The major US indices
Indices
Stock market indices represents an index that measures a particular stock market or a segment of the stock market. These instruments are important investors as they help compare current price levels with past prices to calculate market performance.The main two parameters for indices are that they are both investable and transparent. For example, investors can invest in a stock market index by buying an index fund, which is structured as either a mutual fund or an exchange-traded fund, and track an index. The difference between an index fund’s performance and the index, if any, is called tracking error. Most major countries boast multiple indices. Commonly traded indices include the S&P 500, NASDAQ-100, Dow Jones Industrial Average (DIJA), EURO STOXX 50, Hang Seng Index, and many more.Stock market indices can be characterized or segmented by the index coverage set of stocks. The overall coverage of an index constitutes an underlying group of stocks, most commonly grouped together by underlying investor demand.How to Trade IndicesRetail brokers offer indices exposure through the use of contracts-for-difference (CFDs) or exchange-traded funds (ETFs). Each are popular ways to trade specific markets and are almost always on offer at most brokers.Investors can choose between multiple types of indices that traditionally fall within several categories. This includes country coverage, regional coverage, global coverage, exchange-based coverage, and sector-based coverage.All indices are ultimately weighted in a number of different ways. The most common mechanisms include market-capitalization weighting, free-float adjusted market capitalization weighting, volatility weighting, price weighting, and others.
Stock market indices represents an index that measures a particular stock market or a segment of the stock market. These instruments are important investors as they help compare current price levels with past prices to calculate market performance.The main two parameters for indices are that they are both investable and transparent. For example, investors can invest in a stock market index by buying an index fund, which is structured as either a mutual fund or an exchange-traded fund, and track an index. The difference between an index fund’s performance and the index, if any, is called tracking error. Most major countries boast multiple indices. Commonly traded indices include the S&P 500, NASDAQ-100, Dow Jones Industrial Average (DIJA), EURO STOXX 50, Hang Seng Index, and many more.Stock market indices can be characterized or segmented by the index coverage set of stocks. The overall coverage of an index constitutes an underlying group of stocks, most commonly grouped together by underlying investor demand.How to Trade IndicesRetail brokers offer indices exposure through the use of contracts-for-difference (CFDs) or exchange-traded funds (ETFs). Each are popular ways to trade specific markets and are almost always on offer at most brokers.Investors can choose between multiple types of indices that traditionally fall within several categories. This includes country coverage, regional coverage, global coverage, exchange-based coverage, and sector-based coverage.All indices are ultimately weighted in a number of different ways. The most common mechanisms include market-capitalization weighting, free-float adjusted market capitalization weighting, volatility weighting, price weighting, and others. Read this Term are opening lower, but off the premarket low levels as better than expected US data quelled some of the recessionary fear- at least for the time being.
A snapshot of the market three minutes into the open is currently showing
Dow Industrial Average -166.90 points or -0.50% at 33130.07
S&P index -16.23 points or -0.41% at 3912.62
NASDAQ index -39.04 points or -0.36% at 10917.98
Russell 2000-12.01 points or -0.65% at 1842.34
IN the US debt market yield
Yield
A yield represents the earnings generated by an investment or security over a certain time period. Yields are typically displayed in percentage terms and are in the form of interest or dividends received from it.These figures do not include the price variations, which separates it from the total return. Consequently, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as an internal rate of return, which may also be used to indicate the owner’s total return, or portion of income.Why Do Yields Matter?At any point in time, all financial instruments compete with each other in a public marketplace. Analyzing yields is one among many metrics used by analysts and investors and reflects a singular part of the total return of holding a security. For example, a higher yield allows the owner to recoup his investment sooner, and thus mitigates risk. By extension, a high yield may have resulted from a falling market value for the security as a result of higher risk. Yield levels are also influenced by expectations of inflation. Fears of higher levels of inflation in the future suggest that investors would ask for high yield or a lower price versus the coupon today.The maturity of the instrument is also one of the elements that determines risk. The relationship between yields and the maturity of instruments of similar credit worthiness, is described by the yield curve. Instruments over longer intervals commonly have a higher yield than short dated instruments.The yield of a debt instrument is typically linked to the credit worthiness and default probability of the issuer. The more the default risk, the higher the yield would be in most of the cases since issuers need to offer investors some compensation for the risk.
A yield represents the earnings generated by an investment or security over a certain time period. Yields are typically displayed in percentage terms and are in the form of interest or dividends received from it.These figures do not include the price variations, which separates it from the total return. Consequently, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as an internal rate of return, which may also be used to indicate the owner’s total return, or portion of income.Why Do Yields Matter?At any point in time, all financial instruments compete with each other in a public marketplace. Analyzing yields is one among many metrics used by analysts and investors and reflects a singular part of the total return of holding a security. For example, a higher yield allows the owner to recoup his investment sooner, and thus mitigates risk. By extension, a high yield may have resulted from a falling market value for the security as a result of higher risk. Yield levels are also influenced by expectations of inflation. Fears of higher levels of inflation in the future suggest that investors would ask for high yield or a lower price versus the coupon today.The maturity of the instrument is also one of the elements that determines risk. The relationship between yields and the maturity of instruments of similar credit worthiness, is described by the yield curve. Instruments over longer intervals commonly have a higher yield than short dated instruments.The yield of a debt instrument is typically linked to the credit worthiness and default probability of the issuer. The more the default risk, the higher the yield would be in most of the cases since issuers need to offer investors some compensation for the risk. Read this Term modestly higher:
two year 4.109% +3.4 basis points
five year 3.470% +3.8 basis points
10 year 3.393% +1.8 basis points
30 year 3.556% +1.4 basis points
Earlier today, the US 10 year yield bounced off its 200 day moving average near 3.331%. The 50% retracement of the move up from the August low comes in at 3.426% and is the next upside target to get to and through the bottom is in place for yields. After that look for the 3.50% level, the 3.640% (broken 38.2% retracement), and the 100 day moving average of 3.719% to be upside target on further momentum in that direction. Needless to say on the downside, getting below the 200 day moving average is key.
US 10 year yield bounced off its 200 day moving average
In other markets:
Gold is up $12.22 or 0.63% at $1916.50
Silver is up eight cents or 0.34% at $23.52
Crude oil is back above the $80 level at $80.40 that’s up $0.58 on the day
Bitcoin remains below the $21,000 level at $20,837, but his off session lows of $20,654.
The AUDUSD and the NZDUSD are getting a bounce off lows after each of those currency pairs were sold steadily today on risk off sentiment. The New Zealand Prime Minister also resigned unexpectedly which help to tilt the bias the downside.
For the NZDUSD it is trading back above its 200 hour moving average at 0.63907 but below its higher 100 hour moving average at 0.64098. The current price trades at 0.6394. Earlier today the price try to find support against the 100 hour moving average, but could not stay above that level. That tilted the bias back to the downside. The price ultimately moved below the 200 hour moving average and move down to test the earlier week lows and 50% midpoint of the move up from the January low those levels came near 0.6360. The low price today reached 0.63641 (see chart below).
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