Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
💰 Warren Buffett reveals a $6.72 billion stake in ChubbCopy Portfolios

Custodians Make Money Off Of Money

ByDragonfly Capital
AuthorGregory W. Harmon
Published 10/05/2012, 02:26 AM
Updated 05/14/2017, 06:45 AM
BK
-
RSI
-

And two of the biggest Global Custodians are Bank of New York Mellon (BK) and State Street (STT). These companies make money by reporting accounting balances, and charging asset based fees for investments and settlement activities. As the markets rise, their fees rise. And their charts are suggesting a next leg higher in the market may be right around the corner. Take a look.

Bank of New York Mellon (BK)
BK
Bank of New York Mellon (BK) is testing the long term resistance/support level at 23.70 from a higher low, making an ascending triangle. A break higher has a target of 30.70. The positive Moving Average Convergence Divergence indicator (MACD) and rising Relative Strength Index (RSI) gives it a tailwind and the RSI is on the verge on moving into bullish territory. Look for a break of 23.70 to enter long.

State Street (STT)
STT
State Street (STT) has been in a broad channel with a slight bias lower since mid 2010 but recently has moved to the top in a symmetrical triangle. A break over the triangle carries a Measured Move to 53.75. That would take it well over the channel and trigger a Measured Move to 63.50. There is less commitment on this chart as the RSI is at the mid line and the MACD around zero. Wait for the break and watch the broad market as a leading indicator.

Disclosure: I helped build State street into a top custodian from 1992 – 2005 but have no current position.

Disclaimer: The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

Original post

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.