The FTSE 100 has been trading in a range for the past few weeks and whilst I’m expecting to test the lows I think the 4000 mark will provide good support. The Obama stimulus package once announced will undoubtedly rally stocks temporarily. My intention is to short the rally which may reach as high as 4500 before retracing to test the lows. I don’t believe we will break the lows before March.

For the present I’m dipping in and out content to steal a little here and there. I think 4000 is a buy with a close stop and anywhere over 4100 is a sell with close stop. I don’t think we will test the lows in the next few weeks but once we do I believe we will create new lows which will leave us in unchartered territory.

Entry: 4100 – 4300 FTSE (June Contracts)
Exit: 3750
Stop (Mental): 4500
Point Size: 12 Euro ( 3 x 4)
Estimated Return: 2000