That is what is going on right now with the financial indices
Friday proved to be a trader’s haven, but an investor’s nightmare.
Not that you would be calling these markets medium/long term right now anyway.
After we saw a slash in the unemployment rate, BOTH the $ and U.S. markets
rallied.
This broke the chain of a seemingly never ending cycle of markets sinking
whenever there was a rally in the greenback.
However, the $ has give back gains today, with the markets higher, so that
didn’t last long did it?
Now, what did I say last week? That the Dow would maybe rally to 10400.
It surpassed that, and made it just above 10500 on an intraday basis on Friday,
just before the markets sold off!
I said that the next high would be a lower one, it was not. It was over 20
points higher than the previous high set on the 23rd November.
However, I certainly think that the high on Friday (even though it wasn’t a
lower high) will be the highest level on the Dow for the rest of the year.
This evening (7th Dec 09), the Dow sold off again toward the close and just
closed up 1 point.
It had been up over 60 points half way through the trading session.
Honestly, I don’t know how much these markets would fall if they are indeed on a
cliff edge here, but I know it will be enough for a high no touch (taking
20-25%) to be safe going forward for a time period of between 7-14 days.
I do not see the Dow heading higher than 10500 again this year, as I have said
for the last 3 weeks, and really it hasn’t really, only by a handful of points.
For Ftse, do not expect fireworks above 5450, or even 5400 up until Santa’s
week!
As for £/$, we have support at 1.63, while 1.685 is major resistance medium
term.
I do not see that being broken (anything above 1.69) to the upside this side of
Christmas either.
This could change over the next 2-3 weeks, but for now, this is how I see it!
My recent trades have been a high No touch on the Wall St Index (Dow) just over
10600 and the £/$ high No Touch of 1.672 which is set for expiry in the next 24
hours.
These trades were placed late last week, so I am not recommending them today.
Although, as I said, any High No Touch on the Indices right now should be safe,
as long as you opt for a modest return.
For Fixed Odds, this would be BELOW 30%.
The first sign of a retreat for the S&P (as I have not mentioned it yet) will be
1085.
The Ftse level to look for, in order to get short is 5270.
Any real thrust of a sell-off may not be seen now before year end, however we
could witness a small retracement.
If we do not see a sell-off this week, then I will be ranging for the next 2
weeks up to and around Xmas.
We could get great odds for a range trade for a 9-12 day durations, and with
shorter trading sessions around Xmas (which would warrant the longer durations),
this would be an attractive prospect.
Let’s see how this week goes first.
Until next week…
Whatever the case, be ready for some action!
Matt $haw
www.fixedoddssuccess.com
P.S. Do you want me to trade an account of 100k+? Returns of 15-20% per month
suit? For current private clients, I am trading this week.
Email: fixedoddstrader@aol.com Right Now!
