Morning Call by Greg Secker

Yesterday on the Dow Jones, after further selling pressure, which saw the index fall to the 8,200 level before lunch, buying activity took hold resulting in a closing point of 8,979 up 401 points on the close of the previous day. With Housing Starts reports due out at 1.30 pm British Summer Time, today watch for selling activity this afternoon as weekly position profit taking occurs which could either exacerbate or reverse the news break reaction, which, given the subject matter, is likely to be negative. At home the FTSE closed down 218 points to reach a level not seen since the end of April 2003, at 3,861. With no major market news here today, some initial strength may be seen with the Dow’s rally having occurred after this index’s close and the Asian markets’ positive movement overnight. However, any positive movement could be reversed and caution must be exercised, as the usual end of the week caveats apply. Additionally, with news that Opec (The Organisation of the Petroleum Exporting Countries) may cut Oil production next week, further turmoil is likely, Opec accounts for 40% of a world’s total Oil production currently exceeding 87 million barrels a day. Oil is currently trading at $72.87 and gold at $808.80.That’s it from me this week, have a great day’s trading, a fabulous weekend and I will speak with you on Monday.