As with our recent Trading Buy calls, we simply think Lonmins valuation is at a 10 year trough, the stocks excessively oversold and is ripe for a takeout. Below is the 10 day chart – regular readers will note a familiar pattern here that sets itself up for a nice swing buy trade. Long @…
Below is another diagram of the AAII Investor Sentiment index (American Association of Individual Investors) and which reflects very bearish sentiment this week – just 22% bulls v 42% bears. The ratio of bears to bulls is 0.53. These are levels typically seen at market bottoms, not during price advances. Looking at the chart we can…
Currency trends otell us something about the mood of global traders, and which way they’re starting to lean. In the ongoing battle between “risk-on” and “risk-off” trades, one of the markets worth keeping an eye on is the Australian Dollar. For a number of reasons, global traders buy the Aussie when they’re turning more optimistic…
The FTSE is down almost 100 pts at 5562 at 8:45am and European markets similarly sharply lower with the Spanish IBEX index down over 3% (200 pts) and plumbing the recent 8 year lows towards the key 6000 level as worries over GreecE again resurface and the Euro looks to test the psychologically important 1.20…
Market Highlights UK markets closed lower on Friday on renewed Eurozone concerns. US equities gave back recent gains on Friday after Microsoft posted its first quarterly loss in 26 years. Asian equities are trading lower this morning amid concerns of a continued slowdown in China, according to a central bank official. Economic Events UK:…
An RNS this morning from Range Resources and Red Emperor Resources (and operated by Horn Petroleum) who are jointly drilling a well in Puntland, Somalia has delivered investors some disappointing news. After announcing last week that a 50 metre section of the Shabeel North Well had evidence of hydrocarbon shows, an open hole Drill Stem…
Monday, July 23, 2012 UK Reporting:- African Barrick Gold Plc, ABG, e, (CC), African Barrick Gold Plc, ABG, (R), Bloomsbury Publishing Plc, BMY, (SM), Dialight Plc, DIA, (R), Domino’s Pizza Group Plc, DOM, (R), Domino’s Pizza Group Plc, DOM, (SM), Hammerson Plc, HMSO, (R), Jpmorgan Japan Smaller Co Tr, JPS, (SM), Quintain Estates & Dev…
Plenty for technology investors to get their teeth into next week in terms of earnings announcements after Microsoft’s first ever quarterly loss announced last week. Apple’s fiscal third quarter is out on Tuesday after the Wall Street close (the company’s financial year runs October to September). Expectations are for earnings of $10.37 per share on…
Let’s take a look at some of the various sentiment indicators we follow. What’s interesting to us is that most of these indicators are still pointing to relative extremes of pessimism, even in the face of the decent rally we have seen in equities in recent weeks. That’s nearly always a good sign for contrarians…
