Anyone scalping the FTSE Futures??

[Dentalfloss]

 

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Watch to see if $325 area becomes rez on the bounce

 

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coming into supp

 

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[medallion way]

Market participants seem incapable to multi-task, their collective concentration is on increased earnings, they absorb any news that point to that while showing no comprehension of anything else. The fed said a lot on Wed, most of what was said pointed to slower growth and possible negative world economic impact of a China in crisis, yet all that was not absorbed, market participants only absorbed the part that said that the Fed is ready to continue its accommodative policy, markets surged on Wed pushing the DOW close to 29k. My view is that current high levels are not sustainable regardless of good reporting by the tech heavyweights, my longer-term trading strategy is based on that view, my DOW target remains at 28093.

 

[medallion way]

Coronavirus fears have largely being dampened by global markets that are comparing this event to SARS, however, 2003 China is not 2020 China. When the SARS outbreak occurred, China’s economy represented 4% of the global economy, today that number is over 16%. If the virus follows a simple progression model, by the end of February 2020 we can expect to have over 100 million cases of Coronavirus worldwide (figures are according to China National Health Commission). Putting aside the human tragedy, the economic impact could be big.... A two-week shutdown is likely equivalent to -1% of Chinese GDP, a three-week impact is likely equivalent to -2% GDP. The impact on China is very likely to be material for global growth – which will be another body blow for the contracting global economies. As previously pointed out in a post at the start of this event, such events directly impact the consumer and consumer behaviour, in countries that have a large consumer-based economy (such as the US), the effects on markets can be great. Also to be noted, SARS occurred when markets were at "fair value", markets now are "overbought" and therefore more likely to fall harder if shocked.

 

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[postman]

Theres going to be a sell off tomorrow night.

 

[medallion way]

Theres going to be a sell off tomorrow night.

I hope you are right because market resilience continues to defy gravity. Just released was the Fourth-quarter GDP showing that it rose only 2.1% giving 2.3% for the full-year 2019, the slowest growth in three years, well below the 3% to 4% estimated by the administration. Further, Economic growth looks even weaker for the 1st quarter of 2020, this is without factoring the virus wild card.

Despite this release, markets rallied on Thursday.

Ray Dalio, the creator of Bridgewater said: “Terrible, unimaginable things could happen anywhere. What we don’t know is much greater than what we do know.,” He was referring to the coronavirus that the hedge fund investor had studied in relevance to past pandemics, he concluded that even though the outbreak is largely centred in China, the reaction to stock markets could be greater than it was during the SARS outbreak in 2003.

Despite this warning by a respected fund manager and despite many uncertainties (that market participants traditionally don't like), markets rallied on Thursday and appear to be adding to the rally today.

I continue to dislike this strength that seems to ignore all warnings, facts, uncertainties, and news. I'll be sitting on my hands until markets show some reason to do as they do.

 

[Dentalfloss]

 

[medallion way]

So much going on that BREXIT was smothered... HAPPY BREXIT POMS!
It only took 4 years but you're getting there today.