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Can Stock Markets Rally with Any Conviction Given the Economic Backdrop?

Whilst stock markets have seen a strong rebound from the recent lows, some indices are seeing technical weakness and Michael Hewson asks whether we will continue to see conviction buying.

  • The DAX has seen a significant rebound but the index is struggling to break above 9,120 and a key reversal day may add to this weakness
  • After a strongly negative candle, the Italy 40 may be set for weakness if it cannot break back above its weekly highs
  • Crude oil is trading sideways within a triangular consolidation and may soon see a sharp breakout to either side
  • Cable seems to be showing signs of a break above its descending wedge pattern and may be seeing an inverse head and shoulders which also points to the upside

 

Spread Betting & CFD trading carry a high level of risk to your capital and you can lose more than your initial deposit. Only speculate with money that you can afford to lose. These trading products may not be suitable for all investors so seek independent advice.

Video content by Michael Hewson of CMC Markets

The contents on CleanFinancial.com including any articles or videos are for information purposes only and are not intended as a recommendation to trade. Nothing on this website should be construed as investment advice or form the basis of an of investment decision.

Neither CleanFinancial.com nor any contributing company/author accept any responsibility for any use that may be made of the above or for the correctness or accuracy of the information provided.

Content provided by CMC Markets. CMC Markets UK plc and CMC Spreadbet plc are authorised and regulated by the Financial Conduct Authority in the UK, registered offices, 133 Houndsditch, London, EC3A 7BX.

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Will the Evolution of UK Shopping Habits Continue to Weigh on the FTSE?

Following recent market volatility, Bill Hubbard gives his opinion on where stocks might go from here and what political change is needed to help the Eurozone.

  • UK supermarkets have faced trouble as shoppers’ buying habits have changed, moving from larger weekly shops back towards a more ‘corner shop’ mentality
  • Volatility seems set to continue but Bill wants to keep his ‘powder dry’ and is willing to lose the initial stages of a significant rally to be sure of the up move
  • UK interest rate expectations are being affected by a cooling of the housing market as political rhetoric refers to a ‘mansion tax’
  • Crude oil has been slammed as supply has hugely outstripped demand, with the price now falling significantly below the production costs of some nations
  • With EUR/USD slipping, can political issues be overcome in order to weaken the euro further to help the periphery and overcome disinflation

 

Spread Betting & CFD trading carry a high level of risk to your capital and you can lose more than your initial deposit. Only speculate with money that you can afford to lose. These trading products may not be suitable for all investors so seek independent advice.

Video content by Capital Spreads.

The contents on CleanFinancial.com are for information purposes only and are not intended as a recommendation to trade. Nothing on this website should be construed as investment advice.

Neither CleanFinancial.com nor any contributing company/author accept any responsibility for any use that may be made of the above or for the correctness or accuracy of the information provided.

Content provided by Capital Spreads which is Authorised and regulated by the Financial Conduct Authority. FCA register number 3218125.

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Can the DAX Maintain its Bounce if Data Continues to Disappoint?

Stock markets have strongly reversed from their slump on hopes that the Fed may not end its QE programme and central banks will keep interest rates low for an extended period.

In this trading video, Michael Hewson questions whether this is the case and looks at whether we can expect the selling in indices to have come to an end.

  • Whilst indices have bounced, the DAX has failed to break back above the major resistance at 9000, but is there a bullish inverse head and shoulders pattern forming?
  • Is the dollar set to lose some ground? EUR/USD has bounced from the lows and has posted some bullish patterns but we need to break above $1.29 to target $1.30
  • UK growth seems to have plateaued, but if sterling breaks above its descending wedge formation, we may look towards $1.63

 

Spread Betting & CFD trading carry a high level of risk to your capital and you can lose more than your initial deposit. Only speculate with money that you can afford to lose. These trading products may not be suitable for all investors so seek independent advice.

Video content by Michael Hewson of CMC Markets

The contents on CleanFinancial.com including any articles or videos are for information purposes only and are not intended as a recommendation to trade. Nothing on this website should be construed as investment advice or form the basis of an of investment decision.

Neither CleanFinancial.com nor any contributing company/author accept any responsibility for any use that may be made of the above or for the correctness or accuracy of the information provided.

Content provided by CMC Markets. CMC Markets UK plc and CMC Spreadbet plc are authorised and regulated by the Financial Conduct Authority in the UK, registered offices, 133 Houndsditch, London, EC3A 7BX.

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Does the Stock Market Slump Represent a Buying Opportunity?

With a mass of individual factors coming together to hurt the global outlook, Bill Hubbard discusses the implications of the stock market sell off as volatility rises and traders cycle into bonds.

  • A major divergence between safe-haven bonds and peripheral yields on Eurozone growth fears and as US retail sales disappointed
  • Has the recent losses presented a buying opportunity or should traders wait for more of a rebound to be ‘on solid ground’?
  • With several Federal Reserve speakers ahead of the October meeting, the markets will be looking for their opinions to indicate possible direction
  • The slump in crude oil prices may continue as Saudi Arabia takes a more global view, but the declines may soon call into question the viability of US fracking

 

Spread Betting & CFD trading carry a high level of risk to your capital and you can lose more than your initial deposit. Only speculate with money that you can afford to lose. These trading products may not be suitable for all investors so seek independent advice.

Video content by Capital Spreads.

The contents on CleanFinancial.com are for information purposes only and are not intended as a recommendation to trade. Nothing on this website should be construed as investment advice.

Neither CleanFinancial.com nor any contributing company/author accept any responsibility for any use that may be made of the above or for the correctness or accuracy of the information provided.

Content provided by Capital Spreads which is Authorised and regulated by the Financial Conduct Authority. FCA register number 3218125.

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Why is This Sell Off Different to Previous Buying Opportunities?

With reduced central bank support, concerns over the German economy and falling oil prices, Michael Hewson suggests that the recent sell off might be demonstrating a significant shift in sentiment.

  • The Russell 2000 has broken below 1077 and may now target 1000
  • The S&P 500 has fallen below the 1900 level and there is potential for declines towards trendline support from the 2011 lows
  • German DAX had very strong support at 8000, but we have now broken lower and so we may target 7700

 

Spread Betting & CFD trading carry a high level of risk to your capital and you can lose more than your initial deposit. Only speculate with money that you can afford to lose. These trading products may not be suitable for all investors so seek independent advice.

Video content by Michael Hewson of CMC Markets

The contents on CleanFinancial.com including any articles or videos are for information purposes only and are not intended as a recommendation to trade. Nothing on this website should be construed as investment advice or form the basis of an of investment decision.

Neither CleanFinancial.com nor any contributing company/author accept any responsibility for any use that may be made of the above or for the correctness or accuracy of the information provided.

Content provided by CMC Markets. CMC Markets UK plc and CMC Spreadbet plc are authorised and regulated by the Financial Conduct Authority in the UK, registered offices, 133 Houndsditch, London, EC3A 7BX.

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