Greg Secker – Global Market Update

The Dow Jones finished the day a massive 778 points down with its biggest point drop ever at the news that the House of Representatives rejected the $700 billion plan to rescue their financial system. Resting at 10,365, the index will start the day today with possibility of further slides indicated. Later with US Consumer Confidence reports, out at 3 pm British Summer Time, amongst other reports out from 2 pm, unlikely to give reason for a rally, watch to the 10,200 level, which if broken and sustained could signal the next sharp fall. Yesterday, notes Mr Secker, at home, with heavy losses from the open, the FTSE, unsurprisingly with America’s collapse, never really recovered and finished itself down 269 points at 4,818 – a level not seen since April 2005. Today with further unsettling news breaks and upheaval from across the pond, and our own GDP figures out at 9.30 am BST, indications leave little room for other than further downside movement, especially if the 4,700 level is breached and held. Gold is currently at $913.4 oil at $96.15. Good luck in your trading and I shall speak with you tomorrow.

The Dow Jones ended the day on Friday, up 121 points at 11,143 after a late rally to end the week. Look to the break of 11,200 and 10,900 for early direction. With only low to moderate strength news out today look to further consolidation of the rescue plan for positive market movement. The FTSE, writes Greg Secker, ended down 108 points at 5,088 and with only minor news out at 9.30 am British Summer Time the early moves will be determined by Friday’s close on the Dow but look to the break of 5,050 and 5,200 for direction. Have a great day’s trading and I will speak with you tomorrow.

The Dow Jones closed 29 points down at 10825 having traded sideways throughout the session and spent its time consolidating as it continues to digest the recent upheaval. Today watch for a breakdown below the 10,650 level again, for confirmation of the continued recent slide back to the trend that was forming before the madness at the end of last week. With a range of news reports out between 1.30 pm – 3.00 pm British Summer Time, look to this period for additional volatility. Yesterday, notes Mr Secker, the FTSE was also dominated by sideways movement and today, with no major market news to affect this index, look as usual to the Dow and Component news for intraday influences. Watch for a continuation beneath the 5,100 level for firmer downward movement. Oil is currently at $106.40 a barrel and Gold is at $896.10 for one Troy Ounce. That’s it for now have a great day’s trading and I will speak with you tomorrow

The Dow Jones consolidated early in the day fallowed by selling which was reversed and then retraced to finish down 161 points at 10,854. With only low level market moving news out today reporting U.S. mortgage figures, look to the 10,800 level for early direction and if the downside is breached and held look to 10,650 for initial support then further to 10,400 should confidence continue to leak on the back of further doubts over the bailout package and a weakening dollar. At home the FTSE closed down 100 points at 5,136 starting with a drop at the open and ending with a rally. Today look for a break of the 5,100 level to indicate further downward movement. Oil is currently at $106.87 and Gold at $889.70. Have a great day and I will speak with you tomorrow.

The Bullish euphoria of Friday seems to have disappeared with the Dow closing down 373 points at 11,015 having tested the recent support and resistance level of 11,000. Further testing of this level is likely to occur with firm movement downward set to continue as the wider implications of what the bailout plan is not likely to achieve, dawns on the market makers, namely sparing America a recession. No major market news out in the US leaves the index at the mercy still, of profit takers from Friday’s moves and component news today. At home the FTSE closed down 75 points at 5,236 and today as with the Dow, no major market news here also and further profit taking, coupled with the sharp rise in the oil price, now trading at $109.24 a barrel, is indicating more negative movement on this index. Look to the break of 5,200 for confirmation of direction. Gold is currently at $904.10 for one troy ounce. Good trading and I will speak with you tomorrow

The Dow Jones closed Friday with a gain of 369 points at 11,388. With the suspension of short selling of 799 financial stocks and details of the massive federal government bailout became clear, Friday’s upward movement seems most likely to be continued. However caution must be applied, as this ban is only in place until the 2^nd of October and is under review with an extension to 30 days possible. Look to the break of the 50 ema at around the 11,450 mark for further decisive upward movement toward the next resistance level of 11,800. The FTSE, having closed 431 points higher at 5,311, provided the biggest daily gain in its 24 year history. Our own version of the short selling ban initially affected 29 shares but this was extended on Friday afternoon to 33 by the FSA, our ban, however, is in place until 16^th January 2009. As with the Dow, look to the break of the 50 ema around the 5,400 level for further decisive upward movement and should this be breached, look to 5,650 as interim resistance prior to the 200 ema at around the 5,800 level. That’s it for today, good trading and I will speak with you tomorrow.

Yesterday, notes Mr Secker, the Dow Jones continued major movement downwards ending the day with a huge loss of 449 at 10,609. Today look to the break of the 10,500 level for further decisive downward movement. Scheduled news releases have been so overshadowed in recent days that the few reports due out today, in America, are unlikely to noticeably affect movement, with so much focus on, and influence by, the banking sector. At home the same is true, although the Retail Sales Reports out at 9.30 am British Summer Time will possibly cause a reaction should the results be markedly different from expectation. Yesterday, notes Mr Secker, ’s market closed at 4912 down 113 points on the previous day. Oil is currently trading at $96.12 and Gold at $864.70. Good trading, speak with you tomorrow.

Another spate of heavy selling started the session for the Dow Jones yesterday and having tested the low of 10,742 the index rallied and closed higher at 11059. The day’s low had not been reached since July 2006. Today, look to breakouts of above 11,300 and below 10,700 levels for further decisive movement. With the US Current Account Balance release at 1.30pm British Summer Time, further strengthening of yesterday’s attempts at reversing the negative impact of the largest intraday range since January, may well be impeded. This side of the pond, the FTSE fared worse reaching lows not seen since June 2005. The index did manage to close up form the intraday low, but ended 178 points down on Monday’s close, just above the 5,000 level at 5,025. With a raft of news out at 9.30 am BST, lead by the Bank of England Minutes, this market will look for any positives to start the repair needed after two days of heavy losses. Barclays announcement to buy part of Lehman’s operation could well lead any bounce back. Oil is now at $93.92 a barrel and Gold is currently trading at $784.00. Have a great day trading and I will speak with you tomorrow. 

Well what a day we had on the markets yesterday!  Following the announcement of Lehman’s move into Chapter 11 and the follow-up of the Merrill Lynch buyout I think it was fair to say that we expected a fair amount of carnage in the market.  And that’s exactly what we got!

So yesterday few markets escaped the panic that was borne out of a series of events that, in the end, may spell disaster for the global financial system. Assessing the damage, we can see that equities plummeted through all time zones. The primary risk asset for most US investors is the benchmark Dow Jones Industrial Average which tumbled over 500 points to close below 11,000 for the first time since July 17^th where it closed on its lows at 10917.

The FTSE naturally tumbled yesterday on the back of the events and gapped down on opening over 100 points before racing towards a drop of nearly 300 points from Fridays close before rallying in the afternoon.

Today should be an interesting day. We have a slew of important economic data coming out that can either add to the panic or cause the freight train to at least slow down.  We have German, British, Euro-Zone and US Consumer Price Index data out today.  We also have the US TIC flows before at 2pm BST before the FOMC decision tonight at 1915 BST.  Naturally people will be interested to see what is said at that meeting after the last fortnight’s tumultuous events.  Whether we will see a panic cutting of rates remains to be seen.

The DOW Futures are being called down -85 and the FTSE daily future is being called down 130 points. Crude Oil is trading at 91.68 dollars a barrel and Gold is trading at 775.9 dollars a troy ounce.

Last week the Dow Jones opened Friday with early weakness, as the index dropped sharply from Thursday’s close. The index then rallied from the low, closing the day at 11,422. Today with only one piece of major news regarding manufacturing to tease the market there is little until tomorrow to indicate that decisive directional movement will be found. At home Friday’s FTSE closed up 98 points 5,416 and with no major market news at all this side of the Atlantic, the same lack of directional decision threatens to be the order of the day. Commodities continue to suffer as Oil has finally dropped below $100, currently at $99.09 a barrel and Gold is trading at $764.50. That’s it, have a great day’s trading, and I will speak with you tomorrow.