Wednesday, 28 August 2013

The rout continues

In England we had a bank holiday so the market was shut yesterday while in the US the DOW took another beating. There are reports that it was caused by the developments in Syria but a quick glance at the chart shows it was a continuation of a move that has been running for 17 days. To underline this analysis I include a longer term support line that goes back to the end of February and which held back the current slide for four days before yesterday's slump.

There is no new news and the market looks a little stronger in the futures market. To my mind the next important support line is around 14570. So about 200 points to go. This support was the low established on 25th June before the latest run up to a new all time high. There is another potential support about 100 points lower but if that fails to hold we could slip all the way to 13770, a thousand points away.

Our stream of visitors has almost come to an end. We were particularly delighted to spend the last four days with my eleven year old granddaughter whose visit was a joy. The core activity was teaching Alfie (dog for newcomers and those who have not been paying attention) to dance. We worked up to a four move routine but there were lots of other activities, mainly walks in the lovely countryside that surrounds us.

I have a ghastly medical procedure coming up but I hope that after that I'll be back to business as usual.

Incidentally I bought some gold on 16th August. I can't remember if I mentioned it at the time, I was inundated with all that was going on. Anyway it has done well, however, TBF has pulled back a little.

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