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I am currently working as a Currency Strategist at the Trinidad and Tobago Unit Trust Corporation with responsibility over the TTUTC Global Bond Fund. I was previously responsible for the TTUTC Universal Retirement Fund. I am a graduate from the University of the West Indies with a Bsc. in... More
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  • Playing Footsie With The FTSE 100 0 comments
    Dec 17, 2012 8:52 AM

    The FTSE100 or the equity market index for the UK has been in a range bound move for the past quarter. This range bound movement presents two types of opportunities.

    • Buy at the Top of the Range
    • Buy at the Bottom of the Range

    The top of the range is near the 5,936.99 price area and the bottom is at 5,604.54. I took the opportunity to play some footsie with the FTSE. I stuck out my feet at the 5,918 price level and luckily enough it hit my initial target of a 0.20% move lower while initially risking 0.76%. My final price target is 1.36% lower. Hence I risked 0.76% for 1.36%.

    From a broad view I think the fiscal cliff negotiations are one of the main sources of market volatility. It seems that traders are looking to buy on the rumor and sell on the news. Thus I'm expecting a dip over the next couple of weeks into January.

    The Chart below shows my FTSE trade.

    (click to enlarge)

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Additional disclosure: I am currently short FTSE100.I and UK100 CFDs. I wrote this myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose security is mentioned in this article. The views expressed in this article are my own and are not necessarily the views of any companies or organizations I am affiliated. I expressly disclaim all liability in respect to actions taken based on any or all of the information in this writing.

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