Financial spread betting update 11th July 2011

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

Early trading this morning has seen a continuation of weakness seen towards the end of last week following the disappointing job figures from the US. So far this morning stocks and commodities are lower and the dollar is higher, virtually across the board. The dollar is in particular higher against the Euro and the British Pound and is pushing both currencies down towards major support levels.

Overall, volatility continues across most market sectors and is currently present in stocks, commodities, currencies and interest rate futures as it has been for much of the year to date. This is due to the markets being undecided on future direction. At some stage and probably in the not too distant future the position is likely to be clarified and we will then likely see some strong trends. Markets tend to vacillate between periods of trending and periods of consolidation and an extended period of one is often followed by and extended period of the other. This is likely to happen irrespective of which way the markets eventually break.

We’ve been saying for some time that irrespective of the positive spin that has been put on the economy by the media and politicians that there is no economic recovery underway and that is the case both here and in the US and that has been further emphasised by figures coming out of both the UK and the US. That does not mean necessarily though that the stock markets will collapse although that is a possibility. The flip side is that should economic weakness continue so will loose monetary policy and cheap money, which can be inflationary and good for stocks. This is another reason for not attempting to predict the markets or trade on fundamentals, but simply follow the trend and let the markets tell you where they want to go. In the long run this is always the best approach.

This week’s financial spread betting update begins with:

The long-term trends are still mixed for stock indexes even though the past week has been quite bullish. Trends are also mixed for commodities and are still down for the dollar. Volatility has been present of late in many markets and sectors but we could be on the verge of some decent breakout moves soon……continue reading by clicking here

Good trading

Phil Seaton

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