Stocks News

The Euro lost its earlier gains from a five-day upward trend against the dollar and German 10-year bonds rose while the majority of European stocks fell ahead of tomorrow’s EU summit. Industrial metals turned out to be the leaders in growth among trading instruments. The 17-nation unified currency fell 0.2% to $1.3905 as of 8:11AM in London. Yields on 10-year German bonds dropped 2 basis points to 2.10%. Approximately two stocks fell for each stock that rose on the Stoxx Europe 600 Index; the index as a whole lost 0.2%. Futures on the Standard & Poor’s 500 Index fell 0.2%, while copper rose 1.1%, continuing its biggest two-week growth trend since 2009. Rice rose to its highest level in over a month. DT Trading analysts think that the world-wide growth in demand for products from Asian auto manufacturers is the main driving factor behind the growth in commodities prices, in spite of the market’s overall incredulity toward equity instruments and...

S&P500: 1131.81 Medium-Term Trend: downtrend Outlook: A month ago I said the weekly trend had already turned lower and I expected the prices to remain under pressure. Well, the S&P500 index held well for most of September but then fell sharply in the last few sessions. The weekly chart remains very bearish and as long as the prices stay below 1250/60, the main focus should remain on the downside. I even expect that the 1200 level will remain intact and very soon and the market will break to new lows - actually that is only a 30-point move on the downside. A decline twd 1060 seems inevitable at this point but I also think that further weakness twd 984 may be seen before a more meaningful rally develops. Going forward my target is well below 950. Strategy: I am bearish as long as 1250/60 remains intact. My target is at 950 and below.

S&P500: 1154.41 Short-Term Trend: weak downtrend Outlook: The market gapped down last Tuesday and made a low at 1140, but then rallied to 1204 before turning lower again. This price action is a clear sign of the huge volatility that is still present on this market (VIX has never fallen below 30 during the recent rally attempts!). Right now the picture remains quite bearish as the prices are still well below the declining 100-day and 200-day moving averages. And with the last Friday's action we have a small sell signal from the daily Stochastics too. So, overall I expect lower prices in the next couple of weeks. My downside target is at 1060 but lower downside potential is of course possible. On the upside, only firm and sustained break abv 1210 will turn the daily chart somewhat positive and gains twd 1250/60 will be favored in this case... Strategy: Trading from the short side is favored. Stop=1200/10. Target=1060.

S&P500: 1174.11 Short-Term Trend: downtrend Outlook: This market remains quite volatile (VIX has never declined below 30 during the current recovery from the early Aug crash low). Initially S&P500 rallied to 1230 level only to stop out many bears that were hoping the 1210 level would remain intact (I thought the same in my last week's ST update as you recall). The Friday's big decline though erased all gains for the week and set a negative bias for the coming week. Thus, as long as the prices stay below 1210, the daily outlook remains bearish and I continue to expect a move twd the 1060 level. On the upside, a move abv last week's top may bring some rally twd 1250/60 but I don't see much further upside progress than that at this stage....

US stocks rose during trading in New York yesterday, forming a peak in the best eight-day growth for the Standard & Poor’s 500 Index since 2009 amid expectations that the economy will continue to recover. However, DT Trading analysts observed that such growth still didn’t prevent speculation arising as a result of the antitrust suit the US Justice Department brought against AT&T Inc (T). Shares of the Ford Motor Co (F) and Alcoa Inc went up 2.3% each since the companies most tied to the real economy experienced growth. Joy Global Inc (JOYG) added 1.3% growth after the mining equipment producer published its income forecast which exceeds analysts’ expectations. Shares of AT&T fell 3.9%, limiting the growth of the Broad Market Index. This occurred after the US government filed a suit to prevent the company’s planned purchase of competitor T-Mobile USA Inc. The government said that the purchase would hinder competition on the wireless communications market. DT Trading analysts noted that...

S&P500: 1292.78 Short-Term Trend: sideways Outlook: We thought the sideways pattern from the Feb top had already ended, but the market told us something different last week. Now, if the larger-degree trend is still on the upside (as we believe), than the current decline should hold abv the 1258 level. A subsequent move higher abv 1350 will be quite bullish in this case. If however, a decline below 1258 is seen, then the odds will favor further weakness twd 1182... Strategy: The hypothetical long from 1332 was stopped out at 1310 with 22 pts loss. Stand aside.

Asian stocks fell today for the forth day as sentiment continues to deteriorate due to EU's credit woes and US's growth worries since the economy might face a downgrade if officials fail to come up with an agreement to increase their debt ceiling. The MSCI Asia Pacific Index fell by 0.2% to 134.77 at 14:30 in Tokyo. Nikkei 225 Nikkei 225 fell today by 0.85% or 84.75 points closing at 9889.72. From 225 shares, 55 advanced, 154 declined and 16 unchanged. Sectors leading the decline were the industrials that lost 27.99 points and consumer goods that lost 23.58 points. Lagging shares today were Fast Retailing Co Ltd which fell by 2.08% closing at 13160 yen, second was Fanuc Corp which fell by 1.42% closing at 13920 yen. And Canon Inc Corp which fell by 2.77% closing at 3680 yen. Among the shares that advanced Seven & I Holdings Co Ltd topped the list by rising 1.39% closing at 2264 yen, followed by Sumitomo Metal...

We upgrade our recommendation for Brightpoint Inc. (CELL) to Outperform based on our view that galloping demand for high-end smartphones and tablets throughout the world will drive the company's valuation level higher in the near future. We believe the negative consequences of the proposed merger between AT&T and T-Mobile USA are already reflected in the current valuation as it has plummeted nearly 39% in the last four months after this news surfaced. In the previous two quarters, Brightpoint managed record-high mobile devices. Most importantly, the majority of these wireless handsets were managed through the company's high-margin Logistic Services. Management reaffirmed a rosy picture for the rest of 2011. We believe the business fundamentals of Brightpoint remain intriguing. Newly won distribution agreements coupled with effective cost control strategies will pave the way for the company's future earnings growth. Our price target of $9.75, is based on 11.9x our fiscal 2011 earnings estimate, approaching the S&P 500 average.

AIM quoted mining company Highland Gold Mining (LON:HGM) has announced positive results from its ongoing exploration programme at Unkurtash in Kyrgyzstan. Highland – whose largest shareholders include industry giant Barrick Gold (NYSE:ABX) and an investment vehicle controlled by Russian oligarch Roman Abramovich – said the latest results underlined its vision for developing a large open-pit mineable gold resource at Unkurtash. Highland has earmarked US$20 million of an overall US$30 million 2011 exploration budget to “substantially increase” the initial 42.9 tonnes (1.38 million oz) of gold reserves (C1+C2 category) at Unkurtash, which were recently approved by regulatory authorities. The project includes three distinct prospects: the Unkurtash, Sarytube and Karatube, which lie on Highland’s exploration licenses. At the Unkurtash prospect the new drilling results corroborate the recently established reserve estimate, which was based on results from the 2009 drilling campaign. The current results are expected to significantly improve key parameters of the resource model and respective resource categories. Deep drilling from the surface...

Stocks   Global equities were lower on Monday as traders are worried about the financial conditions of European banks. Stress tests last week revealed that many banks may need to raise additional capital due to falling sovereign debt bond prices. Debt worries were also headlining losses in the US, traders continue to worry about the lack of political agreement for raising the US’s debt ceiling. As such, financial stocks were the big losers today. Bank of America was lower by 2.8% while Deutsche Bank fell over 3.2%. Overall, the S&P 500 was 0.8% lower while the Dow lost 0.76%, while in Europe the CAC 40 was slightly more than 2.0% lower with the FTSE and DAX both losing 1.55%. Looking ahead, tech stocks will be in the spotlight tomorrow as bellwethers IBM and CSCO both released earnings after the close. Commodities With the exception of precious metals commodities were lower across the board. Agricultural and Soft commodities were especially hit hard as cotton fell 2.5%,...