FTSE 100 short term forecast

 

Price £46 per month, click here to subscribe


Receive BUY and SELL signals on the FTSE 100 including price targets and stop losses. This service is best suited to those who want to create short term profits over a few days and don’t want to spend too much time watching the market. The FTSE short term forecast is also suited to those who are keen to learn Elliott wave analysis.

 

You will receive two reports each day:

 

1. (08:00) An analysis of the short term direction of the FTSE 100 cash and S&P 500 cash based on Elliott wave and e-Yield’s proprietary indicators, with comments, charts and levels to trade.

2. (18:00) Forecast report for next few days and next few weeks with the levels to trade including price target and stop loss (FTSE 100 Future).


Plus:

 

3. Daily trend reports on S&P 500 and EUR/USD (posted on the blog)

4. Access to Thierry's private blog (see Better Trader Premium)

5. Daily binary betting tips on the FTSE 100 are posted on the blog

6. Thierry's options trades on the FTSE 100 are posted on the blog


There are two components, the analysis and the levels to trade.

 

1. The analysis

 

The analysis is published in the morning report. Here is an example of information found in the FTSE short term forecast:

 

The FTSE Short Term Forecast gives traders an accurate forecast of the short term direction of the FTSE 100 and is written by Thierry Laduguie.

 

It's a fact that 90% of the most liquid stocks with follow the movements of the FTSE 100, so whether you trade the index or UK stocks, you must have a reliable forecasting tool in order to achieve long term success. The FTSE Short Term Forecast provides this. Each report contains unrivalled market timing analysis derived from a new and innovative strategy designed by Thierry Laduguie, who is an expert in market forecasting techniques.

 

The FTSE Short Term Forecast is published daily and discusses market action using Elliott wave analysis and some powerful indicators such as the BTI (Bullish Trend Indicator) and the Top 20 Differential indicator.

 

 

Indicator No 1 - Model portfolio exposure

If you manage a share portfolio this indicator tells you if you should be net long or net short.

 

Indicator No 2 - BTI

The Bullish Trend Indicator (BTI) is a sentiment indicator used to assess the mood of investors. When the daily change in BTI is up, sentiment is bullish and when it is down sentiment is bearish. This unique indicator tells us whether investors are bullish or bearish at a specific time, regardless of the state of the fundamental news. This is very important because when investors are in a bullish mood there is a high probability that the market will rise.The BTI is used to assess the near term direction of the market and confirms the Elliott wave count.

 

Indicator No 3 - 34-day BTI

This indicator warns of large moves up or down. When this indicator is oversold (below -400) we expect a multi-week rally in the FTSE 100. When overbought (above 400) we expect a multi-week decline. We also use this indicator to confirm the BTI, for example when both the BTI and the 34-day BTI rise at the same time, sentiment is bullish. When they both decline sentiment is bearish.

 

Indicator No 4 - 13-day BTI

The 13-day BTI is used to identify intermediate FTSE tops/bottoms. When the 13-day BTI is overbought the FTSE is near a top and ready to pull back. When the 13-day BTI is oversold the FTSE is near a bottom and ready to rally. These moves are short term moves lasting a few days or a week.

 

Indicator No 5 - Top 20 Differential

The Top 20 Differential indicator detects short term overbought/oversold levels in the market. This indicator tells us when the market has reached a temporary support or resistance level. This valuable indicator enables investors to take profits at the right time just as the market is about to change direction. Similar to the 13-day BTI.

 

FTSE Short Term Forecast Guidelines

 

The FTSE short term forecast is based on three analytical tools: Elliott Wave Principle, Bullish Trend Indicator (BTI) and Top 20 Differential.

 

The Elliott Wave Principle is a detailed description of how groups of people behave.

It reveals that mass psychology swings from pessimism to optimism and back in a natural sequence, creating specific and measurable patterns. One of the easiest places to see this phenomenon at work is in the financial markets, where changing investor psychology is recorded in the form of price movements. If you can identify repeating patterns in prices, and figure out where in those repeating patterns we are today, then you can predict where we are going in the future.

 

There are two types of indicators, directional and timing indicators.

 

The BTI is a directional indicator. It gives investors the direction of the FTSE 100. When the BTI is up the near term trend is up. When the BTI is down, the near term trend is down. We trade in the direction of the BTI and in general the near term trend is confirmed by the Elliott wave count.

 

34-day BTI, 13-day BTI and Top 20 Differential are timing indicators. They tell investors when to buy and when to sell. If you are looking to hold the positions for more tha two weeks use the 34-day BTI. If you are looking to hold the position for a few days use the 13-day BTI or Top 20 Differential.


Each FTSE short term forecast report clearly states whether the BTI is up or down, and whether the 34-day BTI, 13-day BTI and Top 20 Differential are overbought or oversold.

 

How to trade the FTSE short term forecast

 

- Trade in the direction given by the Elliott wave and the directional indicator [BTI]. In addition the FTSE forecast must be confirmed by the S&P forecast, both charts must point in the same direction.
- Buy on pull backs when the BTI is rising, sell on rallies when the BTI is declining.
- Strong buy when the timing indicator [13-day BTI or Top 20 Differential] is oversold
- Strong sell when the timing indicator is overbought.

 

Finally, and most importantly, each report tells you whether your portfolio should be net long, neutral or net short, based on our own indicators.

 

If you use the report to manage a share portfolio

 

The important indicator is to look at is No 1 - Model portfolio exposure

This indicator tells you if your portfolio should be long, neutral or short, based on e-Yield indicators.

Calculate your percentage exposure from the stocks in your portfolio.

This percentage should match the Model portfolio exposure % published in the FTSE short term forecast.

If it does not, adjust your exposure by buying or selling some FTSE 100 contracts (spread bet, CFD or futures).

For example if your share portfolio is 60% short and the Model portfolio exposure % published in the FTSE short term forecast is 0% you should buy some FTSE 100 to bring the exposure to 0%.

 

2. The levels to trade

 

They are published in the evening report (FTSE 100 Forecast). The signal is published at the top of page 2 in the section "Trade alert".

 


Disclaimer

e-Yield and the author of the research do not make any personal recommendations. The information is provided solely to enable investors to make their own investment decisions and does not constitute a recommendation to buy, sell or otherwise deal in investments. If you have any doubts, you should seek advice from an independent financial adviser.

Financial trading and spread betting carry a high level of risk to your capital, and are not suitable for all investors. Only speculate with money you can afford to lose. Please ensure you fully understand the risks, and seek independent advice if necessary.

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