Spread Trading 23 Feb 10
|
|
 |
The regular Financial Markets Update from Simon Denham of Financial Spreads.
For today's update >> Financial Markets.
Spread Trading 23 Feb 2010
As mentioned in yesterday’s comment, virtually every market was sitting just under the resistance levels with Indices, Gold and Oil all pressing to move higher.
By the close most markets had drifted away from the top of the ranges but had definitely stayed within reasonable touching distance of making another attempt.
This morning has seen the currency markets take a break to the upside with resistance versus the Dollar giving way in early European action.
Dealers will be aware that over the past months Dollar weakness has tended to be, though not always, a trigger for higher prices. Bulls will be hoping for more of the same.
In pre-market action, Commerzbank has announced worse numbers than forecast but this has, yet again, failed to bother the equity markets one jot.
The constant ability of the markets to ignore poor data is definitely encouraging for those looking for a continuation of the recent bounce.
And, although we must be very wary of a sudden shift in sentiment into bearish territory, our clients seem to be picking up on the feeling.
Normally at the highs or lows we see quite a bit of client ‘contra trading’ as they try to call tops or bottoms but this time dealers seem content to ‘go with the flow’.
This said, resistance in the FTSE remains exactly as we said yesterday at 5370-5385 and funnily enough the high was 5384 so I win the fluffy bunny. We must break through here soon otherwise the level will gain confirmation status, encouraging heavier selling pressure.
The S&P 500 likewise followed the pattern mentioned yesterday of trading above 1110/1112 only to fade by the close.
This morning we are at 1113.5 so we might almost be talking about déjà vu once more.
The major western indices are bullish, no doubt about it, but we must break soon.
Currencies traded in a very restricted range yesterday but have already broken out in early European action with the Cable cross now up at $1.5560.
There is big resistance at $1.5570 to $1.5585 and $1.5615/1.5625 which may well cap us for the time being.
We have seen so many attempts to try to reverse the Dollar rally over the last few months, all of which have come to nothing in the end, so it is difficult to get too excited just yet.
But it must be noted that the Euro and Yen are also probing the up side so perhaps today is going to be a bad day for the US currency. Definitely a case for waiting on events.
On the commodities front, Gold seems strangely muted having once more attempted to break above $1127 only to fail and drift later in the session.
For the bulls the fact that the pull backs are getting weaker and weaker is definitely something to cling to.
Since the lows on the 5th Feb, every rally has peaked at a higher price and every sell off has given up, again, at higher levels than the last.
This is generally seen as a classic example of a bull market. While money can be made on the short side, many clients took the resistance level at $1127 as a good point to sell, dealers should beware of getting too aggressive on the bear front.
If we manage to trade below $1108, and more especially $1098, then we may agree that the momentum for the bulls will have gone.
Oil seems to be contemplating life around the 80 Dollar level again. There is no current appetite to take us above $81 and similarly $79.50/79.60 looking too much of an effort for the sellers.
More solid news on Far Eastern growth would no doubt pressure the up side but for the moment we seem quite comfortable.
Dealers will be watching the aforementioned levels for evidence of a break, or for range trading opportunities, but with the price currently at $80.30 there appears little for new position takers to get their teeth into.
The above comments do not constitute investment advice and neither Financial Spreads nor Clean Financial accept any responsibility for any use that may be made of them.
Financial Spreads >>
"With FinancialSpreads.com you get all the normal
advantages of Spread Betting plus..." >> read
Financial Spreads review.
|
Risk Warning: Spread betting carries a high level of risk to your capital. 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.
Article provided / approved by Financial Spreads which is a trading name of London Capital Group Ltd which is authorised and regulated by the Financial Services Authority (FSA), FSA Register number 182110.
'Spread Trading 23 Feb 10' edited by SD, updated 23-Feb-10
Related Articles:
Financial Markets, updated 07-Feb-12
Financial Markets - your daily update on the markets with views and opinions from the insiders, plus a look at...read article: Financial Markets.
Online Spread Trading, updated 31-Jan-12
A look at the latest spread betting markets plus company reviews, compare prices and details on where to free charts and free live prices....read article: Online Spread Trading.
FTSE Spread Betting Market Breaks Higher on Positive EU Debt Auctions, updated 20-Jan-12
Yesterday saw a few rays of sunshine for the Eurozone as Spain and Portugal managed to not only find buyers for their debt but also keep the interest rates low. This helped the FTSE spread betting market break...read article: FTSE Spread Betting Market Breaks Higher on Positive EU Debt Auctions.
Gold Rises on Commodity Spread Betting Markets Amid US Dollar Weakness, updated 19-Jan-12
Thanks to a weaker US dollar, gold enjoyed a third day of gains yesterday as investors viewed the dollar denominated commodity spread betting market as a bargain. Some may...read article: Gold Rises on Commodity Spread Betting Markets Amid US Dollar Weakness.
FTSE Spread Trading Market Lags Behind Strong European Indices, updated 18-Jan-12
With the German DAX and French CAC leading the way it could only be a matter of time before the FTSE gets through the near term resistance barrier and tests the highs from...read article: FTSE Spread Trading Market Lags Behind Strong European Indices.
Spread Betting Account Holders Sell FTSE 100 Despite Chinese Data, updated 17-Jan-12
Our spread betting account holders remain sceptical of the positive Chinese GDP result, presumably with the belief that the Eurozone woes will rule. Selling into the recent strength has...read article: Spread Betting Account Holders Sell FTSE 100 Despite Chinese Data.
Indices Spread Betting Markets Fall on S&P EU Downgrades, updated 16-Jan-12
The indices spread betting markets suffered decent losses on Friday as the rumours of S&P's downgrades spread, but not quite as much as you might expect since investors knew...read article: Indices Spread Betting Markets Fall on S&P EU Downgrades.
First Page << 1 2 3 4 5 6 7 8 9 10 11 12 >> Last Page
Daily Spread Trading Index
Index of spread trading articles - the regular Spread Trading Update from Financial Spreads...see Index.
|
|
Q) Average Trading Results?
A) Get free spread betting tips, offers, price updates, important news and more!
|
|
