Technical Analysis of Predicting Stock Market - Myassignmenthelp.Com

Question: Discuss about the Technical Analysis of Predicting Stock Market. Answer: Introduction The stock market is a collection of markets comprising of buyers and sellers where the issuing and exchange of bonds and equities, mostly in the form of stocks or shares, takes place(Times, 2017). Also referred to as the share market, the stock market is a vital component of the market as it enables companies and businesses source for capital, as well as dealing with inflation in exchange for giving the investors (those who buy the shares) a piece of the companys ownership(Teweles Bradley, 1998). For companies to attract investors, they place their shares on the stock market where they are listed. Stocks can be categorized in various ways one of them being based on the Country where the company is located. For example, if a company is located in the United States of America, it is listed on the US stock exchange. This, however, does not confine the company from trading with other countries beyond its countrys borders. Despite its importance in the sustainability of a company, stocks are quite often very unpredictable(David Fabian, 2014). They can change in value any time depending on the market forces, and this discourages investors. Technical analysts of stock markets, therefore, play the role of trying to predict the future value of the stock of a particular company based on past data on the company. Analyzing the value of stock majorly depends on statistics; analysts go through financial audit reports, profit and loss statements, balance sheets, any other financial records of the company, as well as the policies of the company(Edwards et al., 2013). With this information they can draw patterns, charts, and graphs which they use to predict the future of the company worth in the stock markets. Besides this, the technical analysts also analyze sales data, competition, managerial capacities, the capacity of the company, treasury reports, production indexes, price statistics among other data. It starts with observing the trend and a rising trend is a good sign. Technical analysts are vital in deciding if it is the right time to sell, buy or hold(Michael Kahn, 2010). However, nothing is always certain, as dictating if and when stocks will go up and down is very difficult and all that analysts can do is predict a probability. In addition to knowing the risks that surround stock exchange, technical analysts help put more confidence in investors to buy shares. In technical analysis, there are three assumptions that are made; first, the market discounts everything this is because technical analysts consider only the price movement citing that the stock price is a direct reflection of all the factors that affect a company. Secondly, technical analysts believe that price moves in trends thus after establishing a particular trend the likelihood of future price movement will be the same. Thirdly, in most cases, history tends to repeat itself in regards to price movement. This is attributed to market psychology where participants tend to have the same consistent response to different market changes(Group, 2014). Unlike technical analysts, fundamental analysts study everything that affects the company from the overall economy of the country as well as the industry conditions surrounding the company(Jack D. Schwager, 1995). Muscat Securities Market (MSM) is a stock exchange located and operating in Oman. It was started in 1988 and later restructured in 1998, the securities exchange, which is owned by the government of Oman, has a listing of over 116 companies. MSM established its index in 1990 and currently has 30 companies listed which are the most stable and therefore are used to establish the price movement as well as provide a benchmark for other individual investors(MSM, 2017). This research will, therefore, study the 30 companies listed on the MSM index and analyze their profitability and security investment-wise with the help of technical analysis. Objectives of the Research To determine better ways that will give investors more confidence in investing To analyze securities of companies listed on the MSM security index To implement the knowledge of technical analysis in knowing when to buy, sell or hold stock Research Questions Why is technical analysis important in the stock market? How can technical analysis be used to measure the security of a company an investor is interested in? How can technical analysis be used in future in helping investors in making the right decisions when they want to invest in stocks? Rationale of the Study The objective of this study is to analyze the various types of technical analysis tools and understand the role that it plays in stock exchange. The study will analyze technical analysis as a tool that can be used by companies and investors in predicting the future of a company in relation to its shares and the value it holds. The Stock exchange is a platform where all parties can have a win-win. Using technical analysis will help investors know which companies are good to invest which will ultimately create money for them as well through profits as provide capital to companies being invested on. Technical analysis is just not observations and drawing of conclusions. Literature Review The use of technical analysis in predicting stock markets has received its share of criticism over the years with authors like Lo and Hasanhodzic citing that the process is based on intuition and deserves more academic study(Lo Hasanhodzic, 2011). In their book, they further continue to state that qualitative analysis is a much stronger method as it is based on statistics as opposed to technical analysis which is to a great extent a probability. Technical analysis focuses on occurrences that have taken place before and have tended to repeat over the years. This then creates a trend that analysts use to predict future stock prices. Analysts and experts consider analysis is a scientific process and thus it should follow scientific procedures of collecting data, doing calculations to produce undoubted and proven results. However, technical analysis is not known for using scientific procedure. A technical analyst will observe a graph and decide there if the stock is rising or falling and if it is the best time to sell or buy. It has zero scientific value (Comeau, 2015) hence the source of its criticism. Despite that, its importance still cannot be ignored. Technical analysis can still and has in the past given useful predictions on the stock market. Besides carrying out scientific research and calculations, observing the market trends and behavior can give a hint on where the market is headed. In cases of depression, there is no need for scientific research the graph can tell it all. Technical analysis helps investors be aware of the market forces and the factors that affect the stock markets such as politics, imports, and exports among others. Charles Kirkpatrick and Julie Dahlquist in their book categorize technical analysis as more of a short-term plan used by traders rather than long-term suitable for investors(Kirkpatrick Dahlquist, 2010). For short-term traders changes or announcements by the company doesnt affect them much since these changes do not take place minute by minute or day by day but rather takes a process for these changes to be felt on the ground. However, for long-term investors, technical analysis is not quite suitable. A short-term trader, therefore, relies more on a technical analyst since they need to be aware of market price behavior and its interpretation which is either should I buy, should I sell or should I hold? However, for technical analysis to work almost precisely, various tools must be used on the same test subject to validate the observations. For example, in analyzing a company if it is secured for investment in the stock market, technical analysts may use Relative Strength Index as well as Moving Average Convergence Divergence together to validate the findings(Nupur Joshi, 2017). Even with the use of multiple tools, some experts believe that technical analysis throws people off and often give the wrong information to investors(Jonas Elmerraji, 2015). Both technical analysis and fundamental analysis can be used to complement each other. A technical analyst can highlight a certain market price change, establish a trend and this trend is then picked up by a fundamental analyst who then does a scientific research to attain a long-term investment solution. Another criticism comes to play when all players in the market practice and follow technical analysis meaning that to avoid a fail in the stock market previous mistakes should be avoided thus the role of technical analysis becomes futile. In a report done by Cheol-Ho Park and Scott Irwin in 2003 revealed that 30-40 per cent of those who use technical analysis regarded it as a significant tool in determining and highlighting price movement for up to six months(Park Irwin, 2004). However, there is need to explore the deficiencies that technical analysis has and find solutions to them to make the tool more profitable to investors. With new emerging technologies such as computers, the verification of data and conclusions drawn by technical analysis has improved. Now computers are being used to key in data, monitor trends, and automate the entire process giving more authenticity to the results concluded(Scott et al., 2016). Technical analysis is deeply rooted in human behavior; it observes how investors react the same way to the same events over and over(Kahn, 2009). For example, during political elections especially in regions where there is conflict or tensions in a country, the stock markets do not perform as well as they should. Most market prices drop significantly or remain stagnant. This is a behavior that has been observed over the years and therefore, will most likely take place in future elections. The stock market is dependent on human will to invest and to sell, and this is often accompanied by moods and swings of ideas and decisions. Thus, the role of technical analysts who can read and interpret these swings should not be ignored just because scientific research has not been done to prove the changes in the market. However, despite the criticisms, technical analysis is still being used because unlike fundamental analysis, technical analysis is much more efficient in highlighting and predicting turning points in the stock market. This is most likely because technical analysis is concerned with shorter periods of time such as day to day changes(Moosa, 2007). Research Methodology Data collection Data collection refers to the process of collecting primary or secondary data from the field. This can be done through asking questions, observation or by analyzing data that already exists. While collecting data for research, the researcher needs to know where to find the sources of their information as well the kind of information they are looking for(Kumar, 2008). This research will use secondary data. This type of data is collected or gathered from sources different from the primary data(Burt et al., 2009). To know the difference, it is Fhimportant to understand what primary data is. Primary data is collected directly and first-hand from the field by the researcher. The data that was used for this research was obtained from financial statements and statistical charts of companies listed on the Muscat Securities Market (MSM) index. Study Period The study period was of five years. The researcher collected data of the sampled firms between the years of 2011 and 2015. Sampling Design, Sample Size, and Population Sampling design refers to the process or the strategy that the researcher will use while collecting data for their research. Selecting a strategy for data collection is very important because the techniques used directly affects the quality of the results of research(De Vaus, 2001). This process is done very consciously by the researcher with the aim of answering the research objective(s) and question(s) that guide the actual research(Shuib et al., 2013). The researcher studied nine firms to be part of the research. These companies were selected from the 30 companies listed on the MSM index. These firms provided the basis of the entire research. They are as follows: Financial Sector: Ahli Bank, Bank Dhofar, and Bank Muscat. Industrial Sector: Al Anwar Ceramic Titles, Al Hassan Engineering, and Dhofar Cattle Feed. Service Sector: ACWA Power Barka, Al Jazeera Service, and Oman Investment and Finance. Tools Used in the Research Data collection tool refers to and instrument that the researcher will use to collect their data. While selecting a proper research tool, the researcher needs to keep in mind they type of research they are conducting; a qualitative or quantitative research. It also needs to be relevant to the theoretical framework of the research as well as the objectives of the research. Quantitative research emphasizes on collecting statistical data or analyzing numerical data to explain a certain phenomenon or trend. For this research, the researcher used various quantitative research tools in collecting the data. These tools included: Bollinger bands Relative Strength Index Moving Average Convergence Divergence Data Analysis Bollinger bands Bollinger band is a tool that was invented in the 1980s by John Bollinger. It is used to measure how high or how long the price share is in relation to previous trades. Due to the rapidly changing trends, a tool that could adapt to these changes was greatly needed. Bollinger bands helps an investor establish how high or how low the prices in the market are. On the upper band of the chart, the prices are usually high. Alternatively, when the prices are low, they are usually in the lower band. Due to its flexibility, Bollinger bands can be used in all financial markets such as forex and equities and also for very short periods of time(BANDS, 2017). Bollinger Bands are straight forward in how it is presented. It consists of three bands; that is: a middle band and two outer bands- an upper and lower bands. The upper band indicates an overbought territory while the lower band indicates that a security has been oversold. However, most experts will use Bollinger bands together with other technical analysis tools to get a better perspective and interpretation of the current state of the stock market(John Devcic, 2007). The points where the lines intersect are the indicators of when it is the right time to buy or sell. Studies show that Bollinger bands are effective in comparing price action and indicator action and this helps in arriving at decisions of whether to buy or sell. Due to its nature, Bollinger bands also help in recognizing patterns, defining in a clearer perspective the highs and lows as well as momentum shifts. However, it should be noted that Bollinger bands are not for the long-term, they do not give continuous advice of when to invest, but rather they help an investor identify where the odds might favor them(Bands, 2017). For example, when the lower band and the closing price intersect, then it is a good time to buy. Similarly, when the upper band and the closing price intersect then, it is a good time to sell. Financial Sector Ahli Bank on 15th December 2011 gave an indicator to sell as closing price 0.268 indicated that there will be a drop in price. On 11th July 2012, the company then gives a buy signal to its investors as the lower band intersects the closing band at 0.14 which rise to 0.18 the following day. According to the chart above, Bank Dhofar gave a signal to its investors to sell on 7th May 2012 as the closing price of 0.45 intersects the middle band and this shows that there will be a fall in price the next day. A buy signal was also made in April 2011 when the closing price intersected with the lower band indicating there would be a rise in price the following day. Bank Muscat gave indicated that it was time to sell on 15th March 2012. The bank then indicated that it was time to buy signal on 10th September 2013 when the lower band and the closing price intersect at 0.49. Industrial Sector The chart above shows that Al Anwar Ceramic Titles hinted to investors to sell on 23rd March 2011 when the intersection was at 0.32. The company also gave a hint to investors to buy in March 2013 when closing price and the lower band intersected at 0.43. Prices then fell to 0.42 the next day. Al Hassan Engineering gave a buy signal on 4th April 2011 when the closing price and the lower band intersect at 0.45. The price then rises to 0.49 the following day. In the following year, on 15th April 2011, the company indicated that it was time to sell after the intersection at 0.27. Prices then fell to 0.23 the following day. The chart above shows that Dhofar Cattle Feed indicated to investors that it was the best time to sell on 13th April 2011 after the closing price and the upper band intersected at 0.14 pointing to a fall in price. On 15th November 2012, the company gave a buy signal after the closing price intersected with the lower band at 0.16. Prices then rose to 0.17 the following day. Service Sector ACWA Power Barka indicated that it was time to sell on 20th March 2012 after the closing price intersected with the upper band at 1.67 indicating that the price will fall. On 4th April of the same year, the company indicated a buy signal after the closing price and the lower band intersected at 0.29. According to the chart above, Al Jazeera Service gave a sell signal on 3rd April 2012 after the closing price intersected with the upper band at 0.27 indicating that prices would fall. According to the chart, the company indicated it was best to sell in August 2013 after the closing price intersected with the upper band which would indicate that prices would fall. Prices fell the following day. Relative Strength Index (RSI) The Relative Strength Index (RSI) brought in by economist J. Welles Wilder, and it is described as an oscillator that is used to quantify the rapidity and change of price movements(Fedility, 2016). The RSI swings back and forth between zero and 100 and is observed over a period of 14 days. When there is significant trading on the stock market RSI is above 70, and when there is less trading, the RSI is below 30. Not only can you use RSI to be able to know when to buy or sell by checking signals that are generated by looking for divergences, but one can also observe the general trend of the stock market. However, while using RSI, it is important to note that considerable price movements often mislead investors since it creates a false buy or sell signals. Wilder highlighted the potential that RSI (through divergence of elements on the chart) has in being able to indicate market turns. When price goes up on the chart and the RSI goes slightly up, it creates a bearish divergence. However, when the price goes low and the RSI in turn goes even lower, a bullish divergence takes place(Wilder, 1978). Financial Sector On 20th January 2011, the RSI is more than 70 indicating a sell signal because shares are overbought. On 12th May of the same year, the RSI is below 30 and this implies that it is a good time to buy. According to this chart, Bank Dhofar gave a sell signal of 14th July 2014 when the RSI was more than 70. Similarly, the bank gave a buy signal in August 2015 when the RSI was less than 30. On 5th April 2012, Bank Muscat gave a buy signal when the RSI was less than 30. Industrial Sector Al Anwar Ceramic Titles gave a sell signal on 1st November 2012 when the RSI was more than 70. On 10th June 2014, the company gave a buy signal when the RSI was below 30. Al Hassan Engineering gave a sell signal on 29th October 2013 when the RSI was more than 70. On 7th August 2014, the company gave a buy signal when the RSI wend below 30. On 16th August, Dhofar cattle Feed gave a sell signal when its RSI was above 70. However, on 9th December the company gave a buy signal after the RSI wend below 30. Service Sector The above company indicated to its investors that it is time to buy on 25th April 2011. The company then gave a sell signal on 17th September 2012 when the RSI was above 70. According to the chart, Al Jazeera Service hinted that it was time to buy on 18th July 2011 and gave a sell signal on 17th February 2013 when the RSI was above 70. Oman investment and Finance indicated that it was time to sell on 29th March 2011 when the RSI was above 70. On 9th February, the company gave a buy signal when the RSI was below 30 with a closing price of 0.23 which then increases to 0.26 the following day. Moving Average Convergence Divergence (MACD) This is type of financial tool introduced by Gerald Appel and is used in predicting stock prices(Appel, 2005). MACD focuses on observing trends on the momentum and the duration of a stock price. While interpreting a MACD, experts focus on the convergence and the divergence. When averages in the chart come closer together other, a convergence takes place. When averages draw apart, then a divergence takes place. The shorter moving average (normally 12 days) is much faster as compared to the longer moving average which lasts for 26 days. Thus, the short moving average is responsible for most MACD movements (Charts, 2016). A positive MACD indicates that the Exponential Moving Average (EMA) of 12 days is above the EMA of 26 days. This means a positive value increases as the shorter EMA diverges further from the longer EMA resulting to increase in the upside momentum. A negative MACD on the other hand, indicate that the EMA of 12 days is below the EMA of 26 days. With that in mind, negative values increases as the shorter EMA diverges further below, the longer EMA resulting to an increase in the downside momentum. Financial Sector According to the above Ahli Banks graph, the bank indicated it was time to sell on 14th March 2012. On 25th March 2015, the bank gives a buy signal when the short moving average intersected the long moving average from below. According to the above graph, on 9th April 2012 Bank Dhofar gives a sell signal. On August 2014, the short moving average intersects the long moving average from below hence indicating it is time to buy. Bank Muscat on the 8th of April 2012 indicated it was time to sale On 7th February 2013, the company gave a buy signal after the short moving average intersected with the long moving average from below. Industrial Sector The company hinted on an avenue to buy on 24th October 2011. Also, there was a sell signal after the short moving average intersected with the long moving average from above. On 4th March 2013, Al Hassan Engineering gave a buy signal when short moving average intersected with the long moving average from below indicating an increase in the closing price. However, on 27th February 2014, a sell signal was given when the short moving average intersected with the long moving average from above indicating a fall in price. A buy signal was given on5th February 2014 when the short moving average intersected with the long moving average from below. On the September of the same year, a sell signal was given after the short moving average intersected with the long moving average from above indicating a fall in price. Service Sector On 3rd April 2012, ACWB gave a sell signal after the short moving average intersected with the long moving average from above. This then saw a rapid decline in price over the next months. On 25th April, the company then gave a buy signal after the short moving average intersected with the long moving average from below. On December 2011, Al Jazeera Service gave a buy signal after the short moving average intersected with the long moving average from below. This indicated a rise in the price. On August 2014, the company then gave a sell signal when the sort moving average intersected with the long moving average from above indicating a fall in the market price. On 6th December 2012, Oman Investing and Finance gave a buy indication after the short moving average intersected with the long moving average from below indicating a rise in the market price. However, on 26th August 2014, the company gave a sell signal after the short moving average intersected with the long moving average from above indicating a fall in price. Other technical analysis tools Apart from the three tools discussed above, there are other tools which are also used in the technical analysis of predicting stock markets. They briefly include: Dow theory In Dow Theory, analysts focus on the trend to distinguish the overall direction of the market. This tool, introduced by Charles Dow, identifies three trends within the market: the primary trend (which lasts for almost a year), the secondary trend (three weeks to three months), and the minor trend (three weeks). However, most analysist dont focus too much on the minor trends as it can lead to irrational trading due to its constant movements. Candlestick A candlestick is a technical analysis tool that reflects the high points, low points, opening, and closing prices of stock for a specified period. On the chart, the wide part of the candlestick is called the real body and is particularly useful to investors as it tells whether the closing price was higher or lower than the opening price. Each day shows its specific candlestick therefore if in a month there were 25 trading days there will be 25 candlesticks for that month(Charts, 2016). Specific colors are used to indicate this. Black or red indicates that the stock closed lower while white or green indicates that the stock closed higher. Limitation of the research This research based its findings on secondary data from financial statements of 9 companies listed on the Muscat Securities Markets (MSM) index. This data is prone to manipulation, the data may be of a lower quality, the data may not be useful in relation to the theoretical framework of the research, and the data may be outdated. Conclusion From discussions above, it is now clear the importance of technical analysis in predicting changes in the stock market. Different technical analysis tools have their ways of predicting the future of stocks when to buy, when to sell, or when to hold. These tools follow market patterns and analyze them to be able to assist investors in making the right decisions. However, as highlighted in the literature review, technical analysis tools are best for short-term investments as opposed to long-term investments of over a year. Technical analysis works best in a time frame of 6 months thus is best for traders. Bollinger Bands defines stock trends with highs and lows. Intersecting points on the chart indicate to the investor if it is the right time to sell or buy. When the upper band intersects with the closing price, then it is time to sell because that indicates that the prices will fall. Alternatively, when the lower band intersects with the closing price, it is time to buy since the prices will rise. These patterns have been studied, and the results are factual, at least for the short-term. Relative Strength Index (RSI) uses divergence between the RSI and the price action to give signals on whether it is the right time to sell or buy. If the RSI is above 70, it is time to sell. If it below 30, it is time to buy. Moving Average Convergence Divergence (MACD) uses convergence and divergence to interpret the stock market trends. Like Bollinger Bands, intersecting points dictate if it is time to sell or buy. If the short moving average intersects the long moving average from below then, it is time to buy. This is because there will be an increase in price. However, if the short moving average intersects with the long moving average from above, then it is time to sell since prices will drop. Despite the effectiveness of these tools, it is not wise for an investor to use one tool in making their investment decisions. Using these tools together and cross-checking data from one technical analysis tool to another will increase the odds to an investors favor. Technical analysis tools help experts and investors know the turning point of a market. For long-term investments, tools like fundamental analysis are the better choice. Bibliography Appel, G., 2005. Technical Analysis Power Tools for Active Investors. Financial Times Prentice Hall. Bands, B., 2017. Bollinger Band Rules. [Online] Available at: https://www.bollingerbands.com/bollinger-band-rules [Accessed 4 November 2017]. BANDS, B., 2017. BOLLINGER BANDS. [Online] Available at: https://www.bollingerbands.com/ [Accessed 4 November 2017]. Burt, J.E., Barber, G.M. Rigby, D.L., 2009. Elementary Statistics for Geographers. New York: Guilford Press. Charts, S., 2016. Introduction to Candlesticks. [Online] Available at: https://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:introduction_to_candlesticks [Accessed 4 November 2017]. Charts, S., 2016. MACD (Moving Average Convergence/Divergence Oscillator). [Online] Available at: https://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:moving_average_convergence_divergence_macd [Accessed 4 November 2017]. Comeau, F.S., 2015. Why Technical Analysis is 100% Bullshit. [Online] Available at: https://www.fscomeau.com/why-technical-analysis-is-bullshit/ [Accessed 3 November 2017]. David Fabian, 2014. Why The Market Doesn't Care Where You Think It Should Go. [Online] Available at: https://seekingalpha.com/article/2006211-why-the-market-doesnt-care-where-you-think-it-should-go [Accessed 3 November 2017]. De Vaus, D.A., 2001. Research Design in Social Research. London: SAGE Publishers. Edwards, R.D., Bassetti, W.H.C. Magee, J., 2013. Technical Analysis of Stock Trends, Tenth Edition. Florida: CRC Press. Fedility, 2016. Relative Strength Indicator (RSI). [Online] Available at: https://www.fidelity.com/learning-center/trading-investing/technical-analysis/technical-indicator-guide/RSI [Accessed 4 November 2017]. Group, L., 2014. Technical Analysis in Stocks - A Basic Assumptions. [Online] Available at: https://www.linkedin.com/pulse/20140704113214-108689551-technical-analysis-in-stocks-a-basic-assumptions/ [Accessed 3 November 2017]. Jack D. Schwager, N.A., 1995. Futures: Fundamental Analysis. New York: John Wiley Sons, Inc. John Devcic, 2007. Bollinger Band Trading. [Online] Available at: https://www.forbes.com/2007/05/11/bollinger-intel-yahoo-pf-education-in_jd_0511chartroom_inl.html [Accessed 4 November 2017]. Jonas Elmerraji, 2015. Does Technical Trading Really Work? Technical Analysis 101. [Online] Available at: https://www.thestreet.com/story/11089457/1/does-technical-trading-really-work.html [Accessed 3 November 2017]. Kahn, M.N., 2009. Technical Analysis Plain and Simple: Charting the Markets in Your Language. FT Press. Kirkpatrick, C.D. Dahlquist, J.A., 2010. Technical Analysis: The Complete Resource for Financial Market Technicians. New Jersey: FT Press. Kumar, R., 2008. Research Methods. New Delhi: APH Publishing. Lo, A.W. Hasanhodzic, J., 2011. The Evolution of Technical Analysis: Financial Prediction from Babylonian Tablets to Bloomberg Terminals. New Jersey: John Wiley Sons. Michael Kahn, 2010. Why Technical Analysis Matters. [Online] Available at: https://www.forbes.com/2010/04/16/disney-hpq-charting-markets-technical-analysis.html [Accessed 3 November 2017]. Moosa, I.A., 2007. The Profitability of Trading Rules and Volatility in Emerging Financial Markets. ICFAI Books. MSM, 2017. About MSM 30 - Objective. [Online] Available at: https://www.msm.gov.om/ [Accessed 3 November 2017]. Nupur Joshi, 2017. Is technical analysis useful in the stock market? How can I use it? [Online] Available at: https://www.quora.com/Is-technical-analysis-useful-in-the-stock-market-How-can-I-use-it [Accessed 3 November 2017]. Park, C.-H. Irwin, S., 2004. The Profitability of Technical Analysis: A Review. AgMAS Project Research Report. Scott, G., Carr, M. Cremonie, M., 2016. Technical Analysis: Modern Perspectives. CFA Institute Research Foundation. Shuib, D.A., Perumal, D.T. lee, D.N., 2013. Research Methodology. Malaysia: Open University Malaysia. Teweles, R.J. Bradley, E.S., 1998. The Stock Exchange. New Jersey: John Wiley Sons. Times, T.E., 2017. The Stock Market. [Online] Available at: https://economictimes.indiatimes.com/definition/stock-market [Accessed 3 November 2017]. Wilder, J.W., 1978. New Concepts in Technical Trading Systems.

Gun Control Essays (515 words) - Gun Politics, Firearms, Gun Control

Gun Control Since the days of the pioneers of the United States, firearms have been part of the American tradition as protection and a means of hunting or sport. As we near the end of the 20th century the use of guns has changed significantly. Because of fast and steady increase in crime and the fight for the right to own a hand gun, the introduction of legislation for gun control, to try to reduce the crime in the United States, has been a hotly debated issue in recent years. Although many people feel that gun control violates the right of the people, given in the second amendment "the right to bear arms", controlling distribution and sales and the registration of guns and gun owners is necessary because of the homicide rate involving guns and the violence by criminals using guns. Many people feel that gun control violates the right of the people given in the second amendment the right "to bear arms". Opponents of gun control, including the National Rifle Association, better known as the NRA, argue that the "right To bear arms" is guaranteed in the second amendment of the Constitution of the United States of America and licensing restrictions penalize law-abiding citizens while in no way preventing criminal use of handguns. It is also argued that by making it difficult for guns to be bought and registered for the American public there is a threat to the personal safety of American families everywhere. However controlling the sale and distribution of firearms is necessary because of the homicide rate involving guns. In 1988 there were 9000 handgun related murders in America. Metropolitan centers and some suburban communities of America are setting new records for homicides by handguns. Larger Metropolitan centers have ten times the murder rate of all Western Europe. For example in Washington,D.C. there was an estimated 400 homicides including guns. In addition gun control has been seen as necessary because of the violence by criminals using guns. Gun control is wrapped in a series of social issues such as crime and drugs. Guns have become closely linked to drugs and murder in the public mind. Drug dealing and high tech weaponry have escalated the warfare in cities between long established loosely knit gangs. Predominantly guns of crime are used by gang members. Many police officers are killed every year due to drug and gang related incidents involving guns. For example in 1988 on February 26 rookie New York City police officer Edward Byre was sitting alone in his police car guarding the house of a drug trial witness in South Jamaica, Queens where he was shot four times in the head and killed. In conclusion there are valid reasons for why certain people feel that gun control is unfair. People against gun control feel that it is a violation of the Constitution to control the sale and distribution and the registration of guns and gun owners. But it is necessary for there to be certain limits on the way that firearms are handled in this country because of the homicide rate involving guns and because of the violence created by criminals using guns. If gun control legislation were to go through there would be a significant decline in gun related crimes and fatalities. Gun Control Essays (515 words) - Gun Politics, Firearms, Gun Control Gun Control Since the days of the pioneers of the United States, firearms have been part of the American tradition as protection and a means of hunting or sport. As we near the end of the 20th century the use of guns has changed significantly. Because of fast and steady increase in crime and the fight for the right to own a hand gun, the introduction of legislation for gun control, to try to reduce the crime in the United States, has been a hotly debated issue in recent years. Although many people feel that gun control violates the right of the people, given in the second amendment "the right to bear arms", controlling distribution and sales and the registration of guns and gun owners is necessary because of the homicide rate involving guns and the violence by criminals using guns. Many people feel that gun control violates the right of the people given in the second amendment the right "to bear arms". Opponents of gun control, including the National Rifle Association, better known as the NRA, argue that the "right To bear arms" is guaranteed in the second amendment of the Constitution of the United States of America and licensing restrictions penalize law-abiding citizens while in no way preventing criminal use of handguns. It is also argued that by making it difficult for guns to be bought and registered for the American public there is a threat to the personal safety of American families everywhere. However controlling the sale and distribution of firearms is necessary because of the homicide rate involving guns. In 1988 there were 9000 handgun related murders in America. Metropolitan centers and some suburban communities of America are setting new records for homicides by handguns. Larger Metropolitan centers have ten times the murder rate of all Western Europe. For example in Washington,D.C. there was an estimated 400 homicides including guns. In addition gun control has been seen as necessary because of the violence by criminals using guns. Gun control is wrapped in a series of social issues such as crime and drugs. Guns have become closely linked to drugs and murder in the public mind. Drug dealing and high tech weaponry have escalated the warfare in cities between long established loosely knit gangs. Predominantly guns of crime are used by gang members. Many police officers are killed every year due to drug and gang related incidents involving guns. For example in 1988 on February 26 rookie New York City police officer Edward Byre was sitting alone in his police car guarding the house of a drug trial witness in South Jamaica, Queens where he was shot four times in the head and killed. In conclusion there are valid reasons for why certain people feel that gun control is unfair. People against gun control feel that it is a violation of the Constitution to control the sale and distribution and the registration of guns and gun owners. But it is necessary for there to be certain limits on the way that firearms are handled in this country because of the homicide rate involving guns and because of the violence created by criminals using guns. If gun control legislation were to go through there would be a significant decline in gun related crimes and fatalities.

tujillo essays

tujillo essays The Dominican Republic is a beautiful country that is the crown of the Caribbean. Many people do not know that the Dominican has a past that shrouds its peoples everyday life. The cause of this was a tyrant named Trujillo. The man used force to come to power; to rule and run his country; and force was the only way to get him out of power. During Trujillos regime the Marabal Sisters are the people that stood out the most. Before becoming dictator, Trujillo was the commander of the National Army. He used his status in the army to gain power. With Trujillos private army of assassins "SIM" and his powerful politicians like Rafael Estrella Urena, Trujillo was able to gained power. Rafael Estrella Urena started a revolution and made a deal with Trujillo saying that if he held back his own army then he would let him be president. They began a successful coup d tat to oust the president and the vice president. The following month Vasquez and Alfonseca resigned and left for exile in Puerto Rico. The proper elections were held in May, Trujillo running for president and Ure Trujillo or "El Jefe" ran the country for 31 years with an iron fist. After his inauguration Trujillo proclaimed himself dictator. Trujillo decided to organize the Partido Dominucano that controlled politics. Under Trujillo the country was stable but its people had no political freedom. Trujillo gained a fortune and ruled supreme throughout the economic "boom" after World War ll. There was no industry in the country no matter how small that a member of Trujillos family did not own a dominant portion. Envisioning himself as "Father of the New Fatherland," Trujillo renamed the capital to Cuida Trujillo, after himself in 1936. The most horrifying act was the massacre conducted under Trujillos orders of more than 18,000 Haitians on the Domi...

Eat Drink Man Woman Assignment Example | Topics and Well Written Essays - 1250 words

Eat Drink Man Woman - Assignment Example A father remains emotionless, because he wants to seem a strong person and stay invulnerable. A conflict of generations, different problems of communication among family members are mistreated by family members and it is of great importance to have an ability to deal with the challenges of family life. Chu as the head of the family is positioned as a typical head of the Chinese family, but his ability of self-development enabled him and his family to be successful. Authority in the family There is a dynamical development of the family. Actually, this film is focused on depiction of daily affairs, emotions and feelings of every family. Sihung Lung is represented by the director as Chu, a master chef who cannot save his sense of taste. He had a business of his life and a feeling of taste is the way to earning money and living his life. His wife died and he has to take care about his 3 daughters. Jia-Ning (Yu-Wen Wang), the youngest one, makes many attempts to steal a boyfriend from her friend; Jia-Chien (Chien-Lien Wu) the Cosmo girl, who has no time for her own family; and the oldest, Jia-Jen (Kuei-Mei Yang), spends all her time with her father and sacrifices her own happiness in the name of his life. There is a great problem among all family members, because they cannot identify themselves. When love from outside interferes in their lives they do not know what to do and how to support their used way of living. There are so many emotional points and themes covered in this film that every viewer finds his own tunes of soul, which are harmoniously repeated by the director. Sihung Lung takes care about his daughters and the audience feels a great sympathy to this caring man. He knows that his family is tearing apart, and being a head of the family, he tries to put the family together. In accordance with a model of traditional Chinese family, where the father is responsible for education of their children and having the last word in the family meetings, Chu is more tolerant and emotional in relation to his daughters. A man makes many attempts to transmit his feelings to his daughters, but he cannot find appropriate words, but rather impresses them by cooking. A concept of food is one of the central integrative parts of the family life. In case family members are displeased with each other, they do not express negative emotions directly, but they make attempt commenting on food. Culinary arts is on the way of development in china and the director Lee makes an attempt to show culinary arts as a way of family unification. Traditional form of Chinese family To express a father’s love through cooking is an unusual form of feelings’ expression, because in the Chinese family a father plays a role of emotionally stable and a strong brave man, a head of the family. The situation is different in the film, because the father does not have his wife, he is a master chef and he has no son, but only three daughters. Communication in the family is mediated by means of culinary arts of the father. In such a way the director of the film expressed his unusual vision of an ideal Chinese family. Nevertheless, there is an evident emotional gap and a conflict of generations cannot be resolved by means of keeping silence only. The daughters and the father are united by invented family values. Eating dinner together in the kitchen is the most

Post Deregulation Act of 1978 Term Paper Example | Topics and Well Written Essays - 2500 words

Post Deregulation Act of 1978 - Term Paper Example The US Airlines industry was primarily a highly controlled one, with heavy regulations imposed upon the air fares, air routes as well as the air schedules. Prevalence of such restrictions within the airlines arena had serious implications upon market demand. The Civil Aeronautics Board (CAB) restricted the entry of new players within the industry, depending upon the approval provided by the Department of Transportation (DOT). Prior to deregulation, unless the DOT endorsed any indigenous airlines company as fit and able to commute passengers within the national premises, they could not operate within the domestic territory (Siddiqi, n.d., par. 1). The outcome of creating such a highly constrictive environment of operation had serious drawbacks upon the cost structure of the companies which were active in the business. Though initially, the profit margin earned by the US airlines industry was quite high, viz., 14%, the situation worsened following the restrictions inflicted by the boar d upon the margin. According to the guidelines being implemented, the profits earned upon stockholder’s equity could not be exceeded beyond a certain ceiling, so that the players who were already present in the market could not increase the air fares above a particular point (Kwong, 1988, p. 14). Though, a low air fare was considered as an advantage for the customers who availed the service, the companies suffered from bottlenecks as their avenues for procuring capital was approaching a standstill.

Sweatshops And The Race To The Bottom Phenomenon Economics Essay

Sweatshops And The Race To The Bottom Phenomenon Economics Essay (1.) Why do global critics often cite sweatshops as a prime example of the race to the bottom phenomenon? (2.) In addition, are sweatshops a stop on the road to prosperity? (3.) Meanwhile, are sweatshops a common ground? (4.) Finally, how can developing countries minimize or escape the dangerous abuses that often accompany foreign direct investment in low labor-intensive operations? Global critics feel that the race to the bottom phenomenon is what happens; they say when world markets are opened to free, unfettered trade. In addition without transnational labor guidelines and regulations, big corporations will look to place factories and manufacturing plants in countries with the most relaxed environmental and labor standards for multi-purpose advantages. Are sweatshops a stop on the road to prosperity? Maybe so opinions vary but, records indicate this theory. Human rights, low wages, and less protection for workers that dominate export markets, or attract the mammoth amount of share in foreign direct investment supports the previous theory. Only with the prosperity brought by international trade, globalizations adherents say, can a country then afford to demand better working conditions for its workers. This means every prosperous country today once employed child labor in its economic adolescence that would today be considered sweatshop working conditions. (Radley Balko) Do sweatshops have a common ground? At the end of the day there are at least a few areas in which both free traders and anti-sweatshop crusaders can agree. Most free trade advocates agree, for example that benefiting from slave labor is no better than theft. Sweatshop workers are often the envy of their communities they make more money than the farmhands or beggars. The key to building prosperity is choice, and if workers dont have the option to quit, or to take a job with a factory across town offering better wages, the free in free trade is a misnomer, and the benefits of globalization are tainted. (Radley, Balko) How can developing countries minimize or escape the dangerous abuses that often accompany foreign direct investment in low labor-intensive operations? The list of dangers and difficulties linked to foreign direct investor and associated subcontractor operations in low -skill, labor-intensive operations is quite long but, perhaps somewhat surprisingly, so is the list of possible benefits and opportunities.(Theodore H. Moran) ANALYSIS PART 1 (Perception of the race to the bottom phenomenon) Sweatshops are an ongoing problem throughout the global economy, especially in the developing countries. There is more than 90% of child labor and sweatshop market employed in the rural areas of Asia and Africa. Even though there are a lot of developed countries that oppose child labor and sweatshops because of moral and ethical reason. They feel that the companies are taking advantage of the developing countries and exploiting their children just to make a profit. However, the developed countries have to understand the social and economic cost, the standard living conditions, and having a good grasp of what people living in these developing countries might go through. Sweatshops might be the answer and not the problem in developing a country. Furthermore, the importance of having sweatshops is that it automatically creates jobs for the rural areas of these developing countries. These new jobs can pay up to two or three times as much of minimum wage, which gives the people more money to spend and this helps develop the country because the average income rate is rising. The developing countries will say that it is morally and ethically wrong for companies to move their business to rural and developing countries, because they are not being paid as much as developed countries. In addition, they are making their employees work 84-105 hours a week compared to the United States traditional 40 hours, and sometimes the salary is 60% 80% lower than a company will pay in the United States. Just to add, sweatshops are viewed as over working their employees causing and creating hazardous and unhealthy working conditions. How would life be in developing countries without sweatshops? Since sweatshops create new jobs and new opportunity for the people in these rural areas, without the sweatshops the new jobs and opportunity would be gone. This will lead to young women and men prostituting themselves just to make money to survive. Also, starvation will become a huge factor in the developing countries, because without any jobs opportunity for an unskilled worker becomes narrow, without an education. People will have limited choices, for example possibly starving or stealing; which overtime will lead to additive violence, and eventually raise the crime rate because people have to survive. Nevertheless, since sweatshops are in a rural area it helps monitor the crime rates, starvation, and increases the dream of education because families are given opportunity to become more skilled alongside an ample income, paving a new way for the next generation. Therefore, as we learned in our International Business class, some of the developed countries can be bias and hypocritical because developed countries previously endorsed a sweatshop opportunity to gain existence and power in the market, examples are South Korea, and Taiwan. More importantly a majority of developing countries will embrace this vicious cycle for exposure, skill, and hands on awareness of a volatile market. Analysis Part II Sweatshops and Prosperity Sweatshops are good for globalization and prosperity because of comparative advantages in the market, which help the developing countries grow in the long run. Sweatshops will give developing people in rural areas a set of skills that will help them to compete in the International market. Companies like Nike and Wal-Mart help develop these countries by giving them the opportunity to learn how to do things those consumers and companies in develop countries take for granted. In return the skills sets learned will manufacture undeveloped countries, while increasing competitiveness and assembling products cheaper but still efficient, will engage a higher demand and raise the GDP of undeveloped countries. The thought of stability supports prosperity which is rare globally, so if opportunity renders freedom of choice for developing countries the debate becomes simple and survival is usually submitted. Analysis III Are Sweatshops common ground? Common ground is usually effective if the government in the host country is held accountable in the international community. Therefore the fundamental disagreement about sweatshops revolves debate about fairness. Western companies benefit from cheap labor in the developing world; sweatshop activists say western corporations can afford to pay artificial living wages and that anything less reeks exploitation. Further arguments include corporate governments penalizing the western companies internally if better working conditions arent offered to the developed countries or consumers refraining from purchasing products. Common ground becomes a factor, globalist say if that happens western corporations have no incentive to invest in the third world in the first place. Developing countries have two choices when negotiating common ground, (1) embrace foreign investment, (2) demand wages not proportional to what their national labor market would naturally allow. In most cases, the track that delivers prosperity (1) or the track that produces continued poverty (2) will lend clues to the debate and the winning verdict. Analysis IV. FDI in low labor-intensive operations Global markets gain their questionable state of regimen through rules that are stated in trade agreements, labor laws, and factors that give constructions on gender. Once you understand markets as institutions it will allow you to link the globalization of the apparel industry to US foreign policies. Major players within in the US textile and apparel industries seem to hold different trade strategies in store for use. The textile industry benefits from rule-of-origin protections, the apparel industry benefits from free trade without restrictions. Large-scale retailers became key political players. Unions opposed free-trade arrangements with developing countries that they believe foster a race to the bottom type of mentality. Overall the previous information about trade and apparel just emphasizes the importance of growth and power in the free trade market which elaborates capitalism and the issues of transparency simultaneously. In transition, developing countries do have a strategy for attracting investors to low-wage export industries to establish special export processing zones or free trade zones. Nevertheless the objective of establishing EPZs and FTZs is to provide foreign investors and their subcontractors with freedom duties on the capital equipment and components while exempting many governments from various labor regulations in the zones, including the organization of labor unions. Foreign Direct Investment in low wage, low-skill host countries has two sides failure and success. Positive is that when FDI is implemented in undeveloped rural areas potential benefits of a new life are given such as jobs, skills, agenda, choices, opportunities, etc. Negative outcomes of FDI is that deception and bondage may be used to prevent the people from leaving their jobs; in extreme situations recruiters and agents set up networks in which family members arrange to pay off loans my selling their children into contract labor. In addition, workers may receive no benefits such as social security alongside workers being deprived promotion and benefits of seniority. CONCLUSION Analysis Part I The race to the bottom phenomenon can be viewed as an advantage or disadvantage. Most global critics tend to view corporations and retailers taking credit for offering jobs and services to a weaker opponent, but not using internal ethics as a navigator to promote a safer healthier work environment. Nevertheless youre able to see the pros and the cons but overall my opinion clearly states that globalization and capitalism at the bottom can be harsh but stability equates to balance which means development needs more pros than cons overall but we all start from an infant stage to adolescence yearning for maturity and experience. Analysis Part II Are sweatshops a stop to the road to prosperity? Yes I feel that prosperity is not just tangible riches that a person or country endures, but the intangibles that are benefited from prosperity are much greater. So the resolution is to sweatshops overall being prosperous is government ethics meaning that leadership starts from above and trickles down. To be prosperous means sacrifice, discipline, and patience, but these qualities define moral ethics and the sweatshop or the corporate retailer cant establish a culture that has to come from the developing country internally. Analysis Part III Are sweatshops common ground? This question brings joy to me because this interrogative statement revolves around the debater and their view. However I consider myself a debater so let me elaborate yes and my reasons why are this history teaches you about the past meaning you may have or not endured historical moments or events during the time line of your life; which remotely if successful allow you and your family comfort. Just to add if youve never endured something but wanted more how can you deprive a choice of opportunity to another person or country without bearing the conditions or lifestyle they represent. So my inclination of common ground is the specimen of experience and the verdict well that would be the individuals choice. Analysis Part IV How can developing countries minimize or escape the dangerous abuses that often accompany foreign direct investment in low labor-intensive operations? FDI are benefits of investors that see potential from an undeveloped country starting with lack of opportunity, few choices, skill, education, health care, and other fundamentals of a higher standard living. In addition, there are disadvantages of countries with FDI such as benefits, working conditions, employee treatment. But to minimize or escape the dangerous abuses a host country must hold the government accountable and the standards that they allow corporations to work under and the ethics and treatment that follows. Labor unions and police monitoring is a start because that enforces accountability which leads to other interest groups in the future and set a precedence of standards throughout internally which will tap the external zone/developed countries or corporate retailers. Globalization and trade derived from conditions such as sweatshops, slavery, bondage, and to enhance undeveloped countries means upgrade the conditions and the legal environment.

Los Vendidos Essay

Los Vendidos means the sell-outs. All the characters in the play sold-out at some point during the play. The characters sold out both their races and their way of life. I would say that the person who sold out the most was the Mexican-American because he sold-out both his Mexican, his American heritage and way of life. He wanted to be perfect, so when he found that the Americans and the Mexicans had their flaws he sold them out. He now has to search for a new and perfect race to identify with. (He will be searching for a while. ) The Mexican- American sold out his Mexican Heritage when he said, â€Å"The problems of the Mexicans stem from one thing alone he’s stupid, he is under-educated, he needs to stay in school. He needs to be ambitious and be forward looking, most important he needs to think American† (Page 382). In his statement he is only finding the bad of his people and stating it for the entire room to hear. He shows great disrespect for the Mexican heritage by saying all that is wrong with them. He shows their flaws, weaknesses, and imperfections. I believe your heritage makes up who you are and that is you, so you should never disrespect yourself by disrespecting your heritage. I believe thee way he sold-out was by disrespecting his heritage. the Mexican- American is still trying to decide weather he is going to live Mexican or American. When the Mexican-American says, â€Å"The only thing I don’t like is how come I always got to play the goddamn Mexican-American†(Page-384). You are unsure by this statement weather he is selling-out his Mexican or his American lifestyle. You know he wants to perfect because of his attitude toward playing the part of the Mexican-American. The Mexican American doesn’t know where he wants to go in life I guess this proves no matter how old you are or how much of an education you have you sell people out and walk all over them. Even if it is a person you know or need all that does not madder if you are a sell-out. You will hurt people to get what you want for yourself. The Mexican American is soon going to find he will never find perfection and he will be lost with no friends because of all the people he sold-out. The Mexican- American and his buddies need to set goal or all they will have to talk about is being sell-out with no friends.