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

As we had written in last week’s post, the past week was an interesting week as expected. The US Federal Reserve meeting sent the stock markets higher and the dollar lower by underlining the Fed’s commitment to easing and supporting the economy. This also led to Gold hitting our $1300 target. So far today the markets are relatively quiet.

In the week ahead we will get a clearer idea as to whether stock indexes are going to continue higher as they approach further resistance levels and will also see if Gold can close above $1300 and continue to advance.

This week’s financial spread betting update begins with:

The past week has seen the US dollar continue to move lower against the majors, commodities continue to push higher and continued short term strength in the stock indexes, pushing stock indexes to 4 month highs. The long term trend is currently mixed for stocks but up for commodities and down for the US dollar…….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.

Today we are bringing you an update on spread betting strategies for the S&P 500. This market has continued to be of great interest to many traders as it is the primary stock market from which the other stock markets take their direction. The only stock index not following the S&P 500 at present is the German Dax, which continues to be in a long term uptrend. That said, a major move down on the S&P 500 will very likely drag the Dax down with it.

In our most recent post on the S&P 500 2 days ago we wrote that the market had held within a range from 1127.5 to 1102 and a break out from that range could give some decent movement in the direction of the breakout. We also mentioned that we had a rising wedge pattern that added weight to an eventual breakout and that we were therefore still favouring short spread betting strategies for a breakout to the downside, especially if the market moved back below the 200 day moving average and the 1100 support area.

We have since got that breakout to the downside with the S&P 500 moving back though the 200 day moving average and through the 1100 support area, making a new low for this move at 1070.50 during yesterday’s trading. This was the lowest level for the S&P 500 in 3 weeks and we still have our next target to the downside at 1050.

What is of great interest in this market is that the major resistance level that we had been writing about for several weeks at 1129 held firm in spite of numerous attempts to break though, all of which failed. This means that 1129 may be a significant high for this market and that we remain in bearish mode as long as the market stays below this level. Because 1129 failed then the market is still making lower highs and this is also bearish.

If the market does fall to 1050 and support there fails then we will be looking for the lows formed on the 6^th July on the September contract at 1003. For now we will continue to trade the S&P 500 with the trend and that continues to be to the downside.

Until next time, good trading

Phil Seaton

P.S. 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.

P.P.S For those that are interested in spread betting forex markets we now have a dedicated forex system. You can take advantage currently of a 30 day free trial to our forex system here

This week’s financial spread betting update is now available and can be read by clicking here. The weekly update is to bring you up to speed on what has been happening in the markets over the past week as well as what to look out for in the coming week so that you can plan your spread betting strategies accordingly.

During the past week we saw continued weakness for the US dollar and an overall rise for the stock markets. The S&P 500 stayed below the key resistance level of 1129 but will likely test that level this week and possibly as early as today as the futures are opening higher at the time of writing this on Monday morning. European stocks indexes, in particular the German Dax, have continued to rise, and the Dax has reached its highest level in almost 2 years.

The best trending markets continue to come from the interest rate futures sector and all of the markets in this sector remain in a long term uptrend.

The biggest moves of the week came from the grains sector and we saw some limit moves from Wheat as well as higher prices virtually across the board from the grains markets.

This week’s financial spread betting update begins with:

The past week has seen US stocks continue to move higher but still remain within the overall lateral trading range. Last week’s US jobs figure sent the markets tumbling at the US open on Friday but then show a strong recovery. We may see a breakout for stocks this coming week..….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.

This week’s financial spread betting update is now available and can be read by clicking here. The aim of this update is to help you decide on your spread betting strategies for the week ahead.

During the past week we saw further weakness for the US dollar and indecision in the stock markets which having tested recent highs ended the week pretty much where they began. In early trading on Monday stocks have begun the week higher and we may get a test of 1118 on the S&P 500, which is resistance 1 soon. If that level is cleared then a test of resistance level 2 may follow, which is major resistance at 1129. The trend remains down as long as resistance level 2 holds.

Elsewhere the commodity markets had a good week with some decent up-moves seen in numerous markets, especially in the grains sector. One of the few commodity markets that did not fare so well was gold but this market seems to have found support.

The strongest and best trending sector at the moment continues to be the interest rate futures and both the 5 & 10 year T notes made new contract highs during the past week. We continue to be long this sector and have been since early May.

This week’s financial spread betting update begins with:

The past week saw the stock markets continue in the mixed fashion that we have seen of late and the markets remain undecided on future direction. We have also seen commodities begin to pick up, with some markets making decent moves to the upside and have seen continued weakness for the US Dollar.….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.

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.

Today we are looking at bearish price patterns and spread betting strategies. We will base this primarily on the S&P 500 as that is the primary stock index that we focus on. The reason we do this is that the S&P 500 is the real stock market and the other indexes tend to take their cues from the S&P 500.

There have been a few key levels and indicators in the S&P 500 that we have been writing about of late. We have previously been focusing on resistance from 1100 when the market was below that level and also the major resistance at 1129.

Friday’s close on the September S&P 500 contract was bang on 1100 and this week continued the recent short term strength and pushed up above 1100 and the 200 day moving average. This was relatively bullish short term and the market continued higher to 1118 on Tuesday. Critically, this move fell short of resistance at 1129, so the short and long term trends remain down. This means that only bearish spread betting strategies should be considered at this time as the odds favour lower prices.

Considering the recent strength and the fact that this market cleared 1100 and the 200 day moving average we should perhaps have seen more follow through and an actual test of 1129, but the rally fell short. We also have an evening star pattern formed in this market over the last 3 sessions, which is a bearish reversal pattern and suggests a top in the market. When we have an evening star, we use the top of the pattern as resistance, which in this case is Tuesday’s high of 1118. If the market moves above 1118, especially on a close, then this pattern is negated and a likely test of 1129 resistance will probably follow.

Yesterday’s price action also took the market back down towards support at 1100, with a low for the day at 1099.5, before closing at 1102. This is once again right on the 200 day moving average as well as support from the 1100 level. In the short term then this market can clearly go either way and the levels to watch are 1100 to the downside and 1118 and 1129 to the upside.

As long as 1129 resistance holds, this market is in a bearish set up and the long term trend is down, so we’ll continue to favour spread betting strategies from the short side and reject longs for now.

One other point of interest, certainly for UK residents who use spread betting is the bearish formation on the FTSE. The FTSE is not a market that I like because of its lack of trending properties, but I know many traders in the UK follow it. On Tuesday we had a shooting star pattern, which confirmed resistance at 5385, followed by a bearish engulfing pattern on Wednesday. This suggests a top in this market, and as long as 5385 resistance holds then bearish spread betting strategies should also be favoured here. The long term trend in the FTSE is also down, as with the S&P 500.

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.

In our last post of spread betting strategies for Gold, posted Friday morning, we wrote that Gold was in a trading range between $1200 and $1175. Later on that day Gold actually pierced $1200 resistance intra day but was unable to stay above that level and proceeded lower.

On Monday the market was lower again and yesterday we got a downside breakout through support at $1175 (August contract). IG Index is now quoting Gold on the December contract so we now shift our focus to December’s contract. There is actually only $3.80 difference between the 2 contracts, with last night’s close on August at $1158 and December’s at $1161.8

Looking at the December contract there is some support at $1161, which is right where last night closed. In early trading this morning the market is around $5 higher at the time of writing this. Slightly below that support level we also have the 200 day moving average, which may also provide support. The 200 day moving average is currently sitting at $1150.

Candlechart pattern wise we have 3 consecutive red candles, which indicates 3 straight down days, with yesterday being a log red candle for the large move down from highs of $1190, down almost $30 in the day to $1161.8.

The short term is without doubt down, but the long term trend is still up and the market is above the 200 day moving average, which many traders will be watching. There are still other levels of support in this market that need to be cleared before a long term change of trend to down is confirmed, so for now we are sitting on the sidelines in this market. Longer term we’re still therefore only looking at spread betting strategies from the long side, but will need to see a move back above $1222 before there is any upside momentum.

Good trading

Phil Seaton

PS. Find out more about LS Trader financial spread betting system and our spread betting strategies by clicking here.

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

During the past week we saw weakness in the stock markets followed by renewed strength in to Friday’s close. The S&P 500 closed right on a key level and the coming week promises to be an interesting one.

Recently on this site we have been focusing in particular on two markets, gold and the S&P 500 and spread betting strategies for those two markets. We have an update on both of these two markets in the weekly update. We also have a look at Crude, which continues to trade within a wide range, we well as our usual forex market focus.

The past week saw another week of declines overall for the US Dollar, albeit not by much as well as a strong finish to the week for the British Pound which has been strong of late and may be on the verge of a long term trend change to up having been in a downtrend since September 2009.

We also have an update on the strongest and best trending sector at the moment, which is the interest rate futures and includes markets such as the 5 & 10 year T notes and the 30 year bonds. Each of these markets made new contract highs during the past week. At LS Trader we have been long these markets and this sector on the whole since early May.

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

The past week saw the stock markets move lower early in the week and then recover on Tuesday. The week ahead promises to be interesting as the stock markets are now sitting at a key short term level and could move either way over the next few days.….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 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.

In our most recent post of spread trading strategies for gold we wrote that the $1215 level for gold was still key to the upside and failure for the market to clear that level would lead to a test of strong support at $1185. Last Friday’s close at $1185.8 was a new low close for 9 weeks, so without doubt the short term trend was moving down.

Considering the short term weakness in this market, a failure of support at $1185 should have led to a move down to the next support area at $1168, but having moved lower initially on Monday to $1176.9 the lows were rejected and the market climbed a bit but still closed below prior support at $1181.9, giving a new low close for this contract and a close below prior support.

Yesterday the market made another push lower but once again the market rejected the lows and pushed higher again. This formed a piercing pattern on the daily charts, which is a bullish reversal pattern and the market closed back above $1185 at $1191.7. At the time of writing this morning, the market is fairly quiet, hovering just below the $1190 level.

When considering which spread trading strategies to use on gold, there are a few things to consider, firstly, without a doubt the long term trend is still up and therefore the odds favour higher prices. It will take a large move to the downside to change that long term trend to down.

Also to be considered is that we have 2 good support levels in the market at $1168 and also at $1157. We also have a third good support level at $1125 and the obvious $1100 level as well. Therefore, to get a decent move to the downside would require bulldozing through several strong support levels.

In the more immediate term, the last 2 days candle patterns have reasonably long lower shadows and this indicates rejection of lower levels as well as yesterday’s piercing pattern, which is also bullish short term. I’m not a buyer at these levels as that would be counter to the short term trend and will be waiting for more strength before entering longs, but will not be entering short any time soon.

Good trading

Phil Seaton

PS. Find out more about LS Trader and our spread trading strategies by clicking here.

This month’s financial spread trading 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 and we will send it to you instantly by email.

In this month’s issue we take a look at the majority of the 43 markets and the major market sectors that we spread trade at LS Trader, focusing particularly on the major stock indexes, commodity and forex markets as well as the interest rate futures sector which covers short term interest rates all the way through to 30 year bonds.

This month we focus primarily on the stock and forex markets, as that is where much of the action is likely to be over the coming weeks. We look specifically at major support and resistance levels in some of these markets as well as what our LS Trader trend indicators say about the markets and what may happen next.

In each month’s issue we focus on the long term trend and cover some spread trading strategies that can be used in the direction of the long term trends to increase the odds of successful trades.

We also have a market of the month section, which this month focuses on a market that has continued to rise against the odds and looks set to continue higher, especially if further weakness hits the stock markets.

Good trading

Phil Seaton

P.S. To receive each month’s 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 If you are not already a subscriber to the LS Trader system you can sign up for a risk free trail by clicking here. The LS Trader system is a complete spread trading service and comes with a 30 day no questions asked money back guarantee.