This week a few more stocks are making entry signals, which is great.  Often there will be a handful of stocks turning upwards in the beginning stages of a bull market (or bear market rally, whichever this is).

See The Trading Diary Here

Stocks that made entry signals and were added to the diary this week were: MND, ASL, ILU and AIX, DOW and MTU.  Also, resources stock DML was bought, but the price jumped so high on Monday and then came back down, I’m really going to have to keep an eye on this one and manage / reduce my risk aggressively if it falls too far past the gap it made.  These entry signals were found using the stock market tools and courses at this site.

Here is a picture of DML and the gap it made on Monday (click to enlarge).

But all of this is not the really exiting part of this week’s Trading Diary.

You see, going through the Top 300 stocks this weekend has shown me one thing very clearly – demand is building for stocks with a high dividend.  Most of the stocks on my “Watch List” for potential movers are stocks with dividends of 5% or more.  Not only is this great when buying stocks, but I have a feeling something else might be afoot.  Let me explain my theory.

My Theory On Current Money Flow

The world is awash with cheap money currently, thanks to the European Central banks and others.  The banks / large players obviously can’t keep this money in their own countries because:

1: It might not be too safe, given the current environment and;

2: The low interest rate / return on their cash is, well, too low.

Enter Australia, with a 4.25% cash rate.  Very handy when you can borrow billions at next to nothing and park it relatively safely at 4.25%.  But it doesn’t stop there.

What if they could borrow money at next to nothing, and then purchase company shares they deemed safe enough, that were paying them a 10% dividend to boot?  Heck, if someone offered you this deal, how much would you borrow?  My answer: As much as I possibly could.

And so I feel that cheap money from overseas is flowing into Australia and Australian Companies that are relatively strong and paying out a dividend above the cash rate (4.25% or more).  Of course I can’t prove this.  It’s just a hunch.  It’s what I would do.  And the laws of supply and demand will soon show up in the prices of these stocks.

In other words, be ready.  Start scanning for these said stocks and opportunities.  Your reward could be well worth it.

Check out the current strongest sectors, and leave a comment here in the comments section below!

Until next week, happy trending!

Dave McLachlan

. Access Your FREE Stock Market Video Course Here! Valued At $97. Or Absolute Beginner? Get The Beginners Course Here.

This week we look at how the industrials sector is streaming ahead, after showing you it had made it into the “Strongest Sectors” last week.  Great stuff!

Plus we look at the emerging up trend on the All Ords, where a solid trend will take place, and also targets on the S&P 500, FTSE and Hang Seng based on simple technical analysis tools.

Check out the video at the site or at the link below!

http://youtu.be/QUjDK8qJIqw

Of course please do your own due diligence – a great place to start is the free trading and investment course on this site. Check out the strongest sectors report to find out where the best places to be in the market right now.

Share Your Experience And Leave a Comment in the comments section below.

Happy trending,

Dave McLachlan

. Access Your FREE Stock Market Video Course Here! Valued At $97. Or Absolute Beginner? Get The Beginners Course Here.

This excerpt from the trading diary is for educational purposes only and is not to be interpreted as trading or investment advice.  See Terms Of Use here.

See The Trading Diary Here

The stock market is always available to teach us lessons, if we are open to them.  I think every few months I will learn something new as the market gives me its feedback, either rewarding me with money or punishing me with losses.

Over the last few months the Australian Stock Exchange has been floating sideways, and I have stayed out of the market waiting for a solid move to evolve.  As I waited patiently for the market to show its intentions, a wonderful thing happened.  Two sectors, the Telecommunications sector and the Utilities sector began outperforming the All Ordinaries (see strongest sectors report).  Stocks within these sectors were happily rising, and giving entry signals as shown in our courses and systems.

Stocks like APA, DUE, HDF, INN and TLS all made new up trends, and kept them.

And now, market volatility is falling further, and more stocks are getting entry signals.  Namely stocks in the Industrials Sector, which has moved into the strong sectors, and some others that meet my criteria.

Volatility Index (VIX) Click to Enlarge:

Stocks like COF, FKP, GRR and SGM have been added to the diary this week, and market permitting I hope to add more over the next few weeks and months.

Of course, it pays to be ready for anything in the stock market, stop losses are very important, and I’ll be ready when the market turns around.  Click here to leave a comment in the comments section below!

Happy trending!

Dave McLachlan

. Access Your FREE Stock Market Video Course Here! Valued At $97. Or Absolute Beginner? Get The Beginners Course Here.

Money continues to flow into the markets at this stage, causing strength in the Industrials sector, where I am finding a few buys at the moment.  Hooray!

The world indices get the usual Chartist point of view, trend signals and likely future reverals points.

Check out the video on the site, or view from the link below!

http://youtu.be/MRDP8JwYA60

Of course please do your own due diligence – a great place to start is the free trading and investment course on this site. Check out the strongest sectors report to find out where the best places to be in the market right now.

Share Your Experience And Leave a Comment in the comments section below.

Happy trending,

Dave McLachlan

. Access Your FREE Stock Market Video Course Here! Valued At $97. Or Absolute Beginner? Get The Beginners Course Here.

This week we look at two really important lessons in chart analysis.  Understanding these two things can significantly increase your probability of success in the markets.  We also look at the trends of world indices, either up, down or sideways, and what it means for your individual stocks.

Check out the video embedded below!

http://youtu.be/3Lv_8b3qGTw

Of course please do your own due diligence – a great place to start is the free trading and investment course on this site. Check out the strongest sectors report to find out where the best places to be in the market right now.

Share Your Experience And Leave a Comment in the comments section below.

Happy trending,

Dave McLachlan

. Access Your FREE Stock Market Video Course Here! Valued At $97. Or Absolute Beginner? Get The Beginners Course Here.