Following 10-weeks of consolidation, the USD/JPY has broken out of a triangle pattern.
Typically triangle patterns result in a continuation of the long term trend. However, as the daily chart shows, the USD/JPY has breached above the upper leg of the triangle.
An estimate of the price move from the triangle pattern calls for a 3.5 yen appreciation from the breakout price. A more conservative target may be the September high of 86.00. Along the way, resistance will be found at 83.70 and the top of the triangle pattern at 84.50.
In the direction of the long term trend, support is located at the declining upper leg of the triangle which comes in today at 82.80. 81.80 may come into play should the price retrace back into the triangle. Further support is the lower leg of the triangle at 81.40 and the January low at 80.90.
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Monday, February 28, 2011
Sunday, February 27, 2011
U.K. Inflation As Expected, Sterling Under Crowded Selling
The U.K.'s Office for National Statistics earlier released the Consumer Price Index for last month. According to the statement, month-on-month, the CPI fell to 0.1%, matching the forecasts by a consensus of analysts, and well off last month's 1% rise. As compared to the same period a year ago, however, data shows that the CPI rose to 4% from January 2009 3.7%, slightly off analysts' forecast of 4.1%. Using the CPI as a gauge of inflation, at 4.0%, the inflation rate is now double the Bank of England's 2% target, and is now the highest it's been in more than two years.
The data calls into question the Bank of England's commitment to keep interest rates at their historically low .5%. Their concern is that raising interest rates now could further jeopardize their already fragile economy, and make full recovery even more difficult to achieve. The U.K. central bank has been relying on the argument that one-off fundamentals were driving inflation. One of those "one-off" includes a hike in the Value Added Tax, which went into effect on January 4th. One economist concurs that the January CPI figures are "tricky" and may in fact have been affected by the recently implemented tax changes.
Nonetheless, this recent data calls the Bank of England's assertion and commitment into question. Growing pressure on prices are leading investors to the inexorable conclusion that the central bank may have no choice but to consider a rate increase, at a minimum of 25 basis points, as soon as May.
While some market players said that the expected inflationary pressures were already factored into market prices, the Pound Sterling slipped broadly, nonetheless. Currently, the Pound Sterling is trending lower against major currencies, and trading against the U.S. Dollar at 1.6020; on the eToro trading floor, among traders of GBP/USD the sentiment is bullish with a ratio of 6 to 5 in favor of selling. The Pound is also lower against the Euro; EUR/GBP is at .8438 and on the eToro trading floor, the sentiment is bullish with a ratio of 2 to 4 in favor of selling. Against the Japanese Yen, the Pound Sterling is 133.9241; on the eToro trading floor, among traders of GBP/JPY the sentiment is bullish with a ratio of 3 to 2 in favor of buying.
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The data calls into question the Bank of England's commitment to keep interest rates at their historically low .5%. Their concern is that raising interest rates now could further jeopardize their already fragile economy, and make full recovery even more difficult to achieve. The U.K. central bank has been relying on the argument that one-off fundamentals were driving inflation. One of those "one-off" includes a hike in the Value Added Tax, which went into effect on January 4th. One economist concurs that the January CPI figures are "tricky" and may in fact have been affected by the recently implemented tax changes.
Nonetheless, this recent data calls the Bank of England's assertion and commitment into question. Growing pressure on prices are leading investors to the inexorable conclusion that the central bank may have no choice but to consider a rate increase, at a minimum of 25 basis points, as soon as May.
While some market players said that the expected inflationary pressures were already factored into market prices, the Pound Sterling slipped broadly, nonetheless. Currently, the Pound Sterling is trending lower against major currencies, and trading against the U.S. Dollar at 1.6020; on the eToro trading floor, among traders of GBP/USD the sentiment is bullish with a ratio of 6 to 5 in favor of selling. The Pound is also lower against the Euro; EUR/GBP is at .8438 and on the eToro trading floor, the sentiment is bullish with a ratio of 2 to 4 in favor of selling. Against the Japanese Yen, the Pound Sterling is 133.9241; on the eToro trading floor, among traders of GBP/JPY the sentiment is bullish with a ratio of 3 to 2 in favor of buying.
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Saturday, February 26, 2011
IT-BPO Sector To Grow 19 Percent In FY11: Nasscom
Despite an uncertain global economic environment, the Indian IT-BPO industry is estimated to have grown 19 percent, with revenues of $76 billion in 2010,11, software industry body National Association of Software & Services Companies (Nasscom) said on Wednesday.
The industry has once again exhibited buoyancy and maturity, reflected through a strong customer demand, it said.
"Pent-up demand for IT-BPO services, return of discretionary spending, new business models that encouraged first time buyers, and re-invented value proposition for existing customers, were the key drives for the industry performance," Nasscom president Som Mittal said in a statement.
Exports continued to be the mainstay of the industry with revenues of $59 billion, growing at 18.7 percent, while the domestic market witnessed steady growth of 16 percent.
For FY12, the software and services growth is expected to grow at 16-18 percent with $68-70 billion in revenues. The domestic market is estimated to grow by 15-17 percent with revenues of Rs 90,000-92,000 crore.
"Domain expertise, process excellence, the ability to leverage technology to enhance operating efficiencies, greater scalability are becoming paramount in ensuring the long-term success of the global sourcing model and a major differentiating factor among countries. India is a front runner in imbibing these multipliers into its value proposition." Mittal said.
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The industry has once again exhibited buoyancy and maturity, reflected through a strong customer demand, it said.
"Pent-up demand for IT-BPO services, return of discretionary spending, new business models that encouraged first time buyers, and re-invented value proposition for existing customers, were the key drives for the industry performance," Nasscom president Som Mittal said in a statement.
Exports continued to be the mainstay of the industry with revenues of $59 billion, growing at 18.7 percent, while the domestic market witnessed steady growth of 16 percent.
For FY12, the software and services growth is expected to grow at 16-18 percent with $68-70 billion in revenues. The domestic market is estimated to grow by 15-17 percent with revenues of Rs 90,000-92,000 crore.
"Domain expertise, process excellence, the ability to leverage technology to enhance operating efficiencies, greater scalability are becoming paramount in ensuring the long-term success of the global sourcing model and a major differentiating factor among countries. India is a front runner in imbibing these multipliers into its value proposition." Mittal said.
View the original article here
Friday, February 25, 2011
Semiconductor Stocks Helped Higher By Analyst Comments On Micron
Despite the lack of direction being shown by the broader markets, semiconductor stocks are seeing notable strength in late morning trading on Monday. Upbeat analyst comments regarding sector component Micron (MU) are contributing to the upside.
The gains by semiconductor stocks have resulted in a 1.2 percent advance by the Philadelphia Semiconductor Index, which is currently poised to end the day at its best closing level since October of 2007.
Micron is turning in one of the sector's best performances, with the memory chip maker currently up by 3.8 percent. Shares are on pace to close at their highest price since August of 2007.
ThinkEquity boosted its estimates through 2012 based on projecting strong end-user demand for the firm's chips. ThinkEquity has a Buy rating on Micron and a $15 price target.
Further, Micron indicated a positive outlook for pricing in the memory-chip market on Friday, forecasting pickups in February and March numbers.
SanDisk (SNDK) is also benefiting from the news, rising by 3.6 percent and on target for its best close in nearly a month.
Advanced Micro Devices (AMD) is also trading higher, seeing a gain of 3.3 percent. Shares are also on track for their best close in a month's time.
MEMC Electronic Materials Inc. (WFR), Cirrus Logic (CRUS), KLA-Tencor (KLAC) and NetLogic Microsystems (NETL) are also sharply higher, while Broadcom (BRCM) is one of the few losers in the sector, down by 0.7 percent on the day.
View the original article here
The gains by semiconductor stocks have resulted in a 1.2 percent advance by the Philadelphia Semiconductor Index, which is currently poised to end the day at its best closing level since October of 2007.
Micron is turning in one of the sector's best performances, with the memory chip maker currently up by 3.8 percent. Shares are on pace to close at their highest price since August of 2007.
ThinkEquity boosted its estimates through 2012 based on projecting strong end-user demand for the firm's chips. ThinkEquity has a Buy rating on Micron and a $15 price target.
Further, Micron indicated a positive outlook for pricing in the memory-chip market on Friday, forecasting pickups in February and March numbers.
SanDisk (SNDK) is also benefiting from the news, rising by 3.6 percent and on target for its best close in nearly a month.
Advanced Micro Devices (AMD) is also trading higher, seeing a gain of 3.3 percent. Shares are also on track for their best close in a month's time.
MEMC Electronic Materials Inc. (WFR), Cirrus Logic (CRUS), KLA-Tencor (KLAC) and NetLogic Microsystems (NETL) are also sharply higher, while Broadcom (BRCM) is one of the few losers in the sector, down by 0.7 percent on the day.
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Centene Helping To Lead The Health Insurance Sector Higher
While most of the major sectors are showing only modest moves in morning trading on Tuesday, considerable strength has emerged among health insurance stocks. Centene (CNC) is helping to lead the sector higher after reporting better than expected fourth quarter earnings.
Reflecting the strength in the health insurance sector, the Morgan Stanley Healthcare Payor Index is currently up by 1.7 percent. The index is poised to end the session at a three-month closing.
Health insurer Centene is currently up by 6.1 percent after reaching its best intraday in almost five years. The gain by Centene comes after the company reported fourth quarter earnings of $0.50 per share, exceeding analyst estimates for earnings of $0.48 per share.
For full year 2011, Centene said it expects earnings in a range of $2.00 to $2.10 per share on premium and service revenues in a range between $4.9 billion and $5.1 billion. Analysts expect earnings of $2.05 per share on revenues of $5.03 billion.
Molina Healthcare (MOH) is also turning in a strong performance on the day, rising by 3.4 percent. At its high for the session, Molina was at its best intraday level in well over two years.
Aetna (AET), Amerigroup (AGP), and WellCare Health Plans (WCG) are also posting notable gains, contributing to the strength in the health insurance sector.
On the other hand, shares of Coventry Health Care (CVH) are currently down by 3.7 percent after the company reported better than expected fourth quarter earnings but forecast full year 2011 results below expectations. Coventry is pulling back off the well over two year high it set on Monday.
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Reflecting the strength in the health insurance sector, the Morgan Stanley Healthcare Payor Index is currently up by 1.7 percent. The index is poised to end the session at a three-month closing.
Health insurer Centene is currently up by 6.1 percent after reaching its best intraday in almost five years. The gain by Centene comes after the company reported fourth quarter earnings of $0.50 per share, exceeding analyst estimates for earnings of $0.48 per share.
For full year 2011, Centene said it expects earnings in a range of $2.00 to $2.10 per share on premium and service revenues in a range between $4.9 billion and $5.1 billion. Analysts expect earnings of $2.05 per share on revenues of $5.03 billion.
Molina Healthcare (MOH) is also turning in a strong performance on the day, rising by 3.4 percent. At its high for the session, Molina was at its best intraday level in well over two years.
Aetna (AET), Amerigroup (AGP), and WellCare Health Plans (WCG) are also posting notable gains, contributing to the strength in the health insurance sector.
On the other hand, shares of Coventry Health Care (CVH) are currently down by 3.7 percent after the company reported better than expected fourth quarter earnings but forecast full year 2011 results below expectations. Coventry is pulling back off the well over two year high it set on Monday.
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Thursday, February 24, 2011
Networking Stocks Rally After Mixed Results From Alcatel Lucent, Cisco
Networking stocks are posting notable gains during trading on Thursday, as better than expected fourth quarter earnings from Alcatel Lucent (ALU) are helping to overshadow disappointing guidance from sector giant Cisco Systems (CSCO).
The strength among networking stocks is reflected by the 3.2 percent gain currently being shown by the NYSE Arca Networking Index. The move has the index on pace for its best close since early 2004.
French telecommunications equipment maker Alcatel-Lucent reported a surge in its fourth-quarter profits, with the increase driven by strong revenue growth in all geographic regions and business segments.
On an adjusted basis, Alcatel-Lucent's earnings per ADS topped analyst estimates. The company also said it expects strong profit growth and market improvement in 2011.
Alcatel-Lucent has surged up by nearly 20 percent on the news and is on pace for its best closing price since October of 2009.
Meanwhile, Cisco is sharply lower after reporting better than expected second quarter earnings but providing disappointing guidance.
The networking giant said it expects third quarter earnings of $0.35 to $0.38 per share, below analyst estimates for $0.40 per share. Cisco also said full year sales growth would be at the mid to low-end of its previous outlook.
Cisco has plummeted by 13 percent and is on track for its worst close since early December.
In other action within the sector, Juniper Networks (JNPR), Ciena (CIEN) and Adtran (ADTN) are posting strong gains and are all on pace for new benchmark highs.
Juniper is poised to close at its best price since mid-2001, while Ciena is on pace for its best close since 2008. Adtran is looking to close at a fresh historic high.
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The strength among networking stocks is reflected by the 3.2 percent gain currently being shown by the NYSE Arca Networking Index. The move has the index on pace for its best close since early 2004.
French telecommunications equipment maker Alcatel-Lucent reported a surge in its fourth-quarter profits, with the increase driven by strong revenue growth in all geographic regions and business segments.
On an adjusted basis, Alcatel-Lucent's earnings per ADS topped analyst estimates. The company also said it expects strong profit growth and market improvement in 2011.
Alcatel-Lucent has surged up by nearly 20 percent on the news and is on pace for its best closing price since October of 2009.
Meanwhile, Cisco is sharply lower after reporting better than expected second quarter earnings but providing disappointing guidance.
The networking giant said it expects third quarter earnings of $0.35 to $0.38 per share, below analyst estimates for $0.40 per share. Cisco also said full year sales growth would be at the mid to low-end of its previous outlook.
Cisco has plummeted by 13 percent and is on track for its worst close since early December.
In other action within the sector, Juniper Networks (JNPR), Ciena (CIEN) and Adtran (ADTN) are posting strong gains and are all on pace for new benchmark highs.
Juniper is poised to close at its best price since mid-2001, while Ciena is on pace for its best close since 2008. Adtran is looking to close at a fresh historic high.
View the original article here
Wednesday, February 23, 2011
Railroad Stocks Advancing Amid Relief Buying
As the broader markets have jumped on news of the resignation of Egyptian President Hosni Mubarak, railroad stocks are posting notable gains amid relief buying on Friday.
The strength in the railroad sector is reflected by the 1.7 percent gain currently being shown by the Dow Jones Railroads Index. With the gain, the index is once again on pace for an historic closing high.
Kansas City Southern (KSU) is turning in one of the sector's best performances, rising by 2.5 percent. Shares of Kansas City Southern are currently poised for a fresh historic closing high.
CSX Corp. (CSX) and Westinghouse Air Brake Technologies (WAB) are also markedly higher, up by 1.6 percent and 1.3 percent, respectively.
CSX is on track for an all-time closing high, while Westinghouse Air Brake Technologies is poised to end the day at its best closing price since September of 2008.
Norfolk Southern (NSC), Union Pacific (UNP) and Canadian Pacific (CP) are also markedly higher, while some weakness is visible among shares of Guangshen Railway (GSH), which are down by 1.1 percent.
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The strength in the railroad sector is reflected by the 1.7 percent gain currently being shown by the Dow Jones Railroads Index. With the gain, the index is once again on pace for an historic closing high.
Kansas City Southern (KSU) is turning in one of the sector's best performances, rising by 2.5 percent. Shares of Kansas City Southern are currently poised for a fresh historic closing high.
CSX Corp. (CSX) and Westinghouse Air Brake Technologies (WAB) are also markedly higher, up by 1.6 percent and 1.3 percent, respectively.
CSX is on track for an all-time closing high, while Westinghouse Air Brake Technologies is poised to end the day at its best closing price since September of 2008.
Norfolk Southern (NSC), Union Pacific (UNP) and Canadian Pacific (CP) are also markedly higher, while some weakness is visible among shares of Guangshen Railway (GSH), which are down by 1.1 percent.
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Tuesday, February 22, 2011
Semiconductor Stocks Rising After Strong Teradyne, Cirrus Logic Results
Semiconductor stocks are seeing a strong upward move during trading on Thursday, as upbeat earnings from sector components Teradyne (TER) and Cirrus Logic (CRUS) are boosting buying interest in the sector.
The strength in the semiconductor sector is reflected by the 1.2 percent gain currently being shown by the Philadelphia Semiconductor Index. The index remains in a range near a three-year closing high set earlier this month.
The index is being led higher by shares of Teradyne and Cirrus Logic, which have surged up by 9.6 percent and 9.5 percent, respectively.
Teradyne is moving higher after reporting adjusted fourth quarter earnings of $0.37 per share on revenues of $322.17 million, exceeding analyst estimates for earnings of $0.25 per share on revenues of $316.31 million
Looking forward, the company expects first quarter earnings between $0.26 and $0.31 per share. Analysts had expected the company to earn $0.19 per share for the quarter.
The company also said it expects to generate revenue in a range of $350 million to $375 million for the first quarter, while analysts had expected revenues of $299.99 million.
Cirrus Logic is advancing after its third quarter earnings and revenues beat expectations and its revenue guidance for the fourth quarter was better than expected.
The company reported third quarter earnings of $0.34 per share, higher than expectations for $0.32 per share. Revenues for the quarter totaled $95.6 million, also above forecasts that called for $91.66 million.
"Looking at both the fourth quarter and the next fiscal year, we believe we will continue to grow revenue at a faster rate than the semiconductor industry as a whole." said Jason Rhode, president and chief executive officer of Cirrus Logic.
For the fourth quarter, Cirrus Logic said it expects revenue in a range between $88 million and $94 million. Wall Street analysts had expected revenues of $85.6 million.
In other action within the sector, Micron Technology (MU), STMicroelectronics (STM), Avago Technologies Limited (AVGO) and Applied Materials (AMAT) are also seeing strong gains, further boosting the semiconductor sector.
Meanwhile, Lam Research (LRCX), Veeco Instruments (VECO) and Nvidia (NVDA) are among the weak links in the sector on the day.
View the original article here
The strength in the semiconductor sector is reflected by the 1.2 percent gain currently being shown by the Philadelphia Semiconductor Index. The index remains in a range near a three-year closing high set earlier this month.
The index is being led higher by shares of Teradyne and Cirrus Logic, which have surged up by 9.6 percent and 9.5 percent, respectively.
Teradyne is moving higher after reporting adjusted fourth quarter earnings of $0.37 per share on revenues of $322.17 million, exceeding analyst estimates for earnings of $0.25 per share on revenues of $316.31 million
Looking forward, the company expects first quarter earnings between $0.26 and $0.31 per share. Analysts had expected the company to earn $0.19 per share for the quarter.
The company also said it expects to generate revenue in a range of $350 million to $375 million for the first quarter, while analysts had expected revenues of $299.99 million.
Cirrus Logic is advancing after its third quarter earnings and revenues beat expectations and its revenue guidance for the fourth quarter was better than expected.
The company reported third quarter earnings of $0.34 per share, higher than expectations for $0.32 per share. Revenues for the quarter totaled $95.6 million, also above forecasts that called for $91.66 million.
"Looking at both the fourth quarter and the next fiscal year, we believe we will continue to grow revenue at a faster rate than the semiconductor industry as a whole." said Jason Rhode, president and chief executive officer of Cirrus Logic.
For the fourth quarter, Cirrus Logic said it expects revenue in a range between $88 million and $94 million. Wall Street analysts had expected revenues of $85.6 million.
In other action within the sector, Micron Technology (MU), STMicroelectronics (STM), Avago Technologies Limited (AVGO) and Applied Materials (AMAT) are also seeing strong gains, further boosting the semiconductor sector.
Meanwhile, Lam Research (LRCX), Veeco Instruments (VECO) and Nvidia (NVDA) are among the weak links in the sector on the day.
View the original article here
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