After a good bounce off the lows last night with the US indices it looks like we could finish the week with a positive move from the FTSE. In a speech that once again gave nothing away, Bernanke was less than forthcoming with his remarks on growth and the future path of interest rates. Nevertheless, the US markets took what he said as an indication that it’s more likely that there will be a further cut, if the current economic climate continues (resilient growth and further credit woes).
It's been a turbulent week with the banking sector continuing to suffer during these uncertain times. World indices have been remarkably choppy in recent weeks and even though there are no real signs that the upward trend has come to an end, the FTSE's rejection of the 6700-6750 area on several occasions suggests that we maybe near the top of a four and a half year rally.
For those who like technical indicators, yesterday's move created a hammer candlestick which is often a bullish sign in a downtrend (which we've seen over the last month), so we could see a move back to test the year's highs in the coming days.
HSBC has taken action against the trading of its mortgage backed securities in the US and the news may be too little too late following yesterday's rout on banking stocks. The stock is around £0.10 higher this morning.
There is little in the way of economic data due from Europe or the US today apart from the University of Michigan survey of consumers at 15h00 London time. The survey is due to post a small decline to 80.0 from 80.9.
It's been a quiet night for currencies and gold, although the euro did hit another record high in Asian trade. For once we haven't come into the office to see gold another $15 higher but this looks like a respite rather than a change in direction. Clients continue to battle against the trend of the euro, which does look a little over extended. However it will take a brave person to call the top of what's slowly taking over the US dollar as the world's reserve currency.
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Spread Trading, 8 Nov 07
Confusion over the closing price of the FTSE yesterday didn't help matters as the LSE struggled to uncross many constituents during the closing auction and it wasn't until after 6pm that the official close was printed at 6385.
The FTSE support that I mentioned yesterday proved very temporary as we call the market down as much as 75 points just above the 6300 level. 6290 prove to be the next support level, Capital Spreads clients certainly seem to think so. It’s been all buyers this morning in the hope of a bounce.
Clients with most of spread betting companies have had a torrid time over the last couple of days and are finding it difficult to cope with the volatility. Hardly surprising following yesterday's sharp move lower by Wall Street.
Banking stocks remain the focus of the selling with Fortis this morning reporting profits at the lower end of the estimates. Morgan Stanley became the latest bank to announce a huge subprime loss. If this claims the head of yet another major bank's CEO then the markets will continue to suffer. Copper dropping to a 2 month low in Asian trade may also knock Anglo American and BHP Billiton this morning.
The focus of the day will be the ECB and MPC rate decisions. Both are expected to keep rates on hold, much to the dislike of many who would like to see the UK cut from 5.75% to 5.5%. It's difficult to see what more evidence they need in order to see the effect that the credit crunch is having on the markets. However they insist that it is still not clear how the economy will react and that high oil prices are a threat to them meeting their inflation target.
(Note that we now list the weekly Economic Indicators on this site).
Focus on the US includes the Federal Reserve Chairman Ben Bernancke in front of the Joint Economic Committee of the House and Senate, so don't expect a quiet afternoon either.
Gold and oil have taken a respite, and the dollar is showing a little resistance this morning, it looks like some profit taking is kicking in. The next big level for gold is $850 and of course we haven't quite hit the $100 mark for the black stuff yet.
Spread Trading, 7 Nov 07
The FTSE seems to have found a little bit of support yesterday. That seems to be continuing today as cautious buyers are tempted back into the market. It certainly looks like our Capital Spreads clients believe that the rout is over as the buyers take over. November is historically a positive month for the equity markets, however it seems that the market isn't yet willing to make a concerted push back towards the year's highs. The over riding concern for technical traders is that the FTSE 100 has failed more than twice to trade above the 6700-6740 area and each attempt has been met by heavy selling.
US shares shrugged off the recent credit concerns and moved higher as the Oil spread betting market attracted buyers. Technology stocks, a favourite throughout 2007, were also popular yesterday ahead of the good results expected from Cisco Systems. Cisco report earnings later today. However, this morning Financial Spreads calling Wall Street to open down as much as 60 points to open nearer the 13600 mark as oil prices continue their march towards the $100 level.
The astonishing gold rally continued overnight as a $22 move higher yesterday has been followed by another $13 jump in Asian trade. It's the same old story and many believe the super spike in gold has only just begun. Finally the poor trader who bought gold at $850 nearly 30 years ago has a chance of off loading it for a profit.
The US dollar continues to take a pounding as many FX desks around the world start to believe that the greenback is truly starting to believe that it is losing its global currency status. It's amazing what effect top model Gisele Bundchen can have on global currency markets when she says she'd rather be paid in euros as opposed to dollars.
Has Gisele secretly been spread betting and keeping an eye on the markets or has she noticed that the Euro has appreciated over 75% against the dollar during the last sevens years? Perhaps she’s just noticed the 16% appreciation in the last year. No doubt a few traders in London would also prefer to be paid in euros than dollars.
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Spread Trading, 6 Nov 07
The markets fickle behaviour is becoming ever more annoying. One down day is replaced with an up and traders are being pulled one way and then the other on a stream of contradictory news.
Banking sector valuations continue to be hit and governments across the globe should be worried. Banks have strict rules over capital versus lending which is why they have been so keen on packaging up debt and selling it on. If share capital value falls then this has an impact on the amount they can lend. Damaged banks can easily lead to damaged economies. Whilst it is easy to sit on the sidelines and crow about bankers in trouble in reality you are laughing at yourself.
The FTSE having traded as low as 6410 yesterday is now up at 6500 but not exactly making much further progress in early action. 6500 although obviously a psychological level has proved in the past to be better support than resistance so if we clear above here there is not much in the way of initial resistance to prevent a move higher. That said there is a distinct lack of enthusiasm amongst our punters for further buying as too many have been burnt by getting enthusiastic above this level.
This may be the biggest barrier to further progress in the various western indices as investors worry about being caught up in yet another fall out rather than concentrating on value.
Citigroup managed to bounce from the lows in the end yesterday but the stock is still heavily under pressure and the lower the stock the greater the pressure. Being asked to come up with radical solutions on the hoof is never a good idea and we can expect further poor news from the behemoth. The stock closed at around $39.00 down from $55 at the beginning of the year.
Cable came to the aid of our spread betting accounts yesterday as the dollar recovered sufficiently for them to close out shorts for small profits having sat with nasty losses on the close on Friday. This morning the market has move back again towards the 2.0900 level and is currently at 2.0865-2.0868, punters have taken the move in early activity as another selling opportunity and are now very short once more. The weakness of the industrial production numbers yesterday was the catalyst for the drop and the rebound this morning is more of a reaction against the dollar rather than a vote for the pound.
Eur/jpy is oscillating between 165.00 and 167.00 at the moment as dealers ponder the next move. Euro values are extremely high but the momentum is still very much with the currency and (sorry to have to remind everyone) the carry trade is still very much in the euro's favour (and potentially widening as well). At 166.48-166.51 our punters are very much two way looking for some indication of the next move.
Gold (yawn) has broken higher again as woes continue to engulf other investment products. We are now at 815.6-816.1 (what price Gordon Brown's sell off of the UK gold reserves at around $250 now?) and seemingly accelerating as we go. Both the Gold spread betting and Crude Oil spread betting markets closed on a weak move last night but this morning have open heavily higher. The move by the Far East to reverse US direction is unusual and could well indicate another push in commodities as the world seeks to secure supply.
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Spread Trading, 5 Nov 07
A nasty kick in the teeth this morning for traders who went to bed on Friday expecting a nice opening of around 6565 in the FTSE this morning only for Citigroup to put a spanner in the works over the w/e.
Now we have the dubious pleasure of waiting to see whether Ms Whitney of CIBC (who started this latest sell off and, effectively, Mr Prince's resignation) was on the button with her estimation that Citi has a serious lack of cash. Whilst Northern Rock is an interesting footnote, in world terms it is a minor player. If Citigroup now starts to have liquidity problems the consequences could be truly global (if you were a bank treasurer would you increase lending lines to them?).
The FTSE is opening down at 6490-6491 perilously close to closing support at 6485 and intraday at 6470 and 6445. It is difficult to argue that investors should be piling in at this point and if we slip lower it is more likely to be on the basis of lack of buyers than on outright selling.
The Dow (Wall Street) had managed to put in a very nice rally from the NFP rally/slump as buyers chanced their arm once more. Having at one point been some 150 lower on the day the index managed to close around 50 higher. The opening levels this morning will be slightly unnerving for dealers as the Far East and Europe drag us down. It is normally a good bet to oppose any big non US time move in US markets as Americans seem to take it as an almost personal affront for foreigners to sell off their market. So with the market off 120 points at 13495-13499 we are seeing solid buying from punters.
As feared in several comments over the past few months the Sainsburys deal has come to nought. My oft stated caution that without the bid the shares could easily slump to the Mid 400's has come to pass in spades. The Sainsbury family may feel they have won a battle but having seen off two perfectly good takeover bids why on earth would investors buy into a stock that now has virtually no chance of a renewed bid? Investors are nursing an almost two billion pound loss this morning and I know what my thoughts of the Sainsbury board would be if I were one of them. Lest anyone think along the lines of ‘good for them’ remember that the losers will not, in the main, be rich investors but Pension and Life Insurance Funds which will put yet another dent in Joe Publics retirement fund.
Bank Stocks are also on the way down this morning, not surprisingly, but the fall out is not as bad as might have been feared. Having said that, Barclays is looking dangerously fragile as rumours continue to swirl around their exposure to sub prime debt. Bob Diamond publicly stated a few months ago that he was confident with the Barclays model and that there were no hidden woes but the fact is that the stock continues to slip which indicates that a lot of very serious investors are less than happy.
On the FX front the dollar is recovering some of the losses of Friday with cable now at 2.0839-2.0842 down from a high of 2.0896-2.0899 (just 1 tiny little pip away from 2.0900) clients have held onto shorts through the rally and are getting some welcome relief this morning. There is some support at 2.0825 and 2.0810 and some heavy volume congestion between 2.0760 and 2.0800. If we get below here though the chances increase of a turn in the recent bull sterling run so shorts will be hoping for a pull back to trigger fears of a high having been hit. Versus the yen the 240 region has once more proved to be something of a cusp point. Over the past four trading days the market has bounced in a 200 point range underneath this level and we are now waiting to see if this is a prelude to a big break out or an equally impressive sell off.
Gold has finally gone over the $800 buck level and our clients have been big profit takers up here. Now we wait to see whether the appetite for the $1000 run is in place and with jitters virtually all over the market the chances are becoming more certain of yet more blow out moves higher. The fact that Gold is actually just a pretty, inert, slightly rare metal will not diminish its lustre in the eyes of the bulls. Spread trading at $802.0-$802.6 clients are still long (just not quite so long as before).
Oil is also spiking higher with Nymex closing at a new $96 peak on Friday. Again this is a play on other markets (in this case political ones) as the oil producers bask in the transfer of wealth from the West and developing nations to Russia, Nigeria and the Middle East. With just a minor squeeze on production reaping such a huge price dividend just imagine what would happen if there was a real crisis. Crude is off the peak this morning with Nymex December at 95.05-95.11.
Spread Trading, 2 Nov 07
When I talked yesterday about the FTSE looking to reject the 6700 level once more I have to admit I was not expecting a 170 point reversal in the next 24 hours (!) but here we are again. The opening call on the FTSE 100 spread betting market this morning is down at 6530-6531 some 55 off from yesterday’s frankly pretty dire performance. As mentioned clients were heavy sellers in early activity yesterday but after the initial 50 point drop buyers started to come in and the last few hundred points drop on the Dow made for quite a grim trading session.
Traders will be looking for support at 6520 which may give hard pressed bulls some cheer but if we drift through here we may be looking for the trendline and closing support at 6490 and then the major 6400 region. To the up side which, if we can get away from the sudden pessimism that seems to have sprung up, is just as likely to appeal to dealers as there is quite a bit of congestion resistance between 6540 and 6580. This should have been a support region but we have opened up today straight through it and out the other side.
For all the poor news out of the States, British Airways has come in with a 26% surge in profits due to the increase in business travel across the Atlantic. Hardly an indication of a slackening economy. And this is one of the problems that analysts are running with at the moment as one indicator shows doom and disaster whilst another says "I'm all right jack". As is the nature of these things, obviously the market was looking for a more upbeat forecast for the coming period but with oil now at close to $100 bucks it is difficult to be that confident. Punters will be eying the oil price to gauge the effect on BA stock and any weakening may spill into a bull run.
The FX markets have almost shut up shop over the past few days as sterling and euro remain at the highs versus the dollar and the usd/yen continues to be mysteriously attracted by the mid 114's. Punters are still trying to pick a high on the cable cross and have been taking the odd pip profits over the past 24 hour trading session. But the danger remains that there may be a bear hunt in the offing as weak shorts get hunted down. We have had one yesterday as the price squeezed up to 2.0875 and then fell back down again so shorts are advised to keep their stops tight.
The eur/usd cross seems happy at the moment between 144 and 144.75 and we have oscillated between here several times in the past three days. With the current price at 1.4467-1.4469 we are seeing some sellers looking for a confirmation of this target range.
On the plus side Oil and Gold Spread Betting remain strong with punters buying into both on the 'slight' weakness yesterday. Both had big trading ranges but eventually closed slightly down. Gold remains our most popular product as traders continue to look for the fabled $800 level but oil is not far behind either with longs building up looking for a spike towards $100 in the US Nymex. The current crude oil spread price is 93.39-93.45 (December Nymex) with the high at just shy of $96. Volatility in the black stuff has been growing for weeks with daily trading ranges getting bigger and bigger culminating in the last three $4 plus high/low moves. Oddly enough for all of the chaos going on we are almost exactly at the same price now as we were three days ago before the days in question occurred. Analysts are speculating on whether this is a blow out move or whether we are just gearing up for another shift higher.
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Spread Trading, 1 Nov 07
A bit of excitement at six fifteen last night and then on until the close as traders read the Fed signals first one way then another and then another.
Yesterday saw strong buying throughout the session as the market recovered from the initial weakness but now all we are seeing is selling! The FTSE 100 was expected to open some 10 pips higher this morning but managed to come in 10 lower. It briefly bounced before sellers took hold and now we are in danger of giving up on the 6700 level once again. At 6701-6702 as I write it is becoming ever more apparent that investors are not happy with markets above here. This is now the umpteenth time in the past five months where we have spent some of the trading day above the 6700 level only for the market to eventually give up.
BAT has come in with stunning numbers as profits surge by 19%. As with Imperial the company seems to be thriving under its 'dealers in death' moniker and it seems that the more the product is demonized the more youngsters want to partake. The stock has rallied 50% in the last two years even though they have indicated a heavy dividend burden.
The Feds decision to cut rates by a quarter in the face of good GDP numbers indicates that there are serious worries that the housing woes will eventually filter into the rest of the economy. It is difficult to see why, in the face of massive mortgage delinquencies and sharply falling house sales, anyone feels that one quarter of a percent will make much difference. Most US mortgages are on fixed rates and will be unaffected and the problem is likely to be more along the lines of increasingly tight credit controls by the lending banks.
Punters had a glorious day yesterday, as gold and oil soared, the dollar slumped and the indices shifted higher. All of which suited the overall client book. Trading continues to be very strong on this first day of MiFID as we all move into the bright new world of 'whatever' it was all about. It is estimated that banks will have spent around a billion and a half (in the UK) making themselves compliant whilst the rest of Europe seems to be sitting back and shrugging their shoulders. The expense of making everything 'fairer' means the cost involved will somehow have to be recouped, and guess who will pay, the clients probably.
The dollar is recouping some of the losses of yesterday as the pound ponders a life up at 2.08. The charts and momentum are all against the greenback at the moment but it is difficult to see how sterling can remain at these elevated levels for an extended period. The problem is that this is the feeling of too many punters and traders and the price is being dragged higher by too many 'weak' sellers being continually stopped out on a rolling move. Punters remain very short of cable and are benefiting from the mornings slip but everyone must beware the sharp squeezes that are a feature of the current price action.
Gold spent most of yesterday slowly grinding higher from the 780 support level. Punters were continuous buyers throughout the day and this morning are buying again as the 800 level is tantalisingly close. We hit a high of 798 last night and again this morning but the market is sinking slowly as the dollar rallies slightly. We are now spread trading gold a tad at 792.8-793.4. Support is at yesterday's lows around the 780 mark and resistance is obviously at 798 and 800.
Crude Oil reversed the entire 4 dollar fall of Wednesday / Thursday morning as the inventories showed undoubted weakness in US stocks. We are now at another all time high in early trade with Brent December at 91.50-91.55 and Nymex is (like gold) tantalisingly close to a magic number (in this case $100) at 95.60-95.66. If we have a tough winter or the Iran v US disagreements worsen we may well see rather more on this.
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Spread Trading, 31 Oct 07
The FTSE is slowly sinking away from the highs as investors seem to be beginning to wonder at the sense in probing the highs at this time. Although returns and margins appear good for corporate UK the storm clouds can be seen on the horizon in the US. US housing data yesterday made for grim reading. So whilst the economy seems to be continuing (on the whole) to be ignoring this big reduction in average wealth, if the slump in prices goes on for much longer consumers will be hard pressed to keep buying.
That said, at the moment, we can look forward to a possible bit of fun at six fifteen this afternoon as the Fed makes its latest prognostication on rates. For many years the Fed's intentions have been generally signaled well in advance of each meeting but this one is genuinely an unknown. Dealers will not only be eying the actual move but also the comment that goes with it. Whilst the ongoing housing debacle would normally indicate an easing was required, the rest of the economy seems to be doing very nicely, thank you. So any indication of an easing bias will give the bulls just the jolt they are looking for. The problem for punters is the risk that the markets may have been "buying the rumour" and could well "sell the fact". And there is always the fear that if the Fed sees the need for an easing that there may be something nasty on the horizon that the markets have not taking note of just yet.
Anyway, we are seeing the FTSE opening quietly around 10 points lower at 6650-6651in very quiet activity. Volumes across the markets has been very weak for the past few days as we approached the highs and this has caused some worries that the appetite for stock up here may be slackening. Punters appear to be feeling that this is merely a pull back in a bull move as we are seeing a general drift of client buying in the FTSE 100, Dax and American indices. 6655 to 6660 is quite a crucial level and dealers will be hoping that we close above here this afternoon but (of course) with the FTSE shutting up shop at 16.30 and the Fed move at 18.15 that means that the close this evening will probably be significantly different to the open tomorrow. There will be a concerted move out of exposure in the run up to the US announcement and we expect only the more aggressive traders to be risking the markets.
Tate and Lyle confirmed pessimist’s expectations with a 42% drop in earnings and also warned that they had continuing problems with the weak dollar and the price of soft commodities. The stock is opening higher today as obviously investors were braced for something worse. The stock is in reality fairly valued given the market position of the company and, depending on the view of the managements ability to solve the cost/revenue equation, is attracting increased buying from our clients.
Taylor Wimpey have given a bleak view of the US housing markets and is reporting slowing demand for new builds in the UK (not surprising you might think). The stock is some 55%(!) off the highs of May so the poor outlook is pretty much already in the market.
FX markets continue to hammer the dollar but today the Yen is also taking a pounding as rumours of the death of the carry trade continue to be exaggerated. Whilst the cable cross is now over 2.07 for the first time since 'our maggie' was in charge of proceedings the USD/YEN is failing to challenge the 113 to 114 support range and is, in fact, this morning moving in the other direction towards 115 spread trading at 114.96-114.98. The 115.00 level has proved something of a cusp point in the past few months where, if we break through in either direction, the market then moves substantially but if it fails to break then we react with a retracement.
Clients are continuing to sell the pound at these levels and must be wary of a spike as dealers search for weak shorts. It is tempting to suggest that it is foolish to hold a position into this afternoon’s US GDP data and/or the Fed announcement this evening. Either of these could cause a swift price action that may harm short term position holders (in either direction) as there is always the chance of a shift in both directions in just a few seconds.
Gold is sitting quite comfortably at the 782 level and the last few days of dollar weakness does not seem to be giving Gold much of a push. Talk in the press of $1,000 an ounce in the next few years will give the bulls a target to aim for but much can happen before such levels can be attained. In reality, Gold remains an expensive asset to hold, giving very low returns (apart from possible price appreciation), costing money to hold, and reliant on the 'perception' of value. At the moment Financial Spreads are just a few bucks off this morning at 782.0-782.6 and our Capital Spreads clients are busily buying once more on the small fall from the highs.
As feared in yesterdays column "At the moment every newspaper and commentator is talking about $100 but, as is often the case, when everyone is convinced of one outcome, something else happens". Oil has dropped almost 4 dollars since the penning of that statement. Punters will be looking at support in the 85.00 region (Brent December) but if the inventory numbers from the States this afternoon are benign we may well see a swift return into the low 80's. Of course with winter approaching if the numbers show a weak supply situation then the opposite may be the case.
Spread Trading, 30 Oct 07
This time the FTSE did not even attempt to have a look at the 6750 resistance. It failed to make any headway on the estimated pre-open levels at 6725 and then traded in one of the tightest ranges we have seen since the July fall out.
With the Far East having one of its quietest days for months we are opening just a tad lower this morning at around 6690 off 15 pips in line with the slightly weaker US and European markets. There is some minor support at 6685 and then at 6670 but if we drift below 6640 then we may see some more concerted profit taking. The comment from yesterday still holds good, the last three times we attempted to break above 6700 the market reacted with three big falls. But if we can close above 6750 then we may well be off to the races again.
For those of you who like to think that history repeats itself, the announced massive over subscription to the Petro China float has echoes of the UK government float of BP back in 1987 just a few days before the crash! Of course this is unlikely just at the moment but the Hang Seng and Chinese indices are overvalued in anybodies language, in comparison to world equity values, and may well be in line for a correction.
Imperial Tobacco continues to 'thank you for smoking' and have posted a 6% rise in full year profits. Although (of course) in league with the devil the company has managed to fight off an increasingly hostile official line and the stock is one of the best performers in the FTSE 100 (and that includes the mining stocks). The ability of the company to continue to acquire new customers in the face of ever more hysterical warnings says something that the authorities still do not understand about the human psyche. If you demonise something enough you make it attractive.
Schroders have lifted profits by over 50% which shows that not all Funds have suffered in recent times. The rise in the stock over the past year did demand a return in this region but the results are going to bolster their reputation and fund raising ability.
On the FX front Cable, like the FTSE, had a sniff at the highs yesterday before selling off back into the 2.0500's but this morning we are seeing increasing buying below 2.0600 as punters begin to believe that the pound can follow the euro higher. GBP/EUR has bounced off the 1.4240 level again and may now be looking at a double bottom on the charts. If the pound returns to favour there is quite a bit of room for manoeuvre above here at the moment with bulls looking for an initial target of 1.4500 and then way up at 1.4800. Of course it will take a significant change in euro perception for this to happen and the most likely direction is still a continuation of the current trend lower but…
Gold markets have paused for breath in their headlong rush for the $800 level and are now ten dollars off the highs of yesterday. The gold spread betting market is now at 785.5-786.1 but this is already 3 dollars higher than our opening level of 782 as dealers yet again take any sell off as an opportunity to buy. The charts briefly gave the impression that we may be forming what is known as a potential 'island reversal' but the first hours price action has closed off this possibility. Our clients remain massively long and are happy to pick up more on this small reversal. Even a reversal to 760 would not dent the trendline higher.
The Brent Crude spread betting market drifted slightly lower this morning as the storms in the Gulf abate slightly and the political tensions go nowhere. At the moment every newspaper and commentator is talking about $100 but, as is often the case, when everyone is convinced of one outcome, something else happens. Our clients are actually pretty flat in oil at the moment as they try to get a handle on whether we will push upwards or whether the elastic band effect will plummet us back down again. It is advisable at these levels to keep your stops in tight no matter which way you bet as the price action is very violent and will not be kind if you get it wrong.
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Spread Trading, 29 Oct 07
Markets are off to the races this morning with the FTSE called up 55 points at around 6715 the Hang Seng up yet another 1000 points(!!) Gold zoning in on $800, Nymex Oil blasting over $92 and Sterling now sniffing at 2.0600 for the first time since the fall back in July.
Can we take all the excitement!
Investors are piling into the equity markets as returns elsewhere start to look less attractive. The main UK index is looking at a swift return to the major resistance level at 6750 where we failed on the 18th June at 13 July and just a few weeks ago on the 15th of October. The rejection of this resistance point has so far initiated falls of 250, 940 and 350 respectively so bulls will be eyeing it with trepidation. Punters are still very long of most of the FTSE constituent stocks and there will probably be some small position lightening if we approach the 6750 level. With the emerging markets continuing to power ahead the 'Old World' it is beginning to look rather staid and uninteresting in comparison.
There is absolutely no major corporate news out this morning and only a few minor money supply numbers from the Treasury at 09.30 so we cannot look forward to much in the way of help or hindrance from this quarter (although a weak Consumer Credit number might harm retailers).
FX markets continue to favour Europe over the Dollar with the Euro now at a new all time high, it's over 1.44 for the first time. Trying to short the Euro has been dear for many traders but we are now in fresh air on the harts and it is difficult to see what will turn the mighty euro around. There is minor support at 1.4380 and major support way down at 1.4075 with resistance on an extension move at 1.4440 and then at 1.4590.
Cable is merrily following in the euro's wake as dealers probe the easier direction. With many punters trying to short the market dealers are pushing higher trying to take out weak shorts. In the current environment there is a chance of a serious spike higher. The spread betting cross is now at 2.0574-2.0577 with our clients dangerously trying to find a high and selling all the way.
The Gold market is up another 7 bucks this morning at 791.7-792.3 as the race for the 800 level hots up. We have now rallied some 40 dollars in four days as the charts give the impression of the blowout move that traders have been waiting for. As dealers attempt to find highs there is more and more squeezing of shorts and at would be foolish to try to call a top just at the moment.
Brent Crude Oil is also powering higher as dealers speculate on political risk levels. With the winter upon us any extra worries are likely to exert ever more pressure on prices. It is in Russia’s interest that tension is kept high as they make a nice little turn the higher the price goes. With the states and even Europe worried by Iranian nuclear ambitions this story could run and run. It is probable that the US administration believes they invaded the wrong country! For all of Saddam’s WMD claimed capability he was never on the nuclear ladder. Fortunately there is now no appetite for 'gun boat' diplomacy so in the words of Winston Churchill "Jaw, Jaw" rather than "War, War" is likely to be the solution this time
For the latest spread trading update from Simon Denham click here.
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'Spread Betting Platform' by DB, updated 09-Nov-07
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Who to trade with? It's a tough question. Have a quick look to see who offers the spreads and service to suit you....read article. May Spread Trading Hours, updated 05-May-08
May Holiday Trading Hours...read article. Financial Trading April 2008, updated 25-Apr-08
Spread Betting market trading update: We are still stuck just under the 6100 level this morning but the bulls seem to have the best of it at the moment. Every time we get up to this level it seems as though the break out is imminent only for traders to run...read article. Financial Spread Bets April 2008, updated 11-Apr-08
Spread Betting market news: FinancialSpreads.com clients have been building up short positions in indices over the past few days so they will be glad to see the market dipping back below the 6000 level this morning. This morning the market has wiped out only half of the gain it made yesterday and whilst this cannot be considered as profit taking, it indicates the ...read article. Markets March Spread Trading, updated 28-Mar-08
Spread Betting markets: Markets went up down sideways etc but in the end closed pretty much mixed. Europe up about a percent and the US and Americas down a percent. Asia has joined Europe but not enough to influence the open this...read article. Markets March Spread Betting, updated 14-Mar-08
Spread Betting market information: If the moves by the US do in fact work then this should help across the board. Many punters will be shy of getting too enthusiastic as we have seen these rallies too often over the past few...read article. Markets February Spread Trading, updated 29-Feb-08
Spread Betting market information: Today we are looking at further opening falls with early the FTSE spread trading at 5945 - 5946 another 15 points lower. The volumes on the exchanges remains weak which is causing such heavy moves as market makers swiftly adjust prices. In conversation with some of the quoting brokers it appears that they are running...read article. Real-time Spread Betting Prices and Charts, updated 15-Feb-08
Spread Betting pricing information: The banking sector, which has been pretty hard hit anyway, took a triple whammy this week: UBS reported almost unbelievable sub prime/credit losses, Bradford and Bingley reminded us that there are...read article. UK Markets Spread Trading, updated 01-Feb-08
UK Markets Spread Trading : When the going gets tough the blame game begins and one of the easy targets in every period of uncertainty is the banks. You can hardly open a newspaper today without reading some journalistic outpouring, railing against the evil conspiracy of global money. It might be a good moment to point out that...read article. Spread Betting on Markets, updated 18-Jan-08
We answer your Spread Betting questions, plus offer tips on getting free Spread Betting charts, real time prices and...read article. Spread Betting Trading Online, updated 21-Dec-07
Find out where you can Spread Trade online for free, plus your Spread trading questions answered, tips on getting free Spread Betting charts, real time prices and...read article. Spread Betting Futures Trading, updated 07-Dec-07
Where to trade plus updated Spread Betting trading news and the most popular Spread Betting questions answered....read article. Spread Betting Broker, updated 23-Nov-07
Where to find free Spread Betting Brokers plus regular Spread Betting financial trading news as well as the most popular Spread Betting questions answered....read article. Spread Betting Platform, updated 09-Nov-07
Where to find free Spread Betting Platforms plus updated Spread Betting trading news as well as the most popular Spread Betting queries answered....read article. Spread Betting Software, updated 26-Oct-07
Where to find free Spread Betting Software information plus updated Spread Betting trading news as well as the most popular Spread Betting queries answered....read article. Spread Betting Prices, updated 12-Oct-07
Where to find free Spread Betting Prices plus updated Spread Betting news as well as your top Spread Betting questions answered....read article. Easter Trading Hours, updated 04-Jul-08
Easter Financial Spread Betting Hours. Ensure you are not get caught out. The Financial Spreads opening hours provide an example of what you can expect. However please...read article. Trading Hours Presidents Day, updated 18-Feb-08
A quick look at the President's Day trading hours. FinancialSpreads.com's opening hours provide an example of when you can expect the markets to be open. Please check directly with other spread betting brokers...read article. Holiday Trading Hours, updated 22-Dec-07
A quick look at the seasonal trading hours. FinancialSpreads.com's festive opening hours provide an example of when you can expect the markets to be open. Please check directly with other spread betting providers...read article. Spread Betting Comparison, updated 23-Jun-08
Spread Betting Comparison Notes...read article. Financial Trading Email, updated 31-Jan-08
Free financial trading email. Unsubscribe easily and immediately....read article. Compare Spread Betting Companies in the UK, updated 27-Jul-07
We provide you free online information on the UK financial spread betting market. Financial spread betting allows you to bet on the key financial markets. Spread betting can give you an edge because the profits that you make from financial spread betting...read article. Compare UK Spread Betting Companies, updated 03-Sep-07
Compare the width of the key spreads offered by the spread betting companies. Does your company offer the narrowest spreads?...read article. Financial Spread Betting Articles, updated 03-Oct-07
Hundreds of spread betting articles from the latest news to spread betting tips to how to spread bet to where to find the latest prices, free charts and...read article. Financial Spread Betting, updated 13-Nov-07
Welcome to Clean Financial - the financial spread betting and trading website. Get free spread trading news, tips and strategies, company reviews, discover important account options and more....read article.
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Risk Warning: Spread betting carries a high level of risk to your capital and you may lose more than your initial investment. It may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary.
* Tax law is subject to change or may differ if you pay tax in a jurisdiction other than the UK.
