Weekly Stock Sector Analysis – 14/10/13

Welcome to another instalment of Backtestwizards Weekly Stock Sector Analysis. This weeks video highlights the benefit of minimising risk and how you can do so by entering the Forex markets. We are still bullish on equities but we do take a technical look at some of the broader market indices to highlight the levels that would change our bullish position.

We also look at some major currency pairs and commodities. If we do begin to see equities fall, these markets will provide us with opportunities to hedge our existing equity portfolio. As we discuss in the video, the market is very much at a critical juncture.

The looming debt ceiling resolution (or lack thereof) is likely to cause increased volatility over the coming week and we shall look at some trades that you could place to protect your downside in case of a large equity fall. Although we are technical traders it is always worth remembering that fundamental catalysts will initially move the market. Our job is to analyse the moves and gauge investor sentiment through the lens of a chart.

Price Discounts All Available Information

Regardless of the prevailing winds in Washington, the price of the assets we trade will provide us with ample clues in what will surely be an interesting week. As I point out in this weeks stock sector analysis, the news from Washington has been pretty negative over the Weekend but lets not immediately conclude that equities are about to fall off a cliff.

Before loading up on the short side it’s worth reminding ourselves that we are still in a bull market. It may be fragile but we’re yet to see any major lows broken and until we do I’ll be remaining net long with a view to only buying some swiss Francs and selling some Australian Dollars if equity markets do begin to fall. For all of this weeks trade ideas and the key price levels we’ll be watching please enjoy the video.

Weekly Stock Sector Analysis – 14/10/13

 

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