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

Toady is Labour Day holiday in the US and US markets are closed. We can therefore expect a quiet trading day today both in terms of lower volatility and lower trading volumes.

This week’s financial spread betting update begins with:

Stocks markets saw a large turnaround as the S&P 500 found strong support and helped push stocks higher. Commodity markets also rallied with a few markets making multi year highs as the US dollar fell..….continue reading by clicking here

Good trading

Phil Seaton

PS. You can sign up for a risk free trial of our proprietary financial spread betting system by clicking here. The system comes with a 30 day no questions asked money back guarantee and covers each of the stock, commodity and forex markets discussed above.

The September financial spread betting newsletter is now available. If you are already on our list the newsletter will be sent to you automatically by email. If you are not already on our list (if not, why not?) please enter your email address in the box at the top right hand corner of this page and we will send you the newsletter instantly by email.

In this month’s issue we take a look at the markets that have been moving of late with particular focus on interest rate futures, stock indexes, currencies and some commodities.

We’re now entering what is seasonally the weakest month of the year and September is on a percentage basis the biggest losing month for the S&P 500, Nasdaq 100 and Dow 30. Considering that the markets are up for this month already there could be some good opportunities for going short stocks and making money from the downside if stocks do once again break lower later this month.

The long term trend for stock indexes is very much down and there is plenty of good upside resistance so although we may see some strength in the short term the odds favour lower prices for stocks in the medium to long term.

Good trading

Phil Seaton

P.S. To receive each month’s financial spread betting newsletter by email simply enter your name and email address in the box provided in the top right hand corner of this page for instant access.

P.P.S. Find out more about our financial spread betting system for stocks, commodities and forex by clicking here.

This week’s financial spread betting update is now available and can be read by clicking here. There is a raft of economic data coming out this week so we may see some decent moves in the markets. In the US, the latest unemployment figures are due to be released on Friday and that will likely underscore the recent signs of a slowdown for the world’s largest economy.

Today is Bank Holiday in the UK so trading is a little quiet this morning but will pick up later when the US markets open. Already we have seen the bank of Japan ease policy, with little impact being seen on the Yen. If anything traders may have been looking for something more aggressive from the BOJ and the initial small move higher for the Yen this morning has already faded away.

In this week’s spread betting update we take a look at the S&P 500, which fell to new 7 week lows last week before a recovery on Friday. Good support has come in at 1038 and that will be the level to watch this week to the downside. A close below 1038 may trigger further selling. To the upside resistance remains in place at 1100. The trend remains down for stocks.

Last week saw some decent moves in a few commodity markets with energies reversing off the lows in a counter trend move. We also saw gold and the other metals move higher with the biggest gainer being Silver, which advanced 5.73% for the week.

The focus will also be on interest rate futures, which having hit new highs on Wednesday sold off in to the close on Friday. The trend is still bullish for this sector with the markets currently holding above support.

This week’s financial spread betting update begins with:

Stocks continued to drift lower for the week but recovered somewhat on Friday but the trends remain down. Commodity and currency markets remain largely undecided on future direction as the general theme of volatility continues across many markets..….continue reading by clicking here

Good trading

Phil Seaton

PS. You can sign up for a risk free trial of our proprietary financial spread betting system by clicking here. The system comes with a 30 day no questions asked money back guarantee and covers our spread betting strategies for each of the stock, commodity and forex markets discussed above and many more.

Today we take another look at spread betting the S&P 500 and some spread betting strategies that can be used in this market.

As we have been writing for quite some time now, the S&P 500 remains in a long term downtrend so we are still only using spread betting strategies from the short side.

The important things to look at in this market at present are the direction of the long term trend, which is down, and the failure for the market to clear strong resistance at 1129. We have been writing about the importance of that particular resistance level for a long time and the market’s behaviour over the past couple of weeks has confirmed the importance of that level.

Resistance at 1129 has been tested on numerous occasions and each time buying has dried up and sellers have taken over and this culminated with the steep sell off last week. Since then the market has found some support but has not been able to recover.

On the longer term charts using the weekly timeframe we got a bearish engulfing pattern, which suggests that the market may move lower again in the direction of the trend. The highs of that pattern should also provide some resistance at 1127.5, just below the major resistance at 1129.

This week has so far seen the market move higher from a support area around 1065 but fail to clear the 1100 level. As we have mentioned before, 1100 was previously providing good support for the market but once that support failed we get a change of polarity so that old support becomes new resistance.

Therefore, in the short term we have resistance at the 1100 level and the market has tested that level unsuccessfully in each of the last 2 days. The market is also below the 200 day moving average and this may also provide some resistance. Currently the 200 day moving average is sitting at 1107.

In summary then, the long and short term trends are down for the S&P 500 and there is resistance from 1100 to 1129. There is also some support around 1065. These are the levels to watch over the next few days, but whatever happens I won’t be buying this market at any time during the next few weeks. Longer term I still believe that this market is heading substantially lower but we’ll have to wait and see.

Until next time, good trading

Phil Seaton

PS. You can find out more about our financial spread betting systems and spread betting strategies by clicking here. Our system comes with a full 30 day money back guarantee.

In today’s post we’re going to have a look at some spread betting strategies that can be used for the week ahead in a couple of popular markets that we trade which are the S&P 500 (the primary stock index) and gold.

Let’s begin with the S&P 500. We have been writing in depth about the S&P 500 for the last few weeks and have touched on various spread betting strategies that can be used in this market. Right now this market is at a point of indecision and could go either way. My view is unless you are already in trade in this market that it’s best to wait for a clearer picture once the market has given some confirmation of direction. Long term the trend is down, so I’ll only be using spread betting strategies from the short side.

Another market that has been in focus for us is Gold. Last week the market headed lower but not sufficiently to give a long term trend change to down. Therefore, spread betting strategies from the long side should be favoured but further strength needs to be seen before initiating any new positions in my opinion.

Last week we got new multi-week lows on the December contract at $1159.3 but also got a bull harami pattern, which is not so much a bullish reversal pattern but more an indication that the bears were running out of steam. From there we got a continuation higher to Friday’s close at $1183.9. There should be good support from the 200 day moving average around the $1150 area, but I’d still like to see a break above $1222 before looking at entering long.

Until next time, good trading

Phil Seaton

PS. You can find out more about our financial spread betting systems and spread betting strategies by clicking here.

Today we are going to discuss spread betting strategies that can be used ahead of a major news item. Later today the second quarter US GDP numbers come out and we get asked frequently about which spread betting strategies we use ahead of such major news announcements.

The answer is actually quite simple. Since we are technical traders and follow mechanical trading rules we are either already in a trade if we want to be in it, or know where we will get in should our entry criteria be hit. We don’t base our trading decisions on trying to predict the news items, or how the markets will react to the news. We simply follow the trend.

Since our spread betting system is a weekly system, we don’t enter trades immediately before, during or after a news item as we are already in the trades that we want to be in. We don’t therefore enter again until the following Monday, using the closing price on Friday as our entry should the price action in the immediately preceding week trigger a buy or sell signal for us. We therefore use spread betting strategies based on a weekly timeframe and don’t concern ourselves with intraday news.

Trading systems are either predictive or reactive. We don’t get involved in trying to predict, but rather react to price action. We know already where we want to get in and where we want to get out based on the price and chart structure. The rest is irrelevant. Should the market exceed the levels that we have predetermined will be optimum for entry, either for long or short trades, then we will enter. If the market does not exceed those levels then we stay out.

Let’s just look at what is expected today as far as the news is concerned out of interest, although we won’t be basing any of our spread betting strategies on it. Economists are expecting that US GDP growth for the second quarter will come in at 2.5%. I expect that it may disappoint and come in lower than that, possibly closer to 2%. If that does happen then we may see a reaction to the news that moves stocks and currencies considerably.

We have already covered this week that the long term trend is down for stocks and have identified a couple of key resistance levels, which are 1118 and 1129 on the September S&P 500. As long as the market stays below those 2 levels then the short and long term trends will remain down and the odds favour lower prices.

Yesterday we got a close below the important 1100 level at 1097 on the September contract and also below the 200 day moving average, which many traders look at. We also had an evening star pattern form on the S&P 500 earlier in the week which is bearish for the short term so various things point to lower prices to come.

What this really boils down to is that you should have a trading plan in place ahead of any news items or price reactions and know exactly what you are going to do and why. Once you have your plan in place then you stick to spread betting strategies within that plan and trade accordingly.

There are many traders and economists that try to predict news items and how the markets will react to the news item depending on what the numbers are. It’s far better in my opinion to just focus on the most important indicator of all, which is the price itself. Then all you have to do is follow the price and the trend.

Until next time, good trading

Phil Seaton

PS. You can find out more about our financial spread betting systems and spread betting strategies by clicking here.

Recently we have been discussing various spread trading strategies for stocks and commodities and the 2 markets that we have been focusing on are gold and the S&P 500.

Let’s begin today with gold. In our last post on gold we wrote that we were looking for a move back up above short term resistance at $1215. We had written that there had been a bull harami pattern on the weekly charts and that this pointed to higher prices in the short term and a test of $1215 resistance early in the week. We got that test yesterday and the market moved up to $1218.8 (August contract) at one stage in the day but was unable to close above $1215.

We may have another go at this level soon and the long term trend is up. In the short term we have support at $1185 and also around $1200, where gold pushed higher from yesterday having been as low as $1196. We don’t currently have a buy signal out in this market but spread trading strategies at present here should be considered only from the long side, in the direction of the long term trend until or unless we get sufficient weakness for a change of long term trend.

Our other market of focus is the S&P 500 (September contract), which has continued to impress from recent lows at 1003.1. Yesterday saw another big move higher and the market now looks set to test what many people consider an important level, which is the 200 day moving average (I’m not a huge fan of moving averages myself). The 200 day moving average current stands at just over 1100, which once again is a round number and a resistance area.

If 1100 can be cleared then a continuation higher to the highs seen on June 21^st around 1130 may follow, where we expect major resistance may be found. As yet there are no reversal patterns showing in this market (or any of the stock indexes that we trade at LS Trader) so short term strength may continue. The long term trend remains down but I will not be selling at present due to recent short term strength even though I expect that to falter in the not too distant future. It’s always best to wait for confirmation from price action before initiating any positions.

Because there is divergence at present between the long and short term trends our preferred spread trading strategy for the S&P 500 is to stay on the sidelines and wait to see what develops. We still view this as a counter trend rally and therefore won’t be buying it as it is against the long term trend.

Good trading

Phil Seaton

PS. To find out more about the LS Trader financial spread betting system and our proprietary trading strategies for spread trading stocks and commodities please click here.

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

For a change, the markets have had a quiet start to the week and there have been no major announcements out over the weekend and nothing too major happening in the Asian markets, which are several hours ahead of ours. This suggests that we will possibly see a continuation of the trends from last week during the early part of the week, especially once the US markets open this afternoon.

This week we look at the S&P 500, which having failed to push higher from the prior trading range has begun moving lower again and may be set for lower prices this week. In this week’s update we look at the 2 key levels that should be focused on in the week ahead, as a break of either of these levels could yield a decent move, especially if the break is downward.

We also look at Gold, which once again posted new all time highs but has still yet to really push on and make a substantial move higher. One market that is making a substantial move higher is Coffee and we look at that market briefly.

The forex markets have also been active and we have seen the recent US dollar rally stall and this week our focus is on the dollar index, Euro, British Pound and Japanese Yen, which has been the main benefactor of new dollar weakness during the past week.

This week’s LS Trader financial spread betting update begins with:

The past week has seen the stock markets end their recent strength and move lower virtually across the board.….continue reading by clicking here

Good trading

Phil Seaton

PS. You can sign up for a risk free trial of the LS Trader financial spread betting system here. The system comes with a 30 day no questions asked money back guarantee.

Continuing our series of recent posts on Gold and how to spread bet gold, we saw a new all time high intra-day yesterday at $1266.50 (August contract). However, the market was unable to hold on to those highs and sold off for the rest of the day, forming a bearish engulfing pattern. As the name suggests, this is a bearish pattern and a reversal signal. However, it may not yet be the end of the uptrend.

In the most recent post of our series about spread betting Gold, we wrote that we would be looking for another close on Monday or early in the week above prior all time highs and resistance around $1255 to confirm the bullish momentum and the breakout higher from the ascending triangle. We did not get this yesterday and the market in fact closed below prior resistance at $1240.7.

What’s interesting to note is that the lows for the day at $1231.60 were right on the lower support line from the previously mentioned ascending triangle. If this support line can hold then we may yet see a move back up towards the top of the pattern and new all time highs. Conversely, a break through this support line will likely see the market push lower towards support around the $1215-1217 level where we had a bullish engulfing pattern confirming that support area last week. Until we get a close below that bullish engulfing pattern then that pattern is still holding and may push the market higher.

Further below that there is also support at $1200. As of now, a break down through that support would suggest that the uptrend is over, but as long as $1200 holds then the short and long term trends are still up, and these 2 factors are the most important factors of all. For now we’ll have to wait and see what happens.

Good trading

Phil Seaton

PS. You can find out more about the LS Trader financial spread betting system by clicking here. The system comes with a 30 day no questions asked money back guarantee

This month’s financial spread betting newsletter is now available. To read the newsletter, please enter your email address in the box at the top right hand corner of this page. Our spread betting newsletter is a free monthly publication and is usually emailed out to subscribers on or around the 15th of each month.

In this month’s issue we take a look at most of the 43 markets that we trade at LS Trader, focusing particularly on the stock index and forex markets that have key support and resistance levels showing on the charts. We take a look at what may happen next as well as giving some potential targets. The month ahead promises to be interesting and there may be some major moves in several markets, especially in the stock indexes.

We also focus on our market of the month, which this month has seen an explosive move higher over the past couple of weeks as well as what has been happening in the Gold market and what may happened from here now that we are at all time highs.

Our financial spread betting newsletter is a monthly publication available online which covers many of the important aspects of financial spread betting and provides key insights for spread betting financial markets. The newsletter includes some targets that we have for certain markets and also looks at the key support and resistance levels in many of these markets.

Each issue focuses on each of the major market sectors and includes stock indexes, commodities, forex and interest rate futures as well our market of the month.

Good trading

Phil Seaton

PS. You can sign up for a risk free trial of the LS Trader financial spread betting system by clicking here. The system comes with a 30 day no questions asked money back guarantee.