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Thursday, 17 July 2014

140717 UPDATE: Intel & Abbot spikes

I observed yesterday that the EUR/USD, having taken a plunge, had levelled out. I, therefore, closed my trade, making funds available for an alternative punt. I placed a limited order to short the security again should it rise to $1.359. The following image, shows the position of the EUR/USD at this moment in time (15.45 GMT).

I have drawn trend-lines to indicate the level of the previous upswing suitable for a short punt and the slope along which a new upswing might develop. A horizontal line marks the $1.359 level. The prospect of it reaching that level is not immediate, but could happen before the end of the month. Perhaps the next slump in price will happen around the  time of the August meeting of the ECB.

I then, yesterday, considered some shares that were about to report. I observed that Abbot Laboratories were to report before opening this morning and might experience a spike in anticipation. However, the price was falling at the time of my observation - and time for the spike to begin to happen was running out - so I passed this opportunity. The following chart of Abbot (ABT) shows the missed opportunity.

The horizontal line shows the price level at the time of my observation.

I then passed on to consider Intel Corp, which was reporting after closing yesterday. It had already spiked by 7% and seemed to be levelling off. I took a punt on the price falling when the report issued. The following chart illustrates this punt.

The green line shows the level of my punt (that the price would fall). The price resumed its rise after my bet was placed. After results issued, the price began to fall. It remains to be seen whether it will fall far enough for me to make a profit. The red horizontal line shows the levl at which I have placed the order to close the trade.

The punt is based on my observation that companies that are doing well in the market place tend to have spikes in their share price just before results, whether annual or just quarterly, are issued. This gives two opportunities for a punt: one on the price rising and the second on the price falling.

By the way, where do I get my information as to which companies are about to report: Yahoo Finance/ Calendars 

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