Forex Blog by Greg Secker

With Wall Street closed yesterday the FTSE traded within a 50 point range for most of the day and closed up 73 points at 4,226. Today look for early volatility coupled with, later in the session, end of week position profit taking along with component news being the catalysts for any decisive directional movement. Oil is currently trading at $53.51 and Gold is at $814.60. That’s it for now, great trading, have a fabulous weekend and I will speak with you on Monday.

The FTSE finished yesterday’s activity down by 18 points hiding the 100 point drop from the early high on the break of the news releases and the painful struggle to drag itself up from that and subsequent lows to a close of 4,152. Over recent days the index has started to form a double bottom, a powerful indicator of a trend reversal and one which if completed and sustained could indicate the start of the long looked for upward climb out of current depths into a Bull market. Therefore the magic number to watch for to be broken and sustained to indicate prolonged upward directional movement is the 4,650 level. If achieved, with the 50 ema then blasted through, strong confirmation of that trend reversal will have been delivered, at least in the midterm and even possible before Barack takes up residence at 1600 Pennsylvania Avenue. In America the Dow Jones yesterday finished at 8,726 with a gain of 247 points. Today as there is no news out either side of the Atlantic and with the Thanksgiving shutdown the FTSE will have all day to range about on its own without stateside interference! Oil is at $53.27 and Gold is at $814.30. That’s it for now good trading and I will speak with you tomorrow. 

Yesterday – notes Greg Secker – the FTSE closed up 18 points at 4,171 which belies the volatility of the session. Today with United Kingdom GDP, Import, Export, Private Consumption and Government Spending figures out at 9.30 am look for another day of choppy movement with little decisive direction unless the news breaks here and in America hold any surprises. On Wall Street yesterday, the Dow Jones also ranged about until the session end to finish 36 points up at 8,479 after GDP figures further confirm the crisis’ continuation and U.S. house prices proved to be declining at an increasing rate. Today ahead of the Thanksgiving shutdown and with a raft of high to moderate news delivered between 1.30pm and MP3 expect further intraday volatility from the news breaks and from early position profit taking. Oil is currently at $51.20 and Gold is at $814.60. That’s it for now good trading and I will speak with you tomorrow.

Yesterday – notes Greg Secker – the FTSE closed up 372 points at 4,153 due to a variety of factors, but largely because of the Dow ‘s post session surge on Friday, followed by pre-release rumours regarding the pre-budget report, followed by the pre-market open of Monday’s Dow session which saw that index rise, and then continued an upward trail to gain 396 points and finish at 8,443. This movement was on the back of news that Citibank will get its $306 bn rescue shield which will prevent it from becoming the next Lehman Brothers and avoid sending the index into a two thousand point freefall and the American economy to unfathomed depths. Today look for profit taking on both sides of the Atlantic and further volatility around the American GDP figures, coupled with other consumption and manufacturing news out between 1.30pm and 3pm ending with the Consumer Confidence report. Oil is trading at $53.65 and Gold is at $813.30. That’s it for now, good trading and I will speak with you tomorrow.
 

Friday’s close on the FTSE saw another 94 points wiped off the index to finish at 3,780 the Dow’s late rally in the last hour of its trading session indicates that the FTSE will find early strength but with little news out and even then, only of low impact, look to component news for the main thrust of directional decision . At its close on Friday, the Dow had rallied 600 points after a choppy day to close 494 points up at 8,046. Today look to a breach of the 8,000 level for decisive downward direction, or 8,200 for the upward indication. Oil is currently at $50.67 and gold is at $790.50. That’s it for now, good trading and I will speak with you tomorrow. 

Yesterday – notes Greg Secker – the FTSE lost 130 points to close down at 3,874 at its lowest level for five and a half years. Today look for continued volatility towards the end of the session and week given there is no major market moving news releases coupled with the usual end of week position profit taking. In America yesterday, the Dow Jones fell 444 points to again breach the 8,000 level and, after an upward surge before lunch, the Bears held sway so that the index trailed down nearly 800 points from the day’s high, finishing at 7,552. Today, as with the FTSE, look for continued volatility. Such has been the level and speed of decline in recent days, there are now renewed calls to reinstate the ban on short selling of 799 shares in the American markets that was lifted there on October the 8^th. Oil is currently trading at $48.75 the lowest level since mid 2005 and Gold is at $745.90.

Yesterday – notes Greg Secker – the FTSE lost 202 points to close down at 4,005, The Bank of England minutes release had little effect as nothing that wasn’t already suspected, was revealed or indicated. A further cut in rates is likely, come the 4^th of December. Today with Retail Sales figures out at 9.30 am GMT look for early strength and then the break of the 4,000 level for further decisive downward directional movement, should the news be worse than expected. In America yesterday, the Dow Jones fell 427 points to breach the 8,000 level finishing at 7,997. Today, as with the FTSE, look for early strength followed by continued volatility towards the end of the week. With little scheduled market making news to end the week component news and further global economic negativity will be driving this market. Oil is currently trading at $52.96 and Gold is at $733.80. That’s it for now good trading I will speak with you tomorrow.

Yesterday – notes Greg Secker – the FTSE closed up 76 points at 4,208 having started with continued weakness from the day before the index then lifted in the last three hours of the session in a 140 point rally. Today only the bank of England minutes, out at 9.30 am, offer any UK news led movement, as yesterday’s post FTSE close activity on the industrial average coupled with American news breaks, will be the main source of directional movement. The Dow Jones showed early strength but peaked just below the 8,500 level and then fell to very close to the 8,100 and then rallied 300 points back to close up 151 points at 8,424. Continued concerns over the potential failure of General Motors is driving (pardon the pun) further economic fears, and yesterday, with the Producer Price Index reports presenting a 2.8 % drop, commodities are clearly feeling a lessening in demand due to the global downturn, not least of which Oil, indicated to continue its fall in price, is currently trading at $54.74 whilst Gold is at $737.40. Today with a raft of major market news covering the Consumer Price Index figures and Housing Starts at 1.30 pm GMT and finishing up with the minutes of the Federal monetary committee meeting at 7pm GMT look for further weakness and ranging volatility should the news negative. That’s it for now, good trading and I will speak with you tomorrow. 

The FTSE closed down 100 points at 4,132 yesterday, basically trailing down with some initial directional indecision granted by the Dow’s movements from the open the index then traded sideways to an oscillation in the last two hours of the session. Today with Consumer Price Index reports along with the Retail Price Index Figures released at 9.30 am Greenwich Mean Time look to the break of 4,100 on the downside and 4,300 level above the 20 moving average for decisive directional movement. The Dow Jones showed early weakness in a continuation of Friday’s fall from the that day’s high for the first hour of trading and then rallied strongly over 300 points to then oscillate down to a final 150 point drop in the last 15 minutes. All wrought from further recession worries. Today with the Producer Price Index reports released at 1.30 pm and Capital Flow figures out at 2 pm look for an interesting pre-market open and a continuation of the current downward streak should the news be worse than expected. Oil is currently at  $54.95 and Gold is at $724.00. That’s it for now, good trading and I will speak with you tomorrow. 

Friday’s close saw the FTSE gain 63 points to finish at 4,233. Today with no major market moving news out today look to component news for the directional influence. The Dow traded down from the open on Friday, having reached the 8,500 level, the index then rallied back to 8,900 resistance, only to fail to the close to end the day just beneath 8,500 at 8,497 with a big loss of 338 points. Today look for tests at the 8,000 level and 8,900 resistance and a break through these could spark the next big move. With little news out today in America other than manufacturing figures at 1.30 pm component news will be the catalyst for moves. Oil is trading at $57.04 and Gold is currently at $742.50. That’s it for now, good trading and I will speak to you tomorrow.