Opening Report – 18 September 2012

1. Introduction

A quite day on the markets yesterday with Krautgap logging a small profit. The sideways action is actually forming a re-test of those key triangles on the DAX and FTSE and with the trend still clearly up, I intend to buy either a buying spike or a break to new highs (via Xtreme Stop) – this may be a shorter term trade (and hedge existing long-term shorts).

2. UK FTSE 100

FTSE closed yesterday at 5893 down 22 points with the spread betters now (03h00) quoting it at 5878 (-15). We have a mild break above triangular resistance and this small “test” is holding the upper parameter for now. We remain 50% short via the ETF SUK2. We are also 50% long the VIX via the ETF VIXS….