That Was The Week Ending 03 Nov.

FTSE This Week  – UP!  :  Monday- Friday  Gain of 55 .

Daily Volatility: 10.38- 8.39 from 11.895-9.43   about 50% lower than ‘ normal ‘

FTSE cash index – open 7505  high 7581 low 7480 close 7560

FTSE volatility-  10.26-9.31     (last week: 9.8 close 10.26) 

What Trades Would Have Done well, this week?

TRADE 54

A 7400 calendar(time) spread. We opened the trade for a debit of 3. It could have been closed out for 15. These are meant to run to expiry- in 2 weeks time,but if you can book a big early profit,why not? Trying to find a trade that makes money every week is incidental to our aim. We just want people to: GET TRADING. Of course entry level requires a chunk of change and there are few brokers, but that is a clear statement. They don’t want us to trade and take money from them!

SUMMARY

The bull market continues as FTSE closes at a record high. What does this mean? Pension funds will be happy for doing nothing. Banks can feed from the trough as usual, so it’s bonuses all round. This is predicated on low inflation, and low interest rates. So,can it continue much longer? To answer that would be folly, so here we go! Low wages and ‘full’ employment have thus kept us afloat alongside the massive QE cash injection. Globalisation has made competition fierce. China and India are growing and from a low base. (Both once mighty empires).ETFs rule indexes as low cost vehicles.

What could therefore derail the markets? The unexpected,exogenous effects- conflict, technological breakdown, political assassinations? Global warming and the resulting droughts,and floods? To quantify these risks is impossible, but they exist, so we need to avoid risk of ruin. In other words don’t be just blindly selling puts becasue you think they are overpriced. We don’t have a bottomless wallet.Some do……….