The "New New Things"
by: cordieliea | Total views: 151 | Word Count: 1615 | View PDF | Print View
Last week the bulls finally gave some ground to the bears with the US
markets hitting reverse gear on Thursday after making new record highs
on the day. There was no obvious reason for the reversal other than the
general feeling that things were getting a little ‘frothy’. The tech
sector took the brunt of the selling, just as it has been enjoying the
lion’s share of the gains. The Nasdaq 100 was hard hit hard, with
sellers dragging down stocks like Google and Apple from their stellar
orbit.
What is remarkable about the performance of the Nasdaq is that there
has been relatively little media attention paid to the tech rally Mk
II. The sub prime problems hogged the headlines of late, but the
villains of the last bubble had become the unsung heroes of the recent
rally. At the time of writing, the S&P 500 has recovered 14% from
the subprime low. Meanwhile the Nasdaq 100 has recovered 14% and the
internet sector 20%. The main stars have been Google (up 37% this year
alone), Apple (up 97%), RIM (Blackberry, up 177%) and Amazon (up 144%).
One of the year’s highest flyers also got hit the hardest last Thursday
and dragged the sector down with it. The Chinese search engine Baidu
crashed 11% on the day but is still up a remarkable 174% for the year.
With such gravity defying growth rates it may not be wholly
surprising that the markets stalled last week. The big question of
course is whether this was just some healthy profit taking or the
turning point for these ‘new new things’. The wider economy is looking
weak, but the least round of results indicated that US companies are in
rude health (housing and banking stocks a case apart). Tuesday’s Fed
minutes hinted that another rate cut was on the cards. This could help
the engine of the US economy, the consumer. Consumer spending seems to
be holding up despite a dire housing market. Western central banks are
currently stuck between a rock and a hard place. Rate cuts may be
required to stave off thoughts of a recession, but inflation pressures
do remain with oil, gold and wheat still stretching higher.
Next week’s US housing market data will be followed keenly by
economists and traders alike. Wednesday’s MPC minutes will provide some
hints as to the likelihood of a UK cut follow the US. British retail
sales figures and GDP data will round off what looks to be a data heavy
week.
Key tech names such as Intel, Yahoo, Ebay and Google all report
earnings next week which should make for some interesting trading at
least. This data could produce some volatile moves and with the Nasdaq
a candidate for further explosive action, a volatility play could be
the best option next week. In addition Friday is options expiry day
which usually leads to volatile price movements.
According to BetOnMarkets.com traders, an up or down trade rewards
the trader if either of two levels are touched. Only one of them has to
be touched once for you to win. An up or down trade with a high trigger
of 2855 and a low trigger of 2750 returns 10% over 10 days. This
equates to roughly 50 points either side of the current price level.
The bulk of the earnings start from Wednesday with Thursday offering
the greatest number of earnings announcements by far. Therefore you may
wish to leave it until later in the week before placing a similar
trade, especially with Bernanwaityke speaking on Friday.
- THE END -
Contact Details:
Email: editor@my.regentmarkets.com
Tel: +44 1624 678 883
Address:
Regent Markets (IOM) Limited
3rd Floor, 1-5 Church Street
Douglas, Isle of Man
IM1 2AG
Betonmarkets.com is the leading fixed-odds financial betting
website. The website has processed over 10 million bets since inception
in 2000, and generates annual turnover in excess of US$ 100 million.
Betonmarkets offers a wide range of fixed-odds financial bets on forex
rates, stock indices, and international stocks.
Betonmarkets is operated by the Regent Markets Group of companies.
Regent Markets is affiliated to the Regent Pacific Group, a Hong
Kong-listed investment group. Regent Markets has offices in three
countries, and holds bookmakers licenses in the Isle of Man, the UK,
and Malta.
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BetOnMarkets Bet Types:
One Touch Bet: You would buy a one-touch bet if you believe the
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No Touch Bet: A no-touch bet is the opposite of the one-touch bet.
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Bull Bet: You would buy a bull bet if you believe the underlying
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Bear Bet: You would buy a bear bet if you believe the underlying
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Expiry Range Bet: You believe that the market will be between two
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Double Touch Bet: You believe that the market will touch two
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Double Up Bet: A Double Up bet pays two times the premium if the
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Double Down Bet: A Double Down Bet pays two times the premium if the
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Run Bets: These fun bets are over in the space of less than a
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About the Author
Name: Mike Wright
Address:
Regent Markets (IOM) Limited
3rd Floor, 1-5 Church Street,
Douglas, Isle of Man IM1 2AG,
British Isles.
Phone: +44 1624 678 883
Email: editor@my.regentmarkets.com
URL: http://www.betonmarkets.com
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