Morning Call by Greg Secker

The FTSE shot up yesterday morning 220 points at the open in reaction to the Dow’s post London market close activity and therein dwarfed any response to the PPI figures. The index then fell back to trade in an 80 channel for the majority of the day and close just below the day’s high at 4,300, up 250 points on Monday’s finish. Today look for the break of the 50 moving average at around the 4,350 level which, if held, could indicate the decisive upward movement toward the aforementioned 4,650 point barrier. With the RICS Housing Market Report showing a glimmer of positivism but, with the potential that our Trade Balance reports out at 9.30, coupled with profit taking, may well see some of the gains diminish.
Yesterday the Dow Jones rose 298 points to close at 8,934. Global markets have responded positively to Obama’s pledge to boost the American economy with the biggest Public Works package since the 1950’s. Look today for the break also of this index’s 50 moving average but be aware of the potential, as with the FTSE, for profit taking to wipe off some of the gains over the last two days. Oil is at $43.52 and Gold is at $771.70.
That’s it for now, good trading and I will speak with you tomorrow.