Please take a look at the 6-month chart of PAY (Verifone Systems, Inc.) below with my added notations:
Back in February PAY took a massive drop from $32 down to $18. Since
that drop, the stock has shown a very clear trading pattern. First, you
can see the $22 resistance (blue) that PAY had been hitting for (2)
months. Outside of that level you will notice that $18, $20 and now $24
have also been areas of support and resistance (red). Bottom line is
that PAY is showing that it tends to react to each $2 increment.The Tale of the Tape: PAY is currently trading between its $22 and $24 levels. A long position could be entered on a pullback to $22 with a stop set below the level of entry. If you were looking for short trades on PAY instead, a break below $22 should provide you with that opportunity.
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The surge in Japanese long-term interest rates is likely causing some
lost sleep among bond market participants and policymakers (despite
their ignorance of the moves in the BoJ minutes) as Nomura’s Richard Koo
notes, if this trend continues (now added to by the collapse
in stock prices) it could well mark the “beginning of the end” for the
Japanese economy. Although the stock market has (until now)
welcomed the yen’s continued slide against the dollar, Koo warns that
this trend needs to be carefully monitored, as simultaneous declines in
JGBs and the yen can be interpreted as a loss of faith in the Japanese
government and the Bank of Japan. The biggest concerns are that the
extreme volatility in Japanese stocks and bonds is occurring at a time
when the BOJ was buying large quantities of government bonds. It is now clear that even large-scale BOJ purchases of JGBs cannot stop yields from rising.
Simply put, Koo notes, the BoJ needs to rein itself in and state it
will not stand for overshooting inflation expectations or the ‘bad’ rise
in rates could crush both the nascent recovery and the nation’s banking
system.