FTSE for FRIDAY 6/09/2019

#DAX #Nasdaq When reading a FT journalist comment about UK Politics never being so chaotic ‘since time began’, a brief memory of the 1970’s/80’s surfaced. Lots of General Elections, power cuts, food panics, fuel ration books, inflation, a mindset eventually leading to the widely known (rarely reported) ‘secret’ UK soldiers deployed, dressed as civilian policemen to “fight” striking miners in the earlier 1980’s. Somehow, our current shambles just isn’t the same!

The 70’s and early 80’s were “interesting times” with some real brinksmanship, unlike today, where we appear to be led by folk without gravitas or statesman like quality. But we do have a media, determined to pretend things have never been so bad as they are now. The purveyors of panic in the media must be experiencing a frisson of delight, if only due to the FTSE being DOWN 0.6% on a day the DOW was UP 1.6%.

In the last few days, the UK market has been challenging. But on Wednesday evening, we threw the toys from the pram and lied to ourselves with what was perhaps the most stupid logic available. The problem was, Thursday calculated as being an UP day on the FTSE. Everything pointed to this being possible. As a result, we adopted the stance of expecting a DOWN day! Our thinking was fairly basic, if UK market seems to be holding itself in place, neither accelerating upward nor downward. The logic by which upward travel was supposed to happen presented a scenario with continued growth possible to the 7700’s. Surely, a market which was awaiting guidance, would avoid this scenario and instead head downward.

It did.

Closing Thursday at 7265, there is now a problem if the FTSE makes its way below 7240. We can calculate travel down to an initial 7213 points with secondary, if broken, at 7174 points. Visually this appears not terribly traumatic and thus, there’s a reasonable chance of it happening.

However, if the market opts to remain marching on the spot, above 7289 is supposed to bring an initial 7313 points with secondary, if bettered, at 7338 points. As the chart below highlights, neither target level challenges the hiatus which has been the first few days of September. As a result, we suspect this shall be the route taken.

Above 7338 should prove interesting, breaking from trend and expecting 7390 points. We doubt it.

FUTURES

Time Issued

Market

Price At Issue

Short Entry

Fast Exit

Slow Exit

Stop

Long Entry

Fast Exit

Slow Exit

Stop

Prior

10:11:06PM

BRENT

60.57

               

Success

10:12:57PM

GOLD

1519.7

               

Success

10:16:11PM

FTSE

7248.68

               

Shambles

10:19:13PM

FRANCE

5584

               

Success

10:22:17PM

GERMANY

12110

12066

12040

11999

12135

12140

12177.25

12284

12076

Success

10:24:38PM

US500

2969.72

               

Success

10:29:09PM

DOW

26686

               

Success

10:40:03PM

NASDAQ

7847

7730

7652.5

7576

7833

7882

7904

7915

7760

Success

10:43:31PM

JAPAN

21131

               

Success

5/09/2019 FTSE Closed at 7271 points. Change of -0.55%. Total value traded through LSE was: £ 5,601,988,154 a change of -7.64%

This post has already been read 198 times!

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.