Thursday evenings are not supposed to be this way. While most folk are thinking “one more day until the weekend”, we’re assigned to sitting here thinking “what the heck is going on?”. Normally, our FTSE for Friday column almost writes itself but following three completely illogical sessions on the FTSE, writing “we’re puzzled” is an exercise in understatement.
On Wednesday, when the S&P 500 started to fall, sheer luck had us lurking in the background, reading an internet chatroom. Traders quickly embraced the usual hysteria, eventually all agreeing with someone who discovered the drop commenced at the moment when a Press Release announced some bloke from The US Federal Reserve had caught influenza. Demanding proof, the equivalent of a loaves & fishes moment, some checking actually confirmed this ridiculous notion. Which was a bit of a shame as we’d felt the reason may be more to do with some major movers and shakers opting to ditch Davos, Switzerland, when they realised they are too old to go skiing and preferred warmer climates anyway.
We’ve a bit of a suspicion reversals are due to ease, if only due to a good argument favouring the current 3,911 point S&P bouncing AT around 3,875 points. Equally, we shall be interested in what happens, should the Nasdaq achieve 11,185 points, roughly 100 points below its current level. As for Germany and the DAX, it already should be bouncing but really needs above 15,000 to confirm the sentiment.
When we bunch all this together and apply the arguments to the FTSE, there’s an insinuation the UK market should struggle to make its way below 7,713 points, if it reads the same script as other markets. Who knows, perhaps it’s the case the “grown ups” are all at Davos with the markets being run by those who cannot ski, playing safe this week. Should this be the case, next week could be interesting as visually, there are strong arguments developing which favour gains fairly soon.
Re-reading this, it all sounds a bit “Conspiracy Theory” but in fairness, it’s as daft as believing someone with a runny nose caused the S&P 500 to reverse.
Near term, we’re supposed to believe weakness below 7,713 on the FTSE should introduce weakness to a tame 7,695 with secondary, if broken, a more dramatic 7,635 points. If triggered, the tightest stop loss level looks like 7,753 points.
Our converse, happier scenario, questions the potentials, if the index manages above 7,780. This looks capable of triggering recovery to a useful 7,820 points with our secondary, if exceeded, working out at 7,872 points and a return to the level where the market resided, before everyone went skiing in Switzerland, almost making it like this week didn’t happen!
|Time Issued||Market||Price At Issue||Short Entry||Fast Exit||Slow Exit||Stop||Long Entry||Fast Exit||Slow Exit||Stop||Prior|
19/01/2023 FTSE Closed at 7747 points. Change of -1.06%. Total value traded through LSE was: £ 5,688,982,543 a change of 12.09%
18/01/2023 FTSE Closed at 7830 points. Change of -0.27%. Total value traded through LSE was: £ 5,075,315,047 a change of -21.93%
17/01/2023 FTSE Closed at 7851 points. Change of -0.11%. Total value traded through LSE was: £ 6,501,128,630 a change of 48.1%
16/01/2023 FTSE Closed at 7860 points. Change of 0.2%. Total value traded through LSE was: £ 4,389,692,147 a change of -22.72%
13/01/2023 FTSE Closed at 7844 points. Change of 0.64%. Total value traded through LSE was: £ 5,680,414,260 a change of -0.9%
12/01/2023 FTSE Closed at 7794 points. Change of 0.91%. Total value traded through LSE was: £ 5,732,068,747 a change of -8.81%
11/01/2023 FTSE Closed at 7724 points. Change of 0.39%. Total value traded through LSE was: £ 6,286,062,115 a change of 15.31%
SUCCESS above means both FAST & SLOW targets were met. ‘CESS means just the FAST target met and probably the next time it is exceeded, movement to the SLOW target shall commence.
Our commentary is in two sections. Immediately below are today’s updated comments. If our commentary remains valid, the share can be found in the bottom section which has a RED heading. Hopefully, this will mean you no longer need to flip back through previous reports. HYPERLINKS DISABLED IN THIS VERSION
Please remember, all prices are mid-price (halfway between the Buy and Sell). When we refer to a price CLOSING above a specific level, we are viewing the point where we can regard a trend as changing. Otherwise, we are simply speculating on near term trading targets. Our website is www.trendsandtargets.com.
UPDATE. We often give an initial and a secondary price. If the initial is exceeded, we still expect it to fall back but the next time the initial is bettered, the price should continue to the secondary. The converse it true with price drops.
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Section One – Outlook Updated Today. Click here for Section Two – Outlook Remains Valid shares
Click Epic to jump to share: LSE:DARK Darktrace Plc** **LSE:FGP Firstgroup** **LSE:TERN Tern Plc** **
Updated charts published on : Darktrace Plc, Firstgroup, Tern Plc,
LSE:DARK Darktrace Plc Close Mid-Price: 235.3 Percentage Change: -5.20% Day High: 248 Day Low: 235.2
Weakness on Darktrace Plc below 235.2 will invariably lead to 193p next a ……..
LSE:FGP Firstgroup Close Mid-Price: 106.9 Percentage Change: -1.66% Day High: 110 Day Low: 106.7
Further movement against Firstgroup ABOVE 110 should improve acceleration ……..
LSE:TERN Tern Plc Close Mid-Price: 8 Percentage Change: -5.88% Day High: 8.5 Day Low: 7.75
If this would even trade above 10.25, it would emit a fairly strong signal ……..
*** End of “Updated Today” comments on shares.
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