London, United Kingdom (PressExposure) September 15, 2010 -- Clients of boutique brokerage, “Sovereign-International”, have been advised to take short positions on key stock averages after analysts identified several bearish technical patterns on their weekly charts and after markets rebounded from sharp declines on thin volume following the worse-than-expected US July non-farm payrolls report.

“Sovereign-International” apparently feels that for markets to pare losses after such disappointing news on the jobs front on low volume of shares traded indicates that many real investors, as opposed to speculators, are reluctant to buy stocks at current levels.

“We believe that the market has, to a certain degree, priced in the possibility of further easing of monetary policy from the US Federal Reserve. We don’t think that’s going to be forthcoming at the August meeting of the FOMC and we don’t think the bulls are going to be pleased”, said one “Sovereign-International” source.

The firm suggested that clients buy shares in several inverse ETFs (exchange-traded funds) which appreciate in value when the underlying exchanges decline. “Sovereign-International” said it is expecting sharp corrections on the Dow, the S&P 500 and the FTSE 100 and added that investors could not ignore the signals the macro-economic data was giving on the US economy.

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