THE TIPSTER

 
Philip Salter
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LAST week’s intervention by the Swiss National Bank and some affirmative action to try to stimulate the economy by President Obama suggest that we’ll see more of this Keynesian approach to policy in the months ahead. The bottom line is if it’s translating into cheap money then expect equity markets to find cheer off the news too. IG Index offers the FTSE 100 at 5,303-5,304.

Gold has seen its fair share of volatility in the past few days and the yellow metal has been flirting with its all time high around $1,920/oz. However, on the daily chart an ominous double top looks to have formed around its highs, which is considered to be a very bearish signal. Capital Spreads quotes $1,831.0-$1,831.4 for spot gold.

The chartists among us will look at the technicals of Next and see a Relative Strength Index above 50, a Moving Average Convergence-Divergence that sits above its signal line, a positive configuration and a stock that’s trading above its 20 and 50 day moving averages. The fundamentalists among us will look at the recent positive coverage from brokers labelling it with “buy” ratings and the profit reports from peer Supergroup last week. So when the retailer reports earnings on Wednesday, will it break through that 52-week high of 2,445.0p? Capital Spreads quotes 2,363.0p-2,366.4p.

Oil explorer Gulf Keystone Petroleum is releasing its interims to the market on Wednesday, and the share price has been rising in anticipation. This time last month it was trading at around 100p and with ongoing talk about being a potential takeover target, it seems traders are watching this stock closely. Capital Spreads quotes 163.3p-164.0p.

Turmoil in the Eurozone and a lack of commitment from the Fed towards QE3 appears to have been lending the greenback a degree of support in recent days, to such an extent that the dollar-Canadian dollar pair is edging back towards parity. Having spent most of the year trading below Ca$1.0000, the Canadian economy has been feeling the pinch from the global slowdown. A sustained break higher will be broadly welcomed in Ottawa and IG Index quotes Ca$0.9969-Ca$0.9973.