FTSE for 9/08/2019

#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.

FUTURES

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

 

8/08/2019 FTSE Closed at 7286 points. Change of 1.22%. Total value traded through LSE was: £ 7,419,094,252 a change of 8.46%

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