#DOW #DAX #GOLD Unusually, this is a report I’d prefer not write! Why? Because the market is making little sense presently. August is supposed to be a bit boring but predictable except thanks to a toxic combination of Mr Trump & Boris, it seems the world doesn’t know how to react.
There’s often a reversal in the markets at the end of July / start of August and we often feel it’s the case of the markets being “parked” during the holiday season. This allows a bit of volatility but strong movements are never expected until the grown-ups return in September. This year has been just a little different and the FTSE, for instance, has been abandoned in a region where The Big Picture promises reversal down to 6,600 or so.
If the market has indeed been “parked”, it’s the equivalent of dumping your kids in the central divider of the M25 and telling them to place on the grass while you go shopping. As the chart below highlights, the market is now trading below this years uptrend, only needing some negative force to drive a dangerous and sharp reversal.
Taking the attitude of the market indeed being parked, it appears anything near term on the FTSE above 7,286 points should prove capable of a lift to an initial 7,332 points. If exceeded (and we do not expect all this on a Friday!) our secondary calculation is at 7,408 points. As the chart illustrates, the primary target indicates a challenge return to the RED uptrend. If the secondary is achieved, it will appear the drop was indeed inspired by the holiday mood and we should hope for further recovery as the month continues.
Of course, we’d be remiss if we didn’t peer into the abyss…
It looks like the index now requires fail below 7,207 points to cause anguish as this calculates with an initial potential of 7,185 points. If broken, secondary is at 7,156 points. Visually, there is reason to hope for a bounce, should 7,156 make an appearance.
|
Time Issued |
Market |
Price At Issue |
Short Entry |
Fast Exit |
Slow Exit |
Stop |
Long Entry |
Fast Exit |
Slow Exit |
Stop |
Prior |
|
10:04:57PM |
BRENT |
57.63 |
56.64 |
56.235 |
57.62 |
57.92 |
58.545 |
56.96 | |||
|
10:22:29PM |
GOLD |
1501.49 |
1489 |
1481.5 |
1510 |
1510 |
1516 |
1492 | |||
|
10:24:19PM |
FTSE |
7276.74 |
7214 |
7197.5 |
7304 |
7305 |
7328 |
7233 |
‘cess | ||
|
10:26:12PM |
FRANCE |
5371 |
5331 |
5313 |
5376 |
5388 |
5404 |
5338 |
Success | ||
|
10:28:02PM |
GERMANY |
11807.16 |
11716 |
11672 |
11813 |
11855 |
11890 |
11733 | |||
|
10:29:52PM |
US500 |
2932.07 |
2880 |
2868.5 |
2907 |
2942 |
2950 |
2893 |
Success | ||
|
10:32:59PM |
DOW |
26353.5 |
26102 |
26005 |
26209 |
26400 |
26434 |
26240 |
‘cess | ||
|
10:35:41PM |
NASDAQ |
7710 |
7551 |
7493.5 |
7607 |
7741 |
7799.5 |
7574 |
Success | ||
|
10:37:28PM |
JAPAN |
20790 |
20520 |
20456.5 |
20679 |
20815 |
20937 |
20520 |