It’s been an exciting week for traders of the UK 100 and its constituents. We revisited some key levels of both support and resistance, resulting in rallies and sell-offs and profitable momentum trades following breakouts and breakdowns. And the hope is that next week sees a revival of confidence inspired bullishness that sees the index shrug off a 3-week downtrend from 2016 highs to rally back north. Down around 6-week lows certain stocks are looking very attractively priced. Which brings me to your open positions…..

The market is awaiting its next driver. And we hope it will be a positive one next week. However, we may not have to wait until next week. Because this weekend (like last) sees China – the world’s #2 economy; the slower growing nation markets are fretting about; a significant market driver – publishing key economic data (Industrial Production, Retail Sales) that is almost certain to dictate market sentiment come Sunday night when Japan starts the new global trading week on. Because the data comes out on Saturday morning.  (last week it was Sunday morning).

If the prints beat consensus expectations markets could open higher, benefiting your positions. Stronger Industrial Production and Retail Sales growth would likely be interpreted as meaning more demand for raw materials which could deliver a Monday morning boost to your mining shares. If the data misses economist projections….well, you can guess what it might mean in terms of appetite for stocks and shares.

Did your broker not tell you about this weekend risk? He or she really should have. It’s really rather important. Once again, too many are too focused on the US economy, divergent central bank policy and finishing up the week rather than delivering the quality of trading service and information provision that you the trader deserve.

We highlighted to clients the weekend risk represented by this China data at 9.30am this morning. This gave them ample time to mull things over and decide whether to close existing positions and lock in profits in case the data disappoints. It also allowed them to add exposure if they felt optimistic about current growth trends in China helping engineer a market recovery from current lows next week.

Our clients are free to enjoy their weekend, safe in the knowledge they are not exposed to any nasty surprises come Monday morning. Which is the way it should be. Get access to our research now to sample the difference, and ensure you are properly informed for all your future trades.

Mike van Dulken, Head of Research, 13 May