I write this very early today as need to go out. I will keep an eye on the market on my mobile, but probably will not be able to post comments till I come back.
Anyway, the Dow had a very similar day to the FTSE, arresting the slide... for now. Oil and gold have also come off their recent highs. The 1-hour chart just needs to drop to 6175 for a downward trend. The 30-min chart needs a break above 6185 for an upward trend. And as of writing the FTSE is at 6180 - so couldn't be more symmetrical. Given how close the indicators are to the market price just be careful of any opening froth.
Actually, given that the FTSE is sat there at par, and given it is a Friday before a 3-day weekend, I am going to take what was one of my favourite plays last summer and take essentially a "double option" using the 50pt ranges.
BUY FTSE to close up over 50 pts @ 14.8 pts
BUY FTSE to close down over 50 pts @ 18.4 pts
Total cost of 33.2 pts
If it just touches +/- 50 pts then one of the two contracts will be worth about 50. At that point take a close look not only at the market chart but also the contract chart to find the best exit point. It could go all the way to 100.
Resistances and supports as yesterday.
Have a good day!
23 May 2008
Trading Day
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BTW it is now 5.30am in London so a couple of hours before the FTSE price starts to move. In those 2 hours my two contracts will probably lose a bit of time value, so, assuming the FTSE doesn't move much, you may prefer to wait and take the two contracts at a couple of points cheaper.
ReplyDeleteBack at my desk!
ReplyDeleteLooking at what's happened I would have taken my DOWN>50 trade at about 50 pts for a 17 pts profit. As one can see, these binary bets can move very quickly when the index value is close to the boundary. The price can go against you even quicker than the underlying index so if the trend changes just take the profit on offer.
Let's see what happens in these last 2 hours. Can always buy the same bet again at about 30 pts.
TRADE!
ReplyDeleteFTSE to finish DOWN > 50 pts
BUY @ 18.8
Where's that Friday fear factor?!
ReplyDeleteRecall that 6150 is the 30DMA.
Below at 6100 sites the 200DMA.
Been oscillating either side of 6150 all day.
OK I've bottled out of this at 67!
ReplyDeleteSELL @ 67 to close
PROFIT = 67 - 18.8 = 48.2 pts
I don't like these rollercoaster rides - even less as being so close to the boundary I certainly don't trust the pricings shown (I'll talk about this in some article). Also, the Dow may fall through 12500 in 2 minutes, or 2 hours. Can't wait.
Not a bad day with just 3 trades.