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CFD Traders DiaryBanks start to rally again and commodity prices fall1/4/2008 The newsflow has been fairly sparse in recent days but there are two clear patterns emerging today. First, there are again signs that commodity prices are under pressure with both gold and oil dropping sharply overnight. Second, the sharp reversal in the financials two weeks ago which turned the market around was clearly a major buy signal, and once again the sector is in favour despite the poor headline news on writeoffs. The FTSE 100 index has thus raced up to a 40 point gain early on and interestingly the gains are spread reasonably wide, so it looks as though we are headed towards more important resistance above 5800. If investors need any further reminder of the difficulties facing the retail sector, there was a sharp fall in the shares of Land of Leather which said today that Sleep Depot, which operates 71 concessions within its stores, had gone into administration. Given the potentially very bad news from Tesco, which is clearly finding its entry into the notoriously difficult US market not as easy as expected, it is certainly not too late to look to short many stocks in this sector. |
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