Jump to content

Novice Musings on FTSE Buys This Week 12/06/22


Recommended Posts

Last week the market dropped over 2% with every sector in the red except precious metals and mining. The market PE continues to fall, presently 13.1 against a one-year average of 16.8. Should we be concerned about PE contraction in the market, it being one indicator we are extending into a bear market? However, this is not the case with all sectors and so does this mean we can still find opportunities?

Possibly, but this week I am sitting on my hands. Let us also wait and see tomorrow morning's UK data.

  • Like 1
Link to comment

Well, the market went red and so to stay away seems the right thing to do. Fresnillo and National Express bucked the trend but their fundamentals do not suggest they are a buy. Precious metals may be a safer sector but I not really see any opportunities in the FTSE.

  • Like 1
Link to comment
10 minutes ago, Greenmantle said:

Well, the market went red and so to stay away seems the right thing to do. Fresnillo and National Express bucked the trend but their fundamentals do not suggest they are a buy. Precious metals may be a safer sector but I not really see any opportunities in the FTSE.

A good trader Buys and Sells as well, identifying the opportunities it should not be that difficult in a proper, undistracted and designed for environment. :) . Staying away is an outside or a beginner's emotion which I believe we are not here for, or to account their money :) .

Link to comment

Being new to forums I may not have been clear about my intended conversation which is “FTSE Buys This Week” i.e. potential investment buys for those of us with IG Share dealing accounts. I disagree that in a falling market, as we have this week, staying out of buying shares is either an emotional or beginner’s decision. For me, it is soundly sensible. However, if anyone has purchased FTSE shares for their portfolio this week it would be interesting to hear about their strategy for doing so as I am eager to learn.  

If there is interest in investment strategy amongst new traders, I will move this thread over to “New Client Trading Questions” under “New to IG” next week to continue, hopefully, an exchange of ideas. I accept things may be a little quiet whilst the market continues down but it would be good if we could all catch the bounce when it eventually arrives.

With announcements by the US Federal Reserve and the Bank of England due tomorrow I am still very much keeping out of (buying) the FTSE market. Does anyone disagree?

Link to comment

A further thought on interest rates:

A change in interest rates is likely to impact the share price immediately. Conventional wisdom suggests the expected rise in interest rates from the Fed (Wednesday) and BoE (Thursday) will have negative effect on share prices. It is obviously more complicated than these two statements but I still see a further fall in the market with a further interest rate rise this week. However, there may still be some interest in financials.

Is anyone looking at this sector: particularly Standard Chartered and HSBC?

Link to comment

NOT A DIP OR DUE A BOUNCE?

It has been a bad week overall for equity buys. We have seen higher interest rates from the Fed and BoE but do we have a recession ahead or simply slower growth?

At the time of writing 80% of FTSE 100 stocks are positive today. So, looking at the chart below are we due a bounce back to around 7650 that we saw in March and May?

Comments are welcome, especially from the IG Smart Portfolio managers, on the FTSE market direction and whether we will see a sustained bounce providing opportunities to invest in equities in the forthcoming weeks.

FTSE 100.jpeg

  • Like 1
Link to comment
11 minutes ago, Greenmantle said:

NOT A DIP OR DUE A BOUNCE?

It has been a bad week overall for equity buys. We have seen higher interest rates from the Fed and BoE but do we have a recession ahead or simply slower growth?

At the time of writing 80% of FTSE 100 stocks are positive today. So, looking at the chart below are we due a bounce back to around 7650 that we saw in March and May?

Comments are welcome, especially from the IG Smart Portfolio managers, on the FTSE market direction and whether we will see a sustained bounce providing opportunities to invest in equities in the forthcoming weeks.

FTSE 100.jpeg

Thanks for sharing @Greenmantle

image.png

 

All the best - MongiIG

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      23,594
    • Total Posts
      96,941
    • Total Members
      44,159
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    nguyetque
    Joined 01/12/23 13:36
  • Posts

    • Hi @THT Thanks for sharing great content. Have a Great Christmas and New Year All the best MongiIG
    • FTSE 100, DAX 40 and S&P 500 remain bid as inflation slows Outlook on FTSE 100, DAX 40 and S&P 500 following a strong November. Source: Bloomberg  Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Friday 01 December 2023 12:32 FTSE 100 ends month in positive territory The FTSE 100 slid to 7,383 on Thursday before reversing to the upside as inflation continues to weaken in the eurozone. The 55-day simple moving average (SMA) at 7,494 capped and is doing so once more on Friday morning. Once overcome, the 17 November high at 7,516 will be in focus, together with the 7,535 November high. Minor support is found at the 21 November low at 7,446. Source: ProRealTime DAX 40 continues to surge ahead as eurozone inflations weakens The DAX 40 continues to surge ahead as eurozone inflation came in weaker-than-expected on Thursday with the July peak at 16,532 being in sight. Minor resistance on the way up can be spotted at the 16,421 31 July low. Support below Friday’s intraday low at 16,236 is seen at Thursday’s 16,165 low. More significant support can be found between the August and September highs at 16,044 to 15,992. Source: ProRealTime S&P 500 sees best November since 1980 The sharp November rally in the S&P 500 has lost upside momentum but the index nonetheless continues to trade in four-month highs as the Fed’s preferred PCE inflation gauge came in as expected at 3% year-on-year in October. November was not only the best performing month for the S&P 500 this year but also the strongest November since 1980. Resistance is found at the November peak at 4,587, followed by the July peak at 4,607. While this week’s lows at 4,539 to 4,537 underpin, the short-term uptrend remains intact. Slightly further down sits potential support at the 4,516 mid-September high. Source: ProRealTime
    • If you want to succeed in this game you have to know and understand the rules - 99.9% of people don't, but of those a few % slip into the trading success net It's not my Intention to show you how to trade or make money - I'd be loathed to help some greedy wealthy person increase their wealth, through a easy trading method, but I'm happy to show you the TIME side of the markets, because I know hardly anyone will take note or use and it satisfies my "I tried to help them" lifes reflections etc Above I showed you Gann Square of 9 showing MONTHS on the SP500 and that lots of those turns on a monthly basis came out on KEY points on the Sq9 - namely the UP, DOWN, HORIZONTAL and DIAGONAL lines/points If you quickly study the chart below, you will see lots of times the EURUSD hit some of those points nicely, look at month 218 & 257 as examples - now scroll up and look where those 2 numbers are located on the Sq9 They are smack bang on key positions of that Sq9 chart - All I want to show you is how freely traded markets are somehow landing on pre-built number sequences over and over - not every one is a direct hit, but I'm sure you'd agree in the SP500 example above AND this EURUSD below its a canny coincidence! So, lets look at the EURUSD, because the Sq9 above resulted in too many options and you'd struggle to formulate a easy to use strategy from Gann used lots of differing Squares to calculate from, he used a Square of 12 (12x12 = 144) and we'll look at that for the EURUSD MONTHLY chart (Note ALL Gann's Squares where derived from the the pyramid's!)   We'll keep it simple and just use STATIC monthly cycles, here's a 12 month cycle (remember we are using Ganns Square 12 to base this all from) As you can see its quite effective, I've highlighted the 36 month cycle with THICK lines, because its resonating with the market pretty **** well and as you can see the Square of 144 is working really well with the EURUSD (All markets will work well with differing Squares, so its not a one size fits all thing) To save a huge amount of explaining, the square of 144 has principles within it that resonate with the sacred geometric solid of a PENTAGON and we know from mathematics, that a pentagram fits into a pentagon in the form of all its sides UNFOLDED, when these open arms/points hit the edge of a circle it creates a set point on that circle and you have 5 points of 72 degrees around that circle (Remember Pythagoras, he had a secret hidden order where the Pentagram was the symbol of the order! and he was a very very very clever person)  So IF, 72 (half of the Square of 12) is important then, harmonically related numbers to that 72 will also be Important, as in the chart above we've seen that 36 was In the chart below I've tided up the chart a little and added a 54 month cycle because 54 is an Internal angle of the pentagram, its also a Hurst cycle too - I also for visuals show basic Fibonacci cycles of 38/62/138/162 MONTHS  But as we can see 54 & 36 months  are definitely causing the EURUSD to sing to its tune - Remember these are STATIC cycles, the markets are NOT static, hence why its not perfect and exact Hopefully given you some food for thought - Remember you are VIEWING Time & Price action on a 2 Dimensional chart, Price & Time don't move in a 2 Dimensional fashion, Have a Great Christmas and New Year THT
×
×
  • Create New...
us