This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
15 Jan 2016
For those who trade the financial markets, there’s no such thing as bad news. Sure, the headlines have not been pretty this week but the wealth of worthy trading opportunities has been astounding. This week we saw the start of Earnings season when the Supermarkets pleased traders and investors with solid Christmas figures sending shares in Morrisons up 10% and those in Tesco up 7.5%. Will these major UK names hold onto their gains, or is it time for them to re-acquaint themselves with the wider market sentiment, and move down again? Don’t forget, the supermarkets are some of the most shorted stocks out there, which makes for excellent trading conditions since up-moves are often exaggerated by short covering. If you’d like to know more about trading strategies for supermarkets, give me a call!
Moving on, we’ve also seen the UK Index hit 6000 four times in the last week, each time pulling back by 80-120 points. There’s nothing technical or complicated about this – it has been purely Fundamentally driven. When Oil fell, so did the markets. China slips overnight, we see declines. The reverse has also been true – circa 100pt recoveries in the major indices whenever the price of oil ticks up. Similar price patterns on many of the popular mining stocks have also emerged. Now, I’m not saying this will continue, but I have got my eyes glued to the charts so that I can let you know exactly when the index is approaching these levels.
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Have a great weekend.
Tom Jenvey, Trader
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