Trading Central launches new innovation lab in Sophia Antipolis

Following twenty years of success within financial markets, Trading Central has launched an innovation unit labeled “Trading Central Labs” in the French Riviera’s technology park, Sophia Antipolis. Headed by fintech pioneer Jérôme Favresse, the new division will focus on developing the firm’s new artificial intelligence algorithms, alternative data streams and bold new ways to better support investment decisions in the ever-evolving digital space. TC Labs is expected to begin innovating immediately with a focus on building concrete, easy-to-deploy solutions that expand the Trading Central group’s award-winning product suite.

 

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Featured Ideas: Now in MetaTrader!

Meet the Featured Ideas for MT4/5...

For the first time, Trading Central's chart pattern recognition is available directly within MetaTrader! With Featured Ideas now available within MT4/5, it's never been easier to deliver actionable and personalized trade ideas to your FX traders!

 

 

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TC recognized as one of "Most Influential FinTech Companies of 2019"

At Trading Central we pride ourselves on our mission to successfully support investors through innovation. We keep this goal at the core of everything we do, creating a dynamic and continuously growing list of investor-centric innovations that facilitate confident, educated tradedecisions. Our patented pattern recognition applications continually scan 89 markets globally to provide an unparalleled breadth of coverage of over 75,000 instruments.  Meanwhile our insightful analysis and investment research tools enable users to find and validate suitable investment opportunities based on their individual preferences, optimize the timing of their trades, continually learn about markets and enjoy running their own portfolios.

 

 

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Tuning in to Volatility

Tuning in to Volatility

By Peter Ashton

Friday, June 29th, 2018

In this article, Peter Ashton writes about the three of the most widely used indicators.

Canadian and U.S. markets have provided a very profitable backdrop for investors over the nine-year bull market that began in 2009. However, the ride has been far from smooth, with many ups and downs in the market along the way. Although buy-and-hold remains a very solid investment strategy, today’s market volatility provides opportunities for more active investors looking to time their entry and exit points with the aim of boosting their overall returns.

Technical traders often refer to market conditions as being “overbought” or “oversold.” These terms are rooted in the idea that an individual stock (or even the market as a whole) will tend to revert to its long-term trend. In other words, stocks that have risen too far, too fast are overbought and likely to decline back towards their longer-term trend. Similarly, stocks that are oversold are likely to rise. Over the years, technical analysts have developed a number of mathematical indicators that help traders identify overbought and oversold conditions such that they can better time their entry and exit points.

Three of the most widely used indicators for this purpose are Bollinger bands, MACD and RSI.

Bollinger bands

Developed by John Bollinger in the 1980s, Bollinger bands were one of the first adaptive envelope volatility tools. Bollinger bands use standard deviation and a simple moving average to help traders identify overbought and oversold levels. When calculating Bollinger bands, you first calculate a 20-day moving average of the price data. The upper and lower Bollinger bands then typically appear two standard deviations above and below the 20-day moving average. When the price touches the upper Bollinger band, the stock is considered overbought and likely to decline back towards the 20-day moving average. When the price touches the lower Bollinger band, it is considered oversold and likely to rise.

Figure 1: Bollinger Bands

MACD

MACD is an abbreviation for Moving Average Convergence/Divergence. This indicator helps identify overbought and oversold signals by calculating the difference between two moving averages of different time periods. Typically, MACD is calculated by comparing the difference between a 26-day and 12-day exponential moving average. A 9-day exponential moving average is also plotted and called the signal line. When the MACD is rising, it indicates upward price momentum as the short-term moving average begins to pull away (diverge) from the longer-term one. When MACD crosses the signal line in the upward direction, it indicates an oversold (bullish) level. When MACD crosses the signal line in the downward direction, it indicates an overbought (bearish) condition.

Figure 2: MACD

Relative Strength Index

The Relative Strength Index (RSI) is an oscillator that measures a stock’s current relative strength compared to its own price history. RSI is plotted on a scale of 0 to 100. Leaving out the mathematical details, RSI looks at the average closing price in “up” days divided by the average closing price during “down” days over a 14-day calculation period. An RSI level below 30 implies that a stock is oversold while an RSI above 70 implies it’s overbought. The RSI moving above 30 is considered a bullish event whereas a move below 70 is considered a bearish event.

Figure 3: Relative Strength Index

If this sounds complicated, you are not alone! Technical analysis is powerful, but it can be daunting for the novice investor or trader. The good news is that automated software tools make it easier to find and research stocks displaying overbought and oversold indicators.

CIBC Investor’s Edge offers Recognia® Technical Insight™ free of charge to account holders. Technical Insight automates the standard practices of technical analysis, making it easy to identify new trade ideas or evaluate the technical perspective for a given stock or ETF. Technical Insight automatically detects the Bollinger bands, MACD and RSI indicators, as well as many other common types of technical events.

With Technical Insight, you can look up a stock or ETF and see all its active technical patterns and indicators. Featured Ideas highlights ten trade ideas per day based on what’s poised to move from a technical perspective. Use the technical event screener to search for trade ideas in a given sector or based on a specific technical indicator like MACD or RSI. Set up email alerts to stay on top of your positions and tune in to signs of weakness.

To use Technical Insight, sign on to CIBC Investor’s Edge and select Quotes and Research, Market Centre. Select the Technical Analysis tab.

The investment ideas presented here are for information only. They do not constitute advice or a recommendation by Trading Central in respect of the investment in financial instruments. Investors should conduct further research before investing.

 

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U.S. Technology Services Firms Set For Continuing Strength

The Globe and Mail, Number Cruncher

By Peter Ashton

Friday, June 22nd, 2018

In The Globe and Mail, Peter Ashton uses Strategy Builder to find U.S.-listed technology services companies that look poised to continue their recent strong performance.

What are we looking for?

U.S.-listed technology services companies that look poised to continue their recent strong performance.

With the first half of 2018 nearly behind us, there have been some clear winners and losers in terms of sector performance of the U.S. market. Technology has outperformed all other sectors up 13.6 per cent year-to-date against 3.3 per cent for the S&P 500 Index over all. The technology services industry makes up a fairly small part of this sector but has been one of the best performing sub-industries, now up 9.5 per cent in the past month. Can we find well-valued companies with-in this industry that may have more room to run?

The Screen

We will be using Trading Central Strategy Builder to search for U.S.-listed technology services stocks with strong earnings growth, reasonable valuations and positive analyst ratings.

We will start by screening for U.S. tech services stocks with a market capitalization of at least US$5-billion. This will focus our search on the largest 20 per cent of companies in this market. To ensure we consider stocks that still have reasonable valuations, we will screen for forward price-to-earnings (PE) ratios of 25 or less and price-to-sales ratios of less than five.

To focus in on companies that have demonstrated strong historical earnings growth, we will select stocks with a five year earnings growth rate of 10 per cent or more. Lastly, to further extend the theme of selecting technology stocks expected to outperform, we will consider only stocks rated “buy” or “strong buy” by a consensus of industry analysts.

What did we find?

Topping our list is DXC Technol-ogy Co. (DXC-N), an IT services company formed in 2017 by the merger of CSC and the enterprise services business of HP Enterprise. The company has a very low forward P/E of just 10.4 and strong five-year earnings growth. The recent drop in the company’s stock price is owing to the June 1 spin-off of its U.S. public service business into a new venture called Perspecta (PRSP-N). DXC stock is now trading roughly flat year-to-date after a very strong performance in 2017.

Canadian IT services firm CGI Group Inc. (GIB-N) also makes our list in the fourth position. CGI stock is up 16 per cent year-to-date based on successive quarters of strong results. On May 2, the company announced second-quarter results that beat analyst expectations, causing a one-day rally of almost 4 per cent.

Trading Central Strategy Builder provides a back-testing capability to evaluate how well an investing strategy would have worked in the past. Using a five-year historical period with quarterly re-balancing, the screen described had a 16.4-per-cent annualized return compared with 11.8 per cent for the S&P 500 and 11.1 per cent for the DJIA.

The investment ideas present-ed here are for information only. They do not constitute advice or a recommendation by Trading Central in respect of the investment in financial instruments. Investors should conduct further research before investing.

Explore Strategies Builder today: https://tradingcentral.com/strategy-builder/

The investment ideas presented here are for information only. They do not constitute advice or a recommendation by Trading Central in respect of the investment in financial instruments. Investors should conduct further research before investing.

 

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Integrated Device Technology charging up

 Interactive Brokers, Traders’ Insight

By Gary Christie

Thursday, June 1, 2018

In Trader’s Insight, Gary Christie uses Technical Insight to evaluate investment opportunities in the technology sector after a recent month of recovery. 

The technology sector is making a comeback this month with an average return of 3.5%. This makes it the top sector of the month and where we look for opportunity to ride the trend. Using Trading Central’s technical event screener, I searched for stocks in the technology sector with a focus on semiconductors and bullish classic technical analysis patterns and received a top hit for Integrated Device Technology Inc. (IDTI). Let’s have a deeper look at the stock to see why it is an interesting technical bullish setup.

Moving Average Convergence/Divergence (MACD): (Short-Term) Plots the difference between a shorter-term (12-bar) and a longer-term (26-bar) exponential moving average (EMA). Bullish and bearish events are generated respectively as the MACD fluctuates above and below zero to indicate whether prices in the shorter term are stronger or weaker than the longer term average.

A 9-period EMA of the MACD is overlayed as a "signal line" which smooths out the MACD to provide a clearer view of whether it's moving upward or downward. A bullish event is generated when the MACD crosses above the signal line, showing that the current MACD is actually higher than its average, a sign of increasing strength for the price.

An Upside Breakout is taking place: (Long-Term) Prices broke upward out of a trading range suggesting we're entering a new uptrend.

The Upside Breakout pattern represents a trading range in which prices move sideways between two parallel horizontal lines. It's often a pause or congestion area within an existing trend though sometimes the breakout results in a reversal to the prior trend. Either way, an upside breakout through the upper resistance line signals an end to the consolidation period and the start of an uptrend.

Want to learn more about Technical Insight? 

 

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Technical Insight wins "Best Specialist Product"

The Technical Analyst Awards 2018, London

Thursday, May 24th, 2018

Every year The Technical Analyst recognizes the very best in technical analysis and trading software and this year, that included Technical Insight.

THE TECHNICAL ANALYST AWARDS 2018
THE TECHNICAL ANALYST AWARDS 2018

On May 24th, Trading Central attended The Technical Analyst Awards Ceremony in London after being selected as a finalist in six categories including "Best Independent Research House for Multi-Asset Research" and "Best Specialist Product". For more information on the research that caught the attention of this year's judges, please view Trading Central's online award submission.

Surrounded by other industry leaders, CEO Alain Pellier was present to receive the award for 2018's "Best Specialist Product". "At Trading Central, we're proud to offer analytics that enable investors to enjoy running their own portfolios and we're thrilled to be recognized within the industry for this initiative," said Trading Central CEO, Alain Pellier.

This award follows the recent wave of improvements to the flagship product which has been trusted by leading online investment platforms since 2001. These updates focused on providing responsive experiences, advanced filtering capabilities, modernized charting and idea generation fueled by popular sentiment. Collectively, these features enable investors to find new trade opportunities based on "what's trending" in their regions, to learn what different patterns mean for a stock price, the ability to find suitable investment candidates and to stay continually informed on market movement... even on the go!

Read the Technical Analyst press release for more details!

 

 

 

 

 

 

 

 

 

Learn why investors are loving Technical Insight: 

Learn more about our award-winning product here!


U.S.- listed small caps poised to outperform

The Globe and Mail, Number Cruncher

By Peter Ashton

Friday, May 25th, 2018

In The Globe and Mail, Peter Ashton uses Strategy Builder to find U.S.-listed small caps poised to outperform large-cap rivals.

What are we looking for?

U.S.-listed small-cap stocks that look poised to outperform their large-cap cousins. In the past few weeks, U.S. stocks have resumed their rally, edging up off their lows set in early April. Over the past quarter, small-cap stocks, represented by the Russell 2000 Index, have dramatically outperformed their larger-cap rivals in the S&P 500. While the S&P 500 is down 0.5 percent in the past quarter, the Russell 2000 is up by 4.4 percent, with 4.2 percent of that coming in the past month. As the U.S. economy continues its expansion, small-cap stocks are expect-ed to continue this recent out-performance.ed.

 

The Screen

We will be using Trading Central Strategy Builder to search for U.S.-listed small-cap stocks with strong revenue growth and operating margins along with reasonable valuations.

We will screen for U.S. stocks with a market capitalization between US$1-billion and US$4-bil-lion. For comparison, the Russell 2000 constituents have a weighted average market cap of US$2.4-billion. To ensure we consider only well-valued candidates, we will filter to include only companies with forward price-to-earnings ratios of 25 or less.

To focus in on stocks that have demonstrated strong revenue growth and profitable operations, we will select only stocks with revenue growth (last quarter compared with prior year) of 15 percent or more and operating margins (trailing 12 months) also of 15 percent or more. Last, to further extend the theme of selecting small-cap outperform-ers, we will consider only stocks rated “strong buy” by a consensus of industry analysts, according to Morningstar data.

 

What did we find?

Ranking near the top is FTS International Inc., a Fort Worth, Tex.-based oil-services company. FTS has the highest quarterly revenue growth on our list at 119 percent and the lowest forward P/E ratio at 4.5. The company’s stock price has appreciated significantly over the past month –more than 10.7 percent – on the back of strong revenue and a surge in oil prices.

The largest company on our list is Canadian miner Kirkland Lake Gold Ltd., with a market capitalization of US$4-billion –the very top end of our screening range. The company’s stock is up 17 percent in the past month on the back of strong quarterly results announced on May 2.

Trading Central Strategy Builder provides a back-testing capability to evaluate how well an investing strategy would have worked in the past. Using a five-year historical period with quarterly rebalancing, the screen described had a 25.4-percent annualized return compared with 10.5 percent for the S&P 500 and 10.6 percent for the Russell 2000 Index.

 

The investment ideas presented here are for information only. They do not constitute advice or a recommendation by Trading Central in respect of the investment in financial instruments. Investors should conduct further research before investing.

 

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Getting Technical with TC- May 2018

Learn from our award-winning research team...

In just 20 minutes, our monthly analyst webinars help you stay informed with our global macro overview and learn to properly validate investment opportunities with the principles of technical analysis.

What's new this month?

This month we're focusing on the S&P 500, Ftse Mib, Currencies (EUR/USD, GBP/USD, USD/JPY) and Commodities (Crude oil, gold).

Who are our experts?

Our Global Research Team comprises of Senior Technical Analysts with STA, MsTA or CMT qualifications. Located in Ottawa, Paris, and Hong Kong, they’re able to provide around-the-clock coverage of equities, FX, commodities and indices, and publish hundreds of analyses every market day! This award-winning team of independent advisers help a broad swath of investors with services such as custom-watchlist reporting, directional opinions, multi-factor trade recommendations and entry/exit timing. Learn more about our research team and award-winning methodologies on our research page.

Markets Never Sleep®, and with offices around the world, Trading Central is always there to support your investment decisions with actionable research in the moments that matter.

 

Or watch from our Youtube channel: https://youtu.be/Y-0NRaoGmyA


Seeking value in a beaten-down consumer-staples sector

The Globe and Mail, Number Cruncher

By Peter Ashton

Friday, May 11th 2018

In The Globe and Mail, Peter Ashton uses Strategy Builder to find U.S. consumer-staple stocks with attractive valuations and earnings growth. 

What are we looking for?

The U.S. consumer-staples sector has been the worst performing sector so far in 2018. The SPDR Consumer Staples ETF (XLP) is currently off by 13 percent year-to-date and is on track for its worst annual performance since a 17-percent decline in 2008. The sector hit a record intraday high on Jan. 29 and has declined more than 15 percent since despite very good earnings by some of the sector’s biggest names. Investors with an inclination toward value stocks would find this sector ripe with opportunity today.

 

The Screen

We will be using Strategy Builder to search for U.S. consumer-staples stocks that have reasonable valuations and strong quarterly earnings results yet have seen their stock-price slide over the past quarter. We begin by setting a minimum market cap threshold of US$5-billion. This will focus our search on large-capU.S. consumer staples stocks whose revenue streams tend to be more predictable than their smaller-cap cousins. We will also limit our search to stocks displaying trailing price-to-earnings ratios of 20 or less.

To select stocks with strong quarterly earnings growth, we will select only stocks with earnings growth (last quarter versus prior year) of 10 percent or greater. Finally, we will limit our search to stocks whose prices have fallen off at least 5 percent in the preceding 13 weeks.

What did we find?

Topping our list is Campbell Soup Co., which reported very strong second-quarter earnings on Feb. 16, beating analyst expectations by a wide margin. In spite of these strong earnings, the stock has lost more than 10 per cent of its value since mid-February. As with much of the sector, concerns over inflation and rising input costs have contributed to concerns about the company’s earnings outlook.

General Mills Inc., the U.S. packaged-food giant, delivers many well-known brands. On March 21, the company released third-quarter earnings that met expectations but were up sharply from the prior year. In spite of this growth, the stock fell 10 percent as the company guided full-year earnings below analysts’ estimates. The company’s stock is now trading almost 30 percent off its 52-week high, set in January. General Mills also has the highest dividend yield on our list at 4.4 percent.

One of the lowest P/E ratios on our list belongs to poultry producer Pilgrim’s Pride Corp. at just 7.6. The company’s stock has slumped 17.2 percent in the past quarter, due mainly to concerns about increased tariffs on agricultural exports to China and other markets. Aside from this short-term concern, the company has an excellent track record of delivering revenue and earnings with a long-term earnings growth rate of 10 percent.

The investment ideas presented here are for information only. They do not constitute advice or a recommendation by Trading Central in respect of the investment in financial instruments. Investors should conduct further research before investing.

The investment ideas presented here are for information only. They do not constitute advice or a recommendation by Trading Central in respect of the investment in financial instruments. Investors should conduct further research before investing.

 

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