Well, did Draghi at the ECB play his all-in bet yesterday or was it just repeating what he has more or less said before? Certainly the markets got excited by his
“whatever it takes to preserve the euro...and believe me, it will be big enough” comment. Actions will need to follow, but for the moment the markets seem to feel a little better about things. Of course, it could be the reverse in a couple of weeks time and we will see the same pattern of Eurozone calm followed by Eurozone fear, rinse, repeat. As of now, the 20/50 dma crossovers are still holding good, there's even a hint of upward movement on the dma's on the Dow chart.
With the exception of the FTSE100, all are above the 50 dma.
EuroStoxx50 has had a big bounce the last two days so expectations are high for announcements next week. Even with the rise the PE is ca 10 with 5% yield so looks good value compared to the US.
ReplyDeleteHi there, good to see you here. Eurostoxx50 has really lead the way on the 20/50 dma crossover, being ahead of the other indices despite all the Eurozone worries of the last few weeks. There was a panic a few days ago, but the 50 dma has held. It will be interesting to see where it goes from here, but the trend is looking up for now.
DeleteIm trying to minimise the amount of time I spend trading (baby on way) so now basically just swing index trading. Nothing fancy just ramping up leverage after every incremental 10% drop but its good to read your stock articles anyway. Was going to send you an email via GEI but could not find my logon (not used in a while).
ReplyDeleteAt a PE of 10, yield of 5% and a similar level to 2003 I've been setting up large long positions on the Stoxx50 over the last month. Relatively low average leverage ca 1.5 so room to increase if it falls further which i'm prepared to do with an index made of large multinationals with strong balance sheets. However the 1.5 is a weighted average of x1 and x4 so may be time to sell the x4 next week if Draghi warms up the press. Basically Im not convinced a Euro listing of global company should be worth less than equivalent US listing.