Despite only being two weeks into the New Year, 2017 is already providing us with some sublime records and further key events that could move financial markets in a big way. In just a week the new US President will be inaugurated, while the all-important full year earnings season moves into full swing. Still to come this month we have Brexit announcement from UK PM Theresa May, while central banks in Europe and the US meet in just over a fortnight.

And these types of events aren’t set to be a rarity in the next 12 months.

Occurring on a monthly, if not weekly basis, major events such as these are the stuff of traders’ dreams, with potentially market moving impact coming in abundance over the next few weeks and months. Already in 2017 we’ve seen the UK 100  hit multiple all-time highs on its way to maintaining its longest winning streak and longest record of closing highs ever. Could this run be set to continue?

The current UK Index rally has seen movers from every sector climbing up the leaderboard day-in, day-out, whilst many have been on an upward trajectory for several months. We cannot predict exactly where the index will go next, however there’s always a trade available for an optimist.

A popular example of an optimist’s trade in the last few months is Barclays (BARC); the UK Banking stalwart saw its share price fall to 120p in the aftermath of the UK’s vote to leave the EU. This week we saw BARC’s share price hit a high of 240p – a 100% increase in only 6 months. Had you had the incredible foresight to forecast Barclay’s rally, a £5000 long position using a CFD could have yielded a £100,000 return. Not a bad pay cheque for 6 months’ work.

With the packed line up of events that 2017 is boasting, who’s to say that another UK 100  blue-chip can’t do the same?

On the other side of the coin, you may think that the incredible rally we’ve seen is coming to an end; a perfectly understandable view given the record rally we’re currently experiencing.

For example, the UK Index could fall by 500 points at some point in the near future. Going short on the index by opening a 10 contract position would cost £3500. Should the index fall to a level 500pts lower, to a ‘paltry’ 6800, you would be in a position to earn £50,000 as a result.  In the current investment climate, a move of that magnitude is not unheard of.

For example, it may be worth noting at this point that the UK Index was trading at 6800 points only one month ago. Of course, be mindful that the index could move in the other direction, which would incur losses of the same amount.

The number of events just over the horizon may be daunting for someone who is not a professional trader like myself, which is exactly the reason why we here at Accendo put out daily research publications in order to help you make sense of the markets. Even better, by opening an account you could have a trader like myself contacting you to inform you of any events that might affect your position as and when it happens.

Does this sound like something you could benefit from? Take the first step by signing up to our research here and see for yourself how Accendo Markets can help you trade in 2017.

Marc Kimsey, Senior Trader, 13 January