What Does the SEEK Share Price Tell You about the Wider Market

Is Seek Ltd a Stock to Watch?

SEEK Limited is a stock to watch because it gives you insight into the health of the economy going into 2015.

One of the world’s largest online employment marketplaces, SEEK LTD [ASX:SEK] will be a primary beneficiary in any strengthening economy. An improving employment market, results in increasing online job revenues.

With expansion into Southeast Asia and beyond, it will also give indications further afield.

In an interview from last year, chief executive Andrew Bassat made a curious statement when he said, ‘We have a more positive view on the economy than a lot of the other CEOs for some reason.’

What Now for SEK Ltd?

Here’s a weekly chart of SEK:


Source: STEX

With this stock tracking sideways, we’ll wait for some price action before making further comment. However, a strong directional move upwards may give some indication for the job market and the strength of the overall economy going into 2015.

Is SEK Ltd a buy?

One can’t answer that directly, but in a sense the market will tell you. For you to take advantage of this knowledge, you need to understand two things. The first is where we are in the 18 year real estate cycle, the second is how to read a chart. We know a bit about both at Cycles, Trends and Forecasts. Go here to find out more.

Terence Duffy,
Research Analyst, Cycles, Trends and Forecasts

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Terence Duffy is an analyst and chartist, specialising in researching economic trends and cycles.  His primary focus is housing and land affordability. But you can also depend on him to offer his unique analysis of stock market charts. As Terence will show you, the charts often forecast, well in advance, the good or bad news to come — which he details in Cycles, Trends and Forecasts.

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