Economic Signals that are Fun to Watch
publication date: May 11, 2010
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author/source: Brad Hamill
Those that have been reading the Hamill Economic Update for some time know that
I used to publish “trigger points” to watch for in the markets to know when the
next major event was about to happen. I’ve had these set for well over a
year.
One of the main signals happened last Tuesday, and most of the other signals occurred Thursday during the major downturn that we saw.
I thought it might be useful to give my readers some of the main signals that I watch. These are given strictly as opinion – and should not be used to trade on. I am not an investment advisor, and my writings should not be taken as such. Having said all of that, here are the signals that you might be interested in.
Signal #1 – Watch for the main Chinese stock indexes to drop at least 20% from their values held on July 20, 2009.
Signal #1A - The Shenzhen Stock Exchange Component Stock Index is currently trading at 10,231.18 – down from its July 20, 2009 value of 13,381.22. This is a drop of 23.54%. The 20% level was broken Tuesday of last week.
Signal #1B -The Chinese Shanghai Composite Index is currently trading at 2,672.32 – down from its July 20, 2009 value of 3,266.92. This is a drop of 18.2%. It has not reached its 20% level yet, but is steadily working towards it.
Signal #2 - JPY-EUR Exchange Rate (Target < 115): 117.9758 – This dropped to 111 last Thursday. Look for it to break the target again before long.
Signal #3 - JPY-GBP Exchange Rate (Target < 145): 137.2653 (Danger Zone) – This signal has been in the danger zone for quite some time now.
Signal #4 - JPY-USD Exchange Rate (Target < 90): 92.69 – This signal dropped below 89 last Thursday. It will be breaking 90 again soon.
Signal #5 - USD-EUR Exchange Rate (Target < 1.25): 1.2728 – This is the signal that EVERYBODY is watching. Watch what happens when it breaks 1.25. Even 1.26 will cause quite a few fireworks.
Signal #1A Source: http://www.google.com/finance?q=SHE:399001
Signal #1B Source: http://www.google.com/finance?q=SHA:000001
Signal #2 – Signal # 5 Source: http://www.bloomberg.com/markets/currencies/fxc.html
Have fun watching these – and notice how hard they try to climb back above the levels when breached.
Your comments are appreciated…
If you are not currently on the Economic Update email list you can email me at: brad@newfamilyeconomics.com to be added.
There is no charge and your email address will never be shared.
One of the main signals happened last Tuesday, and most of the other signals occurred Thursday during the major downturn that we saw.
I thought it might be useful to give my readers some of the main signals that I watch. These are given strictly as opinion – and should not be used to trade on. I am not an investment advisor, and my writings should not be taken as such. Having said all of that, here are the signals that you might be interested in.
Signal #1 – Watch for the main Chinese stock indexes to drop at least 20% from their values held on July 20, 2009.
Signal #1A - The Shenzhen Stock Exchange Component Stock Index is currently trading at 10,231.18 – down from its July 20, 2009 value of 13,381.22. This is a drop of 23.54%. The 20% level was broken Tuesday of last week.
Signal #1B -The Chinese Shanghai Composite Index is currently trading at 2,672.32 – down from its July 20, 2009 value of 3,266.92. This is a drop of 18.2%. It has not reached its 20% level yet, but is steadily working towards it.
Signal #2 - JPY-EUR Exchange Rate (Target < 115): 117.9758 – This dropped to 111 last Thursday. Look for it to break the target again before long.
Signal #3 - JPY-GBP Exchange Rate (Target < 145): 137.2653 (Danger Zone) – This signal has been in the danger zone for quite some time now.
Signal #4 - JPY-USD Exchange Rate (Target < 90): 92.69 – This signal dropped below 89 last Thursday. It will be breaking 90 again soon.
Signal #5 - USD-EUR Exchange Rate (Target < 1.25): 1.2728 – This is the signal that EVERYBODY is watching. Watch what happens when it breaks 1.25. Even 1.26 will cause quite a few fireworks.
Signal #1A Source: http://www.google.com/finance?q=SHE:399001
Signal #1B Source: http://www.google.com/finance?q=SHA:000001
Signal #2 – Signal # 5 Source: http://www.bloomberg.com/markets/currencies/fxc.html
Have fun watching these – and notice how hard they try to climb back above the levels when breached.
Your comments are appreciated…
If you are not currently on the Economic Update email list you can email me at: brad@newfamilyeconomics.com to be added.
There is no charge and your email address will never be shared.
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