possible CFD trade for Rio today?

   Looking at RIO today after the fact, you would have made money on  a short CFD. I think generally after this round of ex div dates are over the market will struggle to find support for a while, let alone go through the 5k ASX200. Orica looks to be bucking the trend though, plenty of support the last few day's.
US markets are very volatile, and are having trouble finding a good reason to move through 11k (Dow) convincingly.

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Cobra Members Profile Send Private Message Find Members Posts Add to Buddy List Regular Joined: 08 Nov 2004 Location: Australia Posts: 76	Post Options Post Reply Quote Cobra Report Post Quote Reply Topic: possible CFD trade for Rio today? Posted: 22 Feb 2006 at 4:01pm
	Looking at RIO today after the fact, you would have made money on a short CFD. I think generally after this round of ex div dates are over the market will struggle to find support for a while, let alone go through the 5k ASX200. Orica looks to be bucking the trend though, plenty of support the last few day's. US markets are very volatile, and are having trouble finding a good reason to move through 11k (Dow) convincingly.
	BullCharts version:3.4.1.28129 Windows XP SP2

chart rider Members Profile Send Private Message Find Members Posts Add to Buddy List Regular Joined: 25 Sep 2004 Location: Australia Posts: 96	Post Options Post Reply Quote chart rider Report Post Quote Reply Posted: 21 Feb 2006 at 8:24pm
	Monyet I didn't see your post in time, but buying a stock the day before XD date to take advantage of the div is a non viable strategy. Go back over some charts and you will notice that on XD date the value of the stock generally loses value equal to the dividend amount. In some cases the drop will knock the wind out of the stock for some period of time, other times the price will recover soon after - there is no general pattern to the recovery characteristics. However, it is a viable strategy to consider buying a stock a few weeks before XD date. In many cases the stock will rise before the XD date, and it is possible to exit either the day before XD, or take the dividend and see if the stock will go up again soon after. If the stock continues to fall after the div date and hits the stop loss, then the capital gain may be some where around break even, but the dividend is in the bank. CR

Monyet Members Profile Send Private Message Find Members Posts Add to Buddy List Newbie Joined: 20 Feb 2006 Location: Australia Posts: 1	Post Options Post Reply Quote Monyet Report Post Quote Reply Posted: 21 Feb 2006 at 9:39am
	thinking of buying in Rio - to take advantage of ex div date tomm. anybody got any thoughts?