Published on
June 30, 2010 in
Education, Market Reviews and ShareHunter News.
Tags: double dip, FTSE, FTSE100, isa, market crash, recession, share prices, share tips, SIPPS, stock market crash, trading in stocks.
According to press comments over the last two days there is now a 60% to 80% chance of a double dip recession occuring. That means that it is likely that all that has been suffered by individuals, businesses and the economy as a whole over the last two years is going to be suffered all over again (for another two years??).
The Stock Market took a hammering in 2007 and 2008 so does this mean that it is going to take another hammerin in 2010 and 2011? The picture painted by our analysis suggests that it will. Over the past weeks and months we have been drawing attention to the increasing probability of an eventual break of the FTSE 100 index below the 5000-5100 area of support and to the likely result of that break being an eventual collapse down to the 3500 area.
Yesterday’s fall to the close at 4914 suggests that the collapse has, indeed, started. However, there are trwo important points to consider: Firstly, thsi may be nothing more than an isolated scare and the FTSE may bounce back and leave many ‘bears’ with red faces and nursing some trading losses. In other words, just as one swallow doesn’t make it summer so one day’s nasty move doesn’t make for a general collapse. But secondly, and more likely, if the FTSE closes below 5000 at the end of the week, on Friday, then this is a strong signal of worse to come – but it may not happen quickly and it may be early autumn before the more general and steep collapse occurs.
The dotted red arrows show the potential collapse -
A subscription oue weekly ‘The FTSE FORECAST’ report will keep you abreast of all the changes and likely future direction of the FTSE and other World Stock Markets. For details Copy this address and post it into your browser – https://www.paypal.com/cgi-bin/webscr?cmd=_s-xclick&hosted_button_id=8NCBVH3W6UPCE
Published on
June 28, 2010 in
Education and Market Reviews.
Tags: BP, crash, England, Footsie, FTSE, FTSE100, is the stock market going to crash, is the stock market going up, stock market analysis, stock market crash, stock market index.
Last week the FTSE wiped off the previous two week’s gains. In so doing it fell back, yet again, to the important 5000-5100 level area to seek support. If support (in the form of active buyers) does not materialise then the FTSE is destined to follow England’s World Cup performance and to ‘bomb out’.
Our latest ‘FTSE FORECAST’ is available and explains in detail where the FTSE may now be heading.
In fact it could be on the bottom now (but don’t buy it yet as you could be grabbing a falling knife!). There is an important support level for BP at 330p which it has touched, and bounced from (so far) today.
But, if it should close below 330p for two consecutive days then it is likely to carry on falling to the 270p level where it should find support. Failing that level would be serious and would see the price fall to 220p. Hence our suggestion that it might be best not to try and gusee the bottom but rather to wait until some confidence (and buying) returns to teh share price.
Trying to guess a bottom is always a mugs game and is fraught with danger. Best wait for a new, and higher, low to form so as to gain some confidence that the recovery has started – and it hasn’t yet!
Two days ago (on 9th June) we said that BP shares were likely to hit 360p and then bounce. The share price hit 360p on the 10th and today is at 400p!!
If you bought at 360p you could now put in your Stop at the entry price and be sitting pretty – assuming of course that you haven’t already taken and banked your (quite handsome) profits.
BP’s share price is likely to continue to fall but it should find support at the 360p level. From there it may rally. So a speculative buy is best left until this level is touched and the price has given a signal that a rally is about to start.
The FTSE continues to flirt with the 5000 level. This is a critical point as explained in our lates ‘The FTSE-Where Next?’ article.
From here the FTSE could bounce, it could crash, it could go sideways (before doing one or the other). Answers are in ‘The FTSE-Where Next?
Published on
June 1, 2010 in
Market Reviews and ShareHunter News.
Tags: Bear market, Bull market, crash, direction, FTSE, isa, rally, share prices, sipp, stock prices, trend.
This no-nonsense weekly guide based on experienced and well researched technical analysis will give you the extra confidence of knowing what is happening to the FTSE and why.
Are share prices likely to continue to increase? How far is the FTSE likely to rise? Is the stock market really about to crash? When will it be a good time to buy or to sell-short? Might it be sensible to cash some of your funds or shares now?
These, and many other questions can be answered by – ‘The FTSE-Where Next?’
It will give you an insight into what is happening now on the Stock Market and what is likely to happen next.
With ‘The FTSE – Where Next?’ you will be able to make better investment decisions as well as developing a confidence and certainty from knowing what’s going on and what is about to happen.
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