Financial spread betting update for 20th December 2010

This week’s financial spread betting update is now available and can be read by clicking here.

In early trading this morning the markets are fairly quiet but we have already seen the Euro slip to a new 2 week low against the US dollar and may now fall further to test support at the lows of a bullish engulfing pattern formed on the 1st December. A break of that level could pave the way to some fairly steep declines and such a move may also impact stocks and commodities, which for most of this year have held on to an inverse relationship with the dollar.

Stocks are this morning very slightly higher and may test resistance levels on the S&P 500 on what is normally a bullish time of year for stocks. Volume is likely to decline a bit as the week moves on towards the holidays so we may see an increase in volatility.

This week’s financial spread betting update begins with:

The past week has seen stocks and the US dollar edge marginally higher whilst commodities have been mixed. The long term trends in the majors sectors remain as they have been for quite a while and these are up for stocks & commodities and down for the dollar. Of each of these three sectors the only one likely to make a change of long term trend in the foreseeable future is the dollar…

Good trading

Phil Seaton

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