This weekend’s cover story on Barron’s was a bullish piece on trading-exchange stocks. They mentioned four big players in the article: NYSE Euronext (NYSE:NYX), IntercontinentalExchange, Inc. (NYSE:ICE), NASDAQ OMX Group, Inc. (NASD:NDAQ) and CME Group Inc. (NASD:CME).

The article was full of fundamental reasons, filled with ‘why’ it’s a good time for long term investors to be bullish on trading-exchange companies: book value, future EPS, debt to capital ratios and other industry experts analysts.

YTD Comparison Chart versus SPY

Let’s take a look at the recent headlines and see what price action is telling us in the context of The Investor Sentiment Cycle.

NYSE Euronext (NYX)

• Deutsche Boerse, NYSE Talks End, No ‘Conclusion’
  Deutsche Boerse AG, which runs the Frankfurt stock exchange, said talks with NYSE Euronext, operator of the world’s largest stock market, have “now ended without any conclusion.”
• NYSE Euronext to clear CDS, plans big rebates
  Liffe, the European derivatives arm of transatlantic exchange NYSE Euronext will start clearing credit default swap (CDS) contracts on Dec. 22, and plans to share revenues with participants.
• Trading volumes boost NYSE Euronext Q3 profit 4 pct
  Transatlantic exchange group NYSE Euronext said adjusted operating net income for the third quarter rose 4 percent to $192 million, boosted by higher trading volumes and meeting expectations.

Daily Chart with InVivo Swing Trading Tools

Daily Chart with 50- and 200-day Moving Average

IntercontinentalExchange, Inc. (ICE)

• ICE to Begin Introduction of Over 50 New OTC Cleared Contracts
  IntercontinentalExchange, Inc.