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Trader's Diary

Economic calendar

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Definition of terms:
Earnings

Earnings

refer to the profits or net income generated by a company during a specific period.

  • Earnings are a measure of a company's financial performance and are often reported on a quarterly or annual basis.

  • Positive earnings indicate that a company has made a profit, while negative earnings indicate a loss.

  • Earnings can be influenced by various factors, such as revenue, expenses, taxes, and other financial activities.

Code

The code is a unique identifier assigned to a company's stock by the stock exchange where it is listed. It is used to identify the stock in trading and other financial transactions.

Actual

Actual refers to the real or current value or result of something. In the context of IPOs, actual can refer to the actual price or number of shares sold in the IPO, as opposed to the estimated price or number of shares.

Estimate

Estimate refers to a prediction or approximation of something, such as the expected price or number of shares in an IPO. Estimates are often made by investment banks and analysts based on market demand and other factors.

Difference

Difference refers to the numerical or percentage variance between two values. In the context of IPOs, difference can refer to the variance between the estimated and actual price or number of shares sold in the IPO.

Percent

Percent refers to a fraction of 100, often used to express a proportion or rate. In the context of IPOs, percent can be used to express the difference between the estimated and actual price or number of shares sold as a percentage of the estimated value.

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IPOs

IPOs (Initial Public Offerings):

An IPO occurs when a private company sells its stock to the public for the first time to raise capital or money.

The money raised from an IPO can be used for various purposes, such as paying down debt, investing in the company's long-term health, research and development, expanding into new product lines, or purchasing fixed assets.

During the IPO process, the equity shares of private investors

convert into publicly owned shares of the new entity, and early investors may sell their stock once the company's shares begin trading.

The chief benefit of an IPO is to help the company raise money and gain access to the capital markets, allowing for expansion and increasing credibility.

Code

The code is a unique identifier assigned to a company's stock by the stock exchange where it is listed. It is used to identify the stock in trading and other financial transactions.

Name

The name is the official name of the company whose shares are being offered in the IPO.

Exchange

The exchange is the stock exchange where the company's shares are listed and traded. Examples of stock exchanges include the New York Stock Exchange (NYSE) and the Nasdaq.

Currency

The currency is the type of currency in which the company's shares are priced and traded. This can vary depending on the country and stock exchange where the company is listed.

Start date

The start date is the date on which the company's shares begin trading on the stock exchange after the IPO.

Offer price

The offer price is the price at which the company's shares are initially offered to the public in the IPO. This price is set by the company and its underwriters based on market demand and other factors.

Shares

Shares refer to the units of ownership in the company that are being offered to the public in the IPO. These shares can be bought and sold on the stock exchange after the IPO.

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Splits

Splits (Stock Splits):

A stock split occurs when a company increases the number of its outstanding shares of stock to boost the stock's liquidity.

In a stock split, the number of shares outstanding increases by a specific multiple, but the total dollar value of all shares remains the same.

Companies often choose to split their stock to lower its trading price to a more comfortable range for most investors and increase the liquidity of trading in its shares.

For example, if a company decides to split its stock 2-for-1, the number of shares outstanding would double, while the share price would be halved.

Code

The code is a unique identifier assigned to a company's stock by the stock exchange where it is listed. It is used to identify the stock in trading and other financial transactions.

Split date

The split date refers to the date on which the stock split takes effect. It is the date when the new shares resulting from the split are distributed to existing shareholders. Optionable

Optionable refers to whether the stock is eligible to be used as an underlying asset for options contracts. If a stock is optionable, it means that options can be traded on that stock.

Old shares

Old shares refer to the existing shares of a company before a stock split takes place. These are the shares that will be exchanged for the new shares resulting from the split.

New shares

New shares are the additional shares that are issued to existing shareholders as a result of a stock split. The number of new shares is determined by the split ratio, such as 2-for-1 or 3-for-2, where shareholders receive a certain number of new shares for each old share they own.

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Gold had a volatile week

Date: 19.6.2023

Last week I was keeping a close eye on gold, however, because of its volatility I decided not to enter any trade. In the beginning of the week, the price was high at 1966 USD, but during the next few days it fell to 1926 USD. Right after the correction, it shot back up to the current levels, to 1965 USD. At the time of writing this diary, the price was 1955,60 USD. *

Picture1

Movement of Gold prices in the last five years. (Source: Trading Economics) *

I decided to check if there are any news, why all the price was moving as it was. And it did not take me long to find few articles, supporting just what I saw. Article on Reuters said that Gold remained within a narrow trading range this week, despite experiencing significant fluctuations, as conflicting signals from the Federal Reserve and the U.S. economy provided little clarity for a decisive move in either direction. Spot gold and gold futures held steady, with minor losses of between 0.1% and 0.3% for the week.* The Federal Reserve announced no change in its benchmark rate and indicated the likelihood of two more rate hikes this year to address rising inflation.

However, underwhelming economic data, including soft consumer inflation, higher-than-expected jobless claims, and weak industrial production, fuelled speculation that the central bank's capacity to raise interest rates would be limited. Although gold initially faced selling pressure after the Fed announcement, it recovered most of its losses on Thursday as traders reconsidered the prospects for further rate hikes. Nevertheless, gold remained unable to break free from the 1,930 to 2,000 USD trading range it has been confined to for the past month. * The prolonged pause in the Fed's rate hike trajectory is favourable for gold, as higher interest rates increase the opportunity cost of holding non-yielding assets.

It made a lot of sense now, once I have read this article. On the other hand, US dollar was also volatile, and I am just guessing, that the reasons are the same. As I have written before, if interest rates are growing, the value of currency grows with it, and vice versa. However, it is interesting that despite gold losing value, copper gained it. Not just that, price of copper had one of the best weekly performances in the last three months. Article on Investing said that after experiencing three weeks of strong growth, copper prices faced a retreat on Monday as traders took profits from recent gains. However, market sentiment was also influenced by concerns regarding the economic recovery in China. Copper futures declined by 0.5% to 3.8753 USD per pound, following a rise of up to 5% in the previous three weeks. * The rebound in prices during this period was primarily driven by other traders buying copper after it reached six-month lows in May. The ongoing worries about Chinese demand persisted as several major investment banks lowered their gross domestic product forecasts for the country. They pointed to a slower-than-anticipated economic recovery despite the lifting of anti-COVID measures earlier this year.

Even though I came for gold, I had a change of heart and decided to go with copper. I opened a small amount of copper, just for the start. I will see later, how the price will move. And nevertheless, I will keep an eye on gold, and if there will be any correction, I might consider entering the market on that instrument also.

Picture2

Movement of Copper prices in the last five years. (Source: Trading Economics) *

* Past performance is no guarantee of future results.

Date: 20.11.2024
Qualcomm Expands Horizons Beyond Smartphones: I'm Buying This Promising Player at a Low Price

Today I took the time to analyze Qualcomm Inc. (NASDAQ: QCOM) in detail, which seems to be on a very interesting development trajectory. As the world's largest seller of smartphone processors, the company recognizes the need to diversify its business and find new sources of growth, which leads me as an investor to think more deeply about its future potential.

Date: 13.11.2024
Shopify's Growth Signals the Strength of Its Transformative Strategy

Today, I followed the market with a particular interest in Shopify Inc. (NYSE: SHOP), a company that has become synonymous with e-commerce over the years. Looking at their latest financial results and strategic moves, it's clear that their transformation into a platform for larger businesses is bearing fruit.

Date: 6.11.2024
Nvidia Overtakes Apple as the World’s Largest Company: The AI Boom in Full Swing

Today, I find myself reflecting on Nvidia Corp.’s (NASDAQ: NVDA) meteoric rise to become the largest company in the world, surpassing none other than Apple Inc. Nvidia’s stock rose 2.9%[1] to $139.93, pushing its market cap to an astonishing $3.43 trillion, overtaking Apple’s $3.38 trillion valuation.* To put this into perspective, Microsoft, which Nvidia already surpassed last month, holds a valuation of $3.06 trillion. What stands out to me is how artificial intelligence has fundamentally reshaped Wall Street’s landscape, with Nvidia emerging as the clearest beneficiary of the AI revolution.

Date: 30.10.2024
OpenAI and Broadcom’s Strategic AI Chip Development

Today, I've been closely following the news about OpenAI's plans to collaborate with Broadcom Inc. on its own AI chip, designed specifically for inference – the process of running AI models after they've been trained. This potential game-changer is attracting the attention of the tech world, as OpenAI seeks to develop a solution focused on responding to user requests rather than traditional training dominated by Nvidia's graphics processing units (GPUs).

Date: 23.10.2024
Texas Instruments in the Third Quarter of 2024 – Hope for Recovery?

As part of this week, I analyzed the third-quarter results of Texas Instruments Inc. (NASDAQ: TXN), which provide an interesting insight into future developments in the semiconductor sector. Even though the company announced the eighth consecutive decline in sales, the tone of the outlook is in an optimistic spirit, which signals the potential for a recovery in demand soon.

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