Oil/mrkts...28 Jun 2018 05:27
Ftse and Euro stocks rallied on news of Trumpy softening his harsh tone on Chinese investments in US firms and fears of getting caught in the crossfire led investors to pull $ billions from
Euro equity and Bond funds. Ftse rallied 1.1% (+84) in the afternoon dragging the 250 (+66) & Small Caps (+4) upwards. The Dow started strongly but the afternoon crowd had seen enough and sold techs strongly into the rise taking the Dow below its 200 dma for the first time since 6/16. This triggered more selling as the 200 dma is considered a strong sell signal by chartists, though warning one must be selective in ones choice of stocks to sell as certain sectors are holding up well. The Dow off 165 (24118) & heading sub 24000, way below the 26617 hit in Jan (low of 23400). Nsdq slumped near 2% (7445) on profit takers banking recent gains mostly on large cap & internet stocks,.... the FAANGs. Stocks at near all time highs are becoming hard to justify in the current climate and another correction could be on the cards as the S&P fell below its 50 dma. Once bottom fishers and dip buyers stay on the sidelines the mrkt is only going one way. Asia gave up early gains, TK (-100) on trade concerns setting the tone for traders. Oil $77.64 off $78.16 high yesterday (US draw down the bigest since 2016). London off (13) the Dow (+84) at opening. G (+7%) the best of K o...lies and all eyes on 300 being reached before wk/end, don't keep us waiting. Brave call lem $100 before Xmas....pint we do not! Morning all.