FTSE This Week 08 Dec 7300- 7394 UP! No missed opportunities, it seems and despite all the crazy, the markets just devoured cash. The QE fat wallet makes geniuses of the money managers.
Daily Volatility:6.01-12.4 from8.4-12.22
FTSE cash index – open 7300 high 7412 low 7289 close 7394 from open 7409 high 7469 low 7289 close 7300
FTSE volatility- 12.22-10.38 (last week: 9.8 close 12.22)
What Trades Would Have Done well, this week?
Our trades , 58 and 59 did well but exit of course is the key- and sometimes you hold on for the big hit. The FTSE has not been helpful and despite the apparent spikes in VFTSE, they were not reflected much in options prices as they were momentary. The chart-again thanks to Investing.com shows the slow death of volatility.(VFTSE monthly) We like to use limit orders in order to be nimble,and catch those slippery entries and exits. When we remember!
Summary
We can only trade the prices in the market, there are no gifts, and to quote ” If you want a friend on Wall Street, get a dog!” So we stay lean and hungry, patient and able to exercise restraint in trade size. We saw ‘Non Farm Payrolls’ this week, how does this affect the market? If the number is bad, there is a good chance interest rates could be lowered, so the market goes up. If the number is good, the economy is doing well, so the market goes up. We do NOT trade the news. I used to dread these events but now we have to accept how ludicrous things really are. To say the numbers are a fudge does them a disservice. They are a fudge*. Fake news has been around forever, and when real news is bad it is usually hidden.
*I jest, but NFPs are based on phone calls to households
Having missd an opportunity last week it has been a process of biting my lip as nothing leapt up and said….. “TRADE ME!”