Tuesday, October 20, 2009

Indicator "risk-yield" begins to decline

Now watch for the results of Caterpillar, because they can cause movement in the stock markets

Strong financial results of Apple and TI earnings triggered growth in the stock markets. We are approaching our goal of an index S & P500 at 1121, however, the trend line with downward slope is the resistance and inhibits the growth of shares (today is the level of 1117). We recommend that a neutral strategy, and even sell in the case of growth of quotations.
What now are the speculators? At the high liquidity and good earnings reports. But whether these factors are incorporated in the price? S & P500 index in March rose by 65%, while credit spreads have reached the minimum values. In other words, the risk and the associated yield begin to decrease.
The text of the protocol RBA contained strong statements - "unwise" to keep rates low - which indicates a further tightening of policy. This supported the Australian dollar.


Saxo Bank

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