Good morning. That dip before the open missed my 6068 long order by 3 points before rallying to 6200 which was a little annoying, however the short from higher up managed a few points. Turned into quite a bullish day and overnight has been strong as well as Asian stocks surged, led by the the biggest gain in four years for Japanese shares, while emerging-market and commodity-producer currencies strengthened amid optimism China will be able to stabilize its financial markets. Its still all eyes on the Fed next week and possible rate rises in September (though more likely to be pushed back).
US & Asia Overnight from Bloomberg
Asian stocks rose, extending a global rally, amid optimism that Chinese policy makers will succeed in stabilizing mainland equity markets. Japanese shares rebounded to push the Nikkei 225 Stock Average back into positive territory for the year.
The MSCI Asia Pacific Index climbed 1.2 percent to 125.64 as of 9:03 a.m. in Tokyo as the Nikkei 225 surged 3.4 percent. U.S. investors returned from a long weekend to the first gains in mainland Chinese stocks for five trading days, with shares soaring in late afternoon trade in a pattern that’s associated with state buying. The Federal Reserve remains in focus, with traders counting down to next week’s meeting of the U.S. central bank.
“China seems to be the big driver at the moment,” Chris Weston, chief markets strategist in Melbourne at IG Ltd., said by phone. “As long as China is stable and equity markets there aren’t in freefall, markets will generally go higher. We won’t rule out more volatility ahead of the U.S. meeting next week.”
Japan’s broader Topix index added 3.3 percent. South Korea’s Kospi index advanced 1.4 percent. Australia’s S&P/ASX 200 Index climbed 0.5 percent and New Zealand’s NZX 50 Index rose 0.8 percent. Futures on Hong Kong’s Hang Seng Index climbed 1.1 percent in most recent trading. Markets in China and Hong Kong have yet to open.
China’s government spent $236 billion from June through August trying to shore up stocks, according to Goldman Sachs Group Inc. The Shanghai Composite Index surged 2.9 percent Tuesday, after losing 4.7 percent in the prior four days.
E-mini futures on the Standard & Poor’s 500 Index added 0.1 percent. The underlying U.S. equity benchmark index jumped 2.5 percent on Tuesday. [Bloomberg]
FTSE Outlook
Wednesday has seen a bullish Asian session, with the Nikkei up 6% at the time of writing, which has pulled the FTSE over 6200 and to the top of the 20 day Bianca at 6220. We have the top of the 10 day above this at 6277, with 6241 as resistance between them. If the bulls can break 6240 then we should see nearer 6300 later today. As mentioned on Monday I am bullish all this week and still expect to see 6400 or above unless something unforeseen happens. However there is still the risk of a dip down again with 5700 a possibility in October. That will be a good buying opportunity though (again). For today the pivot is at 6145 so support there though 6190ish above that looks decent support first thing.
congrats tmfp – you’ve done it again. You still open?
Funny story there Custard, but the short answer is yes, I kept 50% of my long overnight by accident 🙂
Quite an interesting area now: all 3, FTSE DOW DAX around 50% retracement of 11/8 to 24/8 move, FTSE and DAX above previous bounce highs and DOW within 100 points.
Are they overbought? Not yet, FTSE daily has had trouble getting above 60 on 10 RSI since April, currently 54.7. The other two, variations on that theme.
Conclusion: more upside to come, maybe another 100 points on the FTSE no more, then overbought and wanting to come back and test the support value of the resistance we’ve just broken.
Today’s trade as we stand? I would look at buying the DOW on a pullback (if there is one) for a break of 16700 this pm.
I think you may be right. I’m half expecting some an announcement of some sort given the moves we’ve had
If you want to reference this in with fundamental/news influence, then I guess it has to be the FED on 17th Sept and the interest rate decision.
The basic question seems to be “How strong do they want the Dollar to get, and how quick?”
If they raise interest rates, then the concomitant strengthening of the Dollar will cause real pain in a lot of $ debtor countries i.e. the developing ones, but also China.
There is also a political angle strong dollar=strong US in Presidential season.
Any worldwide financial pain and imbalance caused would just be collateral damage. Americans don’t mind collateral damage…to other people.
Talking of platforms, have a look at Intertrader too http://www.intertrader.com/lp/smart_trader/?wm=8211008
I use them and IG
Sorry about the website downtime. What should have been a 10min job this morning took a bit longer than planned!
No worries – Quite enjoyed that – the voices in my head had gone quiet …LoL
WTF was that spike
Signal to short 😉
Stop hunt?
I would think so Nick and also I have got a resistance level of 292 which it clipped. I would wait for a retrace to 280-85 before opening a short.
That spike happened in about a 15 sec gap between me putting my phone down and picking it back up again. bizzare.
So it was you was it Coombsy??
“BUYSELLBUYSELL”!!!!
Yeah – Where were you on the Wednesday spike ??? Doin’ your nails.
Nah….sorting out my old Mum’s insurance!
Gromit caught it at (S) 6279 – it must have been fast as it he should have been stopped out but didn’t appear to be the case. I think it was so fast, the order was processed at 6277.
Don’t think anyone could be that quick tmfp, it was a blink of an eye. mind you wish I had held my long from Monday. Didn’t want to be greedy, wish I had now.
Went to IG seminar last night. Was for the real beginner though, all what they went through was what I’d taught myself over last two years. But helpful to know I’m along the right lines. If your very new to this then do go. It was free.
Saw there TV studio too could see myself on camera in the tele, looked well funny.
Out of the two though nicks seminar definately more helpful.
Was it well attended ?? Youngsters or old goffers..
Yeh bit of both Hugh, about 40 people I guess. Quite a few though we’re knocking back the wine. They will be part of the 90% that lose.
Yep – went to one of these years and years ago with IG.
I had an a/c with them when you had to ring up for a quote ..and you’d get -yeh it’s 80-82 & the minimum stake then was £10 p/p…think that was about 1995. We’ve come along way since then !
Did you actually learn anything from going ??
Would I learn anything from going to Nick’s seminar ??
At the very least you get to meet me Hugh 🙂
Hi all, I’ve not posted anything for a while but I’m happily plugging away behind the scenes, good luck all.
Same to you matey
Thanks buddy
So, here we are 6270, uninspiring DOW opening, 125 point up on yesterda’s close and a 6.5 divi.
I’m looking to long, but think there’s a 10/20 point shake out first.
Who’s long, short, what?
A little long at 52
and a bit more at 42
Looking for this rally to get to 60ish, pull back then rally again into the close.
Pretty poor attempt, barely cleared 50…
added a little more at 30
Hmmm, not going as expected and getting a bit costly, even though increments were small….guess I’d better lose it at 18 stop
Took the divi and out at 28 for an average loss of 6.5, not the end of the world after such a bad misjudgment.
Come on mojo, where are you?
I think depends how long you’ve been trading hugh, sounds like you’ve been at it a while so probably not as much as a new guy.
Tmfp I’m with us long ftse 49. , 10 point stop.
I am thinking of doing some more advanced seminars sometime soon as well for those that have been trading for a few years. Also more of a trading room environment and sharing ideas between all attendees.
And stopped out, just, balls.
looks like you’re best off out of it lol
I pop out to get a haircut, in the physical sense & look what happens…
Always easier inhindsight…I wondered if it was all a bit “gappy”
Above 6300 is just fresh air until 6520 – 220 points away.
RDSB Gapped Higher – This always seems to fill the Gaps…there are others which I don’ follow so intently…….
Euro moving lower to support & then bouncing
Keep getting 6182 coming up on these charts & at the moment – this more likely than 6243.
DOW PRT at printed at 2 o’clock
http://tc.md.it-finance.com/ProRealTime/display_chartimage.phtml?name=l0rbhs4iprprvgx7q6m16y48k&type=png&purpose=file