Today Arabtec received new contract to build tower in Dubai..but the shares are RED ...seems there is no effect on the DFM of any positive news...what so ever...its frustrating..
One of the most expensive lessons in the stock market is that it is very infrequent that news of a company's activities has any meaningful effect on its stock price.
Please just accept that. Then you will trade or invest in a more relaxed manner.
If you do not want to believe that this is a real phenomenon, then do a simple, but slightly time-consuming, test. Do a back test using news of profitability and contracts won/lost against a historical weekly chart.
The adjunct lesson about stock markets is that in bear markets, stocks do not respond to GOOD news overall, and in bull markets, stocks do not respond to BAD news most of the time. Bull and bear markets here refer to extended multi year periods, in case you are thinking in shorter time frames.
Why is this way? Very simply because bull markets occur when people have voluntary savings and seek higher returns. Nowadays institutions may have cash but it is not voluntary saving. They hold those monies to pay down upcoming bond coupons, repayments, blah blah blah. Plus, there are not many banks out there willing to lend companies people once loved, like Al Dar Properties, let alone Arabtex.
So in bull markets money chases stocks of good, and bad, companies. IN bear markets, money sells shares of bad, and good, companies.
Nowadays the question is not about whether to invest in Arabtec. It's about how to sell huges chunks of shares at a decent price. Maybe it does not have much to do with Arabtec being a good, bad, or nice company.
So figure it out now quickly or lose more money.
By the way, hint for Arabtec lovers:
Unless you are a nimble (and successful) intraday or shortterm trader, stay away from Arabtec until it manages to close a week, preferably two weeks, above 2.40
and preferably
2.48
That's about 10% away and is compatible with a simple short term moving average system. When it does that your chances of being in a winning long trade increase. That's much better than trying to buy in a market that simply has not decided to stop going down yet.
Remember that you want to be purchasing shares as they move up. Less of a gamble. It's much better to buy when you feel you have missed a lot of upside. Most of that time that feeling will be negated by actually winning in your account.
The news was about a contract to build... one tower?
No wonder we didn't get a limit up today :lol:
Why is this way? Very simply because bull markets occur when people have voluntary savings and seek higher ...
Well explained, can't be better than this. _________________ A market analyst is an expert who will know tomorrow why the things he predicted yesterday didn't happen today!
stay away from Arabtec until it manages to close a week, preferably two weeks, above 2.40
Stock never exceeded 2.33 and should have kept you out. Any upward noise to make money out of would have depended on perfect timing and knowing when to take profits. The chances of perfecting this kind of trading system to short term trade is cancelled by this market's tendency to shoot downwards below your stops which you will be averse to honour anyway. Basically saying don't bother short term trading as the long term returns of it are meagre for most of us.
This week I recommend taking risking money on this stock at above 2.34 or waiting for a close above 2.35 to buy beginning next week.
But I see resistance at 2.23 by a moving average that has been blocking this stock since January 12
If Artc is not above 2.23 by second week of March then this market is in trouble.
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2008 FY
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