Greg Secker – Global Market Update

The Dow opened the day with early strength and broke a significant trend line at 11,550.  The Dow rallied throughout the session and eventually closed the day with a gain of 213 points at 11715

The FTSE also had a strong rally breaking above significant resistance at the 50 EMA and rallying up above 5600 level before sliding back to close a just over at 5601.

The DOW Futures are being called down 35 and the FTSE daily future is being called down 24 points. Crude Oil is trading at 116.97 dollars a barrel and Gold is trading at 840.7 dollars a troy ounce.

After opening quietly the DOW rallied up to highs of 11,555 before pulling back from highs to close at just over 11,500 for a gain of 90 points.

The FTSE moved higher yesterday closing the day above both 5500 and the 50 EMA at 5528.

The DOW Futures are being called down 42 and the FTSE daily future is being called down 48. Crude Oil is trading at 119 dollars a barrel and Gold is trading at 840 dollars a troy ounce.

Today’s major announcements surround a clutch of  German Economic announcements giving an indication of the state of the Euro Economy and later on today the US GDP figures.

The DOW traded mostly sideways throughout its session yesterday as the index built a clear range between 11340 and 11440 before closing with a gain of 27 points.

The FTSE was immensely bearish on the open based upon the preceding US session, before rallying strongly for the remainder of the day.  However, the rally was not enough and the FTSE still closed down 34 points on the day.  It remains hovering under the 50EMA and the psychological number of 5500.

The DOW Futures are being called down 21 and the FTSE daily future is being called down 6 points. Crude Oil is trading at 116.87 dollars a barrel and Gold is trading at 832.4 dollars a troy ounce.  Today’s main announcement will be the US Durable Goods at 1330 BST.

The US Stock market fell sharply on Monday on renewed concerns over the health of several financial firms.  The DOW opened with a sharp decline from the 11,600 Level and never looked back as the index dropped steadily throughout the session ending the day with a loss of 242 points.

The FTSE was closed yesterday for the bank holiday but had a bumper session on Friday racing up over 135 points for the day to close above 5500 at the 50 EMA.

The DOW Futures are being called neutral and the FTSE daily future is being called down 6 points. Crude Oil is trading at 114 dollars a barrel and Gold is trading at 823 dollars a troy ounce.

Today’s Powerplay list delivered 2 longs and 181 shorts that met the basic Powerplay filter.  From that list we can look at two opportunities:

MITIE (MTO) group has been in a downtrend since April after a strong rally to the 200 EMA during the latter half of July it has now fallen back below the Moving Averages and is setting up nicely off the 50 and 20 EMA.

The 2^nd one is Greene King (GNK) which like and MITIE and (and in fact most stocks) has been in a solid downtrend all year.  It rallied back towards the 200 EMA during the latter half of July and has now dropped below the averages and is setting up nicely off the 50 EMA

Remember these selections are for educational purposes only and do not constitute trade recommendations.  That’s all for today, have a great day and good luck with your trading.

The Dow opened with early weakness and then spent the day choppily, regaining the early lost ground to finish with a gain of just 13 points at 11,429. Today with yesterday’s movement continuing in the consolidation pattern (as seen on the 1 hour chart) roughly between 11,500 and 11,300 since the 18^th, a breakout from this could spark a decent directional move although there is no major news again for the US markets ahead of the weekend. The FTSE, writes Greg Secker, closed down just over a point at 5,370 Today we have our Gross Domestic Product figures announced at 9.30 British Summer Time along with a host of lesser quarterly figures which if worse than expected could signal the breakout from below the 5,300 coupled with potential profit taking position closing ahead of the long weekend. Oil is trading at $121.31 and Gold at $839.30. Great Trading and have a fabulous weekend!

The Dow spent the day headed further below the channel, down 130 points at 11,348 As the Housing Starts news was very slightly better than predicted, the effect was muted, however the concerns that caused Monday’s decline still weakened the overall market. With no news out state side, early weakness may set the day’s direction as the reactionary buy back has yet to make itself felt. With only 650 points to go, three weak days may mean that our bank holiday break could herald the tipping point, when combined losses could see the key 10,700 level reached before the projected September up turn. Yesterday, notes Mr Secker, the FTSE closed down 129 points at 5,320. Today, ahead of Retail Sales figures on Thursday and our GDP out on Friday, we have the Bank of England minutes released at 9.30 British Summer Time, where the markets will be looking for the merest hint of either continued negativity or a glimpse of positivity to react to. Just as with the Dow – further falls could see the 5,100 level reached potentially triggering a fall away below the 5,000 level. Oil is trading at $115.00 and Gold at $819.30. Good trading and I will speak to you tomorrow.

The Dow bottomed out of its channel around noon (British Summer Time) and finished the day a further 60 odd points down having dropped overall by 180 points this decline was led largely by the banks and Real Estate shares with a few builders thrown in for good measure as speculation grew that the Government intends to bail out Freddie Mac and Fannie Mae. Today look for further selling at the pre-open and open particularly as yesterday’s market catalysts are the most likely to be negatively affected by today’s big news out at 1.30 pm (BST) timed with the pre-open, of Housing Starts. If worse than expected then the sell off could be quite rapid, then watch for a potential buy back as stop losses kick in. The FTSE, writes Greg Secker, yesterday dropped by 4 points to close at 5450 but remains still within the channel of the last five weeks. The small high-test bar created by the tussle of indecision throughout the day sets well for a negative reaction out of the channel’s bottom level should the aforementioned news, signal a drop in the US. Oil is trading at $112.85 a barrel and Gold at $805.00 for 100g. Good trading and I will speak to you tomorrow.

Traders Update from the Live Trading Floor in London….The Dow opened Friday with early strength but quickly reversed from the highs, however the index still closed the day with a gain of 44 points at 11659, and continues to move within the channel seeming to have increasing difficulty with the 50 moving average after Monday’s foray onto higher ground. Volumes are reaching a low ebb as August peters out, so today with no major market news, direction is likely to be choppy with slight overall upward movement ahead of news releases out later in the week. The NASDAQ and S&P each traded sideways throughout the day offering no lead or support to the DOW and continue within their respective ranges. However, these ranges, if broken could indicate early direction Monday. The FTSE, writes Greg Secker, closed down 42 points at 5454 similarly squeezed between the channel bottom and the 50 ema, so, just as with the above market, direction is likely to look to components for impetus.  Oil is at $113.77, the same level it was in April and gold is trading at $792.10. Have a good day’s trading a great day and I will speak with you tomorrow

Yesterday, notes Mr Secker, the Dow Jones index closed down at 11,642 below both the 50 moving average and the 11,700 mark. Whilst the bears had the day the channel is still in play and with retail sales reports at 1.30pm (British Summer Time) projected to move little from last month – a spot of bullishness is all that will be needed to ease the direction back above the current key level. The FTSE, writes Greg Secker, ended at 5534 down seven points, having broken through the 50 ema over the lunchtime period, but then gradually fell back to close below it. Today the sustained break of this important resistance level is the aim but with only minor market moving news out at 9.30 BST, indications are that there is little to carry it through and hold it in the short term. Have a great day of disciplined trading and I will talk to you tomorrow.

The false start of the Dow’s downtrend at the start of May took hold around the 20th and dragged the index down over two thousand points less than two months later. The apparent reversal of this trend has since faltered and initially channelled into a 800-900 point range, now this range is seeming to  be tightening and the price action has dived and rallied roughly between the11,600 and 11,100 levels. Seen on the day Chart the pattern forming suggests an ascending triangle. Should this occur and a breakout from resistance be the result at around the 11,600 line, it is unlikely to happen until around the second week of September when the Market is enthused with a resurgence of purpose and urgency as business focus returns to push forward toward the Christmas season peak in late October and early November. Yesterday, notes Mr Secker, the Dow Jones again opened to weakness and after a half-hearted attempt to right itself gave up to a lethargic close 42 points lower on the day. Not even the raft of economic news bursts of various kinds today caused much movement, as all was roughly in line with expectation. Today with little to stir this index again, as a whole, until 7.15pm (British Summer Time) when the Federal key interest rate is announced, watch for more indecision throughout the day, but be aware of the potential for volatile reaction at news time. The FTSE, writes Greg Secker, closed down at 5,320 by 34 points yesterday with little to show for the movements during the day that ranged over 100 points. Today with a number of indicators out at 9.30 (BST) reaction to them may well be muted ahead of speculation over the Dow’s reaction after this index has closed. Check the Dow movement in its last two hours for potential early direction on the FTSE tomorrow. Good Trading and speak to you Wednesday.