THE TIPSTER

 
Philip Salter
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SHARES in Man Group are languishing at lows not seen since March of 2009, down over 50 per cent year to date. Weekend reports suggested Man could be considering using some of its cash pile of around $1bn to fund a share buyback at current levels, so CFD traders were buying with tight stop losses on Monday. Spread Co quotes 145.57p-146.09p.

Crude oil slipped on the back of a decline in Japanese industrial output and traders taking profits after last week’s hike. It has recently broken out of a bearish channel: moving above $92 a barrel has provided new support and could signal possible upside again, looking for $94.65. Capital CFDs quotes Crude Oil Dec at 92.40-92.45

What a week it was for global equity markets last week. The breakout for the FTSE 100 beyond 5,400 has indeed been followed by a buying frenzy taking us to above and beyond other resistance levels seen at 5,600 and 5,650. The next major levels of resistance for the FTSE to watch are 5,800 and 5,940. Capital CFDs quotes a price of 5,630.0-5,631.0 for the UK 100 Rolling Daily.

Last week was eventful for the banking sector with the next steps of managing the Eurozone crisis being well received. Shares in Barclays rallied as much as 25 per cent, but the gains are already looking short lived, despite upbeat third quarter earnings news and word that sovereign debt has been reduced dramatically. The cynics always said that last week’s summit was flawed and they could yet be right. IG Markets quotes Barclays at 199p-199.1p.

As market volatility increases and cyclical stocks come under pressure investors are likely to continue to focus on more defensive stocks, of which Imperial Tobacco is one. The tobacco company is expected to update investors today with its final results. CMC Markets offers 2,289.86p-2,294.14p.

Traders were selling Standard Chartered shares on Monday morning, as it failed at the key 1,520p level, which was support on multiple occasions over the past two years and where a twelve-month-old resistance trend line is also located. If 1,450p gives way, the shares could well be back in the 1,300s before long. Spread Co offers a spread at 1,473.9p-1,476.6p