FTSE FRIDAY + Sirius for 26/04/2019

#DAX #Gold. The market evolve, causing us to evolve with them and constantly change our approach to future analysis. There are a few market ploys which remain constant (and despised), some movement ploys take a holiday for a year or two, and some new strategy appearing too.

Our most hated trading ploy is the spike. At the open of trade a share price will spike UP or DOWN, generally to one of our target levels. This price movement is usually untradeable unless the investor had the foresight to place an order. Worse, an upward spike is generally the harbinger for coming downward movement whereas the converse is true with a downward spike. The whole thing makes little sense and the waters become muddied, when a trading spike is combined with a price manipulation gap. Logic implies a “Gap Up” is the market attempting to impart energy for some future gains on a price. But a Spike Up implies a price is about to fall. Sirius Minerals managed to step forward and fill the poisonous chalice on the 24th April.

Based on the numbers alone, Sirius experienced quite a vibrant day for the share price, a trading range of 2.5p – 11.42% bandwidth. Unfortunately, a glance at what actually happened tells quite a different story. Three minutes after trading opened for the day, very little happened. The gullible optimists, probably glued to their screens from 8am, doubtless lost interest around lunchtime, painfully aware they’d been fed a teaser.

We’re also completely uncertain, due to the strategy of using two different indicators. Our gut feeling is SXX shall fall toward 19 again, prior to a rebound. But we’re also trying to ignore it closed at a “higher high (by just 0.04p)” than last time, something supposed to provide optimism.

As for the FTSE for FRIDAY, the market did something which (from our viewpoint) was quite interesting on Thursday by achieving a low of 7405 points. We’ve some mathematical mumbo jumbo around this figure but in plain English, below 7405 should indicate near term weakness coming to 7385 points. If broken, our secondary is at 7350 points.

The UK index achieved a fairly stage managed reversal during the last couple of sessions, one which promises above 7436 points at the open on Friday shall imply the reversal is complete and some recovery to 7452 can be anticipated. If bettered, secondary calculates at 7475 points.

We’re actually not comfortable the pristine BLUE downtrend actually means anything, instead suspecting the FTSE is liable to spend Friday hitting the 7452 level, then reverse yet again with 7385 making an appearance if any negative news appears.

On the bright side, Easter is thankfully over and we’ve absolutely no chocolate remaining in the office. I know, I searched – several times!

FUTURES

Time Issued

Market

Price At Issue

Short Entry

Fast Exit

Slow Exit

Stop

Long Entry

Fast Exit

Slow Exit

Stop

Prior

10:10:48PM

BRENT

73.71

73.4

72.975

 

74.4

74.73

74.99

 

73.88

Success

10:13:11PM

GOLD

1277.78

1273

1270.5

 

1280

1280

1286

 

1273

Success

10:21:14PM

FTSE

7445.84

7405

7389

 

7468

7468

7490.75

 

7435

Success

10:22:44PM

FRANCE

5570.7

5537

5518

 

5573

5574

5589.5

 

5542

‘cess

10:40:44PM

GERMANY

12288.96

12222

12185.5

 

12306

12331

12345.5

 

12268

10:42:21PM

US500

2920.32

2909

2898.5

 

2932

2933

2941.5

 

2919

Success

10:44:47PM

DOW

26423

26407

26377

 

26540

26547

26663

 

26408

Success

10:46:30PM

NASDAQ

7766.15

7763

7745

 

7834

7859

7876

 

7780

Shambles

10:52:19PM

JAPAN

22185

22172

22079

 

22280

22305

22351

 

22197

25/04/2019 FTSE Closed at 7434 points. Change of -0.5%. Total value traded through LSE was: £ 5,431,830,859 a change of -5.85%

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