Tuesday, September 29, 2009

Will AXA top out at these levels?

Looking for the top of this bear market rally, it's useful to check up some leaders. One of them being the French insurer  AXA.  The performances of insurers are intimately linked to those of stock markets, since they invest collected money in order to meet their long term liabilities. Therefore, market participants are more willing to buy insurers when they feel the markets to go up rather than down.
In 2007 AXA topped out in the May, some weeks before CAC40. So this time I'm looking at this old lady to give us a sell-signal as well.