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THE TIPSTER

Kathleen Brooks
THE US banking sector has been a wild ride for traders of the Select Sector SPDR Financial ETF over the past two weeks. The index, which contains a range of diversified financial firms including JP Morgan Chase, Bank of America-Merrill Lynch and Goldman Sachs, had added almost 20 per cent since 1 January to a year high of $17.12 just before the news broke that Goldman was being investigated by US authorities. This knocked it back 6 per cent. Spread betters looking for exposure to the US banking sector should look for a pull back to support around $16 as an opportunity to buy. Spread Co offers a spread on the SPDR Select Sector Financial ETF of $16.48-$16.50.

Rolls-Royce shares have risen 140 per cent from their lows of March last year. They have eased back lately and spread betters looking to trade Rolls-Royce in the hope for another attempt at recent highs should look at the 568p level as a good entry point. This coincides with the bottom of the bull channel, the 60-day simple moving average, which is a previous strong support level, and the 61.8 per cent retracement level from its 2010 move from 468p to 631p. Spread Co offers a spread of 583.5p-585.5p.

With the UK earnings season well underway, the results, are generally looking good. This week it’s the retailers’ turn, with high street favourite Next reporting on Wednesday. Retail sales and consumer confidence are improving so the recent market correction has presented a good buying opportunity. Capital Spreads quotes 2,288.8p-2,293.2p.