28.03.07
Volatile start today in London
28.03.07
The traits of a winning trader
27.03.07
Mining and retail sectors push the FTSE 100 up
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An extremely volatile session early on in London saw the FTSE 100 index very slightly ahead despite the morning’s ex-dividends and the fall overnight in Far Eastern markets. Following the sharp rise in crude oil, BP and Royal Dutch Shell were towards the top of the leaderboard, but the big gainer for the second day running was Next on hopes of a 2500p bid. At the other end, miners responded to the first fall in copper in Asia for a week with Rio Tinto down almost 2%.
It is fair to say that many technical traders are constantly searching for the holy grail of systems, and there are clearly some approaches that work better than others, though very few approaches work all the time in all markets. What is more important is to have a basic set of rules which cover the emotional aspect of the trading process. If one uses the basic starting rules of going with the trend, limiting risk by using stops, and careful money management, then that is half the problem solved.
The FTSE 100 index was marked up after last night’s strong recovery on Wall Street and the morning’s blue chip winners are in the mining and retail sectors. Kazakhmys, Rio Tinto, BHP Billiton and Anglo American have been well supported after yesterday's bid for LionOre by Xstrata.
It has been another steady start in London with a surge of M&A activity and stories across various sectors. The big news early on was a proposed merger between Taylor Woodrow and Wimpey sparking gains across the whole of the housebuilding sector. The new group, to be called Taylor Wimpey will have annual revenues of over £6.7bn and a combined market capitalisation of approximately £5bn. The feeling is that this could spark further bid activity in the sector with Persimmon, Redrow and Bovis all rising in sympathy.
