Drifting away from the 200 Day

Posted on: June 2, 2010 in: Uncategorized with 0 comments

Many key markets are trading below their 200 day moving average, a significant technical level. The worst off are France, China, crude oil and Australia, as the table below shows. The weaker Euro, British Pound and Australian Dollar have hurt the returns of US Dollar denominated ETFs for some of the countries.

Lower prices for commodities such as copper and crude oil signal further weakness in economic growth.
The other notable drop is in the US 10 year treasury bond. As nervous investors push up demand for treasuries, their yield has fallen below the 200 day level by 7% and signficantly below the key 3.50% level.

All signs of more weakness to come for international markets.

Name 1 June 2010 vs. 200 Day MA
France ETF (US$) 20.21 -18%
China 2,568.28 -15%
US$ per € 1.2195 -13%
OIL ETF (US$) 33.18 -13%
Australia ETF (US$) 19.48 -13%
German ETF (US$) 19.00 -12%
Brazil ETF (US$) 62.66 -9%
France 3,503.08 -8%
US 10Y Treasury 3.30 -7%
US$ per British £ 1.4706 -7%
Japan 9,711.83 -6%
Australia 4,436.70 -6%
Brazil 61,841.00 -5%
Copper ETF (US$) 40.95 -5%
S&P 500 1,070.71 -3%
UK 5,163.30 -3%
Dow Jones Industrial 10,024.02 -3%
India 16,572.03 -1%
Nasdaq 2,222.33 0%
Japan ¥ per US$ 90.98 0%
CAD$ 0.9524 0%
TSX Composite 11,571.97 0%
DJ Transportation 4,232.78 3%
Germany 5,981.27 3%

Country names refer to the main equity index for that country in its local currency.
eg. Germany refers to the German DAX Index in EURO.

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