Thursday, 31 October 2019

FTSE 100 Outlook - 31 October 2019

Disclaimer: This is my personal trading diary, it is for information purposes only and is not financial or investment advice. I am not qualified to provide financial advice.

Small Print: You don’t know how much capital I have, and I don’t know how much capital you have. Plan your trades, trade your plan and above all manage your risk. I don’t use stop losses but that doesn’t mean that you shouldn’t.

My short term cycles work identified 25th October 2019 as a potential pause in the move up. I therefore exited my long spreadbets. I am now looking for a place to open a long spreadbet and intend to do so early next week. The chart below shows my thinking and you can see that we’ve been sideways for the last five trading days.

As always, anything can happen and often does, that’s why it is so important to manage your risk. I like to focus on what can go wrong and where the FTSE could drop to. I am looking to take an initial long spreadbet at 7250 and then at 7125 and 7000 if seen. I tend to split my trades into three portions as the first entry is rarely the best.

My medium cycles are up from October 2019 through to February 2020 and people who have read my book know that I believe that we are in secular bull market that will last until 2035. That is why I am happy to be long, but I don’t short. Being long and wrong in a bull market requires patience. Being short and wrong in a bull market can get ugly.

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