Quick Links
Authorised and regulated by the Financial Services Authority
A fine week for the bulls
24.08.07
Last week we suggested that for many defensive stocks, the market falls had reached a level where they had become very attractive on valuation grounds, and CFD traders should look for some support shortly. We then saw a perfect false break below the 200 day moving average on the Dow Jones, as occurred in March and since then it has virtually been one way which has suited our strategy.
During the savage falls up until last Friday, volumes reached high very levels, and on the day of the spike low, there were over 6.5bn shares traded, a phenomenal amount and well over double the usual daily average for US trading. Since then though, volumes have declined dramatically which suggests that this week’s rally has been more a question of short covering than genuine and impulsive investment buying.
Member Login
