Posts filed under ‘sector development’

Worldwide Stock Exchanges Compared

The development of the worldwide stock markets seems to be significantly correlated. Daily, we look at the DAX as a forerunner for the US exchanges’. In our latest publications, we shared the DAX, FTSE, and CAC stock market composition. Today, we give a relation of the markets by size, based on market capitalization.

A stock exchange is a marketplace where stockbrokers, traders, buyers, and sellers can trade in equities products. The largest exchanges have thousands of listed companies. These companies sell shares of their business, allowing the general public to invest in them. The oldest exchange worldwide is the Frankfurt Stock Exchange, founded in the late sixteenth century.

The New York Stock Exchange (NYSE) and the NASDAQ are the largest stock exchange operators worldwide. The US stock exchanges account for 56% of the world’s stock value exchanged by market capitalization.

Largest stock exchange operators worldwide as of January 2021, by market capitalization of listed companies (in trillion U.S. dollars)

Worldwide Stock Exchanges by Market Capitalization

The European exchanges open about six hours ahead of the US exchanges, and such we take their development as a reference for the US trading session to come.

While nearly every country in Europe has a stock exchange, only five are considered major, reaching a market capitalization above one trillion U.S dollars.

European Stock Exchanges Ranked by Market Capitalization 2021 (bill. USD)

Biggest European Stock Markets by Market Capitalization

European stock exchanges make up two of the top ten major global stock markets. Europe’s biggest stock exchange is the Euronext which combines five markets based in Amsterdam, Brussels, Dublin, Lisbon, London, Oslo and Paris. As of December 31, 2020, the luxury goods company LVMH Moët Hennessy Louis Vuitton was the largest company listed on the Euronext Stock Exchange by market capitalization. Globally, the Euronext Stock Exchange is the seventh-largest.

What stands out in the above chart is the Swiss Exchange. With a population of 8.5 million people, compared to Germany, Switzerland has about 10% of the population but a very sizable stock exchange. By in sector composition closest to the US exchanges, we pick the DAX as a reference point.

In an overview, this is how the S&P 500 and the DAX 30 compare by sector:

DAX and S&P 500 Compared by Sector Share

Today, March 22, 2021, the DAX opened lower, triggered by fear of a third COVID-19 wave. However, the DAX in its session recovered and prints about at par to Friday’s close.

DAX and S&P 500 Development Compared

Six Months Development of the DAX and the S&P 500

For now, we mostly focus on shorter-term opportunities indicated by the NLT Timeless Trading Concept, where we simplify life for you, letting the chart will tell when to buy or sell!

Here an example:

E-Mini S&P 500 Futures on Friday, March 19, 2021, on the NLT Timeless Chart

E-Mini S&P 500 Futures Contract on the NLT Timeless Chart

We highlighted two trading opportunities:

  • Long at 11:54 a.m. ET
  • Short into the close

Both trading opportunities gained about 8-points or stood for a value change of the underlying contract of $400 each.

Let us be your guide to a consistent trader and investor and schedule a free consulting session, where you can see live what our systems can do for you:

contact@NeverLossTrading.com Subj: Consulting Hour

Working one-on-one spots are extremely limited: Do not miss out!

For more of our free publications and webinars…sign up here.

We are looking forward to hearing back from you.

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March 22, 2021 at 5:37 am Leave a comment

Learn to Trade, It Is Never Too Late

Make trading your own business:

Trading is a professional business; professional traders have their support- and control network, assisting them to strive for success. NeverLossTrading aims to replicate the same level of support and information for you, regardless if you are as a full-time or part-time trader or investor:

  • The Trader makes the decisions and produces performance relying on his system.
  • Analysts prepare the trader with information and details.
  • The Back Office follows up on the orders and provides statistics
  • The Risk Manager provides guidelines for the maximum risk to accept and lot size to trade.

Find this all include in NeverLossTrading Mentorhsip:

NeverLossTrading Industrial Sector on the NLT Top-Line Chart

Industrial Sectro with NLT Top-Line Signals

Download your free report to experience how all those elements are considered and work together in a complete trading system….click here.

Find out why trading or investing is one of the easiest solutions for a home based business. Check our newly published Kindle Book: Your Trading Career as a Private Investor by Thomas Barmann.

This book (available at Amazon for stunning $2.99) is for you, if you aim to produce constant income and long-term wealth from trading or investing. The difference between trading and investing lies in the perspective of time: Investors usually take a longer-term perspective to buy and hold their investments, while traders focus on shorter-term results. If you learn how to participate in the up- and down moves of the financial markets, you will start to invest more frequently and turn yourself into a trader.

Trading is a professional business and it requires preparation: Those, who take the other side of your orders are prepared to make money. Are you?

Unfortunately, most of what we learned in life is rather a hindrance to progress in trading: Good work ethic for example – We start to work when the office day starts and work to the end – and feel good about what we have done. However, we better not start to trade when the market opens and trade to the end: We only trade when we have a signal and the odds are in our favor. Our account statement tells us if we can feel good about what we accomplished. Let this book guide you to a new perspective of trading or investing.

Prepare yourself for a part-time or full-time trading career; follow our step-by-step guide and insights, how to start and operate your trading business.

To connect you with real-trading-world of this decade, we introduce you to the principles, methods, and strategies of Spotting and Following Institutional Money Moves by Algorithmic Trading with Human Interaction.

This book is for readers without prior knowledge or for those, who want to take trading or investing to the next level: Trading is a professional business; professionals are prepared; amateurs pay professionals to be part of their game. Which side of the trade do you want to take?

If you are ready for a NeverLossTrading mentorship:

Call 866 455 4520 or contact@neverlosstrading.com and schedule your personal consulting hour.

If you are not yet part of our information network: Sing up for our free reports and webinars….click here.

Learn to trade, it is never too late,

Thomas

NeverLossTrading

401 E. Las Olas Blvd. – Suite 1400

Fort Lauderdale, FL 33301

September 27, 2014 at 5:22 pm Leave a comment

Trading or Investing in Sector Rotations

The serious private investor considers or follows Stock Market Sector Rotations, where institutional money flows in or out of one sector and either into another asset class: Commodities, Treasuries, Currencies or into a different industrial sector.

Graph-1: Sector Rotation in the Real Estate Sector (Home Builders)

Sector Rotation Home Builders

The NeverLossTrading Top-Line Chart, from the left to the right, shows an outflow of money, started with two strong sell signals on July 7, 2014. This price move brought the value of home builder stocks down by about 12% (framed in red). With a strong buy signal on August 8, 2014 an inflow of money started the demand for home builder stocks increased the share value by 7%.

Reporting such sector rotations is part of the NeverLossTrading Alerts:

This is where day traders, swing traders and long-term investors get informed about major changes in supply and demand of institutional investors.

Observed assets are: Stocks, stocks with favorable option setups, Futures, FOREX.

How to segment the stock market and find sector rotations?

Stock market indexes are a great source for leading stocks in industrial sectors:

The DOW considers 30 different industrial sectors. Each sector is represented by one leading company. For trading or investing into sector rotations the S&P 500 is the much better choice, best segmented into the following:

Graph-2: Industrial Sectors of the S&P 500: Share by Market Capitalization per Sector

Industrial Sectro with NLT Top-Line Signals
Graph-2: Information Technology is the strongest S&P 500 sector, followed by Financials and Healthcare. If we put the two consumer sectors: Consumer Staples and Consumer Discretionary together, the consumer sector appears to be dominant. The last 10% of the sector representation is cut into smaller segments, allowing the investor to leverage on the impact of a bigger money inflow or outflow as shown in Graph-1.

If you knew about those sector rotations, how would you take advantage of your knowledge?

As shown in Graph-1, sector rotations allow you to trade on money outflow (downside) and money inflow (upside). Hence, you need to know how to participate in both market directions: In case you are trading with an IRA account or an account with less than $25,000 holdings (SEC regulation), you cannot short stocks; however, you can use Put-Option strategies. Those strategies and much more are taught in the NeverLossTrading Mentorships, tailor made to your individual trading and investing needs.

Let us take a look, how the NeverLossTrading Alerts tell you about sector rotations. For our examples, we are taking the Information Technology Sector with NLT Top-Line and NLT HF-Signals.

Graph-3: Information Technology with NLT Top-Line Signals July 15 – August 11, 2014

Information Technology Sector

Graph Summary: At the blue buy- and the red sell-signal, the target price is marked by a dot:

  • On the buy signal, it took us seven bars to come to target.
  • The sell signal took 5 days to come to target.

The average expected time per trade after a NLT signal was confirmed is one to five bars, maximum 10 bars, independent from the time frame you took your signal from.

NLT Top-Line is for the trader, who wants to trade at strong supply/demand changes.

If you prefer to trade more frequently, NLT HF Stock Trading and NLT HF Day Trading systems are for you, producing in average 3-5 times more signals per time unit observed than NLT Top-Line.

Professional NLT traders like to combine the two systems for the highest participation rate. In any case, we support you by publishing both signals on our NLT Alerts and learn how to participate in sector rotations by stock and option strategies, to leverage and protect trade positions.

In the following example, you find NLT HF-Signals in three different colors:

  • Dark-Green: Institutional triggered price-momentum change and statistical volatility increase.
  • Light-Green: Volume differential change with price direction approximation.
  • Pink-Signal: Potential top and bottom finder.

Graph-4: Information Technology with NLT HF-Signals July 24 to August 22, 2014

Information Technology Sector on NLT HF Chart

If you want to learn how to trade with institutional sector rotations, you have two chances:

Schedule a free consulting hour, where you can see our screens; we answer your questions and propose the fitting NLT Mentorship to you:

contact@NeverLossTrading.com

Call: +1 866 455 4520

Or:

Sign up for NLT Alerts: Either for NLT Day Trader Alerts or NLT Stock Trader Alerts.

In case, none of these solutions is for you at this time; however, you want to stay in touch and receive free trading tips and market reports, sign up here:

http://www.neverlosstrading.com/Reports/FreeReports.html 

Please always consider the risk of trading and that past performance cannot be taken indicative for future results.

Good trading,

Thomas

September 6, 2014 at 3:47 pm Leave a comment


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