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Spread trading bandits hit the big time on FTSE 100 PDF Print E-mail
Written by Sam Coventry   
Wednesday, 11 August 2010 08:56



Capital Spreads shed some insight into what levels are rewarding the day traders in the spread trading community.


Simon Denham at spread trading house Capital Spreads gives his insight into the key levels on the FTSE 100:

"The FTSE 100 is back at the levels from which it has bounced several times in the last week (the low 5300’s) and so we will probably find a bit of bottom picking from the day traders (who incidentally made out like bandits yesterday as they were able to sell above 5400, twice, and buy back in the mid 5300’s both times)."

According to Denham 5405/15 remains a barrier as mentioned several times in recent comments and recent activity has done nothing but build the wall even higher. 

"Returns are very attractive but news is getting worse and worse (there is no other way of describing it!) certainly grimmer than the situation that presaged the falls in May and June," says Denham.

The FTSE 100 is lower this morning continuing the weakness in the previous session as measures proposed by the US Federal Reserve termed 'QE lite' get a muted reaction because of the 'more modest' than anticipated economic recovery.

"Investors will this morning be waiting for the latest Bank of England Quarterly Inflation Report which is expected to see lower growth and higher inflation forecasts," says a note from SVS Securities.

Overnight we had data from the Nationwide reporting that UK consumer confidence weakened in July after the government's emergency budget.

Stocks going ex-dividend will take off over 6 points from the FTSE 100.

According to SVS Securities a good spread trading target is Lloyds Banking Group.

"Today's trade is short Lloyds at 74.5p, stop 77p, target 70p," suggest SVS.
 

Risk Involved

Spread Betting and CFD trading carry a high level of risk to your capital and you can lose more than your initial deposit. These trading products may not be suitable for all investors so seek independent advice if necessary.

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