Financial spread betting news 5th December 2011
This week’s financial spread betting update is now available and can be read by clicking here.
The bullishness from last week has carried over into early trading this morning and we may well see a test of numerous resistance levels that we wrote about in more detail in this week’s update. This has also corresponded to further weakness in the US dollar and a subsequent gain in commodities.
This inverse relationship has been in place between the dollar, stocks and commodities for the past 2-3 years, which is a big reason that all markets have been moving almost in lock step. This has been a large contributor to the historically high levels of volatility that we have seen over this same period as any move in one of these sectors has also been met with a similar move in the others, with the dollar being the main driver.
In a nutshell, a rising dollar translates to lower stock and commodity prices and a falling dollar equals higher stocks and commodity prices. This is another reason why this week ahead could be an interesting one as the major stock indexes and several major currencies are all approaching resistance levels. The outcome of what happens at these levels, either breakout or reversal may set the tone for the rest of the year.
This week’s financial spread betting update begins with:
The past week has been bullish for stocks and bearish for the dollar. This was not all that surprising as the prior moves in these markets had been large, so a correction was always possible. The long-term trends however remain unaffected and the week ahead should be interesting.
The long-term trends remain in place, and are down for stocks and commodities, and up for the dollar and interest rate future…….…continue reading by clicking here
Good trading
Phil Seaton
P.S. Click here to find out more about our financial spread betting system
P.P.S. Click here for more information on our dedicated forex system.
Financial spread betting update 28th November 2011
This week’s financial spread betting update is now available and can be read by clicking here.
Following last week’s shortened trading week due to the US Thanksgiving Holiday, which was the worst Thanksgiving week stocks wise since 1932, the markets have begun this week in a much more bullish fashion, paring some of last week’s losses. This is not all that unexpected considering the extent of recent moves which have seen the stock indexes decline for 7 straight sessions, so a bounce is not altogether surprising. The long-term trends however are still very much intact so how long this bullish move continues for remains to be seen.
Friday saw some bullish retail numbers coming out which is possibly lifting the mood and today is “Cyber Monday” where retail figures normally continue to do well especially with shoppers seeking bargain deals in tough economic conditions. However, normal is nothing something that cannot really be aimed at the current economic situation or the markets, which for the most part this year have been anything but normal. This was typified last week by the normally bullish Thanksgiving week being the worst since 1932. Therefore the seasonal argument for December being bullish and people starting to look for the much-discussed Santa Claus rally in late December does come into question. Time of course will tell
This week’s financial spread betting update begins with:
The past week was a shortened trading week due to the US Thanksgiving Holiday and it was a negative week for stocks and commodities but a bullish week for the dollar.
The long-term trends remain in place, and are down for stocks and commodities, and up for the dollar and interest rate futures…….…continue reading by clicking here
Good trading
Phil Seaton
P.S. Click here to find out more about our financial spread betting system
P.P.S. Click here for more information on our dedicated forex system.
Financial spread betting update 21st November 2011
This week’s financial spread betting update is now available and can be read by clicking here.
In what is historically a fairly bullish week in the build up to the US Thanksgiving Holiday on Thursday, the markets have very much got off on the wrong foot and at the time of writing are sharply lower. In this week’s update we wrote that trading off seasonal tendencies alone is not a sufficient reason to take or not take trades, and although things can soon change in the current market climate, that view is being borne out this morning.
As ever, the inverse relationship between stocks and the dollar continues, with the dollar rising as stocks fall. The other safe haven currency is the Yen and that is also rising this morning. For now the Swiss Franc’s status as a safe haven is off the table following the SNB’s intervention several weeks back. In addition, a rising dollar is negative for commodities as commodities are priced in dollars, so dollar strength is sending commodities such as Gold and Crude lower this morning. There is therefore a lot of red on the trading screens this morning!
The long-term trends remain in place, and are down for stocks and commodities, and up for the dollar and interest rate futures.
This week’s financial spread betting update begins with:
The week ahead will be a shortened trading week due to the US Thanksgiving Holiday on Thursday. US markets are closed on Thursday and Friday is a shortened trading Day.
Last week we wrote that many markets were in trading ranges are were approaching support/resistance levels and that there could be several breakouts, and we saw that this past week and the same still applies for the week ahead as more key levels look set to be tested…….…continue reading by clicking here
Good trading
Phil Seaton
P.S. Click here to find out more about our financial spread betting system
P.P.S. Click here for more information on our dedicated forex system.
Financial spread betting update 14th November
This week’s financial spread betting update is now available and can be read by clicking here.
In early trading this morning the dollar is once again gaining ground and regaining some of the losses seen during the latter part of last week. The long-term trend continues to favour the dollar almost across the board. Further dollar strength, should it come, will lead to a test of some key support/resistance areas against several of the major currencies and any breakouts may lead to some decent moves in favour of the dollar, which would pressure stocks and commodities. So far this morning, in spite of mild dollar strength, stocks and commodities are higher.
That said, we are in a seasonally bullish time of year and due to the normal inverse relationship between stocks and the dollar (as well as commodities) any stock rallies would pressure the dollar once more. As we write in this week’s update, the market to focus on is the S&P 500, with resistance around 1300 and support around 1200. A break of either of these levels will likely lead to a clearer picture.
Since last week’s update both the Greek and Italian PMs have both resigned and that goes to further emphasise the troubles within the Eurozone, which don’t like to be improving anytime soon.
This week’s financial spread betting update begins with:
The long-term trends still remain intact across the 4 primary sectors of stocks, commodities, forex and interest rate futures but many markets are in short term ranges and possibly on the verge of breakouts. Currently these trends are down for stocks and commodities, and up for the dollar and interest rate futures…….…continue reading by clicking here
Good trading
Phil Seaton
P.S. Click here to find out more about our financial spread betting system
P.P.S. Click here for more information on our dedicated forex system.
Financial spread betting update 7th November 2011
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
Good trading
Phil Seaton
P.S. Click here to find out more about our financial spread betting system
P.P.S. Click here for more information on our dedicated forex system.