Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

With Market Uncertainty Comes Market Volatility

Stock-Markets / Volatility Oct 29, 2007 - 11:47 AM GMT

By: Regent_Markets

Stock-Markets Last week world stock markets made a decent stab at recovering from the previous week's rout. The strongest market was again the Nasdaq, with the new economy shrugging off the previous Friday's wobble to finish near its highs. Interest rate rumours thrust the market higher, as whispers of another 50 base point cut did the rounds. Few people wanted to be short going into what is expected to be another obliging FOMC meeting on Wednesday.


One survey showed that despite the attempted recovery, investors are still nervous. The AAII (American Association of Individual Investors) sentiment
survey indicated that individual investors are feeling extremely bearish as the anniversary of 1987 passes. The news feeds continue to indicate that
there is much to worry about, especially with the sub prime implosion still drawing out bad news and losses.

Merrill Lynch was forced to write down $7.9b in losses due to its sub prime exposure and the Federal Reserve added substantial liquidity to the slowly
recovering credit markets. Oil prices topped $92 a barrel on supply and Iran concerns and even the rampant Chinese bull pulled back for breath.

However, it wasn't all doom and gloom last week as Microsoft beat analyst's estimates. The granddad of tech stocks rose on strong demand for its Vista
operating system and sales of the Xbox 360. News also emerged that Microsoft had beaten Google to a 1.6% stake in Facebook. The price paid for the stake
indicates that the social networking site is now valued at more than the UK supermarket Sainsburys.

The AAII sentiment survey can be a useful contrarian indicator, as the last time it reached readings of extreme optimism; the recent mini wobble wasn't
far off. It sometimes pays to go in the opposite direction to the herd. In addition, according to the stock traders Almanac, November starts the best 6
months of the year historically. The average return on the Dow from May to October is 0.3%, but the average return from November to April is 7.9%. In
addition next week displays significant seasonal strength with an average return of 3.3% in similar periods throughout history according to www.sentimentrader.com .

The currency markets were dominated by news flow on the Dollar last week. Despite a rally on Monday, the Greenback quickly flipped and fell to record
lows against the Euro, Australian Dollar and Canadian Dollar. The next target for the Dollar/ Euro exchange rate could be the synthetic all time high of
1.4585 (Generated using USD/ Deutschmark data). Increased speculation of a rate cut fuelled much of the selling.

Next week is full of heavy hitting US economic announcements. Top of the list is of course the interest rate statement at 18.15 GMT. A quarter point cut is
widely expected to be the more likely option, but there is still the possibility of a ‘no change' or half point cut verdict. With uncertainty
comes volatility, and that could be available in spades next week, with GDP data, and Non-farm employment figures on Wednesday.

Therefore a volatility play may be the best option for next week. With Betonmarkets.com an ‘up or down' trade compensates you if the market hits one
of two triggers that you set. It doesn't matter if it hits the higher or lower trigger, the market just has to move in either direction for you to win. An up or down trade with triggers set to roughly 2715 and 2850 on the Nasdaq returns 10% over 10 days. You may wish to wait until Wednesday before placing a similar trade to maximise your time.

By Karen
Email: editor@my.regentmarkets.com
Tel: +44 1624 678 883

BetOnMarkets.com / BetOnMarkets.co.uk

About Regent Markets Group:   Regent Markets is the world's leading fixed odds financial trading group. Through its main multi-awarding winning websites, BetOnMarkets.com and BetOnMarkets.co.uk, 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.   editor@my.regentmarkets.com Tel  (+44) 08000 326 279

Regent Markets Archive

© 2005-2022 http://www.MarketOracle.co.uk - 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