This is great the Santa rally I was starting to doubt would come. A while ago I predicted a rally back to 4500 and looks like we are on course. The two positions I had open were stopped out and I opened new ones at 4300 and 4400 and will open two more shorts above 4400. I’m waiting to see what happens with the euphoria of the big three bailout and to see does Obama try and rally the markets any further.

Traditionally the rally continues to the 24th so I think we may reach the 4500 mark with a bit of a push (resistance at 50 day moving averages). Traditionally there is also a sell off in January which is why I’m loading up on March 09 contracts. With all the bad news that’s flooding in the depression word is starting to gain prominence in the media which will eventually lead to acceptance and huge drops in equities (that’s my prediction of new lows next year). German wholesale prices, Japan, AIG, Big Three Bailout, Rio Tinto etc, etc. It’s not looking like a good start to next year.

Entry: 4400 – 4500 FTSE 100 March 2009
Exit: 4000
Stop (Mental): 4600
Point Size: 12 Euro (4 x 3.00)
Estimated Value: 3000+

Economy rescue: Adding up the dollars

No related posts.