In today’s post we’re going to have a look at some spread betting strategies that can be used for the week ahead in a couple of popular markets that we trade which are the S&P 500 (the primary stock index) and gold.
Let’s begin with the S&P 500. We have been writing in depth about the S&P 500 for the last few weeks and have touched on various spread betting strategies that can be used in this market. Right now this market is at a point of indecision and could go either way. My view is unless you are already in trade in this market that it’s best to wait for a clearer picture once the market has given some confirmation of direction. Long term the trend is down, so I’ll only be using spread betting strategies from the short side.
Another market that has been in focus for us is Gold. Last week the market headed lower but not sufficiently to give a long term trend change to down. Therefore, spread betting strategies from the long side should be favoured but further strength needs to be seen before initiating any new positions in my opinion.
Last week we got new multi-week lows on the December contract at $1159.3 but also got a bull harami pattern, which is not so much a bullish reversal pattern but more an indication that the bears were running out of steam. From there we got a continuation higher to Friday’s close at $1183.9. There should be good support from the 200 day moving average around the $1150 area, but I’d still like to see a break above $1222 before looking at entering long.
Until next time, good trading