That Was The Week Ending June 30th

The Week’s Action

FTSE cash index-      7424 open  close 7312  high 7481 low 7303  (last week 7463 open, close 7424 high 7561,low 7396.75 )

FTSE volatility-      open 10.38 close 13.03  (last week  open 9.96–10.38 close)

What Trades Would Have Done well?

Anything utilising the market peaks and drops. Monday’s high to Wednesday’s low- Thursday’s High to Friday’s low.

Ratio backspreads…long put spreads.

Market Volatility

from     10.10 to 13.27  (last week 8.56 – 12.32 )     a suitable environment to buy  cheap  and then sell expensive premium .

News

Politics not moving the market but GBP went from $1.27 to $1.30 This moves the FTSE-apparently. I don’t know how accurate this is, or even if it’s reliable. The theory goes that our exports become cheaper as the GBP drops. As we import most things including electricity and gas, and many FTSE 100 companies are global, you can make your own interpretation of this.https://www.google.co.uk/finance?q=GBPUSD&ei=k6NXWeiPJ9S7U7vKs-AF

Summary

Again, being positioned for a market down move and increase in volatility served us well. 2 possible backspreads buying for around 10, selling for between 25 and 40. How,therefore,  did the futures and trend traders fare, I wonder?