’s not
unlike an ill person begging for more morphine and they
just got a double dose from the doctor - the problem of
course with getting a double dose of morphine is, you’re
very sick”, he said last week.
It is too early to judge, but the stock market has been
mostly positive since, suggesting investors are not
worried that “maybe the Fed sees something really bad
coming”. That may change in the future. However, nobody
knows when and how, and only the future will tell.
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