I’ve just done my weekly FTSE analysis which you can read here. I have moved it to it’s own separate page.(see on the left under the Pages Heading) This way you will be able to look through the previous weeks. I only started this last week so there is only this weeks and last weeks to view. I have added a table at the top with my weekly view so you and I can monitor how accurate my analysis is proving. So far it’s not that great with me suggesting cautious long positions for the week, which would’ve been fine up until Friday hit. Maybe this week will be different.
I would like to say hello to max, and thanks for the comments over on spread betting central. You can read them here. I’m trying to be as honest as possible with this blog as I want to learn how to be successful at spread betting.
Also thanks to Alan for the comment he left here. It’s great to get someone else perspective on what’s going on. I especially like the comment on my Alcatel lucent position. You are right to point out that the MA suggest the stock is down trending. I agree with this an to be honest I hadn’t really noticed them. When I first entered the position it was because I identified a support level around my buy in price at 191. I paid no attention to MA, or any other indicators. I bought simply based on the principle that the price might bounce of this level as the previous low of 192 had proven to be a support level before. I set my stop 10pts below at 181 and thought if price can rebound to the high it did before of 258 then I could potentially pocket 258-191 = £67 for only a £10 risk. A reward to risk ratio of 6.7:1. Since the trade has executed a new development has occurred in the form of momentum divergence. Which using my new strategy would also be another buy signal.
Now I’m confused as to what to do. It’s amazing how different people can see different things in the same price chart. I agree the MA are probably suggesting a short term sell. Should I sell out and take my £20 profit? That’s still at 2:1 reward to risk ratio or do I keep the position open in the chance of further gain based on my strategy? I think I’m going to keep it open and see how it goes. I’m still not sure which strategy to use to trail my stop. I think I will take a few days to decide on this one.
This weeks orders.
Based on my FTSE All share analysis I am still looking for long positions. This is good as the only strategy I have at the moment is looking for long positions.(maybe this is why I am reporting cautious longs in my FTSE analysis. Maybe I am only seeing what I want to see?) There is no reason my momentum divergence strategy cannot be used to find potential short positions but obviously it would look for momentum highs and price highs. Maybe I’ll write up this strategy this week if I get time.
Here are my orders for this week. 3 out of my 5 orders executed last week so we will see how they pan out over the coming weeks. Galiform no longer meets my criteria so this order has been cancelled. Premier foods is still a good order albeit with a new buy price.
|
Name
|
Buy
|
Stop
|
Risk
|
|
Premier foods
|
23.2
|
20
|
3.2
|
|
Laird
|
120.4
|
110
|
10.4
|
|
EAGA
|
131
|
121
|
10
|
|
Vodafone
|
142
|
125
|
17
|
Anyway that’s all from me for now. Keep the comments coming. It’s great to get another perspective on things.
Until next time.
“May the markets be with you”
