Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - 30th Nov 21
Omicron Covid Wave 4 Impact on Financial Markets - 30th Nov 21
Can You Hear It? That’s the Crowd Booing Gold’s Downturn - 30th Nov 21
Economic and Market Impacts of Omicron Strain Covid 4th Wave - 30th Nov 21
Stock Market Historical Trends Suggest A Strengthening Bullish Trend In December - 30th Nov 21
Crypto Market Analysis: What Trading Will Look Like in 2022 for Novice and Veteran Traders? - 30th Nov 21
Best Stocks for Investing to Profit form the Metaverse and Get Rich - 29th Nov 21
Should You Invest In Real Estate In 2021? - 29th Nov 21
Silver Long-term Trend Analysis - 28th Nov 21
Silver Mining Stocks Fundamentals - 28th Nov 21
Crude Oil Didn’t Like Thanksgiving Turkey This Year - 28th Nov 21
Sheffield First Snow Winter 2021 - Snowballs and Snowmen Fun - 28th Nov 21
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21
Stock Maket Trading Lesson - How to REALLY Trade Markets - 26th Nov 21
SILVER Price Trend Analysis - 26th Nov 21
Federal Reserve Asks Americans to Eat Soy “Meat” for Thanksgiving - 26th Nov 21
Is the S&P 500 Topping or Just Consolidating? - 26th Nov 21
Is a Bigger Drop in Gold Price Just Around the Corner? - 26th Nov 21
Financial Stocks ETF Sector XLF Pullback Sets Up A New $43.60 Upside Target - 26th Nov 21
A Couple of Things to Think About Before Buying Shares - 25th Nov 21
UK Best Fixed Rate Tariff Deal is to NOT FIX Gas and Electric Energy Tariffs During Winter 2021-22 - 25th Nov 21
Stock Market Begins it's Year End Seasonal Santa Rally - 24th Nov 21
How Silver Can Conquer $50+ in 2022 - 24th Nov 21
Stock Market Betting on Hawkish Fed - 24th Nov 21
Stock Market Elliott Wave Trend Forecast - 24th Nov 21
Your once-a-year All-Access Financial Markets Analysis Pass - 24th Nov 21
Did Zillow’s $300 million flop prove me wrong? - 24th Nov 21
Now Malaysian Drivers Renew Their Kurnia Car Insurance Online With - 24th Nov 21
Gold / Silver Ratio - 23rd Nov 21
Stock Market Sentiment Speaks: Can We Get To 5500SPX In 2022? But 4440SPX Comes First - 23rd Nov 21
A Month-to-month breakdown of how Much Money Individuals are Spending on Stocks - 23rd Nov 21
S&P 500: Rallying Tech Stocks vs. Plummeting Oil Stocks - 23rd Nov 21
Like the Latest Bond Flick, the US Dollar Has No Time to Die - 23rd Nov 21
Cannabis ETF MJ Basing & Volatility Patterns - 22nd Nov 21
The Most Important Lesson Learned from this COVID Pandemic - 22nd Nov 21
Dow Stock Market Trend Analysis - 22nd Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stock Markets Give Ground to the Bears

Stock-Markets / Global Stock Markets Oct 16, 2007 - 08:59 AM GMT

By: Regent_Markets

Stock-Markets 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 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 Bernake speaking on Friday.

By Karen
Tel: +44 1624 678 883

About Regent Markets Group:   Regent Markets is the world's leading fixed odds financial trading group. Through its main multi-awarding winning websites, and, it has established itself as the leading global provider of a unique, powerful way to trade the world's major financial markets. The number, length and variety of trades available to our clients exists nowhere else in the world. Tel  (+44) 08000 326 279

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in