Many traders who use technical analysis hear phrases that suggest a “broken support level will become a future area of resistance” or that a “previous level of resistance will become a support.” For beginner traders, phrases like this sound like they’re spoken in another language, and even many experienced traders never fully understand or appreciate this…
What Is a Monetary Item? A monetary item is an asset or liability carrying a value in dollars that will not change in the future. These items have a fixed numerical value in dollars, and a dollar is always worth a dollar. The numbers do not change even though the purchasing power of a dollar…
Dow component Walmart Inc. (WMT) rallied to an all-time high above $128 on Wednesday, underpinned by shelter-at-home directives that are likely to trigger a wave of retail sector bankruptcies. The loss of brick-and-mortar rivals should put the big box giant in the driver’s seat, increasing market share at the same time that wealth destruction forces many…
ECB announces massive stimulus package Purchases to continue till crisis over, issuer limits may be removed Lagarde’s “whatever it takes” moment The European Central Bank (ECB) yesterday launched an €750 billion ($820 billion) emergency private and public bond purchase scheme dubbed Pandemic Emergency Purchase Programme (PEPP). According to the statementit will continue at least until the…
Tesla Inc. (TSLA) stock has plummeted in recent weeks, dropping more than 60% off the all-time high at $969 posted in February. The decline has caught many shareholders off guard because the stock held up well in the weeks following the China outbreak, even though the company had to close the Shanghai gigafactory for nearly…
Strong Dollar: An Overview A strong U.S. dollar has several advantages and disadvantages. It benefits some but negatively impacts others. The dollar is considered strong when it rises in value against other currencies in the foreign exchange market. A strengthening U.S. dollar means it can buy more of a foreign currency than before. For example,…
What Is a Qualified Domestic Trust? A qualified domestic trust (QDOT) is a special kind of trust that allows taxpayers who survive a deceased spouse to take the marital deduction on estate taxes, even if the surviving spouse is not a U.S. citizen. Normally, a U.S. citizen surviving spouse can take the marital deduction, but a non-citizen…
For nearly a century, the United States dollar has served as the world’s premier reserve currencytaking the crown once worn by the pound sterling. The future of the dollar as the most popular reserve currency is less certain. Reserve currencies are foreign currencies held by central banks. When a country acquires reserves, it doesn’t place…
Many traders are simply putting in the hours, thinking that if they spend enough time around the markets, analyzing chartsreading books, and studying courses, their skill level will improve. “Putting in hours” is necessary when you are starting out, as there is a lot to learn. But putting in hours won’t necessarily increase your profit potential….