Morning Call by Greg Secker

Yesterday gave no respite from the recent volatility with the Dow Jones showing a partial reversal of the recent meltdown madness. U.S. stocks rallied strongly from the open, sending the index to its biggest ever daily point gain of 936 to close at 9,387 on the back of the government plan to buy stakes in banks and a Federal Reserve-led push to flood the global financial system with dollars. Today with further upward movement suggested as some faith returns amongst the bargain hunting bulls, watch for a break of the 9,600 level for decisive upward direction which, if sustained, will set up the backend of the week for a fall from potential negativity highlighted by the PPI, CPI and Housing Starts reports due out from Wednesday onwards, and which are unlikely to inspire a consolidation of confidence. This side of the Atlantic the FTSE closed up after another massive point movement of 324 at 4,256. With the worst of the shareholding panic seemingly over and with our own Consumer Price Index news out at 9.30 am British Summer Time, today look to early movement and then early adjustment around the 4,300 level to provide directional indication for the day, notwithstanding the usual Wall Street effect from 2.30 onward. Gold is currently trading at $835.00 and Oil at $81.84. Good trading and I will speak with you tomorrow.