Morning Call by Greg Secker

The Dow Jones closed a mere 26 points down on the previous day’s close belying the massive high test effort covering 320 points from high to low during the day. Today look for further volatility with the continued uncertainty caused by the hurricane season although the gulf rigs seem to have been spared the worst by Gustav leading to tumbling oil prices yesterday. With price action opening and closing below the 50 period moving average this could indicate the renewed prospect of that level becoming firm resistance in the near term. Back home and the FTSE closed up 17 points at 5620 reversing earlier loses in the wake of the lift given to banking and building stocks by the government housing market slump rescue plan announcement. Further midweek strength may be muted as the lack of decisive direction form Wall Street continues to hamper any short-term recovery from a lacklustre August. Gold is at $810.500 and oil is at $109.71. Good trading and I will speak with you tomorrow.