Financial Spread Betting Review

The LS Trader Financial Spread Betting Week In Review

Stocks

The stock markets were again lower for the week and if not for some recovery on Friday would have been well down. The trend in the stock markets remains down and there is a good possibility that the stock markets will have a go at testing contract lows soon.

There are some interesting round numbers that could be key levels this week, such as 8000 for Wall Street and 4000 for the FTSE. The Nikkei is also in range of 8000 whilst the Nasdaq may have an upward go at 12000. This is not a particularly key level, but round numbers seem to have a psychological impact on stock indices.

Commodities

The grains markets had a wild week after a report came out on Monday from the Department of Agriculture which projected bigger supplies than forecast in December. This affected many markets and Corn actually fell the single day limit on Monday with Wheat not that far behind. Grains then started to move higher for the rest of the week.

Both Crude Oil and Natural Gas continued the long downtrend posting new contract lows in the process. February Crude recovered slightly after finding support at $34.10. This level may prove key this week as a break or bounce should yield movement. If $34.10 fails to hold the market we may well see a further decline to $30.

Gold had a volatile week after gapping down on Monday. A recovery through the week still left Gold down for the week. The trend remains down for Gold.

Currencies

It was another strong week for the US Dollar after the Dollar gained against the major players. The US Dollar Index failed to clear resistance at 8600 but a break through here may lead higher to at least 8800. The British pound ended the week lower again and still looks susceptible to further declines.

Interest Rate Futures

Interest rate futures have had a volatile week and after a strong start to the week ended falling back slightly by Friday’s close. The 3 month Eurodollar again hit new highs but then pulled back to close at 9900. The 5 year notes posted a new contract high during the week, proving that in spite of yields being near record lows, these markets can still go higher.

The 30 year T Bond was sharply higher during the week but a slight pullback still saw this market ahead for the week. All of these markets look vulnerable to a pullback but we continue to follow the trend and stay long with guaranteed profits from all 4 markets whatever happens.

Yours for bigger winners, more often

Robert Stewart & Phil Seaton
The LS Trader Team

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