Traders' views - Fixed odds betting

Fixed odds tips: a short-lived respite

By , 25 Nov 2011

A regular look at the markets from a fixed-odds perspective.

I see this taking a small dip over the next week or so into December. Why? Well, I think the markets will rally swiftly, yet it will be short-lived so you will need to move quickly in order to catch the move.

In fact, I see many things bottoming out now as support levels have more or less been cracked – temporarily.

The EUR/USD, GBP/USD, Dow, FTSE and S&P 500, etc should all hold where they are or even rally a little into next week before we see further downside pressure.

Two reasons for the market holding:

  • It has to at some point and there is only so much that ANY market can sell-off before it rests and holds on for dear life.
  • They have all hit crucial support zones very quickly, so expect a short hold before we head lower into December.

There is no way I would entertain buying the markets hard here however, as the brief rally or HOLD we will witness could be as brief as literally – 1-2 sessions! Not long, but that's not a problem with fixed odds betting.

Let me tell you the levels of where we are looking to buy and sell for each market...

It’s right here at the red line juncture, where I see market halting for a short while (might even be shorter than we think), before the next thrust lower is seen and by thrust I mean freefall below 10,000.

The next two weeks should coincide with a small sell-off with gold (rally with indices) and then when gold rallies back toward $1800 toward Xmas and into New Year I see the Dow tailing below 10,000 and bottoming out in the low 9,000’s.

 

Warning: Remember, particularly if you are new to trading in the stock market and in forex, that the prices of shares and other investments can fall fast and you may not get back the money you originally invested. The material here is for general information only and is not intended to be relied upon for individual investment decisions. Take independent advice before making such decisions. Also, the BullBearings free stock exchange simulation portfolios are a good way to practice trading techniques.

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