Well it’s certainly been a busy time in the markets while I’ve been away. I was reading back through my FTSE analysis for the 11th May and it seems my suggestions of an impeding down trend have come true. The markets spent the five days moving downwards only confirming the downwards momentum further. Then I went on holiday and the markets have been consolidating somewhat between 5400 and 5260. The 20, 50 and 200 day EMAs are all now in down trend formation with the 20 below the 50 and 50 below the 200 and they are all pointing downwards indicating that the downward move will be continuing. There is also a lot of news floating around from the US and Asian markets that I think will cause the FTSE to slide when it opens again on Wednesday. Therefore this means that positions to look for this week are short only. It also means that I may look to exit my long position in enterprise inns. I’m not completely decided on that yet though. It seems to be holding its own in these tough times and could well prove to be a good stock that bucks the trend of this downwards move. I’m going to have to think about this some more and make up my mind by the end of the week.



Just to add further to confirmation of the down trend the 14 day ADX value is at 36 and climbing. Plus the negative Direction Index is way above the positive directional index. I would say this is further confirmation that the down trend has further to run yet. I wonder if this has anything to do with Greece and the election that is due to happen on the 17th June? Maybe the markets already know something we don’t! It wouldn’t surprise me if they do. I don’t know if others have noticed that certain world events always seem to coincide with moves in the market, or is it that the market moves coincide with world events? There’s one for all the conspiracy theorists out there.


My outlook for the week ahead is most certainly bearish. I’ll up date again with any new trades that might come my way and I’ll be positing my next weekly FTSE analysis at the weekend, so keep checking back and don’t forget to tell your friends, the more the merrier.

June 5, 2012 by Harry
Category: blog