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.
The market did an excellent job in weeding out many weak traders last week as plenty of stops were touched off on spike lows. We have been warning for the last month or so that the smart money was buying not selling, and they, as opposed to Joe Public, are not normally wrong.
Another volatile week in the US saw the Dow Jones have a trading range of nearly 600 points, having peaked at 12,310 and falling to as low as 11,730. It seems like every week is a real rollercoaster, with most of the action focusing on the FED and their decision to pump more liquidity in to the markets.
Most of the fun this week has been in the financial sector with two very contrasting statements from Barclays and Alliance & Leicester. Barclays kicked off the reporting season with a very solid looking statement, in which it appeared to have come out relatively unscathed from the sub-prime fiasco, so there was a mixture of relief from the bulls and short covering which led to excellent day trade opportunities for CFD traders.
It might have been dull before we went to press last week, but there has again been something for everyone in the last week with profits warnings, takeover stories, big falls and then huge rallies across the globe, so where do we start?
After the dramatic action of last week, it has all gone a bit dull as traders get to grips with the latest corporate reporting season and reflect on the next interest rate moves by central banks. It certainly does not feel like the worst is over on the FTSE 100 index, and several stocks that had been very strong, after seeing major reversals last month, have once again turned south.