More Bad news coming from Europe!!!
The confidence among British businessmen is "alarming" according to the House of Commerce. The confidence fell to its lowest since the data began to be recorded in 1989, announced the same source, according to Bloomberg. According to the same report, the index measuring sales in services and industry, which comprises about 90% of the economy, also showed a contraction at the fastest pace than that recorded in the second quarter. The index of sales in factories registered the worst performance since 1999. Looking at the services index the situation is the same; it fell by two percentage points negative for the seven points below zero in the third quarter, the lowest since 1991. We have to admit that the coming months will be really ugly to believe in a fast economic turnaround.
Chart courtesy of stockcharts ( click to enlarge )Yesterday, after the market closed the Bank of America announced a drop of 68% of profits in the third quarter and cut the dividend by 50%. The bank that bought the Merrill Lynch also announced a capital increase of 10 billion dollars by issuing new shares. The bank recorded a fall in the third quarter results for 1.18 billion dollars, or 15 cents per share. This figure compares with 3.7 billion dollars recorded in the same period last year. The technical daily chart shows the stock is weak as 50 day moving average is below 200 day moving average and MACD is way below 0. With K line still below D line this is still not the time to buy the stock. In addition the closed below $25 , which means that this medium term up move is over.
AAPL - Daily chart above shows that it is still to early to say that the downtrend has ended. Any close below $87.54 will extend the losses further. There is no compelling reason to take fresh long positions at current levels. Only a close above $100.59 would negate in short term the negative outlook.
Chart courtesy of stockcharts ( click to enlarge )GS - The Stochastcs is currently high, and the K line has crossed below the D line, providing a sell signal.
Disclaimer : Trading stocks involves risk, this information should not be viewed as trading recommendations.The charts provided here are not meant for investment purposes and only serve as technical examples.
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