FTSE: 8000 by year end?

I'm not buying in the hope of a vaccine bounce, just pointing out that any good news on that front will destroy your position and your margin calls will be hideous - which is why I queried why you're going down that route rather than using Put options?

I've said it before, I like to buy and hold; its time in the markets that counts, not timing the market.
Two basic rules to my trading. Never risk more than 1% of my account in a trade and always trade with a stop loss. I also only trade when I have a technical opportunity to make at least 3:1 ROI. I don’t scalp.

Initially, the stop is set at a technical and the lot size calculated so that my I am only risking 1%. Once the short trade triggers, the stop loss is moved to break even at the earliest technical opportunity and then moved a cycle behind the trade as it heads into deeper profit. Once the 3:1 ROI is protected by the stop loss, I can scale in, again risking only 1% at each scale-in. I can then start taking profit and buying stock with it.

With only 1% levered I’m unlikely to get a margin call. The biggest risk is the stop loss being bounced. That risk can be managed by only trading on high volume shares, which is why the index is attractive right now.

The FTSE is going sideways at the moment, looking for direction. There are many fundamental factors that will give it direction; a vaccine would probably give it a quick bulk exit. A slow ending of lockdown will probably give it a slow, grinding and volatile bull exit. A trade war with China, an extended lockdown which starts to take out big businesses or a second wave will all be bear signals and all will give a rapid fall.

It’s about being able to make money in a bear market.
 
Appreciate the background, Bob.
Hope you make money...
 
Appreciate the background, Bob.
Hope you make money...
Trade hasn’t triggered yet. It’s sort of forming a flag, which you would expect. There isn’t really any reason for the market to have a clear trend; economic activity is down, volumes are down, risk appetite it down.

Statistically, price action exits a flag in the direction it came 80% of flags. Can’t ignore that it is finding a bit of support at 6000 though. I’m watching.
 
Yesterday on Sky News the economic expect "Ed Conway" stated at this morning`s auction of Gilts, they sold below par, effectively negative territory

Loaning money to the Government and expecting back £99 for every £100 loaned - I thought that I read somewhere recently that the UK Government through QE is buying it back ?

BoE Governor saying interest rates could drop to negative, has no one told him that a decade of low interest rates has not simulated the UK economy,what dropping them further would achieve is beyond belief

Inflation down as well,

heading for deflation ?

Archie
 
Have a chuckle

IIRC the last two times you've posted doom and gloom PMI figures, both the Dow and the FTSE 100 ended the day on a high.

Genuine question - which you'll probably avoid - why do you put such significance on those figures?
 
IIRC the last two times you've posted doom and gloom PMI figures, both the Dow and the FTSE 100 ended the day on a high.

Genuine question - which you'll probably avoid - why do you put such significance on those figures?
Do you know what PMI numbers are and how they are developed?
 
Do you know what PMI numbers are and how they are developed?
I'm wondering why my chum seems to place such emphasis on them, when they seem to have no negative effect on the markets.
 

FORMER_FYRDMAN

LE
Book Reviewer
I'm wondering why my chum seems to place such emphasis on them, when they seem to have no negative effect on the markets.
Like everything that effects the market, it’s the unexpected that drives change. There’s no negative (or positive) effect if the index has already been priced in. If it differs from the expected you certainly see the effect on FX.

But consistent PMIs below 50 indicate negative sentiment. You don’t get bullish activity when sentiment is negative.
 
Except the previous past two times he posted his usual doom and gloom, both the FTSE and Dow rose.

I'm waiting for his explanation, much as I appreciate your input.

No need to white knight him.
 
Except the previous past two times he posted his usual doom and gloom, both the FTSE and Dow rose.

I'm waiting for his explanation, much as I appreciate your input.

No need to white knight him.
I’m not white knighting him. I’m contributing to a debate. If you want a two way discussion, try PMs.
 
I’m not white knighting him. I’m contributing to a debate. If you want a two way discussion, try PMs.
I'm seeking his explanation for his posting PMI figures.

I'm not asking for an explanation as to their importance.

I should have made that clearer.
 
Except the previous past two times he posted his usual doom and gloom, both the FTSE and Dow rose.

I'm waiting for his explanation, much as I appreciate your input.
1. Have you still not worked out that the Markets are being artificially propped up by the unprecedented printing of funny money ?

2. Have you still not worked out that it has been many a year since the Markets actually reflected reality on the ground ?

This should be 2nd nature to you, after all it is your job and you have seen it all before, or so you claim.

Britain is enduring its deepest recession in centuries

Just for the record. It is not my doom and gloom, it is the picture being painted by economists. I am merely the conduit to bring it to these pages.

As the FTSE is rising according to you. Is it closer to the 8000 that gave you a wee woody, and had you scrambling to post a new thread, or is it closer to the 4500 - 5000 range that I posted months ago ?
 

Has someone woken up and breathed in the coffee odours yet ?

Has someone woken up and realised that the economic carnage has barely started ?

Don't be scratching your head now, you will start a fire.
 
@bobthebuilder
You were right.

And he can't even explained why he posts the figures.

Thick as mince.
 

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