Greg Secker – Global Market Update

Yesterday, notes Mr Secker, the FTSE closed up 316 points at 4,242 and with no news out today on this side of the Atlantic look to component news and a lead from the Dow for directional movement. Be aware that the proximity to the 20 moving average has not been thus for 5 weeks when the resulting bounce continued the downtrend so be wary of a profit taking flurry that may occur. Yesterday, notes Mr Secker, the Dow Jones finished down at 8,990 having dropped 75 points from the previous day’s close, which belies the 450 point plummet in the 12 minutes prior to the session close. The Index had meandered upward throughout the day until the FED announcement of the 0.5% interest rate cut. Today with Gross Domestic Product and Personal Consumption reports out at 12.30 pm the pattern of intraday profit taking is likely to continue with a vengeance as recession fears continue to rule the market. Yesterday, notes Mr Secker, and as a result of these fears attention turned to commodities with Oil gaining significantly, rising by $4.77 to $67.50, as did Gold, which rose by $13.50 to $754.00. That’s it for today, good trading and I will speak with you tomorrow.

The FTSE closed 73 points higher at 3,926 after a choppy day of movement, only benefiting from the Bullish sentiment being displayed on the Dow during the last hour and a half of the session. Today with a range of low to moderate financial news reports out at 9.30 and with further upward movement on the Dow the 4,000 level could well be breached and held. Yesterday, notes Mr Secker, in America, The Dow Jones climbed 889 points to close at 9,065 with indications that he credit freeze is thawing and ahead of the Fed’s interest rate decision expected to result in a cut to 1% which will be announced at 6.15pm. Today with a varying group of reports ranging from statistics on American Mortgage Applications at 11.am, starting well before New York opens, right through to the Fed’s interest rate decision mid session look for more gains should the news breaks be positive. Oil is trading at $62.73 and Gold is at $740,50. Good trading and I will speak with you tomorrow.

The FTSE fell a modest 30 points to reach 3852 and as there is no news out today look to component news and influence from overseas markets for directional movement keeping a watchful eye for further bear activity should the Dow weaken further. In America the Dow Jones fell again yesterday by 203 points to finish at 8,175 with a raft of news breaks out from noon today from varying quarters this could lead to another choppy day and with the minor support of 8,200 having been broken today’s activity may result in further falls. Oil fell further yesterday and is currently at $62.75 and Gold is now down to $734.70. Have a good day trading and I will speak with you tomorrow.

The FTSE fell by 204 points to end the day at 3,883 with Friday’s session forming a low test bar look to the 3,700 level which if broken could signal the next sustained fall to the lows around the 3,270 level last seen in march 2003. In America the Dow ended the week at 8,378 with a loss of 312 points by the finish of Friday’s session showing the 8,200 level to be providing minor support. Look to the break of this, which may signal the next fall towards the 7,400 level last seen again in 2003. Home sales reports are out today and with indications that the news could be negative the index may suffer again today. Oil is currently at $63.57 and Gold is at $736.10. Good trading and I will speak with you tomorrow.

Yesterday, notes Mr Secker, the FTSE closed up a much more sedate 47 points at 4,087. Today there is market moving news in the form of our Gross Domestic Product figures, which will be released at 9.30 am British Summer Time, so watch at this time and be aware of weekly position profit taking in the latter part of the session. Over on the left hand side of the Atlantic Ocean the Dow Jones closed up 172 points at 8,691 and with only moderate market news out in the form of New Homes Sales at 3 pm British Summer Time look to the pre-open (1.30 pm BST), the open (2.30 pm BST) and news releases (3 pm BST) to potentially provide the greatest price action ahead of weekly position profit taking and the Opec decision suggested at a 2.5 million barrels a day cut. Currently Oil is trading at $68.94 and Gold at $724.80. Have a good day’s trading, a great weekend and I will speak with you on Monday.

The Dow Jones opened with early weakness then moved within what is now, in relation to recent weeks, a tight range of 285 points to then fall almost the depth of that range in the last hour of trading to end the session down 231 points at 9,033. With the range for breakout remaining between the 9,200 level and 8,900 level on the downside look for the failure at these points for directional indication. With some resistance at the 9,300 level and no major market moving news out for the remainder of this week look for sustained directional movement should the 8,900 level be breached and held. At home the FTSE closed down 52 at 4,229 and as with Dow, starved of major market moving news look again to resistance off the 20 ema at around the 4,500 level and support at around the 4,100 point. Today we can look to the Bank of England minutes out at 9.30am British Summer Time for some potential movement. Gold is currently at $772.80 and Oil is trading at $71.77. That’s it, good trading and I will speak with you tomorrow.

The Dow Jones ranged about in early trading then meandered towards the session end closing up 413 points at 9,265. With the 9,200 level only just broken look for sustained price action above this level for upward directional indication or a break below the 8,900 level on the downside. With no major market news out today component news will as yesterday lead movement again. At home the FTSE closed up 219 points at 4,282 and as with Dow, starved of market moving news look to resistance off the 20 ema at around the 4,500 level and support at around the 4,100 point whilst we look forward to the Bank of England minutes out tomorrow and our GDP figures out on Friday for more conventional movement. Gold is currently at $798.60 and Oil is trading at $75.00. Good trading and I will speak with you tomorrow.

The Dow Jones opened the day with early strength on Friday. Then, having rallied quietly to the 9,280 level, fell relatively sharply to the close, ending the day with a loss of 127 points at 8,852. With no major market news out today component news will lead movement so look to the break of the 9,200 level for upward and the 8,600 level for downward decisive movement. On Friday the FTSE closed up 201 points at 4,063. With only minor market reports out today this side of the Atlantic, look to the breakout levels of 4,300 and 3,900 for sustained directional indication. Gold is currently at $787.70 and Oil is trading at $71.85. Good trading and I will speak with you tomorrow.

Yesterday, notes Mr Secker, on the Dow Jones, after further selling pressure, which saw the index fall to the 8,200 level before lunch, buying activity took hold resulting in a closing point of 8,979 up 401 points on the close of the previous day. With Housing Starts reports due out at 1.30 pm British Summer Time, today watch for selling activity this afternoon as weekly position profit taking occurs which could either exacerbate or reverse the news break reaction, which, given the subject matter, is likely to be negative. At home the FTSE closed down 218 points to reach a level not seen since the end of April 2003, at 3,861. With no major market news here today, some initial strength may be seen with the Dow’s rally having occurred after this index’s close and the Asian markets’ positive movement overnight. However, any positive movement could be reversed and caution must be exercised, as the usual end of the week caveats apply. Additionally, with news that Opec (The Organisation of the Petroleum Exporting Countries) may cut Oil production next week, further turmoil is likely, Opec accounts for 40% of a world’s total Oil production currently exceeding 87 million barrels a day. Oil is currently trading at $72.87 and gold at $808.80.That’s it from me this week, have a great day’s trading, a fabulous weekend and I will speak with you on Monday.

The Dow closed down 733 points at 8,577 yesterday and with Asia stocks slumping overnight, today, a reactive bounce is less likely than continued downward movement. A fall through the 8,000 level, if sustained, could see the index tumble further towards the end of the week, and with Consumer Price Index reports out at 1.30 pm British Summer Time the Bears will hold sway should the news be worse than expected. This side of the Atlantic The FTSE closed down at 4,079 having lost another 314 points on the day with no major news out here look to component news and the Dow for direction today. Gold is trading at $842.90 and Oil is at $73.42. That’s it for today, have a great day’s trading and I will speak with you tomorrow.