FTSE Trading Report - 31 October 2011

The market opened (8am) under 5668 so the chances of the magnet getting hit today are reduced as per my early morning magnet report.  

Friday was a quiet day and we consolidated as anticipated.  This is usual after a strong rally and implies we still have one more high in this market towards 5820 before this over bought market sees a good correction to at least 5500. This also fits with the wave count. The large rally to 5747 on the back of the EU news was a third wave and the current pull back is wave 4.  We are therefore due one final rally which could come in tomorrow morning given its the first of the month (funds usually commit new monies on these days).

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FTSE Trading Report - 28 October 2011

After a strong session yesterday we could well see the market consolidate today between 5670 -5770 with profit taking coming in later in the day.  My magnet has already be reached but I also expect to see the market reach its closing price yesterday even if this comes later on in the day.  I will therefore look to buy the FTSE binary to finish down on the day just before the US open.

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FTSE Trading Report - 27 October 2011

The European leaders finally got their acts together and an agreement has been made for a rescue plan.  Futures are positive on this news and we look set to be opening above that key level at 5642. This indicates the rally with extend towards 5750 in the short term before a correction.

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FTSE Trading Report - 26 October 2011

Today sees the EU summit meeting and traders will be paying close attention to the information and outcome of this event.  Therefore expect a largely new driven market today.  The tunnel strategy is always an option on days like this however there is a chance we may just consolidate until the meeting is finalised later tonight. I will therefore not be making a formal recommendation on this instrument but if traders can sell tunnels at 90 or higher the risk/reward always makes sense in these volatile markets.

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FTSE Trading Report - 25 October 2011

An end of day close above 5543 yesterday indicates we will see higher prices towards 5600 in the short term if we continue to trade above 5449.

Today the magnet stands and I will therefore look to buy the the FTSE binary to finish up for the day if we see any early sell off towards 5460. I would be looking to buy at a price of 15 or below (half usual stake). Its also dividend Tuesday which would support buying later in the day (last 1.5 hours). If the magnet has been reached before hand I will leave the binary alone.

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Mark Austin FTSE Trading Services - 24 October 2011

The FTSE closed last week over 5449 (market high during the consolidation period between August - October) which is a short term bullish sign and we could see higher prices towards 5600-5750 unless we see the market drop below here.  

The daily chart also has the EMA 20 AND EMA 50 (moving averages) just about to cross over which could well suck in some long traders before we see any reversal.  This would tie in with traders buying the rumours of a concrete rescue plan for the EU but selling the facts later during the week.  The last meeting for the EU summit will be held on Wednesday (the deadline).

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Mark Austin FTSE Trading Services - 21 October 2011

I was travelling yesterday so there was no trading for me however given where we opened (very near 5360) it would have been a case of buying with stops just under this key level once again. With have been discussing and using 5360 as a key level for over 2 weeks now so hopefully most of you took note of this. It remains the case that in the short term we can expect buyers to dominate until this feature is taken out. The official market low yesterday was 5363.

Today we have expiry and its also the last day of trading until the European Summit meeting over the weekend.  Expiry is often a pivotal event and with all the speculation surrounding the European bailout is going to weaken our systems today.

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Mark Austin FTSE Trading Services - 19 October 2011

Attached you will see a chart showing 5 completed waves down from 5544. This counts as wave 1.  A rally to 5500 (wave 2) was what we were expecting yesterday as long as 5360 held.  Although we saw a few dips below this level (5360) there was no follow through.  This is the second occasion we have seen a false break below this level.  If we see a 3rd attempt I expect prices to break through with force and this would confirm wave 3 down has begun.  

What is not clear this morning is whether wave 2 up has completed.  Given the pattern I expect to see higher prices. Learn what Mark is looking for and signup to the service through this link here.

The broker I recommend is Gekko Global Markets - Open an account today and they will match 20% of your initial deposit with a cash bonus, up to £1000!* Hurry, as this offer expires October 31st (T&C apply). Learn More +

Mark Austin FTSE Trading Services - 18 October 2011

The selling started above 5500 yesterday and with a market close (at 4.30pm) under 5449 we can expect the correction to continue. 5449 was the market high during the consolidation period between August-October.

5360 is major support. Ideally we need the market to break below this level to see further selling in the near term. If we can't then expect a short term bounce higher which could end near to 5500.

The broker I recommend is Gekko Global Markets - Open an account today and they will match 20% of your initial deposit with a cash bonus, up to £1000!* Hurry, as this offer expires October 31st (T&C apply). Learn More +

Mark Austin Trading Services - 17 October 2011

We discussed the probability of the FTSE reaching 5500 on Friday if we did not see the crucial move below key support at 5360. The FTSE has now risen over 600 points in 2 weeks, we have 5 waves up and conditions are now overbought so a short term correction is due to around 5250 even if we are too see higher prices towards the end of the year which at the moment is looking likely. The FTSE could reverse at any time however trying call a top is never a good idea.  What investors can do is gradually build some short exposure when markets reach over bought conditions and once the market turns down they can then add to the short positions. The reason why I mention this is bear market rallies can be relentless and market conditions can remain over bought for some time. This has the effect of ''squeezing'' those traders who are trying to pick tops with large leverage.  It is usually at the point where these traders can no longer stand the pain and close their positions, that the stock market reverses to confirm their view.

The broker I recommend is Gekko Global Markets - Open an account today and they will match 20% of your initial deposit with a cash bonus, up to £1000!* Hurry, as this offer expires October 31st (T&C apply). Learn More +

Mark Austin FTSE Trading Services - 14 October 2011

Yesterday the FTSE came close to a move through 5360 to confirm a correction has started but couldn't quite make it. The low for the day was 5368.  What we did see yesterday though was a negative inside day (we traded within the previous days price range and closed lower than the previous day) and we also saw a failed retest at the previous highs. These are all signs that the FTSE is becoming exhausted and a correction is looming however the Americans are still buying stocks and if so this will push the FTSE higher even though we are over bought. 

The broker I recommend is Gekko Global Markets - Open an account today and they will match 20% of your initial deposit with a cash bonus, up to £1000!* Hurry, as this offer expires October 31st (T&C apply). Learn More +

Mark Austin FTSE Trading Services - 13 October 2011

Yesterday we saw the break out we were expecting which led to a new high above 5449 but has failed. When you see a failure above a new high it indicates the bulls are becoming tired.  You will see on the attached chart, we now have a 5 wave formation on the FTSE from the lows at 4868 to the highs yesterday at 5458.

  

The broker I recommend is Gekko Global Markets - Open an account today and they will match 20% of your initial deposit with a cash bonus, up to £1000!* Hurry, as this offer expires October 31st (T&C apply). Learn More +

Mark FTSE Trading Service - 12 October 2011

We had an inside day yesterday which means the market traded ''inside'' the previous daily range.  This indicates a break out is looming between 5300 and 5400.

Key support lies at 5360 and you will remember this was a key level for us when we were shorting.  This was resistance but this has now turned into support.  As long as the market holds this level , the bulls are in control and a break out above 5400 is favoured. 

The broker I recommend is Gekko Global Markets - Open an account today and they will match 20% of your initial deposit with a cash bonus, up to £1000!* Hurry, as this offer expires October 31st (T&C apply). Learn More +

MISCONCEPTION* TIP 10

MISCONCEPTION* TIP 10 from MarkAustinTrading.com

Dear Trader,
TRADING TIP NO.10

Think you can gain an edge using daily news releases for your trading...... think again

Its a common misconception that fluctuations in the stock market are entirely event driven. In other words, economic releases and news events are what cause the stock market to move up and down and the movement is correlated to whether the news is positive or negative. If you believe this then its a sure way to lose your hard earned cash.
Lets take Friday for example. The figures for the Non Farm Payrolls were very positive and well above consensus. Estimates were 50,000 jobs and the figures released were 120,000. You would expect the stock market to rise in this situation?
Well in actual fact the market rose briefly and then sold off. We participated in this sell off but the news had no bearing on this decision.
So why is the market acting irrationally? Because markets are reacting to sentiment connected to the news and not the actual piece of news itself. Sentiment is driven by human beings and since human beings are irrational it stands to reason that markets are also irrational! Each investor will have a different take on how current earnings, jobs, unemployment etc will have. Sentiment is driven by the difference between expectations and reality. As human beings we all have conflicting views and opinions. So what makes us believe we can predict how the entire investment world is going to react to a piece of news....... well we can't. Simple as that. If we all thought the same way then markets would just move in a straight line.

So how can we gain an edge then.....?

Well human beings can be predictable in certain cases and therefore it stands to reason that the markets can also be predictable and each individual market will repeat certain patterns over and over again. The key is to study your market and become familiar with these. Once you recognise the inner workings of your market you will spot these time and time again. Over the years I have done just this. Instead of focusing too much on outside influences I concentrate on the how my market flows and it is these patterns that form the basis of all my trades for my subscribers. This is also what the POM programme is all about and probably why the signals also work on GOLD, OIL ,FX and I'm sure there will be more.

Click here for more information on POM:

http://www.markaustintrading.com/promo/POM-TRADING-SYSTEM.html

So do we just ignore daily news?

It is important to monitor when planned important news is released even though we may not know how the market will react. We do know it will react in one way or the other and this may in the very short term effect the personality of our market which our systems /strategies are based around. In this case either step aside or reduce your risk if you are already holding a position.
In terms of random events like a surprise government intervention or a terrorist attack etc. there is not much we can do about this and that's why we use stops.
There is also one aspect which is almost always guaranteed with a major piece of news..... and that is volatility. If you know how to profit from volatility then you can take advantage of this and plan ahead for expected news events like non farm payrolls. Thankfully we have instruments these days from which we can profit from using just that (volatility) and you can make money whether the market goes up or down.
My last comment on tip no.10 is that the information being filtered through to investors will change the dynamics of a stock market over time and that will eventually lead to shifts in whether a market is in a bull market or a bear market or whether the major trend is up or down. However in anticipation the stock market prices in information 6 months before it even hits our desks. This is the reason why I leave the forecasting of where the markets will be in 10 years time down to the economists and stick to trading and making decisions based on what I am seeing here and now.
You can click here for more information on POM
All the best,
Mark

My website is www.markaustintrading.com

Mark Austin Trading is now established as one of the UK's premium FTSE trading services and here's here's what one of our members has to say-

"I just wanted to give you some feedback, as often you only hear from people when they are not happy. I only joined your service 1 month ago and observed for a week as I have been using other services that seem to give me advice on how to burn my pot, I did not need there advice for this! I have to tell you that just from last Friday, Monday and Tuesday of this week you have made me 100 % of my pot, if you continue in this fashion you may even get me all my money back that other services have lost me. 
I just wanted to say your narrative in the morning is so good, it feels good to win. But it feels like I thrash the broker, I sell to your target down then go long, once I observe a bit of price action. Added with the binary's is gives me a great feeling. All of this with low leverage and no drawdown i am amazed how less stressed i am since using your service. I have recommended you to lots of people. A genuine thank you and keep up the great work."
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Mark Austin FTSE Trading Services - 11 October 2011

The upward move through 5370 and a close above 5360 indicates we will see higher prices shortly however we also have to be aware that we are fast approaching a major trend channel which has been running since the selling started back in July so we could easily see a negative reaction today or tomorrow which would carry the FTSE below 5300 which I expect to see this week. For this reason I am not looking at positioning long at current levels and will instead access the situation if we see prices drop.

The dividend stands at 2.7 today so expect buyers to enter the market in the last hour of trading today.

The broker I recommend is Gekko Global Markets - Open an account today and they will match 20% of your initial deposit with a cash bonus, up to £1000!* Hurry, as this offer expires October 31st (T&C apply). Learn More +

Mark Austin Trading Services - 10 October 2011

We have an important week ahead of us in terms of the recent sideways action we have been seeing since August. I expect the market to reveal clues over the next few sessions as to whether we are setting up for a meaningful rally.

In the near term its likely we will see the FTSE move towards 5200. Once we have observed the next correction, if we then break above 5360 then its likely we will see the index rally into the end of the month. You can sign up to my service here and learn what the target would be.

The broker I recommend is Gekko Global Markets - Open an account today and they will match 20% of your initial deposit with a cash bonus, up to £1000!* Hurry, as this offer expires October 31st (T&C apply). Learn More +

Mark Austin FTSE Trading Services - 7 October 2011

Its non farm payrolls today and this is usually a big market mover. The news is released at 1.30pm.  Most traders will be expecting a sell off on this news so we could see a short term spike higher so be aware of this.

The broker I recommend is Gekko Global Markets - Open an account today and they will match 20% of your innitial deposit with a cash bonus, up to £1000!* Hurry, as this offer expires October 31st (T&C apply). Learn More +

Mark Austin FTSE Trading Services - 6 October 2011

The FTSE rose towards 5100 yesterday and also closed over 5040.  For now any price action above 5040 supports higher prices.  The trend is still down so its not an ideal situation to be in.

We have non farm payrolls tomorrow and the majority will be expecting a major sell off on the back off this. We could well see the opposite. 

Today's magnet stands.  We will look for an early morning set up and if this is not triggered or stopped the FTSE to finish down for the day binary is also an option if we can get a price of 20 or below to buy. 75% profits would need to be taken once the FTSE hits 5123. Sign up and learn more +

Mark Austin FTSE Trading Services - 5 October 2011

A strong finish to the DOW over night has pushed FTSE futures up over 100 points. 

For now this looking like a bear squeeze but as we are trading over 5009 again, the case for further selling towards 4700 is weakened. 

Today's magnet stands - signup and learn more +

Mark Austin FTSE Trading Services - 4 October 2011

The market was unable to stay below 5013 yesterday and we observed several reactions from this key level before the market moved higher.

Will the market be able to trade above this level today (5013) and hold? 

Well is dividend Tuesday today and for 2011, 72% of these days have ended positive. In fact the last time we closed down on a Tuesday was the 2nd August at 5718 and that resulted in a 700 point drop over the next few sessions. Signup now and learn more +

Mark Austin FTSE Trading Services - 3 October 2011

The FTSE looks set to open under an important sideways range between 5013 - 5323.  If we see Acceptance (three thirty minute candle bars) below 5013 then this will indicate the FTSE is on target to hit 4700 and lower. 

However, this has not been seen yet.  A few key points today:

Its the first of a new month and funds (pension etc) usually commit new monies into the stock market on these days so we could see a short term bounce upwards at the open.

Obviously Greece is a major worry so we will use a low risk entry.

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