IPHONE chip manufacturer ARM Holdings has seen its share price quadruple since early 2009 as smart-phones have sold like hot, technological cakes. Its third quarter earnings are out today and market participants are expecting the share price to get close to last month’s all-time high of 418p. With a lofty price-earnings ratio of 45 times, this is a wise sell when it reaches the 400p to 414p area, and have a target of 360p. Spread Co offers a spread of 386.4p-387.4p.
The world’s largest hotel group – International Hotel Group – came out yesterday with some encouraging figures from its American division and its share price is close to breaking through its June high of 1,244p. If it manages that, then traders will be looking for the long-run high of 1,447p. WorldSpreads offers a 1,229p-1,234p spread.
Aggressive selling of the dollar following the G20 meeting last weekend pushed the euro above the psychological $1.40 level. That might prove hard to hold on to, however, so it would seem wise to sell euro-dollar at the current price. Capital CFDs offers a spread of $1.4022-$1.4023.
The S&P 500 performed a golden cross on Friday, with the 50-day moving average crossing the 200-day moving average. Historically that has been a positive sign. Many traders are sitting to one side but if the index breaks through 1,200, the rally should continue. Spread Co offers a permanent five-point spread on the S&P 500 index of 1,191.8-1,192.3.
Today’s GDP figure for the UK should be closely followed given the large jump that we saw in the second quarter. Everyone agrees that the third quarter figure should be lower, but few agree on just how much lower. Some of the most pessimistic commentators are even expecting growth to have turned negative. That sort of result would probably see sterling plummet against the dollar. IG Markets offers a price on sterling-dollar of $1.5726-$1.5729.
Technology specialist Smiths Group raised full-year profits by 17 per cent at the end of last month and said it was delivering cost savings ahead of plan. Revenues have dropped in certain divisions but cost savings have improved margins across the board. Analysts say the higher profits and success in cost rationalisation make this a good buy. A target of 1,285p seems reasonable. Spreadex offers a rolling spread of 1,200.70p-1,205.30p.