That Was The Week Ending18 May

Not Unexpected Move For Expiry Week

FTSE up yet another percent- though it had become a feature in 2017 for ‘down’ expiry weeks. I make no suggestion that the big market players were short, but were they? We now seem to be all guns blazing onwards and upwards. Who or what could derail this ? FTSE is cheap historially speaking   https://markets.ft.com/data/indices/tearsheet/summary?s=UKX.P:FSI

A PER -price to earnings ratio of 13.52 seems wholesome enough. Even if it may be predicated on share buy backs from almost free money. (Ouch!)

Past Performance

So, we are told past performance is no guarantee, etc but we are again at that all time high, and a double top is a classic chart pattern. Do you pay £250,000 for a house that was only recently on the market for £200,000? Managers of pension funds buy at the top. It is their remit.  I believe that the price will be lower at some point in the not too distant future. The market did rally off all time lows as in 2009, and in 2003. We did not see a rally in 2001 when the market topped out albeit on deranged valuations. Mostly, the tech bubble is no longer a ‘thing’. Millennials are obsessed with buying the latest piece of tech. But, should I say renting, the next piece of tech? Thus making a $30 smart phone into an $800 smart phone.

Capitalism And The Self

‘Because you’re worth it’ became a slogan for some or other ladies’ product. Consequently I think it should be the slogan for millennials- but with a twist: because we think we’re worth it. Advertisers has never had it easier, as we are more affluent than ever. We have little regard for the mundane things. Like budgeting,and saving. I see austerity for the minority left behind, but really, we’ve never had it so good. I may be a harsh critic here

 

 

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About the Author: First found out about options in 1995.From the arcane magazine Exchange and Mart! First trade- a covered call on VOD in 1999. Made 10%,VOD almost doubled. That's when I realised I was not a good trader,and I was forgiven thanks to the amazing world of exchange traded options

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