COFF Long (+ I LOVE DRINKING COFFEE)LSE:COFF
WisdomTree Coffee is designed to enable investors to gain an exposure to a total return investment in coffee by tracking the Bloomberg Coffee Subindex (the "Index") and providing a collateral yield.
WisdomTree Coffee is an exchange traded commodity ("ETC"). Its securities can be created and redeemed on demand by authorised participants and traded on exchange just like shares in a company. The ETC is backed by swaps. The payment obligations of the swap counterparties to the Issuer are protected by collateral held which is marked to market daily. The collateral is held in segregated accounts at The Bank of New York Mellon. Details of the collateral held can be found in the Collateral section of the WisdomTree website (www.wisdomtree.com).
Exchangetradedfund
The essential features of ETF’s In this article, we’ll go over some fundamental concepts about exchange-traded funds (ETF’s) .
To comprehend what an ETF is and what its qualities are, we must first provide a brief overview of mutual funds.
A mutual fund is an investment company that pools money from investors to buy a variety of stocks, bonds, and other securities on their behalf.
A portfolio is a collection of the underlying constituents. The firms that create these mutual funds assign a manager to oversee the investments. The basic concept is to give smaller amounts of capital easy access to diversification through a single purchase. An investor purchases a piece of a portfolio of his choosing. From the perspective of an investor, the mutual fund is easy. They essentially submit the investment to the mutual fund corporation. If they use a brokerage account, they will see shares of the mutual fund appear in their account, or they will receive a statement directly from the firm revealing their fund position.
The ETF's are a type of mutual fund that incorporates a number of more contemporary features. The first ETF listed on the New York stock exchange (NYSE) in 1993 was created to track the S&P 500 index.
An exchange-traded fund (ETF) is a pooled investment vehicle that is listed on a stock exchange, allowing investors to buy and sell its shares at a market-determined price during the trading day. They follow the same rules as any publicly traded stock, and they offer transparency and a central hub for all of their underlying asset classes. ETFs can be used to monitor the performance of an underlying index, commodity, or portfolio of assets. If you want to track a particular index, you don't have to buy shares in any of the companies that make up the index.
Let’s look at the characteristics of this product structure and why it is taking the investment world by storm. The main ones are:
1. Transparency
2. Exchange listing
3. Tax efficiency
4. Lower fees
5. Diversity
Transparency
All investors benefit from portfolio transparency because it protects them from risk. An investor must recognize that no other fund product on the market gives a daily accounting of the fund's holdings like the ETF. Portfolio holdings were traditionally only published quarterly or semiannually. ETFs make their portfolios available to the public on a daily basis.
Exchange listing
There are three major benefits of exchanging listing:
Standardization
Intraday trading
Liquidity
Standardization is a huge benefit for holding the same multi-asset portfolios all within the same account structure. Instead of having two separate parts of your portfolio with associated problems, you can now keep your bond position wrapped in an ETF structure within your investment account. You can also include your commodity piece as well as your alternate options.
Intraday trading has been a feature that has proven to be both beneficial and detrimental
Liquidity - Listing a product on an exchange and introducing it to a broader range of market participants in a standardized format will increase liquidity and reduce spreads beyond what was previously available. In the market, you can often see instances where the ETF price is trading between the underlying basket's "bid" and "ask" spread. The ability to access liquidity within the bid and ask of the underlying assets is a benefit that mutual fund portfolio managers and investors do not have.
Tax efficiency
The major tax advantage of the ETF structure within the portfolio management process derives from the concept of in-kind “creation” and “redemption.” The process is complicated and it has to do with the daily operations of the ETF in the primary and secondary market versus the ones of a mutual fund.
Lower fees
The introduction of exchange-traded funds (ETFs) to the market has resulted in a large reduction in the fees that investors must pay in order to obtain a wide range of easy-to-manage exposures as building blocks for a portfolio. This is important for investors because it allows them to keep their positions without worrying about gains being distributed to other investors who are buying and leaving the ETF, as is the case with mutual funds.
Diversity
The thousands of exchange-traded funds presently available offer a wide range of exposures. Investors can choose from a wide range of ETFs to achieve their desired exposure. This could include anything from main indices to overseas fixed income, leveraged commodity bets, and everything in between. Traditional benchmarks are also evolving as a result of ETFs. ETFs are no longer bound by conventional index schemes. The industry has developed to question how each index is built and what benefit it provides to investors.
Trade with care.
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VXX ETF Hits Price Target!We wrote an article on our website and posted here on TradingView that the VXX looked ready for a big move to the upside. The VXX has hit the price target we suggested at $22. A more detailed analysis of this trade is on our website titled "Trading ETFs While Volatility Explodes Higher".
Investing in military tech--Make your portfolio more defensnsiveThe rise of populism is not necessarily something investors will relish politically, but it nevertheless brings opportunities for the adventurous.
By and large, populist leaders the world over like to spend more government money and they’re especially keen to spend taxpayers’ money on defence and state security. Like it or loathe it, it’s a trend clearly visible in countries as diverse as China, Poland and the US.
It is because of those populists that more liberal Europe is now having to spend more money on its Nato commitments — even relatively peace-loving Germany says it intends to get to 2 per cent of GDP levels in the not too distant future, though I wouldn’t hold my breath on that.
But there’s another big trend at work — how the disruptive technology sector is being sucked into the military industrial complex.
Giants such as Google may encounter internal resistance to getting involved in defence and security (it dropped out of Project Maven because of employee unrest) but the likes of Amazon and Microsoft have no such inhibitions. In fact, the two companies recently battled it out on a mammoth $10bn US defence contract called Project Jedi, which Microsoft won (not without controversy).
Insiders suggest Amazon is now increasing its commitment to defence and security technologies, chasing upstarts such as Palantir Technologies and Anduril (clearly Lord of the Rings fans founded both businesses) who have dominated this space until now.
The Americans are simply reacting to the obvious signals coming out of China, where big tech is being actively co-opted into a new high-tech defence and AI-enabled state security apparatus. The Chinese certainly seem to be ahead, but for investment purposes, it’s all but impossible for UK investors to find a way of playing this trend.
However, the US could respond by rekindling its love affair with the Defense Advanced Research Projects Agency (Darpa), which has produced civilian by-products ranging from the first computer mouse to GPS navigation. Now there’s even talk in the press that UK government strategist Dominic Cummings wants to set up a Darpa equivalent in the UK.
For investors, this determination to upgrade both external and internal defences has resulted in a bonanza for shareholders. The table below shows returns for the broad defence and aerospace sector in the US market against those for the wider index and also tech-specific stocks.
As you can see, military stocks have nearly kept up with the fastest growing (software dominated) bit of the tech space, leaving returns for tech hardware and mainstream US stocks way behind.
The case for defence
Index-------------------------------------------------------5 year annualised return
S&P 500 Defence & Aerospace Index-------------------------17.54%
S&P 500 Technology Select Sector Indeex-------------------17.82%
S&P 500 Technology Hardware Select Sector Index-------- 7.55%
S&P 500 index----------------------------------------------------10.98%
XAR on the NYSE, that follows the big participants in this sector. It rose by a cracking 38 per cent in 2019 (the S&P 500 by contrast is up 29 per cent over the same period). Large companies such as Raytheon, United Technologies Corporation and Northrop Grumman are all pushing towards all-time highs.
Again, whether you like it or not, more money will be spent on police technologies, general surveillance and border security. That money will increasingly find its way into companies with a strong technology focus (as opposed to a more engineering-led platform approach pioneered by the military procurement giants).
Continuation Swing High from 1.0880 Part 2 EurUsd Rate the Euro Rate Continuation Swing High from Support Level at 1.0880 - the Rate may contain an additional 160 pip higher - Before Price will return to the 78% bar at 1.0801 at this stage within the trend this is only probable - There are two opinions possible here - Or the Rate may return to further highs - Seen at 1.1547 as the current monthly chart cycle a little short of my mark at 1.0801.
1.1547 is Seen as a Secure Resistance Level towards Price returning to the Lower Low end and Finalized Outcome through the month chart as A Completed Low Phase.
Strong Buy Signal on the U.S. Internet Stocks.The FDN (First Trust Dow Jones Internet Index Fund) which essentially covers the U.S. Internet Stocks, is now comfortably trading above the MA50 on the 1D chart on strong bullish candle action (RSI = 69.026, MACD = 2.230, Highs/Lows = 3.3271). Through this price action a strong buy signal has emerged and has to do with the similarities of the mid 2018 - 2019 price action with the late 2015 - mid 2016 sequence. Not only the MA periods (Death Cross followed by a Golden Cross) and candle action (Highs, Lows, consolidation phases) are virtually identical but also the price ranges (-27% decline from highs).
If a +21.50% rise follows, then the peak of the current bullish sequence would be near 161.00. We are long on this asset.
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XLF: Strong buy opportunity.The Financial Select Sector SPDR is trading within t 1D Channel Up (RSI = 64.631, MACD = 0.090, Highs/Lows = 0.4050) and todays pull back is only a technical reaction to the RSI approaching 70.000 on 4H. Both the MA50 and MA200 are supporting which is a very bullish development. Our TP is 29.10.
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XLRE: Sell opportunity on recurring pattern.The Real Estate Select Sector SPDR (XLRE) reached a new All Time High today extending the aggressive bullish run since the start of the year. The candle pattern is very similar to the February - August 2016 when it made a peak after a +28.60% rise and declined below the MA200 with a first stop at -9%. The current price action appears to be following this pattern and is close to completing both the +28.60% rise parameter and the 175 day duration parameter. We are taking a short aiming at repeating the -9% initial decline (34.50) towards the MA200.
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GREK: Greece ETF, potential for +20% profit.GREK has broken upwards in late May following a Golden Cross formation in late April. The last 3 times a Golden Cross took place the ETF rose (on the cross date) by +8.40% once and roughly over +30% twice. Currently it is already up by +8.40% from the Golden Cross occurrence so if it starts breaking higher, we have a confirmation for an additional +20% rise, which puts the upside target at 11.45.
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TVIX: Sell opportunity on 1D.An identical pattern has been spotted on TVIX. This includes an initial hyper top above the 1D MA200 with a subsequent collapse below both the MA200 and MA50. A quick break above the MA50 again only comes as confirmation of the final bearish stage, the part we are at currently. Our target is 13.50.
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PSQ Proshares Trust: Short opportunity on monthly.PSQ is trading inside a 1M (monthly) Channel Down (RSI = 36.191, MACD = -3.690, Highs/Lows = 0.0000) which last December made its Lower High. A Death Cross (MA50 under MA200) formation occurred in March on 1D and after a 27.60 bottom, the price has been rebounding towards the MA200.
Last time the same pattern occurred was in 2016. The rebound resulted in testing and even marginally breaching the MA200 before collapsing to a new Lower Low and continuing to a very prolonged bearish sequence to October 2018.
We expect a similar price action and our short target is 25.00.
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UVXY: Long term Buy opportunity.The ProShares Ultra VIX Short-Term Futures ETF is approaching the April bottom and the symmetrical Lower Low on the 1M Falling Wedge. Being oversold (RSI = 6.651, MACD = -1698.076) a strong cyclical rebound is expected on a very structured and recurring candle pattern. We are on a long term buy on UVXY with TP = 75.00.
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Vaneck Vectors ETF: Medium term sell opportunity.GDX has printed a Death Cross (MA50 crossing below the MA200) on a similar trading pattern as in 2016. The RSI price sequence is also identical, indicating that at least one more bearish sequence is due. With MACD turning at -0.277, it is an optimal opportunity to short. Our TP is 19.00.
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EEM ETF: Lower long term Buy opportunity.The iShares MSCI Emerging Markets ETF (EEM) is on bearish 1W price action (RSI = 41.481, Highs/Lows = -1.8644), repeating a pattern last seen in April 2011 - May 2012. During that period the price was rejected at 44.90, crossed below the MA50 and MA200 and found support just over the 0.786 Fibonacci level before recovering 100%.
We expect a similar price behavior today as the price was rejected at 44.85 and has already crossed below the MA50. The crossing below the MA200 remains and the rebound above the 0.786 Fibonacci retracement level, which puts the support around 39.50 - 39.60. Our target is 44.80.
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XLF ETF: Sell opportunity on 1D. A Golden Cross took place (MA50 crossing over the MA200) on 1D on the XLF. Although this is theoretically a bullish development, its has been bearish on 1D in the last two times that this was spotted. In fact the price lost around -3% from the top candle of the Golden Cross until it touched the MA50 again. This gives us a roughly 1 week window and short opportunity.
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