#DOW #CAC40 Rocketman, A Snake, and a Fast Birthday also feature. Plus, of course, some updated thoughts on Gold. But to deal with Rocketman first, the movie threw into sharp relief just how superior the recent Freddy Mercury film was. Unfortunately for Elton John, his brilliant soundtrack didn’t stop us getting bored and leaving early. Perhaps it will be better on telly.
Another of this weeks highlights was ‘The Snake in The Grass’ (nothing to do with the Conservative Leadership) Charging around the lawn on a little red tractor, panic ensued at the sight of a silvery white snake about 2 feet long winding its way across my path. Even from the illusory safety of a tractor seat, absolute terror ensued as snakes are uncommon in Scotland to say the least. Faced with the choice of mincing the beast or running away, selecting reverse and spinning the big rear wheels was the only consideration. Later, from the comfort of a computer, it became plain the snake was actually a slow-worm which is not actually a worm. Instead, it’s a legless lizard. Now, I need explain the trenches in the lawn, dug in panic reverse mode.
To remain whimsical, marriage is often built on a sense of humour and this weekend, a joke which smouldered for 10 years has become available. It is Mrs T&T’s birthday, her very last chance to have a party which lasts under a minute. Obviously, it is her 50 second birthday, giving her 50 seconds to answer treasure hunt questions, then another 50 seconds to find a batch of joke gifts. She’ll hate it.
It has been “that” sort of week and who wants to read about the markets all the time anyway!
As for Gold, we started the week warning of the dangers if the metal bettered 1,357 dollars. It did, rapidly achieving our initial target of 1,385. In fact, using our argument which favours watching the initial surge, at 2am the price shot above 1,385 for a few moments, hitting 1,394 before rapidly falling back to the 1,385 level. This proved we were watching the correct trend, signalling movement next above 1,394 remains with the ambition of 1,401 next. If bettered, our secondary calculation is now at 1,416 dollars.
The FTSE has experienced another oddball week, going into Friday roughly 75 points higher than it started the week. Compare this with the 4x larger DOW and its 600 point volatility. Or the 1.6x larger DAX and its near 300 point range. The FTSE is failing to impress with any real strength, constantly underperforming compared with other markets. Perhaps it’s a symptom of the UK’s fragility, effectively leaderless and about to step into a new trading environment. Talking to folk who trade the markets, there is a broad expectation of severe trouble coming to the FTSE. If this is indeed the case, it shall prove worth watching for an illogical upward surge taking place first as the market rarely gives free gifts. We’d be very suspicious if any FTSE movement above 7,650 was capable of sticking. Quite the converse as a drop should follow.
Near term, below 7425 looks capable of an initial 7399 points. If broken, our secondary calculates at 7365 pints and hopefully some sort of bounce. There are longer term implications of any break of 7365 as the market would be viewed as entering a cycle down to 7247 points. The tightest stop looks like 7461 points.
Above 7461 should prove capable of an initial 7493 points. If bettered, secondary is at 7527 points. Stop can be 7425.
