Good morning. Hope you had a good weekend. Well Ukraine didn’t figure much in the news despite what some were expecting, in fact the financial news was all quite quiet. It does all still look like we will continue the current slow grind higher, especially looking at the FTSE Bianca chart we could be on for 6900 this week. If we do make that all time high above 6930 and possibly a little more then the bears might appear – they are in hiding at the moment!
Asia Overnight from Bloomberg
Asian stocks outside Japan rose as Chinese shares surged on speculation the government will take steps to bolster equities.
The MSCI Asia Pacific excluding Japan Index climbed 0.4 percent to 477.02 as of 11:53 a.m. in Hong Kong, with all but two of the 10 industry groups rising. China will relax limits on foreign investment in listed companies and expand quotas for capital flow, the State Council said last week. President Xi Jinpingsaid China needs to adapt to a “new normal” in the pace of economic expansion.
“He is trying to tell the world that China is adjusting itself to slower growth,” Vasu Menon, vice president of wealth management in Singapore at Oversea-Chinese Banking Corp., said of Xi’s comments. “He seems to be clearly sending a message that the economy needs reform, clearing a lot of issues such as credit, shadow banking, property market and excess capacity in some industries.”
‘Strategic Opportunity’
China’s growth fundamentals haven’t changed and the country is still in a “significant period of strategic opportunity,” Xi said, according to a Xinhua News Agency report on the central government website on May 10. At the same time, the government must prevent risks and take “timely countermeasures to reduce potential negative effects,” he said.
Earnings Analysis
The MSCI Asia Pacific Index, which includes Japan, added less than 0.1 percent after dropping as much as 0.4 percent. Among companies on the Asian gauge that reported quarterly results since April 1 and for which Bloomberg had estimates, 51 percent beat projections for profit. Sharp Corp., Nissan Motor Co. and Hitachi Ltd. are scheduled to report earnings today.
Futures on the Standard & Poor’s 500 Index gained 0.2 percent today. The measure advanced 0.2 percent on May 9 while the Dow Jones Industrial Average rose to a record.
Dennis Lockhart, president of the Atlanta Fed, said he expects the central bank will use a reverse-repurchase program when it eventually begins to tighten monetary policy. Lockhart, who doesn’t vote on policy this year, told reporters yesterday after a speech in Dubai that reverse repos may play a role in influencing short-term rates.
FTSE Outlook
Fridays short order at 6861 wasn’t quite reached and that area is resistance again today, with 6850 being the top of the 30 min channel and 6865 being a ProTrend horizontal resistance area. As I mentioned above though it does look like the bulls are still in control and the bears might get squeezed a little bit longer. Support wise for any dips are the pivot at 6820, and then 6776 isn which is the bottom of the Bianca 20 day channel. Any moves below that will lead to the next support at 6727 though.
Initially today I am favouring a rise to that resistance area where I think we will see a bit of a stutter at around that 6850 area. I expect support will hold as the bulls will be keen to push on for new records to make some headlines soon; I am thinking the pivot and the bottom of that 30 minute channel at 6820/6810 will hold, if not then 6775 is more likely to hold.
Leaving the ftse today and having a large short on Dax @ 9625 gl all
Hi smokingaces, where did u had the stop?
Stop out 🙁
dax is an animal, though FTSE didn’t do much
Hi Senu 9640… Am back in at 9670 same size short no stops
I work key resistance level on Dax @ 9720?
Short @ 42 , (earlier long closed)
Guys, anyone short?
Order for short at 55
I have short at 40
Went*
short 6842 SL 6853
shit
Trending by the look off it well done too the folks that played it long today 🙂
Added a little bit more too my short at 9705
Thats it keep dropping
So. Today we’ve seen the DOW hit a another High. The DAX go through 9700.
The FTSE on the other hand just moved a few points.
This obviously signifys significant resisitance at 6850. Or are the big boys waiting for us retail numptys to load up massive shorts before they take us out with a 150 point leap?
I’m out of SPX. RSI very stretch…
Nevertheless I think SPX will go further to 1900, before any drop.
Now looking again to FTSE.
And maybe I will enter again in SPX on another level…below or above, but not today
where is Hashmash ?
Belly, marco, still holding shorts 🙁
Sadly
Look at my twitter charts of FTSE. Tell me… is tomorrow it will break ????
or good time to short ????
tomorrow divi day, may be bull tuesday
If people here remember, some weeks ago when FTSE was at 6500 levels, I told it was almost impossible for FTSE to break that level. IF broken, than FTSE was to start a new trend. I bought at 6500 several times, just looking at that chart I updated today.
Been in meetings all day canceld my short order at 6855 and went long Dow waiting to enter short later
lucky 😉
Waiting for Dow to blast up then short the FTSE around 6867
Market factoring in Thursday data, looking towards Friday , early next week to place some decent shorts. Looks like it could be MAY 2013 all over again. Temporarily quit day trading on indices in expectation of a decent drop. Bought eur/usd after a decent short! Best trade for a long time.
Ahwab had the eur/usd short but cut out at 1.38 but still cracking profit.
Anyone know ftse will be reach 6900 by tomorrow?
Jim says:
May 8, 2014 at 4:21 pm
Dow/daily — Index growth measure picking up again. Recent cycles reasonably regular. Next leg up should see around 16700. Dependent on growth up-cycle developing, etc.
good one Jim 😉
Nice one Jim, just gone short FTSE 6865.5
Dived in today. Couldn’t believe my luck getting 6855. Now looking a bit painful. Don’t get the spike after US closed
X2 yes strange that looking for a drop to 6840 tomorrow though
Looks lke a triple top on the FTSE over night which should mean a down day…!AIMHO
This baby is going over 6825 coming
Having traded for nearly 20 years I know one thing….the market will always always make you eat your own words! Just as I felt that we wouldn’t see 6850 again in the short term we do within a few sessions. Still short and will remain so. These are good levels to short in the medium term.
Could bounce off 6840 on the 200 ema 30 min.
Morning guys. Whats the view for today?. I had an early short this morning off the back of the overnight and made 10 points. Marco, Senu are you guys in any trades?
No trades till now
Still holding my short from last night at 6865, not looking rosy at the moment.
Marco where do you have the stop?
Senu stop 20 points at 6885, with sp500 at 1900 as we speak I will be very surprised to not see us bounce off it
Does anyone else feel this looks very strong, I feel a pull back to 6860 might be maximum now
Ftse behaving itself this morning and not chasing higher like DAX. Feels stretched now. US may sell off 1,900 like they did last time. My stop is not far though! Post close is the scariest time to hold a ftse position.
Feel a bit better now just moved stop to break even looking like 6840 coming before a bounce or NOT
Yes I just dropped a few £’s off…
Well that was a fantastic morning just got stopped out at break even WOW
looks like its just you and me here X2