Pre-Opening Report - 26 February 2010

Good Morning! This is John Piper with the pre-opening report, the next official report will be a pre-opening report on Tuesday morning with a video clip tomorrow. 

Trading in futures, options, spread and binary betting carries a high degree of risk which can lead to losses greater than the amount originally invested. As such it is not suitable for everyone and you should not risk more than you can afford to lose. Important: see 'My Trading Rules' at the foot of this article.

CLICK HERE FOR THE LATEST TTT

CLICK HERE FOR THE LATEST VIDEO CLIP

1. Introduction

Yesterday saw markets hurtle lower and it all looked good for our short positions. But the Dow rallied strongly into the close and we are not out of the woods yet. However the early part of any move is often like this as the bulls and bears have no clear evidence of what is happening and so neither can gain ascendancy. For now we will stay short and continue to monitor the action.

I also want to say a few words about systems this morning. As you may be aware I spend a lot of time on research and I believe this is an essential function if anyone is to succeed in markets. Every now and then I come across a systemised approach to markets which I think shows promise and when I do I look for a small group of people to help test out that system. Usually they get the system for free. However on this occasion I seem to have found an extremely simple approach with an extremely high hit rate - well above 50%. Given these factors I have decided to vary my usual practice and will charge those who may wish to test this approach. I would add that the price will include a full day's seminar in the UK or, if there is sufficient interest, a five day seminar in Thailand. The early testers will get an 80% discount on the full price and please email me if this might be of interest.

2. UK FTSE 100

FTSE closed yesterday at 5278 down 64 with the spread-betters now (1:50 am) quoting it around 5345. Yesterday's we got the fall below 5300, and now the Dow has bounced.

3. The German DAX

The DAX closed yesterday at 5532 down 83 points. Still more clearly bearish here.

4. The US DOW

The Dow closed yesterday at 10321 down 53 with the spread-betters now quoting it up around 34 points (10355) this morning. Not a clear pattern - we will have to see wt comes next.

5. The Japanese NIKKEI DOW

The Nikkei Dow is currently at 10144 up 42 points. Again we may have a complete a-b-c rally here.

6. US T-BONDS

Bonds have spent the last nine months going sideways. If equities have peaked we may get a knee jerk reaction up but the longer-term trend is down for now.

7. Gold ( UK cash)

Gold is now seeing that test with $1100 key for now.

8. £/$

The £ has fallen sharply and I think a low is close here. $1.50 may be key.

For the latest issue of The Technical Trader go to -

http://johnpiperstrading.com/sitemedia/johnpiperstrading.com/media/tttxxfeb10.pdf

Any comments? email john@john-piper.com

Trading Rules - I may have a number of binary betting positions on FTSE and the Dow - these can change from long to short at irregular intervals.

I trade a number of markets through spread betting, options and/or futures positions. t1ps.com Ltd does not believe that my articles can move the markets concerned.

If I have an open position or positions on any markets which are the subject of one of these reports at the time of publication of an article written by me, the existence of that interest and whether it is long or short will always be declared in the article in the format 'I have a long/short position in the S&P/the FTSE 100/Gold' as appropriate. This is in order to inform readers so that they may assess whether the existence of any such interest may have influenced the content of the article. Such disclosure does not constitute investment advice. The time of publication means the time at which an email containing the article is sent.

After publication of an article containing a disclosure of an open interest as above I may alter, or close the position or positions the subject of the disclosure without restriction. There are no restrictions on the opening of positions provided that any open interest is declared as above.