If you are thinking of investing some money then you have thousands of options available in the forms of mutual funds.

However, how do you know what the right one or best one is for you to open?

Is investing online in mutual funds the right thing for you to do right now?

For you to even be able to begin to think about investing online then you must meet a few requirements regarding your computer’s capabilities first.

Your computer must be able to connect to the internet (obviously), your web browser must be at least 128-bit compatible such as Netscape 3.0 or Internet Explorer 3.0 or higher, and logically you must have at least a small amount of money - if not more - to start and actually invest. (Some online brokers require that you have as much as $1,000 or the equivalent in securities to open an account.)

If these things aren’t possible now or might stretch you a bit too thin in your personal life then mutual fund investing online may not be the best option right now.

Different accounts may be available for mutual fund investing online than are found in the bank you can walk into down the street and it is very worth your while to check in to this before making a final decision. With different companies comes different requirements, some require you to place cash up front and others may not require any cash to open the account.

You should (for "should" - read ‘must’) do an extensive detailed search to find an account that fits your needs as well as your bank account. Your best research tool is the World Wide Web and it is right at your finger tips 24 hours a day, seven days a week.

The subject of fees is always a tricky one to partake in and accounts online may be better for personal access as well as learning the subject, but the fees will still be there. Brokers online and brokers in big, fancy offices are going to charge fees whether you like it or not, but some may have “no fee” accounts that require certain balances or certain types of accounts.

Read the fine print, that is always where the important stuff is printed and you need to know everything about the place that is holding your money. No broker is truly going to “hide” fees and hang onto their trading licence for long, but it is up to you to read everything you sign, even the “terms of service” to understand exactly what you are getting yourself into.

Some websites will also help you by giving daily, monthly, and historical mutual fund data so you can make informed decisions. View everything available on the particular fund you are thinking of investing in, it is the best way to find the best account that is open to you or investors just like you.

Duncan Roberts is a keen investor - happiest when he sees the value of his portfolio climbing! To learn more tricks and tips on investing, check out his Mutual Fund Investing advice.

Duncan writes for the Investing site - http://www.theadvicecentre.info/investing/mutual-fund-investing.htm

The first chart shows the daily SPX (black line and right scale) and the NYSE Oscillator (NYMO) 50-day MA (blue line and left scale). Previous patterns indicate when the NYMO 50-day MA falls below negative 20, then a bottom will be in place and SPX will be in position for a sustainable rally. Currently, the NYMO 50-day MA is negative 15 1/2 and the daily NYMO is negative 15. So, the daily NYMO will have to stay below negative 15 1/2 for sufficient time and levels to bring the NYMO 50-day MA below negative 20.

The vertical line in the first chart shows April 2005 technical indicators are in somewhat similiar positions compared to current indicators. In March and April 2005, SPX fell from the high at 1,229 to the low at 1,136, from early-March to late-April, before starting the uptrend. Over the current downtrend, SPX fell from the high at 1,326 in early-May to a low at 1,235 last week. The similarities indicate SPX could trade between 1,230 and 1,260 for one to three weeks and then the NYMO 50-day MA may be in position for a SPX bottom. Also, the NYSI (below price chart) may fall into position for a SPX rally.

The second chart is an SPX monthly chart that shows the monthly middle Bollinger Band, currently 1,228 1/2, has held throughout the recent cyclical bull market. Consequently, a fall below that level may indicate a greater fall and the start of a cyclical bear market. Below the price chart is the monthly MACD, which gave a bearish crossover last week. However, the crossover is valid only if it closes the month bearish. Above the price chart is the monthly Money Flow, which remains positive, although has deteriorated, which may indicate the tail-end of the cyclical bull market.

It seems most likely SPX will hold the monthly middle Bollinger Band and begin a summer rally in June. Currently, SPX is in the second longest period in history without at least a 9% correction (1,206 is a 9% decline from 1,326). Also, the current cyclical bull market, within the structural bear market that began in 2000, is of above average length. However, it seems, a 9% or more correction and the end of the cyclical bull market will more likely take place at another time, perhaps this fall or in the first half of 2007.

Free charts available at PeakTrader.com Forum Index Market Forecast section.

Arthur Albert Eckart is the founder and owner of PeakTrader. Arthur has worked for commercial banks, e.g. Wells Fargo, Banc One, and First Commerce Technologies, during the 1980s and 1990s. He has also worked for Janus Funds from 1999-00. Arthur Eckart has a BA & MA in Economics from the University of Colorado. He has worked on options portfolio optimization since 1998.

Mr Eckart has developed a comprehensive trading methodology using economics, portfolio optimization, and technical analysis to maximize return and minimize risk at the same time and over time. This methodology has resulted in excellent returns with low risk over the past four years.

On any given major stock exchange, from Wall Street to Bombay or from London to Hong Kong, billions of shares are traded each day that represent trillions of dollars exchanged back and forth. This buying and selling action represents volume, which is the result of the exchange of stock or commodity between both buyer and seller. Volume, then, is the prime mover in the price for a given stock or commodity in a given amount of time.

If there is more buying than selling for a ABC stock then what results is the rise in price for that stock. Likewise, if there is more selling then buying in ABC stock then share price is likely to fall in value. This makes the study of volume a valuable indicator to determine if a stock is either in demand or likely to increase in share value in the future.

Many aspiring stock traders practice a style of stock trading popularly referred to as “momentum investing” where one attempts to identify stocks that are fluctuating in a given price range for a length of time and are likely to have explosive moves to the upside or downside out of those ranges. The confirmation for those explosive moves are taking long positions at the upper end of that price range or short positions at the lower end of that price range on greater than average volume.

Let me offer an example of the importance in volume by stating that volume is literally the fuel for stock values. Like the space shuttle when it is launched into space the majority of fuel is spent to just get it into orbit. This explosive force of energy to propel the space shuttle into space or new heights requires an above average reserve of the fuel but then the space shuttle can then use only a small portion of the remaining fuel reserve to carry out the rest of its mission. Volume is to stocks what rocket fuel is to the space shuttle.

A good average is a 150% of its normal volume but I would also stress that its important to become familiar with a given stock’s volume pattern to gain true mastery. Baker Hughes, Inc. (BHI) typically will move in force with just a 20-25% higher volume spike while some of the lesser known small-cap stocks might require 150% or more.

The study of price and volume relationships also reveals a condition known as “climatic volume” which to a skilled trader can reveal a complete reversal in a given trend. After a stock has had strong advance or decline is where climatic volume can result (the operative phrase is “after” a strong advance or decline).

After an explosive move, usually the result of a volume spike, climatic volume results when traders come into the last stages of that advance of decline and price moves sharply at the last move of its trend. At this point, all the buying and/or selling has resulted and the move has exhausted itself and volume is then considered climatic when it exceeds two times the average daily volume over the last ten days. At these extreme volume levels price often goes almost parabolic or straight up in price without a noticeable pull back.

Master traders can spot these “Bump and Run The Top” or “Rising or Declining Wedge” patterns and use these climatic volume spikes to exit their positions and then use them to spot the trend reversal and get in at the beginning of a new trend transition.

The study of the relationship between price and volume can give both technical and systemic traders the confirmation that they need to get in on explosive moves and also serve as indicators as to when its time to get out and, possibly, even spot a new trend in transition to exploit profitably. Volume should be considered as the most important precursor to price movement at the disposal of investors or traders and can possibly lead to some huge gains to those who take the time to understand the relationship between price and volume.

Copyright 2006 Billy Williams

Mr. Williams is a businessman and veteran of Desert Storm who has been trading stocks, options, and futures for almost 15 years. He has extensive training in systemic trading and technical analysis along with the insight that comes from suffering the highs and lows from trading for many years. He trades professionally as well as operate an educational website with the goal of helping aspiring traders as well as experienced traders achieve their goals in the stock market. http://www.stockoptionsystem.com

There are two Market Forecasts this week (also see "Cyclical Bull Market Support Line"). The first chart below is an SPX monthly chart from January 1990 to November 1994 and the second chart is an SPX monthly chart from January 2002 to the present time (June 2006). The first chart shows SPX traded above the monthly middle Bollinger Band for 37 months, except briefly in October 1992, and then fell below that level when it had a 9.7% correction. The second chart shows SPX traded above the monthly middle Bollinger Band over the past 36 months and continues to hold that level.

Unfortunately, much technical data for the early-1990s are not available. Also, much of the available data for both periods don’t have meaningful relationships. However, the VIX MACD and ULT are shown for both periods. Comparing the two pullbacks, the monthly VIX in 1994 rose from roughly 11 to 21, while the current monthly VIX is slightly above 18 from roughly 11. The monthly MACD in 1994 gave and held a bearish crossover, while the current MACD gave a bearish crossover last week, although it’s uncertain if it’ll hold for the month. The 1994 monthly ULT held 50, while the current monthly ULT is 51. So, the technical data are mixed.

Currently, the CBOE Put-Call Ratio MAs are at historically extremely high levels, which is typically market bullish (since the put/call is a contrarian indicator). Also, the 10-year bond yield is slightly below the Fed Funds Rate, which may indicate little bond upside and limited stock downside. However, if SPX fails to hold the monthly middle Bollinger Band, currently 1,228 1/2, a larger pullback may take place. If a similar correction takes place, then SPX will fall to 1,197 (9.7% decline from 1,326). Also, if there’s a similar bounce after the correction, then SPX will rise to around 1,250 within a month.

Free charts available at PeakTrader.com Forum Index Market Forecast section.

Arthur Albert Eckart is the founder and owner of PeakTrader. Arthur has worked for commercial banks, e.g. Wells Fargo, Banc One, and First Commerce Technologies, during the 1980s and 1990s. He has also worked for Janus Funds from 1999-00. Arthur Eckart has a BA & MA in Economics from the University of Colorado. He has worked on options portfolio optimization since 1998.

Mr Eckart has developed a comprehensive trading methodology using economics, portfolio optimization, and technical analysis to maximize return and minimize risk at the same time and over time. This methodology has resulted in excellent returns with low risk over the past four years.

An option pricing model is a magnificent "number crunching" trading tool. Without it, we are trading blind by the seat-of-our-pants. It is the difference between "knowing" and "guessing". It would be like a pilot flying without instruments.

It instantly computes implied volatilities, over/under evaluations, finds "best" trades based upon various scenarios, estimated outcomes, both "on-the-fly" and at expiration, and all that good stuff.

An option pricing model gives us an "edge" against those who trade without one and "levels the playing field" against those that do.

If we had to do the calculations ourselves (good luck with that), the market would close before we would get anything done.

But here’s the thing: It’s all THEORETICAL! It’s not real. It’s all guess work.

Forecasts are based on assumptions, which are nothing but educated guesses, and guesses are very "iffy" things.

There’s nothing wrong with using an option pricing model in forecasting, per se, as long as we realize that we’re never going to be right. We’re always going to be wrong.

We strive for perfection in an imperfect world. Sorry to have to be the one to tell you.

All our sophisticated "toys" allow us to do is find out what kind of guessers we are.

It’s all well and good to use an option pricing model, or any tool for that matter, to try to pierce through the "fog" of the future before we actually commit to a position.

However, once we commit it is no longer theoretical. It’s REAL!

From that point forward, the only thing that matters is price. Theory is out the window.

Have your targets, stop-loss points, and follow-up actions figured out in advance and stick to them. A good option pricing model program can help us with that also.

Once a trade is established, manage the trade to its conclusion. Then move on to the next trade. It’s as simple as that.

Because No One Cares More About Your Money Than You

http://dynamic-stock-market-strategies.com

Good trading,
Don Heggen

The Dutch auction, also known as a descending price auction, uses a bidding process to find the optimal market price for the stock, the highest price at which an issuing company can sell ALL the available shares.

An alternative to the traditional negotiated pricing process used by Wall Street investment bankers to set the price of a corporations’ initial public offering (IPO) of its shares, it is THE method used for US Treasury auctions.

It’s also similar to the method used by New York Stock Exchange specialists to set the opening price of their assigned stocks for trading each day.

Deriving its name after the famous auctions of Dutch tulip bulbs in the 17th century, it’s based on a pricing system devised by Nobel prize winning economist William Vickrey.

What’s so good about it? Ask Google. It’s the method they used to bring their company public and it couldn’t have worked out any better for all concerned.

The company obtained a better price for its stock (over $100, rather than the $45 or so the investment bankers wanted to "steal" it for their friends), the public was able to fully participate, and, as of this writing, the stock has gone to over $400!

How does it work? Let’s take a look at a simple example to illustrate the principle.

Let’s say a company wants to offer a total of 1,000 shares to the public. So they invite the public to bid using the Dutch auction method.

Let’s further say one investor bids up to $10 for 100 shares, a second investor bids up to $9 for 200 shares, a third bids up to $8 for 300 shares, a fourth bids up to $7 for 400 shares, a fifth bids up to $6 for 500 shares, a sixth bids up to $5 for 600 shares.

Starting with the highest bid and working down, all 1000 shares will be sold at $7.

It’s fair to everyone involved. It’s capitalism at it’s best.

So why do the Wall Street investment bankers hate Dutch auctions with such a passion?

The obvious answer is they lose control of their favorite "toy". No more fat underwriting fees, no more favored few, no more anything!

Because No One Cares More About Your Money Than You

http://dynamic-stock-market-strategies.com

Good trading,

Don Heggen

At the start of May we warned of a huge price move coming in natural gas and as predicted prices exploded to the upside last week and this is only the start of the move.

Natural Gas is a great long term investment, supply is simply out stripping demand and it’s an easy investment to understand and trade.

Let’s look at this fantastic trade in more detail and how you can trade it with unlimited profit potential and limited risk.

Seasonal demand – 14% Price rise last week!

The demand for natural gas is seasonal and as the hot weather kicks in demand soars due to increased demand for air conditioning.

Natural gas closed up 14% on the week. The contract rallied 7% on Thursday alone on expectations that the above-average temperatures forecast across much of the U.S. for the weekend which boosts consumption as consumers increase usage of air-conditioning systems. Weekly supply data was also bullish for prices.

Further good news for the bulls is we are approaching the height of the cooling season and the gas surplus should continue to decline as we enter a period of peak demand.

While this trade has already made great gains in a short period of time on the above seasonal, it’s the longer term picture that’s even more exciting.

The longer term picture

Natural Gas is colorless, shapeless, and, odorless. For many years, it was discarded as worthless but is now considered one of the most valuable fuels on earth and the supply and demand picture is compelling.

Long Term Demand

Natural gas is a source of fuel for the US which is domestically produced and is free of the geo political concerns that surround the supply of crude oil.

In fact, natural gas now provides 20% of all the energy used in the United States.

It is very important in private homes, where it supplies nearly half of all energy needs domestically. Natural gas is also popular in industry and used in an increasing number of power plants to generate electricity and factories are also using more gas as well.

We have strong short term demand and this is supported by strong long term fundamentals.

Long Term Supply

Demand for natural gas in North America is increasing at around 3% per year, while production is lagging at about 1%.

Older wells are running out and newer wells are not producing quickly enough. For the next few years at least supply will not be able to keep pace with demand and prices will continue to remain firm. The trend of demand outpacing supply will continue at least through to 2008, when liquefied natural gas is expected to be able to help meet rising demand, but until then far higher prices are expected.

Gas Is Cheap!

Natural gas has fallen over 50% from its 2005 peak and is now moving higher and has plenty of room on the upside.

This is a simple investment

Its not rocket science why gas prices are moving higher – its simple supply and demand! While many traders have focused on crude oil they should also be looking at gas as it’s rising on the back of strong crude prices as the US looks for alternative fuel sources. Be careful

Natural gas is an extremely volatile contract and traders need to proceed with caution. This is why we recommend options as a trading vehicle - Not only do you get unlimited gains you also have the comfort of limited risk.

It’s always difficult to predict when a market is going to take off and we saw prices decline after our last recommendation, but options give staying power in this situation to ride out dips to the downside.

If you want a simple trade that is making money fast, look no further than natural gas. Look for buying opportunities with options. Buy options in or at the money, with plenty of time value, to stay with this great long term bull market.

For more information on the potential of natural gas and other energy markets and to a recieve FREE energies newsletter and other valuable FREE trading tools visit: http://www.wellingtoncr.com

Initial Public Offering (IPO)? "Hot" New Issue?? What are your chances of getting in on the ground floor???

In my humble opinion, somewhere between zero and fuh get about it!

All you need to know about an Initial Public Offering (IPO) is: If it’s "hot", you got no chance; if it’s not, you can have all you want. Case closed.

Why? Because "hot" new issues are reserved for the firms’ "A" list clientele.

Who’s on the "A" list? Institutional money managers, wealthy customers, and desirable prospective new clients such as owners of private companies who themselves might be candidates for going public.

In other words, anyone in position to generate big commissions.

By purposely pricing the offering on the low side, they are assured of an upward "pop" when they open it to the public market. That’s when they let their friends get out for a nice gain.

The issuing company accepts less capital for going public but they also gain a reputation as a "hot" issuer which the public will remember the next time the company comes back to the market for additional financing.

It also allows the companys’ insiders who have to hold their stock for a period of time (called letter stock or restricted stock) before they can sell, to start off with a gain.

If, out of the blue, you’re offered a piece of an IPO, chances are the "A" list turned it down and they’re trying to unload this puppy on you.

One of their favorite "pitches" is that, if you buy, they won’t charge you a commission.

That’s really nice of them, don’t you think?

Of course, they might not remember to tell you that the "underwriting concession", which is built into the offering price, is already ten times larger than the commission they usually charge.

That’s right, ten times as much profit! Why else do you think they love a good juicy Initial Public Offering?

Because No One Cares More About Your Money Than You

http://dynamic-stock-market-strategies.com

Good Trading,
Don Heggen

Much has been written about the virtues and dangers of active stock market trading, or “market timing.”

Most of the pundits and so called "experts" will tell you that stock market timing doesn’t work, that it’s dangerous, and that "buy and hold" is the best and only way to invest.

But this conventional wisdom is patently untrue. Here are the facts based on my research and extensive real time experience.

If you want to be a successful stock market timer, you need three key elements:

1. A system that actually works.

2. Discipline to follow the system.

3. Patience to stick with the system long enough to make it work for you.

And it’s tough to do all three.

Here’s why:

Most market timing systems don’t work. Or don’t work consistently enough to be valid. Some will work in trending markets but get slaughtered during flat times. Most systems don’t work in all markets.

Investors lack the discipline to follow a proven system. Once an investor finds a viable program, he or she needs the discipline to follow it. Sadly, some either can’t or won’t do that. When they let their own judgment or intuitions interfere, they don’t get the results they want or could have enjoyed by simply following the buy and sell signals they receive.

Investors lack the patience to stick with their system. Many investors are constantly in search of the Holy Grail, a program that never loses a trade. The fact is, no method will win every trade, and investors without patience will find themselves hopping from advisor to advisor with no rewards to show for their efforts.

However, there are a number of proven systems available that recognize these pitfalls and successfully time the market to massive profits year after year. Anything you hear or read to the contrary is simply not true. Wall Street has a vested interest in opposing stock market timing because it is a threat to their very existence.

Investors have two choices. They can pursue the conventional wisdom of buy and hold and hope for the best, or the modern investor can educate himself and find a timing system with which he is comfortable to protect and grow his wealth. There are a number of proven options available, but the absolute worst thing one can do is listen to the pundits who tell you that “stock market timing" doesn’t work.

Copyright 2006 Equitrend, Inc.

Sometimes you just have to take a deep breadth. And though I sometimes avoid information for fear of it influencing me adversely [journalists who know NOTHING talking up a situation], today I read the FT first thing.

Yesterday’s drops could be the start of a big fall. But i’m gambling it’s not. After the fear of today has subsided, I expect a rally. But I also expect a lot of volatility in the coming weeks / months [until something significant causes balance] and so I expect to make short bursts of quick profits.

From watching the charts, I can see that many investors have the same idea. There’s a lot of buying going on amongst the selling.

But like I said yesterday, things are looking cheap from a certain perspective. So even if I buy today and we’re not at the bottom of the trough, I am pretty confident that I am buying at a low enough price that will eaily be surpassed shortly.

Unless I’ve got it all wrong. Which puts me in the same club as many other big names. Nobody knows anything.

I have what I call a market-stall approach. The stocks for me are just like bananas. What are they worth today? How much can I sell them for later? How many do I buy? How much working capital am I risking? How perishable are they?

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