Stock Markets Archives - Page 153 of 170

February 25, 2012

Nasdaq approaches 2650 target, S&P500 finds resistance

Nasdaq 100 index is approaching its target of 2650*. Expect retracement to test the new support level at 2400. Respect would confirm a strong up-trend despite the lower high (bearish divergence) on 13-week Twiggs Money Flow.

Nasdaq 100 Index

* Target calculation: 2400 + ( 2400 – 2150 ) = 2650

The S&P 500 encountered short-term resistance at 1370, indicated by declining 21-day Twiggs Money Flow, but the primary up-trend appears healthy. Retracement that respects support at 1300 would signal trend strength — even better if we have a narrow consolidation below the resistance level.

S&P 500 Index

* Target calculation: 1300 + ( 1300 – 1150 ) = 1450

February 24, 2012

Prepare for a golden age of gas – FT.com

Martin Wolf:

In its World Energy Outlook 2011, the IEA remarks that “[i]n all the scenarios examined … natural gas has a higher share of the global energy mix in 2035 than it does today”. Under its “golden age” scenario, gas demand grows by 2 per cent a year between 2009 and 2035. Even under a more cautious scenario, which it calls “new policies”, demand grows at 1.7 per cent a year or by a total of 55 per cent over this period. As a result, gas substitutes for other fuels, particularly in electricity generation and heating. Gas also has substantial potential as a fuel for transportation. Overall, argues BP in its latest Energy Outlook, by 2030 gas might come to rival coal and oil as a primary energy source.

via Prepare for a golden age of gas – FT.com.

February 23, 2012

Yen’s Fall May Benefit Japan Firms – WSJ.com

TOKYO—As the yen finally buckles versus the dollar, Japan’s exporting manufacturers are sitting on potential operating-profit gains that could be worth billions of dollars on paper, likely triggering some higher earnings forecasts if current trends persist.

….Like many of Japan’s biggest companies, the big three auto makers—Toyota Motor Co., Honda Motor Co. and Nissan Motor Co.—are heavily exposed to exchange-rate fluctuations. Estimates by the three show that every ¥1 variation in the dollar exchange rate has an impact of ¥67 billion on their combined operating profit. That means the dollar’s gains since the central bank’s easing could notionally assist the three auto makers’ annual operating profit to the tune of ¥165 billion, or more than $2 billion at recent exchange rates.

via Yen’s Fall May Benefit Japan Firms – WSJ.com.

February 22, 2012

Canada: Potential breakouts

A quick follow-up on the three stocks mentioned earlier in the week.

You can run the screen yourself on Incredible Charts:

Open the Stock Screener
Click the Shared tab
Click the Edit link next to #48895 TMX Potential Breakouts
Review the filters then click the Run Screen button.

Here is what to look for:

Husky Energy (HSE) broke through resistance at 26.00. 63-day Twiggs Momentum oscillator rises above zero, confirming a primary up-trend. 21-day Twiggs Money Flow holding above zero indicates buying pressure.

HSE: Husky Energy

Crew Energy (CR) broke resistance a few weeks ago and is now retracing to test the new support level. Respect of support would confirm the primary up-trend.

CR: Crew Energy

Bank of Nova Scotia (BNS) is testing resistance at 55.00. Breakout would confirm the strong buying pressure and 63-day Twiggs Momentum recovery above zero.

BNS: Bank of Nova Scotia

February 22, 2012

Schapiro Questions Role of High-Frequency Traders – WSJ.com

Securities and Exchange Commission Chairman Mary Schapiro said Wednesday she is worried about the role of high-frequency traders in the stock market and hinted at new policies aimed at curbing frenetic market activity.

A large portion of trading in the equities market has little to do with “the fundamentals of the company that’s being traded” and more to do with “the minuscule aberrational price move” that computer-assisted traders with direct connections to the exchange can “jump on” in fractions of a second, Ms. Schapiro said.

Such activity “worries me,” she said in a wide-ranging breakfast meeting with reporters. One solution would be forcing high-frequency traders to pay for the canceled trades that make up more than nine-tenths of their orders, she said. Another possible remedy: requiring such traders to maintain competitive buy and sell orders in the market throughout most of the trading day.

via Schapiro Questions Role of High-Frequency Traders – WSJ.com.

February 21, 2012

Australia: ASX 200

The ASX 200 index respected its rising trendline on the weekly chart, indicating continuation of the advance to test 4400. Breakout above 4400 would indicate the start of a primary up-trend, while recovery of 63-day Twiggs Momentum above zero would strengthen the signal.

ASX 200 Index Weekly

* Target calculation: 4400 + ( 4400 – 4000 ) = 4800

Bullish divergence on the daily chart shows medium-term buying pressure signaled by 21-day Twiggs Money Flow. Breakout above 4300 would indicate a test of 4400.

ASX 200 Index

February 21, 2012

China & Hong Kong

The Shanghai Composite Index broke out of its descending trend channel, indicating that a bottom is forming. 63-Day Twiggs Momentum, however, remains a long way below zero, indicating weakness. Look for a retracement to test support at 2150.

Shanghai Composite Index

Hong Kong’s Hang Seng Index displays a strong up-trend since breaking resistance at 20,000. Expect retracement to test the new support level, but buying pressure, best illustrated by the strong rise on (medium-term) 21-day Twiggs Money Flow, is likely to prevail.

Hang Seng Index

* Target calculation: 20000 + ( 20000 – 18000 ) = 22000

February 21, 2012

Japan & South Korea

Japan’s Nikkei 225 Index broke through resistance at 9000 to offer a weak primary up-trend signal: there is no higher trough on the weekly chart. Recovery of 63-day Twiggs Momentum above zero supports the trend change, but wait for retracement to test the rising trendline.

Nikkei 225 Index

* Target calculation: 9000 + ( 9000 – 8000 ) = 10000

The Seoul Composite Index is stronger, having already completed a higher trough. Target for the primary advance is 2150*. A 13-week Twiggs Money Flow trough that respects the zero line would further strengthen the signal.

Seoul Composite Index

* Target calculation: 1950 + ( 1950 – 1750 ) = 2150

February 21, 2012

Canada: TSX 60 and potential breakouts

The TSX 60 index is consolidating in a narrow band between 700 and 715. Upward breakout is likely and would signal a primary up-trend. Recovery of 63-day Twiggs Momentum above zero would strengthen the signal. Target for the initial advance is 790.

TSX 60 Index

* Target calculation: 720 + ( 720 – 650 ) = 790

A screen of stocks with low Momentum but high buying pressure, as indicated by 21-day Twiggs Money Flow, reveals a list of 93 potential breakouts (after filtering out stocks with daily Value/Turnover traded of less than $1 million). Husky Energy [HSE], Crew Energy [CR] and Bank of Nova Scotia [BNS] are three that look interesting.

February 21, 2012

India Singapore breakout

India’s Nifty Index broke through resistance at 5400, following breakout from its downward trend channel, to signal the start of a primary up-trend. Recovery of 63-day Twiggs Momentum above zero strengthens the signal.

NSE/S&P Nifty Index

* Target calculation: 5400 + ( 5400 – 4600 ) = 6200

The Sensex Index broke through 18000 to confirm the Nifty signal, following an earlier bullish divergence on 13-week Twiggs Money Flow. Target for the advance is 21000*.

BSE Sensex Index

* Target calculation: 18000 + ( 18000 – 15000 ) = 21000

Singapore Straits Times Index cleared resistance at 2900, signaling a primary up-trend. Recovery of 63-day Twiggs Momentum above zero strengthens the signal. Expect retracement to test the new support level.

Singapore Straits Times Index

* Target calculation: 2900 + ( 2900 – 2600 ) = 3200