This week’s financial spread betting update is now available and can be read by clicking here.
In last week’s update we wrote about the indecision that was evident in numerous stocks and commodities by the candle patterns that had formed at or near resistance patterns. We got follow through on many of them early last week with the formation of morning star patterns and the completion of other reversal patterns. This sent stocks lower and the dollar higher, both moves that are back in the direction of the long-term trend. This, at least for now appears to have brought an end to the 3 week counter trend rally in stocks.
This morning has seen stocks resume weakness and the dollar gain as troubles in Europe continue to fester. It still amazes me that people still think it’s possible that Greece can avoid a default, when it is in fact a racing certainty that they will default. Over the weekend the news came out that the Greek PM George Papandreou will resign and a new coaltion government will form and that is causing Papandemonium!
All of these events, as well as other events in Europe, along with currency interventions seen recently from the Bank of Japan have caused an almost unprecented level of volatility in the markets, making conditions extremely tough to trade. These conditions will not likely last and usually have a way of resolving themselves with large trends once people stop fighting the markets. As with last week, an interesting week lies ahead.
This week’s financial spread betting update begins with:
The past week has bucked the recent short-term moves, which were against the long-term trend, to resume direction in the direction of the primary trend. These primary trends are still down for stocks and up for the dollar. Commodities still remain mixed but for the most part are still in long-term downtrends. The inverse relationship between stocks and the dollar continues………continue reading by clicking here