After hitting 28-month highs earlier this week, the Dow Jones Industrial Average fell back slightly on Tuesday to lows of 11,636.88 in intra-day trading. However, yesterday’s rally showed traders are positive about the index, which has rallied hard since trading below 10,000 as recently as 31 August. With analysts predicting a positive year ahead, traders are looking upwards. ShortsandLongs.com offers 11,611-11,613.
Gold took a tumble of $30 on Tuesday but a move back down to the 50-day moving average level at $1,380 could offer an attractive entry level. Alternatively, gold miner Randgold Resources has closely tracked the performance of gold over the past couple of years but is now starting to show divergence – offering a cheaper option. WorldSpreads quotes $1,369.25-$1,369.75 for gold and 5,070p-5,090p for Randgold Resources
Domino’s Pizza updated the markets yesterday with a strong statement that detailed a 19.2 per cent increase in sales for the year to £485.3m. This sent the shares to new all-time highs of 571p, but the gains were short-lived as the shares fell back below the resistance level at 560p. This failure to break out on good news may signal a short-term pull-back on profit-taking, with 540p-520p the likely support areas. Spread Co offers a spread on Domino’s Pizza of 551p-554p.
After a poor Christmas trading update and announcement of the closure of 60 high street stores in the next year, HMV has already lost 66 per cent of its share price in the past year. Sales in the five weeks to 1 January were down 13.6 per cent, which it claims is partly due to bad weather. Its chief executive believes it’s still a profitable and cash generative business but this may not be enough to encourage investors to stay put. With these factors in mind and no mention of a dividend, Capital Spreads quotes 25.9p-26.6p.