Why do I not buy into it?
Simple, this is a reaction rally in a bear market that is all
Well done to Andy Murray, I must say it was an enthralling game I was fixated into late last night.
Now, markets are as rampant as andy today, the U.S. Treasury’s take-over of Fanny May and Freddie Mac is aimed at keeping the companies going into 2009, hopefully it will be ‘McCain that has to determine where the company heads for the long term….
This rally today, only takes us back to last Tuesday or Wednesday before we sold off aggressively. Calling a bottom here would be dangerous.
There is no good news out there, only some that says things have been saved from getting really bad, as opposed to something ‘great’ happening.
The £ is continuing to get hit mainly due to U.K. producer prices
unexpectedly dropping the most in 22 years on lower oil prices and
declining raw material costs.
Now, over the next week or so a ‘not so full’ economic calendar will leave the dollar price action subject to the ongoing interpretation of the potential impact of the U.S. government take-over of Fan Mae and Fred Mac.
I see the $ touching 1.73 over the next few weeks, as I really do not see upside movement short term for the £. It dropped over 3 cents against the strong $ overnight. We have to be bearish from here, until things who a huge sign of reversing.
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Onto the Indices, and what have I been doing? Well, I have been clawing back losses from the hit I took last month. One trade on the S&P is running. I will see what occurs there.
Even if I can make it to 25k, (from original 6k) then it will still be a great success.
Considering I was at 35k nearly 2 months back, it is does not look as good. I will still make it to the 100k target, but it will obviously take longer than the 31st Dec. Well, who knows? Maybe, just maybe!
I have opened a position on my £1,500 account, (target 10k) and it is a One Touch of the $ to hit 1.745 within the next 14 days. Wish to win=£2,000 cost was £1504
Will let you know how that one goes, it was placed half an hour ago when the £/$ price was at 1.7616
I see limited upside movement for the £ due to the FMae and Fan Mac topic easing concerns globally, which will have a major positive effect for the $ short term at least.
Concerns for slowing economy and other things like PPI unemployment, etc., does not bode well for the £.
It comes at a time, when the $ has found its feet or should I say $ moving data is being taken as well as a winning lottery ticket.
For the indices, I think we will either sell-off tomorrow or Wed after major buying today. If that does not occur, then expect the Dow to get back up to 11800 and the S&P 1290 by next week.
For the Ftse we could see a sell-off tomorrow or Wed, but like the
aforementioned U.S. Major Indexes we could see at least a 5% rally which would help the Ftse topple 5700, from the price it is sitting at today
I will be in touch very soon.
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Have a great day and week