The weekly report is published on Fridays to all newsletter subscribers. The report comprises of three articles which will provide you with our analysis of the markets. The report also includes three trade recommendations picked by our Research Team. This report is available for free to non-Blue Index clients, all you need to do is create a Member account in order to receive this report directly to your inbox every week.
We said last week that a short term low could be at hand, and the rally seen off the spike low at 5338 on the FTSE 100 index was certainly impressive, so the next stage is to see how far the current pullback goes, and whether there will be retest of that area, which is a clear possibility.
Whether you believe it or not, the aim of markets is to fool as many traders and investors as possible, so that strong players can extract the maximum profits from the weak. What this means in today’s trading climate is that we are seeing more and more spike action, and this increasingly takes place outside the traditional trading hours.
We said we would examine the major market indices this week, and the first thing to point out is that this time of the year is normally bullish, so the action since New Year does not bode well for the bulls in 2008.
There was something for everyone in 2007, with action in share, index, commodity and forex markets.
Day traders have probably had the edge over trend followers this week with some huge intra-day moves in the markets. Even though we are supposedly in the midst of the traditional Christmas rally, a series of badly received central bank statements sent shares in all directions in recent days, and the immediate outlook is unclear.