8 Jan 2016

It’s been an exciting start to 2016 with major equity indices giving up most of their Christmas gains (UK Index -380pts, Dax -870pts, Wall street -1000pts) within just 4 days. However, on very little new in terms of market drivers. China is still slowing, commodity are still suffering from supply gluts, and geopolitical worries persist, etc. So where now? The charts show us back support for a third time in 6-months. And the last two occasions resulted in rallies of 7-10%. Could we see similar again? Or could we go lower as our analyst discusses below in his piece on Shorting.

Now while the UK Index ’s YTD performance of -4.2% is not unlike that for all of 2015, our latest report (click here for a copy) looks at how, despite certain shares being at levels not seen for years, if ever, not all shares had such a tough time last year. By virtue of its diversified make-up the index’s declines were in fact limited. Just because the UK Index fell 4.9% last year, does not mean all its components did the same. Some did a lot better while some did a whole lot worse. Did you know that 63% of UK Index stocks posted gains for 2015 and that 75% of components outperformed the index? Were you aware that the UK Index ’s 2015 declines can be attributed to just 20 stocks? See our report for who helped and who hindered and who might do the same this year. Whether you were in the right or the wrong sectors last year, what’s more important is your plan for 2016. And allow me to help you put plan and show you the benefits of working with Accendo Markets. You won’t be disappointed.

Best wishes for the New Year.

Joe Nguyen, Trader