This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
The UK’s UK 100 is in exactly the right conditions for short term trading with this week’s 210pt range giving clients opportunities to go both long and short the index. Equities too have had their moments – most notably UK Supermarket shares, having picked up the baton from a blacked-out US Fed which itself is currently silent ahead of next week’s FOMC meeting.
Suffice to say that, despite few stateside drivers, things are certainly hotting up out there and I’m not talking about the weather! To summarise this week’s market action, the UK 100 rose to a high of 6323 before selling off into the second half to trade around 6110 (at the time of writing). That’s a range of 210 tradable points. Such ‘risk-off’ behaviour is often seen towards the end of the week, especially when there’s something powerful prowling the markets! Last year we saw a host of Friday sell-offs with Grexit. This time it’s Brexit and now, as before, the conditions are especially suited to short term trading. When you can easily go short the market with a CFD, Friday afternoons have never looked so lucrative.
It’s been a big week for UK Supermarkets after some fighting talk from the CEO of Walmart, who promised he’d open up another front in the vicious price war being fought by the UK’s big 4 and the discounters. In reaction we saw Tesco (TSCO) announce the sale of two UK and international assets (to make some cash and refocus its business) and Sainsbury’s (SBRY) make a boardroom reshuffle. And Morrisons (MRW)? well, nothing yet from the best performer of the three year to date, but our clients will be some of the first to know when it too stands up to face down the amusingly named Walmart CEO Dave Cheesewright. Get up to speed on UK Supermarket shares in the latest report from our brilliant research team here, for nothing. It’s already got plenty of people talking – and trading.
But back to the subject in hand – Brexit. Being an avid F1 fan, I’m finding the swings in sentient reminiscent of my favourite racing duo Hamilton and Rosberg battling it out for supremacy on the track. Leave? Remain? Leave? Remain? This is surely set to ‘Remain’ the case right up until the vote on 23 June. But with the polls known for their striking ability to be completely wrong we could be in for a surprise.
Keep your eyes peeled – or let us do it for you. Our research team is highlighting opportunities as often as the UK public is changing its mind – and even has a few potentially ‘Brexit-proof’ stocks up its sleeve. You might catch the odd weekly gem amid the commentary right here on our blog. For a purified selection of opportunities, sign up to receive our daily research and trade ideas here. You could even win a Google Nexus Tablet.
Have a fantastic weekend, and we hope to see you soon.
Aymen Azizi, Trader (10 June)
This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.
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