Morning Call by Greg Secker

Yesterday the FTSE closed up 316 points at 4,242 and with no news out today on this side of the Atlantic look to component news and a lead from the Dow for directional movement. Be aware that the proximity to the 20 moving average has not been thus for 5 weeks when the resulting bounce continued the downtrend so be wary of a profit taking flurry that may occur. Yesterday the Dow Jones finished down at 8,990 having dropped 75 points from the previous day’s close, which belies the 450 point plummet in the 12 minutes prior to the session close. The Index had meandered upward throughout the day until the FED announcement of the 0.5% interest rate cut. Today with Gross Domestic Product and Personal Consumption reports out at 12.30 pm the pattern of intraday profit taking is likely to continue with a vengeance as recession fears continue to rule the market. Yesterday and as a result of these fears attention turned to commodities with Oil gaining significantly, rising by $4.77 to $67.50, as did Gold, which rose by $13.50 to $754.00. That’s it for today, good trading and I will speak with you tomorrow.