Morning Call by Greg Secker

The Dow Jones closed Friday with a gain of 369 points at 11,388. With the suspension of short selling of 799 financial stocks and details of the massive federal government bailout became clear, Friday’s upward movement seems most likely to be continued. However caution must be applied, as this ban is only in place until the 2nd of October and is under review with an extension to 30 days possible. Look to the break of the 50 ema at around the 11,450 mark for further decisive upward movement toward the next resistance level of 11,800. The FTSE, having closed 431 points higher at 5,311, provided the biggest daily gain in its 24 year history. Our own version of the short selling ban initially affected 29 shares but this was extended on Friday afternoon to 33 by the FSA, our ban, however, is in place until 16th January 2009. As with the Dow, look to the break of the 50 ema around the 5,400 level for further decisive upward movement and should this be breached, look to 5,650 as interim resistance prior to the 200 ema at around the 5,800 level. That’s it for today, good trading and I will speak with you tomorrow.