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

Stocks have begun the week very much on the back foot and at the time of writing, the FTSE 100 is already down 1.51% for the day. The Dax is also taking a battering and U.S. futures are indicating a sharply lower open. If, and it looks likely, that U.S markets do open down, the Nasdaq 100 will go below the 50 day moving average, putting all the stock indexes that we trade at LS Trader below their 50 day MAs. The short-term trend is down for the world’s stock indexes, but due to the extent of the prior rally and as covered in more detail in this week’s update, the long-term trend is still up.

As is pretty much always the case, we are seeing the opposite move from the dollar to stocks, with the dollar gaining against all the majors with the exception of the Japanese Yen, a safe haven currency. The dollar gains are pushing commodities lower, even the best performing commodity of the year, Soybean meal, is pointing lower. Gold is also lower by just over $10 at present and may well be heading for the recent lows and key short-term support at $1613. Should it break that level of support there is almost $100 before the next major support level.

This week’s financial spread betting update begins with:

The past week has seen stocks move slightly higher with the exception of the Nasdaq 100, which is still the only index to remain above the 50 day moving average.

The dollar reversed upon reaching key support and resistance areas and has therefore moved back to within the recent range against most of the majors with only a couple of exceptions..……continue reading by clicking here

Good trading

Phil Seaton

P.S. Click here to find out more about our proprietary financial spread betting system

P.P.S. Click here for more information on our dedicated forex system.

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

Stocks have begun the week with a continuation of the weakness seen at the tail end of last week. S&P 500 futures are just edging below the lower trend line of the bull channel that we have been writing about recently so we may be going to see some further weakness in the short term for stocks. As we cover in this week’s update, we need to see what happens with today’s action and closing price in order to see if last week’s highs will be the top for the time being. A long down candle on the Nasdaq 100 would complete an evening star reversal pattern, which would be bearish for the short term.

The dollar is gaining ground this morning particularly against the commodity based currencies and is also higher against the Pound and the Euro which both made reversals in the direction of the long term trend last week and may yet head lower. If stocks do continue to falter we will likely see some further dollar strength and this will have an impact on commodities. Gold has moved back below $1700 and will likely test last week’s lows at $1688. The trend remains down for gold.

This week’s financial spread betting update begins with: The past week has seen stock indexes continue to climb higher but there are signs that momentum may be beginning to wane. The dollar has also advanced for the week overall and commodities have been mixed. With a few exceptions volatility is at much lower levels than it has been for much of the past 2-3 years and many markets are trending well.

Long-term trends are up for stocks and mixed for the dollar and for commodities.……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.

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

Stock indexes have begun the week on the back foot, pulling back from last week’s highs. As we cover in this week’s update there is a critical level on the S&P 500 around 1385 on the March contract (around 1370 on the cash S&P500), which is the 2008 high. We can likely expect some resistance around those levels and if the S&P fails to clear resistance there we will likely see some sort of pullback that will likely drag the other indexes lower. However, a break above that resistance level would be very bullish and open the way to at least 1400, therefore focus should be on the market’s reaction at these levels if indeed they get there.

Currencies are mixed with some advances and declines for the dollar. We can expect the opposite move from the dollar that we see in the stock indexes due to the long-term inverse correlation between the two.

Commodities are also mostly off last week’s levels and Crude is down over a dollar at the time of writing, and gold is also lower by around $8. The long-term trends are still intact but there are possible trend changes to up this week in some of the grains markets and some metals.

This week’s financial spread betting update begins with: The past week has seen stock indexes continue to climb higher, in some cases to new multi-year highs. We have also on balance seen the dollar continue recent weakness and commodities advance.

Long-term trends are up for stocks and are heading that way for commodities. The trend for the dollar is up on balance but may be changing soon……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.

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

The markets have begun the week in bullish fashion, continuing strength seen last week. The U.S. markets are officially closed today due to the Presidents’ Day holiday, therefore volume may be thin, as it was on Friday. As we cover in this weeks update, U.S. stocks are at multi year highs in some cases and have recovered their losses since June 2008.

European indexes are also on the move, with the Dax now heading towards 7000 for the first time since August last year.

Commodities are also higher with Crude breaking through to its highest level since May last year. There is little in the way of resistance on the Crude chart to suggest that it won’t continue higher towards last year’s highs.

Currencies are mixed but are mostly dollar negative, as one would expect with stocks on the move higher. The inverse relationship between the stocks and the dollar is still intact. Dollar weakness is also assisting Gold, which continues to edge higher. Overall the trend is towards risk-on strategies at present and the uptrend in interest rate futures is under pressure, with a likely test of medium term support soon.

This week’s financial spread betting update begins with: The past week has seen stocks reach and move above our long-standing target of 1355 on the S&P 500 and U.S. stocks have now all but erased their losses since June 2008. The trend remains up for stocks with indexes either at or near multi year highs (the Dow 30 hit a 4 year highs this past week and the Nasdaq 100 reached its highest level since 2001)………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.

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

This update is coming to you one day later than normal due to the U.S. markets being closed on Monday due to the Martin Luther King Holiday. Although other world markets were open relatively little usually happens as volume us light until U.S. markets open again.

This held true again this year with little happening yesterday. This morning though has seen stocks open higher and the inverse correlation between stocks and the dollar that we covered in this week’s update is showing up this morning and the dollar is lower. The other part of that inverse correlation is between the dollar and commodities, and a lower dollar usually equals higher commodity prices and we are seeing that again this morning with commodities, particularly gold and crude both higher this morning.

This morning’s rise in stocks has taken the S&P 500 up to test the critical 1300 level, which if cleared, especially during the U.S. session later on today may well lead to a move higher towards the May 2011 highs. This may subsequently lead to new highs for stocks since the March 09 lows but that remains to be seen. Of all the stock indexes that we trade, only the S&P 500 is in a long term uptrend although the Nasdaq 100 is close to giving a change of trend. The Nikkei and Dax are lagging behind so overall the trend for stocks is still down. The trend is also still down for commodities and up for the dollar.

This week’s financial spread betting update begins with: We wrote last week that the way the year has started with both stocks and the dollar rising is unusual and this has continued this week. The dollar index has risen to its highest level in a year and the S&P 500 has also reached a multi-month high. Stocks and the dollar are historically inversely correlated so how much longer both markets continue to rise together for remains to be seen. Probably not very long will be the answer………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.

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

It’s been a relatively quiet start to the trading week with stocks and the dollar pretty much flat at the time of writing, although the Nikkei was lower by 1.26% in overnight trading.

Traders will be on the lookout for the Santa Claus rally, which historically runs for around the last 5 trading days of the year through to the first 2 trading days of the New Year. Whether this happens this year remains to be seen but unless there is a strong rally which currently appears less likely, December is looking like a negative month for stock indexes. It may also be a negative year for stocks as the S&P 500 opened the year at 1234, so unless we get some upward movement from today’s level the markets will be down for this year.

Following some large movements last week in the energy and metals sector, particularly Gold and Crude oil, it will be interesting to see what happens this week and whether weakness continues or if we get some kind of bounce higher. Gold in spite of the large sell off last week is still quite well ahead for the year but considerably lower than the all time highs posted in September.

This week’s financial spread betting update begins with:

As the year moves into the last 2 trading weeks, the long-term trends continue as they have for much of the year, down for stocks and commodities, and up for the dollar and interest rate futures.

Last Friday was triple witching, which saw stock index futures and forex futures roll out of December into June………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.

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

In early morning trading today the dollar is gaining ground across the board. At the same time commodities are lower as are stocks. This is common when the dollar gains as stocks and commodities are generally inversely correlated with the dollar.

As a general rule this is a bullish time of year, with from here in to year-end typically being bullish, but as we cover in this week’s update seasonality is not enough by itself to place trades. An example of that is Gold, which also on a seasonal basis tends to do well in December but that is not the case so far this year and gold is lower by some $24 this morning at the time of writing and is now back below $1700. Gold is still in a long-term uptrend and is the last of the metals to still be in an uptrend. Silver, which often moves pretty well in tandem with gold is considerably lower this morning as are the other metals.

In this week’s update we touch on the large triangle pattern on gold that has formed over the past few months and note that a breakout from that triangle may lead to a decent move in the direction of the breakout. This morning’s action has given gold a downside breakout, but as mentioned above, the long-term trend is up. The next support area to look out for is $1670. Beyond that we’re looking at $1600 and then $1550.

This week’s financial spread betting update begins with: The past week saw a small continuation of strength for stock indexes but further weakness was seen in the commodity markets and the dollar for the most part was flat. Much of the week has been focused on events in the Eurozone with the Euro summit taking centre stage…….…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.

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.

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.

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.