It’s always a bit of a giggle, reading the reasons given across the media for a move by the #FTSE. For instance, Thursday was quite traumatic, the 130 point variance on the day blamed on; Oil Prices, US Jobless claims, Barclays profits, UK inflation, and the favourite laugh, “Snow in Texas”. Thankfully, the headline from The Evening Standard failed to make it into the text of the article where several hundred words cleverly concealed the writer didn’t really have a clue why the market was down.
This sort of thing occurs all the time as it’s often impossible to point to a specific thing and apportion blame. Unlike with Wireless Networks!
It’s maybe the case Wireless Networking is designed to only work in modern properties with thin walls made out of toilet paper tubes. With fibre broadband and the latest router, mobile phones and tablets appear to work fairly well but proper computers and laptops (in our building) are rubbish. A network signal will be fine for 2 or 3 hours, then suddenly all the numbers freeze on screen with multiple pop ups assuring an attempt is being made to reconnect. Invariably, only restarting the computer or notebook restored contact with the wireless router. As this issue occurs with multiple computers and multiple routers, it was time to call a halt.
Todays delivery parcels contained network cabling as the time has come to call a halt to Wireless. We’re about to revisit the 1990’s with every room fitted out with plug-in network points, while permitting mobiles to continue to access Wireless. Amusingly, texting a chum (he’s senior IT in a corporate) to tell of the change of mood, he admitted he’d made a similar decision in 2020, telling staff who were working from home to use old fashioned network cables, if possible, to link to their domestic Wireless routers. Video conferences became less hesitant, immediately.
This has obviously absolutely nothing to do with the FTSE reversal from 6,721 to a day low of 6591 but it’s easy to understand the level of frustration, when something goes wrong and you’ve no idea what to blame it on.
Closing Thursday at 6,608 points, the index need only slip below 6,590 to enter a further reversal cycle to an initial 6,562 with secondary, if broken, at a bottom (hopefully) of 6,494 points. At this stage, those terrified of mumbo jumbo should leave the room.
At the start of February, the FTSE effectively flatlined for 9 boring sessions (circled). The reasons for this, we suspect, was fear permeating from US Earnings season reporting a steady stream of rotten financial results for 2020. We’d been expecting this but we’d also been expecting the markets to crash. The invisible crash is being avoided, due to many companies announcing a return to dividends along with ambitious plans for 2021 to balance the hammering from Lockdown(s). Unfortunately, we have a ‘charty’ issue and it relates to the circled area on the chart.
With share prices, when we see this sort of circled Glass Floor form following a trend break, we tend anticipate some real reversals ahead. It’s rare we are disappointed with such expectations and it’s just a matter of patience usually. In this instance, we’re more than a little curious as to whether the FTSE 100 shall perform in similar fashion to share prices.
It this logic proves correct, we calculate below 6,494 looks capable of a cycle to 6,025 and hopefully “bottom”.
As always, there’s a slight ‘however’, thanks to the FTSE previously showing signs of strength. When the UK FTSE reached up to 6,800 the other day, any conventional logic demanded it enjoy a continued cycle to 7,010 points next with secondary, if bettered, calculating at 7,320 points. It begs the question, is the FTSE just mucking around while awaiting to see if Covid-19 vaccines promote a zombie plague?
Very near term, an early measure of market strength looks possible if the index betters 6,622 points as this is supposed to generate an initial 6,642 points. If exceeded, the first box of “strength” is ticked with secondary working out at 6,688 points, potentially even 6,763 presumably sometime next week and challenging again the level of the previous trend break.
Have a good weekend. Only 37 days until the next Formula 1 race!
|Time Issued||Market||Price At Issue||Short Entry||Fast Exit||Slow Exit||Stop||Long Entry||Fast Exit||Slow Exit||Stop||Prior|
18/02/2021 FTSE Closed at 6617 points. Change of -1.39%. Total value traded through LSE was: £ 5,804,629,617 a change of -22.73%
17/02/2021 FTSE Closed at 6710 points. Change of -0.56%. Total value traded through LSE was: £ 7,511,824,336 a change of 35.06%
16/02/2021 FTSE Closed at 6748 points. Change of -0.12%. Total value traded through LSE was: £ 5,561,960,634 a change of -0.72%
15/02/2021 FTSE Closed at 6756 points. Change of 2.53%. Total value traded through LSE was: £ 5,602,276,757 a change of 0.88%
12/02/2021 FTSE Closed at 6589 points. Change of 0.93%. Total value traded through LSE was: £ 5,553,303,054 a change of 2.03%
11/02/2021 FTSE Closed at 6528 points. Change of 0.06%. Total value traded through LSE was: £ 5,442,915,422 a change of -20.73%
10/02/2021 FTSE Closed at 6524 points. Change of -0.11%. Total value traded through LSE was: £ 6,866,229,755 a change of 17.93%
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