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Difference Between “a Market Bottom” and a “Bottoming Process”?
by Marty Chenard
… and, Where are We Now?First, a “market bottom” call is typically a speculative conjecture based on anecdotal stories and some improving data suggesting that a market downturn may be ending.
Often times, the improving data is not positive, but merely “not as negative as before”.
It is from an improvement of “not as bad as last time”, that some investors assume a conclusion that there is “a trend of improvement occurring that will continue into a turnaround where everything will become positive soon”.
Remember the old saying, “the trend is your friend”. The opposite was also inferred … “going against the trend is your enemy”.
If speculative conjecture is or was correct, then the stock market’s trend would have also changed to an “up trend” from a “down trend”. If that has not happened, then there is no “proof” that the speculation of a market bottom was indeed true.
So, let’s look at the stock market’s trend, and we will look at it on the New York Stock Exchange because that is where most of the Institutional trading is done.
Note the red arrows in the chart below. We have a low, followed by a high, followed by a lower/low on the NYA Index. The NYA Index is currently moving up … BUT, it has not made a higher/high yet.
By definition, down trends are conditions with lower/highs and lower/lows. Up trends, are conditions with higher/highs and higher/lows.
So far, we still have lower/highs and lower/lows. Until a higher/high is made, this is still a down trend.
After a higher/high is made, you need to see a higher/low followed by another higher/high for a new up trend to be verified.
Conclusion: We have not had a trend reversal yet. Yes, things appear to be improving, but the market is not entirely convinced of the sustainability of the improving conditions yet.
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Revised Minimum Order Values for CFDs and Stocks
- New Minimum Order Values for CFDs and Stocks will apply from March 2009.
- The minimum order value applies to all equities trading, including CFDs, CFD DMA and Stocks, and is in place to prevent traders manipulating the underlying market price.
- You will not be able to open new positions via the platform below the minimum order size for the relevant exchange.
- See the table below for details of the new Minimum Order Values
Minimum Order Values as of 2 March 2009 ID Short Description Description Currency New – Minimum Order Value Current Minimum Order Value XASE AMEX American Stock Exchange USD 50
50
XAMS AMS Euronext Amsterdam EUR 100
50
XASX ASX Australian Stock Exchange Ltd. AUD 150
50
XATH AT Athens Stock Exchange EUR 100
50
XBRU BRU Euronext Brussels EUR 100
50
XCSE CSE OMX Copenhagen DKK 1000
500
XCSE CSE_FN OMX Copenhagen – First North DKK 1000
500
XCSE CSE_INV OMX Copenhagen, Investments Trusts DKK 1000
500
XHKG HKEX Hong Kong Stock Exchange HKD 1000
500
XHEL HSE OMX Helsinki EUR 100
50
XLIS LISB Euronext Lisbon EUR 100
50
XLON LSE_INTL London International Exchange USD 100
50
XLON LSE_SEAQ London Stock Exchange SEAQ Market GBP 100
50
XLON LSE_SETS London Stock Exchange SETS Market GBP 100
50
XMIL MIL Milano Stock Exchange EUR 100
50
XNAS Nasdaq NM NASDAQ Global Markets USD 50
50
XNAS Nasdaq SC NASDAQ Capital Market USD 50
50
XNYS NYSE New York Stock Exchange USD 50
50
ARCX NYSE_ARCA NYSE ARCA USD 50
50
XOSL OSE Oslo Stock Exchange NOK 1000
500
XNAS OTCBB OTC Bulletin Board on NASDAQ USD 50
50
XPAR PAR Euronext Paris EUR 100
50
XSES SGX-ST Singapore Exchange Securities Trading Limited SGD 150
50
XMCE SIBE Sistema De Interconexion Bursatil Espanol EUR 100
50
XOME SSE OMX Stockholm SEK 1000
500
XOME SSE_FN OMX Stockholm – First North SEK 1000
500
XSWX SWX Swiss Exchange CHF 150
50
XTKS TYO Tokyo Stock Exchange JPY 10000
5000
XWBO VIE Wiener Börse (Vienna) Stock Exchange EUR 100
50
XVTX VX SWX Europe CHF 150
50
XWAR WSE Warsaw Stock Exchange PLN 300
150
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