Anyone scalping the FTSE Futures??

The Friday rally is explained, mainly, by the closing of futures and options. In addition to increasing exponentially the volume of the session, the maturity of this type of derivative contract has, in most cases, a positive impact on the stock market. Similarly, and still statistically speaking, the week following the quadruple witching tends to be negative for stock markets, while increasing volatility and declining stocks.
 
Tomorrow prudence should mark the session, with investors waiting for FED (tomorrow) and Bank of Japan (Thursday) meetings.
 
Statistically speaking, the week following the quadruple witching tends to be negative for stock markets, while increasing volatility and declining stocks.
 
The FED has a balance sheet in the order of 4500 000 M.USD in assets of various kinds, but mostly bonds, as a result of the acquisitions conducted to resolve the 2009 financial crisis. After several years, with the economy in solid expansion and with the financial sector the FED intends to reduce this gigantic balance sheet without causing major effects on the economy and the financial system. This is an unprecedented task, so the Central Bank will be a pioneer and should set its course as this process unfolds.
 
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Asian markets closed with contained losses in a session marked by a negative surrounding. The North Korean Foreign Minister warned that his country could test a hydrogen bomb in Pacific waters. This announcement generated a risk aversion but only assumed more significant proportions in the South Korean market, with the local currency reaching the low of the last month against the US Dollar. In a more economic sphere, Standard & Poor’s reduced Chinese rating of AA- to A +, citing the strong growth of credit assignment as the main risk to the economy, fueling speculation in some economic activities and making investments with little rational economic development.
 
markets closed lower as investors reacted to yet another proclamation by North Korea and the uncertain political context in post-secessional Germany. Pyongyang authorities have defined the words of the American President as being “a declaration of war” at the United Nations. In China, the main indexes suffered losses of around 1% after local authorities announced that new measures will be introduced to control the strong real estate speculation that characterizes several areas of the country.
 
The Euro broke the support of the 1.18 against the Dollar. This level is very important in the medium-term technical situation of the common currency because it signals an increase in the likelihood of a correction. A downturn in the Euro favors several European sectors such as the automobile, the industrial, etc. However, this positive impact does not always translate into an increase in their shares. Sometimes the devaluation of the Euro results in a mere overperformance of the exporting sectors compared to the others.
 
In addition to the presentation of the draft tax reform, the main indexes were still driven by the recovery of the technology sector. Another catalyst for this rally is the approach of the end of the quarter, which is a very favorable period for stock markets.
 
A general improvement in sentiment was felt in this last session of the week, with major European stock indexes closing on positive territory. Banks and producers of raw materials were among the best performers, with few of the sectors ending up lower. Against the cycle were the shares of Volkswagen that were pressured by the announcement that the operating result was penalized by a charge of 2500 M. € related to the increase of provisions. On the macroeconomic front, the consumer price index reached 1.50% during September, compared to 1.60% expected and below the 2% target set by the ECB.
 
Several short-term technical indicators have hit the highs of the last two years, which increases the likelihood of a decline in the coming days. Financial markets do not move in straight lines, but their evolution resembles more of a series of waves. Therefore, if a short-term correction materializes in the next few days it is only a natural move after the strong gains of the last 4 weeks.
 
psaTrading said:
Several short-term technical indicators have hit the highs of the last two years, which increases the likelihood of a decline in the coming days. Financial markets do not move in straight lines, but their evolution resembles more of a series of waves. Therefore, if a short-term correction materializes in the next few days it is only a natural move after the strong gains of the last 4 weeks.
Click to expand...

Nope not a straight line, an exponential curve more like.

10 years and its going up faster than ever.

Dont 'trade' this market, just buy it and hold!
 
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:clap:
psaTrading said:
Several short-term technical indicators have hit the highs of the last two years, which increases the likelihood of a decline in the coming days. Financial markets do not move in straight lines, but their evolution resembles more of a series of waves. Therefore, if a short-term correction materializes in the next few days it is only a natural move after the strong gains of the last 4 weeks.
Click to expand...

The past isn't indicative of the future, it only offers clues and considering we are in record territory meaning present day trends have never happened before......are we really going to try to look into waves. The s&p 500 is headed to 2690, what will happen after this we will find out.
 
When an index reaches a new high, it usually attracts the buyer interest of several (mostly private) investors, stimulated by the coverage that this feat generates. This buyer interest manifests itself in two ways: through the direct purchase of shares and the subscription of funds. At the present stage, subscriptions are not meeting this standard. In fact, in the last two weeks it was observed the redemption of stock funds, in the amount of 10 500 M.USD.
 
and what happened the last 2 years?
Redemption of shares has only resulted in one thing, rinse the system of nervous bulls and rally.
The U.S. hasn't more than 8 consecutive years with improved unemployment, 2018/2019 will be the year(s) things go downhill.....do you really think a rally will be postponed anytime soon especially if these algorithms know 5hit will hit the fan in the next 36 months?
 
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